NVR Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 22 April 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS fell sharply: The company reported net income of $198.4 million, or $67.76 per diluted share, against $299.6 million, or $94.83, a year earlier. Source
• Revenue fell 22% on fewer settlements: Consolidated revenues were $1.88 billion, down from $2.40 billion. Settlements fell 22% to 4,015 units from 5,133. Source
• Homebuilding income fell 39%: Homebuilding pre-tax income was $224.6 million. Homebuilding revenues were $1.83 billion, down 22% from $2.35 billion. Source
• New orders rose 7%: New orders rose 7% to 5,738 units from 5,345 in the first quarter of 2025. Source
• Gross margin fell to 19.6%: The decline was 2.3 percentage points year on year, with the cause named by the company set out in the risks. Source
• Buybacks cost $632 million: The company repurchased 90,180 shares, up from 77,120 a year earlier. The cost was $631,956 thousand, against $583,394 thousand. Source

“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.”

NVR Inc., press release

Earnings and revenue

• Net income and EPS fell sharply: The company reported net income of $198.4 million, or $67.76 per diluted share, against $299.6 million, or $94.83, a year earlier. Source
• Revenue fell 22% on fewer settlements: Consolidated revenues were $1.88 billion, down from $2.40 billion. Settlements fell 22% to 4,015 units from 5,133. Source
• Settlement price held flat: The average settlement price was $457,000, about flat against the prior year's $457,900 shown in the operating table. Source

Segments and regions

• Homebuilding income fell 39%: Homebuilding pre-tax income was $224.6 million. Homebuilding revenues were $1.83 billion, down 22% from $2.35 billion. Source
• Mortgage pre-tax income fell 17%: Mortgage banking pre-tax income was $27.1 million, down 17% from $32.5 million a year earlier. Source
• New orders rose in every region: All four regions reported more new orders. North East orders rose to 469 from 377, while its average price fell to $612.0 thousand from $695.0 thousand. Source
• Settlements fell in all four regions: Mid Atlantic settlements fell to 1,418 units from 2,050, the largest drop by units. Mid East settlements fell to 722 from 1,013. Source

“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.”

NVR Inc., press release

Demand and the order book

• New orders rose 7%: New orders rose 7% to 5,738 units from 5,345 in the first quarter of 2025. Source
• Cancellations fell to 14%: The cancellation rate was 14%, down from 16% a year earlier and from 16.6% in the fourth quarter of 2025. Source
• Order price slipped 2%: The average price of new orders was $440,100, down 2% year on year. Mid East and South East regional prices were higher than a year earlier. Source
• Backlog units flat, average price lower: Backlog was 10,171 units, flat year on year. The backlog average price was $462.0 thousand, against $475.9 thousand. Source

Costs, margins and pricing

• Gross margin fell to 19.6%: The decline was 2.3 percentage points year on year, with the cause named by the company set out in the risks. Source
• Fourth-quarter margin was 20.4%: The prior release cited higher lot costs, pricing pressure and about $35.7 million of contract land deposit impairments as drags on that quarter's margin.
• Cost of sales and SG&A dropped: Homebuilding cost of sales was $1.47 billion, down from $1.84 billion. Selling, general and administrative expense was $157.0 million, down from $165.1 million. Source
• Effective tax rate fell to 21.2%: The rate was 21.2%, down from 25.5%. The company attributed the drop to a larger tax benefit from stock option exercises, at $12.6 million against $2.7 million. Source

Capital, cash and returns to shareholders

• Buybacks cost $632 million: The company repurchased 90,180 shares, up from 77,120 a year earlier. The cost was $631,956 thousand, against $583,394 thousand. Source
• Homebuilding cash fell: Homebuilding cash was $1,645,786 thousand, down from $1,883,844 thousand at December 31, 2025. Source
• Inventory rose on sold lots: Homebuilding inventory rose to $1,938,510 thousand from $1,723,560 thousand. Lots and housing units under sales agreements were $1,652,220 thousand. Contract land deposits rose to $938,981 thousand from $851,458 thousand. Source
• Mortgage loans held for sale fell: Mortgage loans held for sale, net were $287,475 thousand, down from $571,596 thousand at December 31, 2025. Source
• Shares outstanding declined: Shares outstanding at period end were 2,731,827, down from 2,944,615 a year earlier. Source

Land, communities and mortgage volume

• Lots controlled rose to 181,700: Lots controlled at period end were 181,700, up from 167,600. The prior release reported 180,100 at December 31, 2025. Source
• Active communities rose to 432: Average active communities were 432, up from 401. South East rose to 178 from 164, the largest increase by count. Source
• Loan closings fell; capture rate 83%: Mortgage loan closings were $1.05 billion, down from $1.43 billion. The capture rate was 83%, against 86%. Source

Figures management reported

Risks management discussed

• Demand: The company named continued pricing pressure and higher lot costs as negative effects on gross margin. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.