Jan 28 (Reuters) - NVR NVR.N reported a fall in fourth-quarter profit on Wednesday, as rising costs and incentives for buyers struggling with high interest rates weighed on the homebuilder's margins.

Persistent inflation and U.S. President Donald Trump's tariffs on key construction raw materials have increased input costs for American homebuilders, while weak consumer sentiment has prompted them to build smaller, more affordable homes and offer incentives, including mortgage rate buydowns.

Higher lot costs, pricing pressure and contract land deposit impairments cut into gross profit margin during the quarter, NVR said.

The company reported a fourth-quarter profit of $121.54 per share, compared with $139.93 per share a year ago.

Its quarterly consolidated revenue stood at $2.71 billion, compared with $2.85 billion a year earlier.

Meanwhile, new orders fell 10% to 20,410 units in 2025, compared with 22,560 units the previous year.

(Reporting by Parth Chandna; Editing by Jonathan Ananda)

((Parth.Chandna@thomsonreuters.com;))