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NVR (NYSE: NVR) Q1 2026 earnings: net income down 34% on softer margins

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

NVR, Inc. reported weaker results for the first quarter ended March 31, 2026. Net income was $198.4 million, or $67.76 per diluted share, down 34% and 29%, respectively, from $299.6 million and $94.83 a year earlier. Consolidated revenues fell 22% to $1.88 billion from $2.40 billion.

Homebuilding revenue declined 22% to $1.83 billion, with gross margin compressing to 19.6% from 21.9% due to pricing pressure and higher lot costs. New orders increased 7% to 5,738 units and the cancellation rate improved to 14% from 16%, but settlements dropped 22% to 4,015 units. Backlog was 10,171 homes, roughly flat year over year with a 3% lower dollar value of $4.70 billion.

Mortgage banking income before tax was $27.1 million, down 17% as closed loan production declined 27% to $1.05 billion. NVR’s effective tax rate improved to 21.2% from 25.5%, helped by $12.6 million of excess tax benefits from stock option exercises.

Positive

  • None.

Negative

  • Profitability and revenue declined sharply, with Q1 2026 net income down 34%, diluted EPS down 29%, and consolidated revenue down 22% versus the prior-year quarter.

Insights

NVR’s Q1 2026 shows softer profits and revenue despite healthier order trends.

NVR reported Q1 2026 net income of $198.4M and diluted EPS of $67.76, down 34% and 29% from Q1 2025. Consolidated revenue declined 22% to $1.88B, reflecting slower closings and margin pressure in homebuilding.

Homebuilding revenue was $1.83B, down 22%, and gross margin fell to 19.6% from 21.9%, with management citing pricing pressure and higher lot costs. Settlements dropped 22% to 4,015 units, while backlog units were essentially flat at 10,171 but with a 3% lower dollar value of $4.70B.

Orders grew 7% to 5,738 units and the cancellation rate improved to 14% from 16%, suggesting demand remained reasonable despite weaker profitability. Investors can look to future quarterly disclosures to see whether margins stabilize and whether orders continue to offset slower settlements.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q1 2026 $198.4M Three months ended March 31, 2026; down 34% vs Q1 2025
Diluted EPS Q1 2026 $67.76 Three months ended March 31, 2026; down 29% vs $94.83 in 2025
Consolidated revenue Q1 2026 $1.88B Three months ended March 31, 2026; 22% decrease from $2.40B
Homebuilding gross margin 19.6% Q1 2026 vs 21.9% in Q1 2025
New orders units 5,738 units Three months ended March 31, 2026; 7% increase vs 5,345
Backlog value $4.70B As of March 31, 2026; 3% decline year over year
Mortgage closed loan production $1.05B Three months ended March 31, 2026; 27% decrease vs 2025
Shares repurchased Q1 2026 90,180 shares; $631.96M Aggregate cost of common stock repurchases in Q1 2026
backlog financial
"As of March 31, 2026 our backlog of homes totaled 10,171 units"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
gross profit margin financial
"Gross profit margin in the first quarter of 2026 decreased to 19.6%"
Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.
cancellation rate financial
"The cancellation rate in the first quarter of 2026 was 14% compared to 16%"
The cancellation rate is the share of orders, bookings, subscriptions or appointments that are cancelled before they are completed, expressed as a percentage of total commitments. Investors care because a rising cancellation rate is like many diners calling off reservations: it can signal weaker demand, lower predictable revenue, higher costs to replace lost business, and risks to future growth and cash flow forecasts.
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.
effective tax rate financial
"Our effective tax rate for the three months ended March 31, 2026 was 21.2%"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
Net income $198.4M -34% vs Q1 2025
Diluted EPS $67.76 -29% vs Q1 2025
Consolidated revenue $1.88B -22% vs Q1 2025
Homebuilding gross margin 19.6% down from 21.9% in Q1 2025
Mortgage banking income before tax $27.1M -17% vs $32.5M in Q1 2025
Understanding 8-K Material Events →
0000906163FALSE00009061632026-04-222026-04-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 22, 2026

NVR, Inc.
(Exact name of registrant as specified in its charter)
Virginia1-1237854-1394360
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
11700 Plaza America Drive, Suite 500
Reston, Virginia 20190
(Address of principal executive offices) (Zip Code)

(703) 956-4000
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNVRNew York Stock Exchange
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.
On April 22, 2026, NVR, Inc. issued a press release reporting its financial results for the first quarter ended March 31, 2026. A copy of this press release is furnished herewith as Exhibit 99.1.
The information contained in this Current Report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberExhibit Description
99.1
Press release dated April 22, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NVR, Inc.
Date: April 22, 2026By:/s/ Daniel D. Malzahn
Daniel D. Malzahn
Senior Vice President, Chief Financial Officer and Treasurer



image1.jpg
Exhibit 99.1
NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

April 22, 2026, Reston, VA—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,”
1

“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.
2

NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
20262025
​
Homebuilding:
Revenues1,834,879 $2,350,445 
Other income28,049 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 income224,564 369,484 
Mortgage Banking:
Mortgage banking fees46,184 52,587 
Interest income3,629 3,806 
Other income777 1,093 
General and administrative(23,127)(24,693)
Interest expense(333)(273)
Mortgage banking income27,130 32,520 
Income before taxes251,694 402,004 
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 outstanding2,781 2,984 
Diluted weighted average shares outstanding2,928 3,159 
3

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
March 31, 2026December 31, 2025
ASSETS
Homebuilding:
Cash and cash equivalents$1,645,786 $1,883,844 
Restricted cash40,606 34,348 
Receivables35,423 32,742 
Inventory:
Lots and housing units, covered under sales agreements with customers1,652,220 1,410,695 
Unsold lots and housing units244,499 252,029 
Land under development19,433 39,312 
Building materials and other22,358 21,524 
1,938,510 1,723,560 
Contract land deposits, net938,981 851,458 
Property, plant and equipment, net100,899 103,770 
Operating lease right-of-use assets108,985 110,535 
Other assets335,331 349,306 
5,144,521 5,089,563 
Mortgage Banking:
Cash and cash equivalents36,281 32,642 
Restricted cash7,014 6,047 
Mortgage loans held for sale, net287,475 571,596 
Property and equipment, net7,892 7,727 
Operating lease right-of-use assets23,035 23,953 
Other assets79,560 125,402 
441,257 767,367 
Total assets$5,585,778 $5,856,930 

4

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
March 31, 2026December 31, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$332,321 $259,244 
Accrued expenses and other liabilities374,987 376,976 
Customer deposits273,422 249,210 
Operating lease liabilities116,040 117,589 
Senior notes908,662 909,160 
2,005,432 1,912,179 
Mortgage Banking:
Accounts payable and other liabilities61,162 53,738 
Operating lease liabilities25,150 26,144 
86,312 79,882 
Total liabilities2,091,744 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, 2025206 206 
Additional paid-in capital3,202,642 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 liability16,710 16,710 
Retained earnings16,585,128 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' equity3,494,034 3,864,869 
Total liabilities and shareholders' equity$5,585,778 $5,856,930 

5

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended March 31,

20262025
UnitsAverage PriceUnitsAverage 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,
20262025
UnitsAverage PriceUnitsAverage 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,
20262025
UnitsAverage PriceUnitsAverage 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 
6

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
20262025
Average active communities:
Mid Atlantic (1)
124120
North East (2)
3124
Mid East (3)
9993
South East (4)
178164
Total
432401
Three Months Ended March 31,
20262025
Homebuilding data:
New order cancellation rate
14%16%
Lots controlled at end of period
181,700167,600
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
Investor Relations Contact:
Ryan Sheplee
(703) 956-4243
ir@nvrinc.com

7

Source: View Original Filing on SEC EDGAR

FAQ

How did NVR (NVR) perform financially in Q1 2026?

NVR’s Q1 2026 net income was $198.4 million, or $67.76 per diluted share. That’s down 34% and 29%, respectively, from $299.6 million and $94.83 in Q1 2025, as consolidated revenue fell 22% to $1.88 billion.

What happened to NVR’s homebuilding margins in Q1 2026?

NVR’s homebuilding gross profit margin fell to 19.6% in Q1 2026 from 21.9% a year earlier. The company attributed the decline primarily to continued pricing pressure and higher lot costs, which reduced profitability despite stable average settlement prices and higher new orders.

How did NVR’s orders, settlements and backlog trend in Q1 2026?

New home orders rose 7% to 5,738 units, while settlements fell 22% to 4,015 units in Q1 2026. Backlog stood at 10,171 units, essentially flat year over year, but its dollar value declined 3% to about $4.70 billion as pricing softened.

How did NVR’s mortgage banking segment perform in Q1 2026?

Mortgage closed loan production was $1.05 billion in Q1 2026, a 27% decrease from Q1 2025. Segment income before tax was $27.1 million, down 17% from $32.5 million, reflecting lower volume but still contributing meaningfully to overall profitability.

What was NVR’s effective tax rate in Q1 2026 and why did it change?

NVR’s effective tax rate was 21.2% for Q1 2026, compared with 25.5% in Q1 2025. The decrease mainly reflects a larger income tax benefit from stock option exercises, with excess tax benefits of $12.6 million versus $2.7 million in the prior-year quarter.

Did NVR repurchase shares during Q1 2026 and in what amount?

Yes. NVR repurchased 90,180 shares of its common stock in Q1 2026 at an aggregate cost of $631.96 million. Shares outstanding at quarter-end were 2,731,827, down from 2,944,615 a year earlier, reflecting the company’s ongoing buyback activity.

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