NVR, INC. ANNOUNCES THIRD QUARTER RESULTS

Backlog increased despite fewer quarterly orders, while homebuilding margins narrowed and mortgage banking pretax income rose.

Rhea-AI Summary

NVR (NYSE: NVR) reported third-quarter net income of $248.6 million, down 27% from the same period in 2025. Diluted earnings per share fell 20% to $89.45, while consolidated revenue declined to $2.40 billion from $2.61 billion. Homebuilding revenue fell 8% to $2.35 billion, and gross margin narrowed to 18.3% from 21.0%, including approximately $24.8 million in contract land deposit impairments.

New orders fell 7% to 4,391 homes, with average order prices down 5% and cancellations rising to 21% from 19%. Settlements declined 7% to 5,268 homes. At September 30, backlog rose 10% to 10,121 homes and 4% to $4.59 billion. Mortgage banking pretax income increased 7% to $35.0 million despite lower loan production. For the first nine months of 2026, revenue fell 13% to $6.61 billion, net income declined 30% to $683.4 million, and diluted earnings per share decreased 24% to $240.54.

6 points · 0 major

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0 major · 25 points

How the balance works

Positive

• Moderate pointBacklog volume increased 10% to 10,121 homes at September 30, 2026, versus September 30, 2025.
• Moderate pointBacklog value increased 4% to $4.59 billion at September 30, 2026, versus September 30, 2025.
• Minor pointThird-quarter mortgage banking pretax income rose 7% to $35.0 million year over year.
• Minor pointNine-month net orders increased to 16,014 homes from 15,459 in the same period of 2025.
• Minor pointHomebuilding selling, general and administrative expenses fell to $135.017 million from $142.736 million in the third quarter.
• Minor pointNine-month homebuilding selling, general and administrative expenses fell to $442.709 million from $457.023 million.

Negative

• Moderate pointThird-quarter net income fell 27% to $248.6 million year over year.
• Moderate pointThird-quarter consolidated revenue fell to $2.40 billion from $2.61 billion in 2025.
• Moderate pointThird-quarter homebuilding gross margin narrowed to 18.3% from 21.0% in 2025.
• Moderate pointThird-quarter homebuilding pretax income decreased 27% to $299.7 million year over year.
• Moderate pointThird-quarter new orders declined 7% to 4,391 homes year over year.
• Moderate pointThird-quarter cancellation rate increased to 21% from 19% in 2025.
• Moderate pointThird-quarter settlements decreased 7% to 5,268 homes year over year.
• Moderate pointHomebuilding cash and equivalents fell to $1,091.315 million from $1,883.844 million at December 31, 2025.

17 minor points

• Minor pointThird-quarter diluted earnings per share declined 20% to $89.45 year over year.
• Minor pointThird-quarter homebuilding revenue decreased 8% to $2.35 billion year over year.
• Minor pointContract land deposit impairments totaled approximately $24.8 million in the third quarter.
• Minor pointThird-quarter average new-order price fell 5% to $442,100 year over year.
• Minor pointThird-quarter average settlement price declined 2% to $445,900 year over year.
• Minor pointThird-quarter mortgage closed loan production decreased 10% to $1.38 billion year over year.
• Minor pointNine-month consolidated revenue declined 13% to $6.61 billion year over year.
• Minor pointNine-month net income decreased 30% to $683.4 million year over year.
• Minor pointNine-month diluted earnings per share fell 24% to $240.54 year over year.
• Minor pointNine-month homebuilding pretax income fell to $817.510 million from $1,198.355 million in 2025.
• Minor pointNine-month mortgage banking pretax income declined to $87.513 million from $94.855 million in 2025.
• Minor pointNine-month average new-order price declined to $439,600 from $456,800 in 2025.
• Minor pointNine-month settlements fell to 14,341 homes from 16,247 in 2025.
• Minor pointNine-month average settlement price fell to $450,700 from $459,100 in 2025.
• Minor pointAverage backlog price declined to $453,000 at September 30, 2026, from $479,500 a year earlier.
• Minor pointTotal liabilities increased to $2,130.957 million from $1,992.061 million at December 31, 2025.
• Minor pointShareholders' equity declined to $3,434.993 million from $3,864.869 million at December 31, 2025.

News Explained

The third-quarter balance sheet shows NVR's issued common-share count unchanged at 20,555,330 between December 31, 2025 and September 30, 2026; treasury shares are listed separately at 17,755,943 and 17,911,054, respectively.

Key Figures

Net income: $248.6 million; down 27% Diluted earnings per share: $89.45; down 20% Consolidated revenue: $2.40 billion vs. $2.61 billion +5 more

Net income

$248.6 million; down 27%

Third quarter 2026 vs. third quarter 2025

Diluted earnings per share

$89.45; down 20%

Third quarter 2026 vs. third quarter 2025

Consolidated revenue

$2.40 billion vs. $2.61 billion

Third quarter 2026 vs. third quarter 2025

New orders

4,391 units; down 7%

Third quarter 2026 vs. third quarter 2025

Cancellation rate

21% vs. 19%

Third quarter 2026 vs. third quarter 2025

Backlog units

10,121 units; up 10%

As of September 30, 2026 vs. September 30, 2025

Backlog value

$4.59 billion; up 4%

As of September 30, 2026 vs. September 30, 2025

Gross profit margin

18.3% vs. 21.0%

Third quarter 2026 vs. third quarter 2025

Previous Earnings Reports

2 past events · Latest: Jul 23

Same Type 2 events

1. Jul 23

   Earnings report

   24h Move

   -3.1%

   Q2 2026 net income and diluted EPS declined year over year

2. Oct 22

   Earnings report

   24h Move

   -1.2%

   Q3 2025 results provide the year-over-year comparison baseline for this report

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

diluted earnings per share, forward-looking statements

2 terms

diluted earnings per share financial

"net income for its third quarter ended September 30, 2026 of $248.6 million, or $89.45 per diluted share"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RESTON, Va., Oct. 22, 2026 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2026 of $248.6 million, or $89.45 per diluted share.  For the third quarter ended September 30, 2026, net income and diluted earnings per share decreased 27% and 20%, respectively, when compared to 2025 third quarter net income of $342.7 million, or $112.33 per diluted share.  Consolidated revenues for the third quarter of 2026 totaled $2.40 billion, compared to $2.61 billion in the third quarter of 2025. 

For the nine months ended September 30, 2026, consolidated revenues were $6.61 billion, a 13% decrease from $7.61 billion reported for the same period of 2025. Net income for the nine months ended September 30, 2026 was $683.4 million, a decrease of 30% when compared to net income for the nine months ended September 30, 2025 of $976.0 million. Diluted earnings per share for the nine months ended September 30, 2026 was $240.54, a decrease of 24% from $315.33 per diluted share for the same period of 2025.

Homebuilding

New orders in the third quarter of 2026 decreased by 7% to 4,391 units, when compared to 4,735 units in the third quarter of 2025. The average sales price of new orders in the third quarter of 2026 was $442,100, a decrease of 5% when compared to the third quarter of 2025.  The cancellation rate in the third quarter of 2026 was 21% compared to 19% in the third quarter of 2025.  Settlements in the third quarter of 2026 decreased by 7% to 5,268 units, compared to 5,639 units in the third quarter of 2025. The average settlement price in the third quarter of 2026 was $445,900, a decrease of 2% when compared to the third quarter of 2025. Our backlog of homes sold but not settled as of September 30, 2026 increased on a unit basis by 10% to 10,121 units and increased on a dollar basis by 4% to $4.59 billion when compared to the respective backlog unit and dollar balances as of September 30, 2025.

Homebuilding revenues of $2.35 billion in the third quarter of 2026 decreased by 8% compared to homebuilding revenues of $2.56 billion in the third quarter of 2025. Gross profit margin in the third quarter of 2026 decreased to 18.3%, from 21.0% in the third quarter of 2025.  Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $24.8 million. Income before tax from the homebuilding segment totaled $299.7 million in the third quarter of 2026, a decrease of 27% when compared to the third quarter of 2025.

Mortgage Banking

Mortgage closed loan production in the third quarter of 2026 totaled $1.38 billion, a decrease of 10% when compared to the third quarter of 2025. Income before tax from the mortgage banking segment totaled $35.0 million in the third quarter of 2026, an increase of 7% when compared to $32.7 million in the third quarter of 2025.

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 September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
Homebuilding:
Revenues		$      2,349,284		$      2,560,343		$      6,463,934		$      7,459,055
Other income		12,209		22,000		52,353		73,800
Cost of sales		(1,920,068)		(2,021,398)		(5,235,824)		(5,856,756)
Selling, general and administrative		(135,017)		(142,736)		(442,709)		(457,023)
Interest expense		(6,692)		(6,855)		(20,244)		(20,721)
Homebuilding income		299,716		411,354		817,510		1,198,355
Mortgage Banking:
Mortgage banking fees		53,146		49,162		145,915		152,296
Interest income		4,293		4,881		11,905		13,180
Other income		1,271		1,400		3,340		3,794
General and administrative		(23,470)		(22,397)		(72,750)		(73,515)
Interest expense		(268)		(327)		(897)		(900)
Mortgage banking income		34,972		32,719		87,513		94,855
Income before taxes		334,688		444,073		905,023		1,293,210
Income tax expense		(86,083)		(101,385)		(221,601)		(317,209)
Net income		$        248,605		$        342,688		$        683,422		$        976,001
Basic earnings per share		$           93.49		$          119.26		$          251.99		$          333.86
Diluted earnings per share		$           89.45		$          112.33		$          240.54		$          315.33
Basic weighted average shares outstanding		2,659		2,874		2,712		2,923
Diluted weighted average shares outstanding		2,779		3,051		2,841		3,095

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
		September 30, 2026		December 31, 2025
ASSETS
Homebuilding:
Cash and cash equivalents		$         1,091,315		$         1,883,844
Restricted cash		37,549		34,348
Receivables		54,560		32,742
Inventory:
Lots and housing units, covered under sales agreements with customers		1,941,337		1,410,695
Unsold lots and housing units		384,837		252,029
Land under development		21,792		39,312
Building materials and other		24,821		21,524
		2,372,787		1,723,560
Contract land deposits, net		916,747		851,458
Property, plant and equipment, net		109,860		103,770
Operating lease right-of-use assets		120,701		110,535
Other assets		359,355		349,306
		5,062,874		5,089,563
Mortgage Banking:
Cash and cash equivalents		34,071		32,642
Restricted cash		6,596		6,047
Mortgage loans held for sale, net		346,874		571,596
Property and equipment, net		7,256		7,727
Operating lease right-of-use assets		21,741		23,953
Other assets		86,538		125,402
		503,076		767,367
Total assets		$         5,565,950		$         5,856,930

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
		September 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable		$           365,207		$           259,244
Accrued expenses and other liabilities		306,013		376,976
Customer deposits		285,364		249,210
Operating lease liabilities		136,289		117,589
Senior notes		907,659		909,160
		2,000,532		1,912,179
Mortgage Banking:
Accounts payable and other liabilities		106,690		53,738
Operating lease liabilities		23,735		26,144
		130,425		79,882
Total liabilities		2,130,957		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 September 30, 2026 and December 31, 2025		206		206
Additional paid-in capital		3,255,240		3,155,367
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2026 and December 31, 2025		(16,710)		(16,710)
Deferred compensation liability		16,710		16,710
Retained earnings		17,070,191		16,386,769
Less treasury stock at cost – 17,911,054 and 17,755,943 shares as of September 30, 2026 and December 31, 2025, respectively		(16,890,644)		(15,677,473)
Total shareholders' equity		3,434,993		3,864,869
Total liabilities and shareholders' equity		$         5,565,950		$         5,856,930

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic (1)		1,641		$     499.0		1,714		$     529.7		5,639		$     499.1		5,510		$     525.1
North East (2)		232		$     733.2		433		$     647.1		1,091		$     647.5		1,234		$     664.6
Mid East (3)		891		$     417.7		931		$     431.9		3,260		$     421.0		3,101		$     425.0
South East (4)		1,627		$     356.7		1,657		$     368.6		6,024		$     356.2		5,614		$     361.8
Total		4,391		$     442.1		4,735		$     464.8		16,014		$     439.6		15,459		$     456.8
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic (1)		1,786		$     501.4		2,008		$     517.9		4,925		$     510.2		6,159		$     527.8
North East (2)		477		$     603.7		420		$     694.6		1,295		$     624.9		1,365		$     651.7
Mid East (3)		1,090		$     432.5		1,200		$     423.8		2,868		$     430.7		3,295		$     416.1
South East (4)		1,915		$     362.6		2,011		$     357.9		5,253		$     362.9		5,428		$     358.8
Total		5,268		$     445.9		5,639		$     454.0		14,341		$     450.7		16,247		$     459.1

		As of September 30,
		2026				2025
		Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic (1)		3,874		$     508.6		3,419		$     539.7
North East (2)		769		$     681.3		924		$     676.0
Mid East (3)		2,025		$     419.1		1,851		$     431.3
South East (4)		3,453		$     359.7		2,971		$     379.1
Total		10,121		$     453.0		9,165		$     479.5

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
Average active communities:
Mid Atlantic (1)		147		125		135		122
North East (2)		26		34		28		28
Mid East (3)		96		100		97		96
South East (4)		185		191		183		180
Total		454		450		443		426
		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
Homebuilding data:
New order cancellation rate		21.0 %		19.4 %		16.3 %		17.1 %
Lots controlled at end of period						185,300		175,300
Mortgage banking data:
Loan closings		$      1,381,742		$      1,539,781		$    3,789,439		$    4,527,982
Capture rate		85 %		86 %		85 %		86 %
Common stock information:
Shares outstanding at end of period						2,644,276		2,860,899
Number of shares repurchased		37,088		35,224		181,984		178,178
Aggregate cost of shares repurchased		$        237,218		$        276,405		$    1,226,951		$    1,331,212

(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-third-quarter-results-302916028.html

SOURCE NVR, INC.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were NVR's third-quarter 2026 earnings and revenue?

NVR earned $248.6 million, or $89.45 per diluted share, on consolidated revenue of $2.40 billion. Net income declined 27% and diluted earnings per share decreased 20% compared with the third quarter of 2025, when consolidated revenue was $2.61 billion.

How did NVR's homebuilding backlog change at September 30, 2026?

NVR's backlog of homes sold but not settled increased 10% to 10,121 homes and 4% to $4.59 billion compared with September 30, 2025. The average backlog price was $453,000, compared with $479,500 a year earlier.

Why did NVR's third-quarter 2026 homebuilding gross margin decline?

NVR attributed the margin decline to higher lot costs, pricing pressure from continued affordability challenges and weak consumer sentiment, and contract land deposit impairments of approximately $24.8 million. Homebuilding gross margin declined to 18.3% from 21.0% in the third quarter of 2025.