NVR Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 22 October 2026: press release. The quarter’s numbers.

Key takeaways

Net income and diluted EPS declined: Net income was $248.6 million and diluted EPS was $89.45. Against the 2025 third quarter, net income fell 27% and diluted EPS fell 20%. Source
Homebuilding income down 27%: Homebuilding income before tax was $299.7 million, down 27% from the prior-year quarter. Homebuilding revenues were $2.35 billion, down 8%. Source
New orders down 7%: New orders fell 7%. The average sales price of new orders was $442,100, down 5% from the prior-year quarter. Source
Cancellation rate rose to 21%: The new order cancellation rate was 21%, up from 19% a year earlier. Source
Backlog up 10% in units: Backlog rose 10% in units and 4% in dollars, to $4.59 billion, as of September 30, 2026. Source
Gross margin fell to 18.3%: Gross profit margin was 18.3%, down from 21.0% a year earlier and from 19.2% in the second quarter. Source
Land deposit impairments rose: Contract land deposit impairments were about $24.8 million, up from about $21.7 million in the second quarter. Source
Repurchases of $237.2 million: The company repurchased 37,088 shares for $237.2 million in the quarter, against $276.4 million a year earlier. Nine-month repurchases totaled $1.23 billion. Source

“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.”
NVR Inc., press release

Quarter results and year-to-date

Net income and diluted EPS declined: Net income was $248.6 million and diluted EPS was $89.45. Against the 2025 third quarter, net income fell 27% and diluted EPS fell 20%. Source
Consolidated revenue declined year on year: Consolidated revenues were $2.40 billion in the quarter, compared with $2.61 billion in the third quarter of 2025. Source
Nine-month revenue and earnings lower: For the nine months, revenues were $6.61 billion, down 13%. Net income was $683.4 million, down 30%, and diluted EPS was $240.54, down 24%. Source

Segments and regional orders

Homebuilding income down 27%: Homebuilding income before tax was $299.7 million, down 27% from the prior-year quarter. Homebuilding revenues were $2.35 billion, down 8%. Source
Mortgage banking income rose 7%: Mortgage banking income before tax was $35.0 million, up from $32.7 million. Closed loan production was $1.38 billion, down 10% from the prior-year quarter. Source
North East prices rose as orders fell: North East average new-order price was $733.2 thousand, up from $647.1 thousand. North East orders were 232 units, down from 433 in the prior-year quarter. Source
South East orders and average price: South East recorded 1,627 new orders at an average of $356.7 thousand, against 1,657 orders at $368.6 thousand a year earlier. Source

“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”
NVR Inc., press release

Orders, settlements and backlog

New orders down 7%: New orders fell 7%. The average sales price of new orders was $442,100, down 5% from the prior-year quarter. Source
Cancellation rate rose to 21%: The new order cancellation rate was 21%, up from 19% a year earlier. Source
Settlement price eased 2%: Settlements fell 7% year on year. The average settlement price was $445,900, down 2% from the prior-year quarter. Source
Backlog up 10% in units: Backlog rose 10% in units and 4% in dollars, to $4.59 billion, as of September 30, 2026. Source

Gross margin, costs and pricing

Gross margin fell to 18.3%: Gross profit margin was 18.3%, down from 21.0% a year earlier and from 19.2% in the second quarter. Source
Lot costs and pricing pressure cited: Management cited higher lot costs and pricing pressure from continued affordability challenges as factors that lowered gross margin. Source
Land deposit impairments rose: Contract land deposit impairments were about $24.8 million, up from about $21.7 million in the second quarter. Source
Homebuilding overhead spending eased: Homebuilding selling, general and administrative expense was $135.0 million, against $142.7 million a year earlier and $150.7 million in the second quarter. Source

Inventory, land and footprint

Inventory rose to $2.37 billion: Homebuilding inventory totaled $2.37 billion at September 30, 2026, against $1.72 billion at December 31, 2025. Lots and units under sales agreements were $1.94 billion. Source
Community count rose slightly: Average active communities were 454 in the quarter, against 450 a year earlier. Source
Operations across 37 metro areas: Homebuilding operates in 37 metropolitan areas in 16 states and Washington, D.C., under three trade names. Source

Capital, cash and share repurchases

Repurchases of $237.2 million: The company repurchased 37,088 shares for $237.2 million in the quarter, against $276.4 million a year earlier. Nine-month repurchases totaled $1.23 billion. Source
Homebuilding cash declined: Homebuilding cash and equivalents were $1.09 billion at September 30, 2026, down from $1.88 billion at December 31, 2025. Source
Shares outstanding declined: Shares outstanding were 2,644,276 at period end, down from 2,860,899 a year earlier. Source

Figures management reported

Figure	Reported
New orders (units) Source	4,391 units
Settlements (units) Source	5,268 units
Backlog (units) Source	10,121 units
Average active communities Source	454
Lots controlled at period end Source	185,300
Mortgage loan closings Source	$1,381,742 thousand

Risks management discussed

Operational: Higher lot costs were cited as a factor lowering gross margin. Source
Operational: Contract land deposit impairments of about $24.8 million were recorded in the quarter. Source
Demand: Affordability challenges and consumer sentiment were cited as pressure on pricing. Source

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

NVR, INC. ANNOUNCES THIRD QUARTER RESULTS

October 22, 2026, Reston, VA - 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,”

Forward-looking statements notice

“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

	September 30, 2026	December 31, 2025
NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
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

	September 30, 2026	December 31, 2025
NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
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

	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
NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
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

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

Contacts
Ryan Sheplee
(703) 956-4243 ir@nvrinc.com