NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

Rhea-AI Summary

NVR (NYSE:NVR) reported Q1 2026 net income $198.4M or $67.76 diluted EPS, down 34% and 29% versus Q1 2025. Consolidated revenue was $1.88B, down 22% year-over-year. Homebuilding revenues fell 22% to $1.83B; mortgage banking income declined to $27.1M.

New orders rose 7% to 5,738 units; settlements declined 22% to 4,015 units. Backlog units were 10,171, while backlog dollar value declined 3% to $4.70B.

Positive

• New orders +7% to 5,738 units
• Backlog units stable at 10,171
• Effective tax rate lowered to 21.2%

Negative

• Net income -34% to $198.4M
• Consolidated revenue -22% to $1.88B
• Homebuilding gross margin down to 19.6%
• Settlements -22% to 4,015 units
• Mortgage closed loan production -27% to $1.05B

News Market Reaction – NVR

-4.80%

6 alerts

-4.80% News Effect

-2.2% Trough in 33 min

-$918M Valuation Impact

$18.21B Market Cap

0.2x Rel. Volume

On the day this news was published, NVR declined 4.80%, reflecting a moderate negative market reaction. Argus tracked a trough of -2.2% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $918M from the company's valuation, bringing the market cap to $18.21B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 revenue: $1.88B Q1 2026 net income: $198.4M Diluted EPS Q1 2026: $67.76 +5 more

8 metrics

Q1 2026 revenue $1.88B Consolidated revenues, Q1 2026 vs $2.40B in Q1 2025

Q1 2026 net income $198.4M Down from $299.6M in Q1 2025 (‑34%)

Diluted EPS Q1 2026 $67.76 Down 29% from $94.83 in Q1 2025

New orders 5,738 units Q1 2026 homebuilding new orders, up 7% vs 5,345 in Q1 2025

Cancellation rate 14% Q1 2026 new order cancellation rate vs 16% in Q1 2025

Homebuilding gross margin 19.6% Q1 2026 vs 21.9% in Q1 2025, impacted by pricing and lot costs

Mortgage loan production $1.05B Mortgage closed loan production Q1 2026, down 27% year over year

Effective tax rate 21.2% Q1 2026 vs 25.5% in Q1 2025, helped by $12.6M stock-option tax benefit

Market Reality Check

Price: $6315.87 Vol: Volume 29,167 is 27% abov...

normal vol

$6315.87 Last Close

Volume Volume 29,167 is 27% above the 20-day average of 22,898 shares. normal

Technical Trading below 200-day MA of 7,518.97 at a pre-news price of 6,933.50.

Peers on Argus

NVR was down 2.3% pre-release, while key homebuilder peers PHM, LEN, TOL, DHI an...

NVR was down 2.3% pre-release, while key homebuilder peers PHM, LEN, TOL, DHI and TMHC were also lower by about 2.3–3.5%, indicating broad homebuilder pressure consistent with NVR’s softer Q1 results.

Common Catalyst Homebuilder earnings season, with at least one peer (TMHC) also reporting quarterly results today.

Previous Earnings Reports

5 past events · Latest: Oct 22 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 22	Q3 2025 earnings	Negative	-1.2%	Net income, orders, backlog and gross margin all declined versus Q3 2024.
Jul 23	Q2 2025 earnings	Negative	-0.1%	Net income, orders and margins fell; cancellations increased despite flat revenue.
Apr 22	Q1 2025 earnings	Negative	+0.5%	Revenue rose but profit, margins, orders and backlog weakened; stock rose modestly.
Oct 22	Q3 2024 earnings	Neutral	-2.3%	Revenue and orders grew but margins slipped slightly and net income dipped 1%.
Jul 23	Q2 2024 earnings	Positive	-0.5%	Revenue, EPS and backlog increased, yet shares traded slightly lower afterward.

Pattern Detected

Earnings releases have generally shown margin compression and softer demand, with modest average stock moves around -0.72% and a mix of aligned and divergent reactions.

Recent Company History

Over the past two years, NVR’s earnings reports have shifted from growth in 2024 to broad-based slowdowns in 2025. Multiple quarters showed declining net income, softer new orders, higher cancellation rates and lower gross margins, often tied to higher lot costs and pricing pressure. Backlog and mortgage banking income have also come under pressure. Today’s Q1 2026 results continue this pattern, with lower revenue, earnings and margins but improving order trends and cancellation rates versus prior-year periods.

Historical Comparison

-0.7% avg move · In the past 5 earnings releases, NVR’s average next-day move was about -0.72%, with recurring margin...

earnings

-0.7%

Average Historical Move earnings

In the past 5 earnings releases, NVR’s average next-day move was about -0.72%, with recurring margin pressure and demand softness similar to this Q1 2026 report.

Results show a progression from growth in 2024 to 2025 declines in net income, tighter margins, weaker orders and backlog, with management previously signaling that 2026’s first half would reflect further revenue and margin pressure.

Market Pulse Summary

This announcement highlights ongoing pressure on NVR’s profitability, with Q1 2026 revenue at $1.88B...

Analysis

This announcement highlights ongoing pressure on NVR’s profitability, with Q1 2026 revenue at $1.88B, net income of $198.4M, and homebuilding gross margin reduced to 19.6%. At the same time, new orders grew to 5,738 units and the cancellation rate improved to 14%. Historically, earnings releases have featured similar margin and demand dynamics. Investors may monitor order trends, backlog value, mortgage loan production and any continued insider selling to gauge the trajectory through 2026.

Key Terms

forward-looking statements, operating lease right-of-use assets, mortgage loans held for sale, capture rate

4 terms

forward-looking statements regulatory

"Some of the statements in this release made by the Company constitute "forward-looking statements"..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

operating lease right-of-use assets technical

"Operating lease right-of-use assets | | 108,985 | | 110,535"

An operating lease right-of-use (ROU) asset is an accounting entry that shows the value of a leased item you have the legal right to use—like a building, vehicle, or equipment—recorded on a company’s balance sheet along with the corresponding lease obligation. Investors care because it adds to reported assets and liabilities, changing measures like leverage and return on assets much like bringing a long-term rental onto the company’s financial snapshot, which can affect credit terms and valuation.

mortgage loans held for sale financial

"Mortgage loans held for sale, net | | 287,475 | | 571,596"

Mortgage loans held for sale are home loans a lender has originated but plans to sell to another investor or institution instead of keeping on its books, recorded as inventory awaiting sale—like goods on a store shelf waiting for a buyer. For investors, the amount and valuation of these loans signal a lender’s recent lending activity, near-term cash flow and revenue opportunities, and exposure to changes in interest rates or housing demand that can affect profitability.

capture rate financial

"Capture rate | | 83 % | | 86 %"

Capture rate is the percentage of an available group that a product, service or clinical procedure actually reaches or successfully treats; for example, the share of eligible patients who receive a therapy or the share of potential customers who adopt an offering. Investors care because a higher capture rate means faster growth and stronger revenue potential—like picking more apples from the same orchard, it shows how well a company converts opportunity into sales or clinical impact.

AI-generated analysis. Not financial advice.

RESTON, Va., April 22, 2026 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2026 of $198.4 million, or $67.76 per diluted share.  Net income and diluted earnings per share for the first quarter ended March 31, 2026 decreased 34% and 29%, respectively, when compared to 2025 first quarter net income of $299.6 million, or $94.83 per diluted share.  Consolidated revenues for the first quarter of 2026 totaled $1.88 billion, which decreased 22% from $2.40 billion in the first quarter of 2025. 

Homebuilding

New orders in the first quarter of 2026 increased by 7% to 5,738 units, when compared to 5,345 units in the first quarter of 2025. The average sales price of new orders in the first quarter of 2026 was $440,100, a decrease of 2% when compared with the first quarter of 2025.  The cancellation rate in the first quarter of 2026 was 14% compared to 16% in the first quarter of 2025.  Settlements in the first quarter of 2026 decreased by 22% to 4,015 units, compared to 5,133 units in the first quarter of 2025. The decrease in settlements was primarily attributable to a 15% lower backlog balance of homes sold but not settled entering the first quarter of 2026 compared to the same period in 2025. The average settlement price in the first quarter of 2026 was $457,000, which remained relatively flat when compared to the first quarter of 2025. As of March 31, 2026 our backlog of homes totaled 10,171 units, which was flat compared to March 31, 2025, while the dollar value of backlog declined 3% to $4.70 billion.

Homebuilding revenues of $1.83 billion in the first quarter of 2026 decreased by 22% compared to homebuilding revenues of $2.35 billion in the first quarter of 2025.  Gross profit margin in the first quarter of 2026 decreased to 19.6%, compared to 21.9% in the first quarter of 2025.  Gross profit margin was negatively impacted by continued pricing pressure and higher lot costs. Income before tax from the homebuilding segment totaled $224.6 million in the first quarter of 2026, a decrease of 39% when compared to the first quarter of 2025.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2026 totaled $1.05 billion, a decrease of 27% when compared to the first quarter of 2025.  Income before tax from the mortgage banking segment totaled $27.1 million in the first quarter of 2026, a decrease of 17% when compared to $32.5 million in the first quarter of 2025. 

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2026 was 21.2% compared to 25.5% for the three months ended March 31, 2025.  The decrease in the effective tax rate in the first quarter of 2026 was primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $12.6 million and $2.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

About NVR

NVR, Inc. operates in two business segments:  homebuilding and mortgage banking.  The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.

Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology.  All statements other than of historical facts are forward-looking statements.  Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.  Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control.  NVR undertakes no obligation to update such forward-looking statements except as required by law.

NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited)
		Three Months Ended March 31,
		2026		2025
Homebuilding:
Revenues		1,834,879		$       2,350,445
Other income		28,049		26,712
Cost of sales		(1,474,539)		(1,835,375)
Selling, general and administrative		(156,971)		(165,117)
Interest expense		(6,854)		(7,181)
Homebuilding income		224,564		369,484
Mortgage Banking:
Mortgage banking fees		46,184		52,587
Interest income		3,629		3,806
Other income		777		1,093
General and administrative		(23,127)		(24,693)
Interest expense		(333)		(273)
Mortgage banking income		27,130		32,520
Income before taxes		251,694		402,004
Income tax expense		(53,335)		(102,428)
Net income		$         198,359		$         299,576
Basic earnings per share		$            71.33		$          100.41
Diluted earnings per share		$            67.76		$            94.83
Basic weighted average shares outstanding		2,781		2,984
Diluted weighted average shares outstanding		2,928		3,159

 

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
		March 31, 2026		December 31, 2025
ASSETS
Homebuilding:
Cash and cash equivalents		$         1,645,786		$         1,883,844
Restricted cash		40,606		34,348
Receivables		35,423		32,742
Inventory:
Lots and housing units, covered under sales agreements with customers		1,652,220		1,410,695
Unsold lots and housing units		244,499		252,029
Land under development		19,433		39,312
Building materials and other		22,358		21,524
		1,938,510		1,723,560
Contract land deposits, net		938,981		851,458
Property, plant and equipment, net		100,899		103,770
Operating lease right-of-use assets		108,985		110,535
Other assets		335,331		349,306
		5,144,521		5,089,563
Mortgage Banking:
Cash and cash equivalents		36,281		32,642
Restricted cash		7,014		6,047
Mortgage loans held for sale, net		287,475		571,596
Property and equipment, net		7,892		7,727
Operating lease right-of-use assets		23,035		23,953
Other assets		79,560		125,402
		441,257		767,367
Total assets		$         5,585,778		$         5,856,930

 

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
		March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable		$           332,321		$           259,244
Accrued expenses and other liabilities		374,987		376,976
Customer deposits		273,422		249,210
Operating lease liabilities		116,040		117,589
Senior notes		908,662		909,160
		2,005,432		1,912,179
Mortgage Banking:
Accounts payable and other liabilities		61,162		53,738
Operating lease liabilities		25,150		26,144
		86,312		79,882
Total liabilities		2,091,744		1,992,061
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2026 and December 31, 2025		206		206
Additional paid-in capital		3,202,642		3,155,367
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both March 31, 2026 and December 31, 2025		(16,710)		(16,710)
Deferred compensation liability		16,710		16,710
Retained earnings		16,585,128		16,386,769
Less treasury stock at cost – 17,823,503 and 17,755,943 shares as of March 31, 2026 and December 31, 2025, respectively		(16,293,942)		(15,677,473)
Total shareholders' equity		3,494,034		3,864,869
Total liabilities and shareholders' equity		$         5,585,778		$         5,856,930

 

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
		Three Months Ended March 31,
		2026				2025
		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic (1)		1,917		$     499.3		1,866		$     514.5
North East (2)		469		$     612.0		377		$     695.0
Mid East (3)		1,183		$     425.3		1,098		$     419.9
South East (4)		2,169		$     358.8		2,004		$     356.3
Total		5,738		$     440.1		5,345		$     448.5
		Three Months Ended March 31,
		2026				2025
		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic (1)		1,418		$     520.4		2,050		$     527.9
North East (2)		366		$     657.1		471		$     613.2
Mid East (3)		722		$     430.0		1,013		$     407.1
South East (4)		1,509		$     361.7		1,599		$     354.6
Total		4,015		$     457.0		5,133		$     457.9

 

		As of March 31,
		2026				2025
		Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic (1)		3,659		$     515.7		3,884		$     535.7
North East (2)		1,076		$     625.6		961		$     694.4
Mid East (3)		2,094		$     431.4		2,130		$     422.6
South East (4)		3,342		$     369.6		3,190		$     372.9
Total		10,171		$     462.0		10,165		$     475.9

 

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
		Three Months Ended March 31,
		2026		2025
Average active communities:
Mid Atlantic (1)		124		120
North East (2)		31		24
Mid East (3)		99		93
South East (4)		178		164
Total		432		401
		Three Months Ended March 31,
		2026		2025
Homebuilding data:
New order cancellation rate		14 %		16 %
Lots controlled at end of period		181,700		167,600
Mortgage banking data:
Loan closings		$      1,052,984		$      1,432,922
Capture rate		83 %		86 %
Common stock information:
Shares outstanding at end of period		2,731,827		2,944,615
Number of shares repurchased		90,180		77,120
Aggregate cost of shares repurchased		$        631,956		$        583,394

(1)	Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2)	New Jersey and Eastern Pennsylvania
(3)	New York, Ohio, Western Pennsylvania, Indiana and Illinois
(4)	North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

 

View original content:https://www.prnewswire.com/news-releases/nvr-inc-announces-first-quarter-results-302749387.html

SOURCE NVR, INC.

FAQ

What were NVR (NVR) Q1 2026 earnings and EPS on April 22, 2026?

NVR reported Q1 2026 net income of $198.4M and $67.76 diluted EPS. According to the company, results declined versus Q1 2025, when net income was $299.6M and diluted EPS was $94.83.

How did NVR's (NVR) revenue perform in Q1 2026 compared to Q1 2025?

Consolidated revenue for Q1 2026 was $1.88B, a 22% decrease year-over-year. According to the company, homebuilding revenue drove the decline, falling to $1.83B from $2.35B.

What change occurred in NVR (NVR) new orders and settlements in Q1 2026?

New orders rose 7% to 5,738 units, while settlements fell 22% to 4,015 units. According to the company, lower beginning backlog contributed to fewer settlements.

What was NVR's (NVR) homebuilding gross margin and main drivers in Q1 2026?

Homebuilding gross margin declined to 19.6% in Q1 2026 from 21.9% a year earlier. According to the company, pricing pressure and higher lot costs negatively impacted margins.

How did NVR's (NVR) mortgage banking business perform in Q1 2026?

Mortgage banking income was $27.1M and closed loan production was about $1.05B, both down versus last year. According to the company, production decreased 27% year-over-year.

What is NVR's (NVR) backlog status as of March 31, 2026?

As of March 31, 2026 backlog totaled 10,171 units with a dollar value of about $4.70B. According to the company, backlog units were flat year-over-year while backlog value declined 3%.