third quarter 2026
Filed Oct 22, 2026NVR reported lower third-quarter revenue and net income, while homebuilding margins compressed and mortgage banking income increased.
Third-quarter consolidated revenues declined to $2.40 billion from $2.61 billion, net income declined to $248.6 million from $342.7 million, and homebuilding gross profit margin declined to 18.3% from 21.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenues, three months ended September 30GAAP | $2.4B | – | – |
| Consolidated revenues, nine months ended September 30GAAP | $6.61B | – | a 13% decrease |
| Income before taxes, three months ended September 30GAAP | 334,688 | – | – |
| Income before taxes, nine months ended September 30GAAP | 905,023 | – | – |
| Income tax expense, three months ended September 30GAAP | 86,083 | – | – |
| Income tax expense, nine months ended September 30GAAP | 221,601 | – | – |
| Net income, three months ended September 30GAAP | $248.6M | – | decreased 27% |
| Net income, nine months ended September 30GAAP | $683.4M | – | a decrease of 30% |
| Basic earnings per share, three months ended September 30GAAP | $93.49 | – | – |
| Basic earnings per share, nine months ended September 30GAAP | $251.99 | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $89.45 per diluted share | – | decreased 20% |
| Diluted earnings per share, nine months ended September 30GAAP | $240.54 | – | a decrease of 24% |
| Basic weighted average shares outstanding, three months ended September 30GAAP | 2,659 | – | – |
| Basic weighted average shares outstanding, nine months ended September 30GAAP | 2,712 | – | – |
| Diluted weighted average shares outstanding, three months ended September 30GAAP | 2,779 | – | – |
| Diluted weighted average shares outstanding, nine months ended September 30GAAP | 2,841 | – | – |
| Homebuilding revenues, three months ended September 30GAAP | $2.35B | – | decreased by 8% |
| Homebuilding revenues, nine months ended September 30GAAP | 6,463,934 | – | – |
| Homebuilding other income, three months ended September 30GAAP | 12,209 | – | – |
| Homebuilding other income, nine months ended September 30GAAP | 52,353 | – | – |
| Homebuilding cost of sales, three months ended September 30GAAP | (1,920,068) | – | – |
| Homebuilding cost of sales, nine months ended September 30GAAP | (5,235,824) | – | – |
| Homebuilding selling, general and administrative, three months ended September 30GAAP | (135,017) | – | – |
| Homebuilding selling, general and administrative, nine months ended September 30GAAP | (442,709) | – | – |
| Homebuilding interest expense, three months ended September 30GAAP | (6,692) | – | – |
| Homebuilding interest expense, nine months ended September 30GAAP | (20,244) | – | – |
| Homebuilding income, three months ended September 30GAAP | 299,716 | – | a decrease of 27% |
| Homebuilding income, nine months ended September 30GAAP | 817,510 | – | – |
| Homebuilding gross profit margin, three months ended September 30GAAP | 18.3% | – | decreased to 18.3%, from 21.0% |
| Mortgage banking fees, three months ended September 30GAAP | 53,146 | – | – |
| Mortgage banking fees, nine months ended September 30GAAP | 145,915 | – | – |
| Mortgage banking interest income, three months ended September 30GAAP | 4,293 | – | – |
| Mortgage banking interest income, nine months ended September 30GAAP | 11,905 | – | – |
| Mortgage banking other income, three months ended September 30GAAP | 1,271 | – | – |
| Mortgage banking other income, nine months ended September 30GAAP | 3,340 | – | – |
| Mortgage banking general and administrative, three months ended September 30GAAP | (23,470) | – | – |
| Mortgage banking general and administrative, nine months ended September 30GAAP | (72,750) | – | – |
| Mortgage banking interest expense, three months ended September 30GAAP | (268) | – | – |
| Mortgage banking interest expense, nine months ended September 30GAAP | (897) | – | – |
| Mortgage banking income, three months ended September 30GAAP | $35M | – | an increase of 7% |
| Mortgage banking income, nine months ended September 30GAAP | 87,513 | – | – |
| New orders, net of cancellations, three months ended September 30other | 4,391 units | – | decreased by 7% |
| New orders, net of cancellations, nine months ended September 30other | 16,014 | – | – |
| Average sales price of new orders, three months ended September 30other | $442,100 | – | a decrease of 5% |
| Average sales price of new orders, nine months ended September 30other | $439.6 | – | – |
| New order cancellation rate, three months ended September 30other | 21.0 % | – | – |
| New order cancellation rate, nine months ended September 30other | 16.3 % | – | – |
| Settlements, three months ended September 30other | 5,268 units | – | decreased by 7% |
| Settlements, nine months ended September 30other | 14,341 | – | – |
| Average settlement price, three months ended September 30other | $445.9M | – | a decrease of 2% |
| Average settlement price, nine months ended September 30other | $450.7 | – | – |
| Backlog, units as of September 30other | 10,121 units | – | increased on a unit basis by 10% |
| Backlog, dollar balance as of September 30other | $4.59B | – | increased on a dollar basis by 4% |
| Average backlog price as of September 30other | $453.0 | – | – |
| Average active communities, three months ended September 30other | 454 | – | – |
| Average active communities, nine months ended September 30other | 443 | – | – |
| Lots controlled at end of periodother | 185,300 | – | – |
| Loan closings, three months ended September 30other | $1.38B | – | a decrease of 10% |
| Loan closings, nine months ended September 30other | $3.79B | – | – |
| Capture rate, three months ended September 30other | 85 % | – | – |
| Capture rate, nine months ended September 30other | 85 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| HomebuildingGross 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. | $2.35B | – | decreased by 8% |
| Mortgage BankingMortgage closed loan production totaled $1.38 billion, a decrease of 10% when compared to the third quarter of 2025; mortgage banking income totaled $35.0 million, an increase of 7%. | Mortgage banking fees 53,146; Interest income 4,293; Other income 1,271 | – | – |
Capital returns
- Number of shares repurchased: 37,088 for the three months ended September 30, 2026, compared to 35,224 for the three months ended September 30, 2025.
- Aggregate cost of shares repurchased: $237,218 for the three months ended September 30, 2026, compared to $276,405 for the three months ended September 30, 2025.
- Number of shares repurchased: 181,984 for the nine months ended September 30, 2026, compared to 178,178 for the nine months ended September 30, 2025.
- Aggregate cost of shares repurchased: $1,226,951 for the nine months ended September 30, 2026, compared to $1,331,212 for the nine months ended September 30, 2025.
What drove it
- New orders, net of cancellations, decreased by 7% to 4,391 units.
- Settlements decreased by 7% to 5,268 units.
- The average sales price of new orders was $442,100, a decrease of 5%.
- The average settlement price was $445,900, a decrease of 2%.
- Backlog increased on a unit basis by 10% to 10,121 units and increased on a dollar basis by 4% to $4.59 billion.
- Mortgage banking income increased by 7% to $35.0 million.
Concerns
- Homebuilding gross profit margin decreased to 18.3%, from 21.0%.
- The cancellation rate was 21% compared to 19% 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 contract land deposit impairments totaling approximately $24.8 million.
- Mortgage closed loan production decreased by 10% to $1.38 billion.
What to watch
- New orders, net of cancellations and the new order cancellation rate.
- Homebuilding gross profit margin and the stated effects of higher lot costs, pricing pressure, affordability challenges and consumer sentiment.
- Backlog units, backlog dollar balance and average backlog price.
- Mortgage closed loan production and mortgage banking income.
- Contract land deposit impairments.
Balance sheet and cash flow
- Homebuilding cash and cash equivalents: $1,091,315 as of September 30, 2026, compared to $1,883,844 as of December 31, 2025.
- Mortgage Banking cash and cash equivalents: 34,071 as of September 30, 2026, compared to 32,642 as of December 31, 2025.
- Senior notes: 907,659 as of September 30, 2026, compared to 909,160 as of December 31, 2025.
- Total assets: $5,565,950 as of September 30, 2026, compared to $5,856,930 as of December 31, 2025.
- Total liabilities: 2,130,957 as of September 30, 2026, compared to 1,992,061 as of December 31, 2025.
- Total shareholders' equity: 3,434,993 as of September 30, 2026, compared to 3,864,869 as of December 31, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
NVR reported a weaker third quarter, with consolidated revenues of $2.40 billion compared to $2.61 billion in the third quarter of 2025. Net income was $248.6 million, or $89.45 per diluted share, compared with $342.7 million, or $112.33 per diluted share. For the nine months ended September 30, 2026, consolidated revenues were $6.61 billion and net income was $683.4 million, compared with $7.61 billion and $976.0 million, respectively, for the same period of 2025.
Homebuilding remained the principal source of the decline. Third-quarter homebuilding revenues were $2.35 billion, down 8%, and homebuilding income was $299.7 million, down 27%. Gross profit margin declined to 18.3% from 21.0%. The company attributed the margin pressure to higher lot costs, pricing pressure associated with continued affordability challenges and weak consumer sentiment, and contract land deposit impairments totaling approximately $24.8 million.
Demand and pricing indicators were softer in the quarter. New orders declined by 7% to 4,391 units and the average sales price of new orders was $442,100, a decrease of 5%. Settlements declined by 7% to 5,268 units, while the average settlement price was $445,900, a decrease of 2%. The cancellation rate rose to 21% from 19%. In contrast, backlog increased by 10% to 10,121 units and rose by 4% to $4.59 billion, while average active communities were 454 compared with 450.
Mortgage banking income was $35.0 million, an increase of 7% from $32.7 million, despite mortgage closed loan production declining by 10% to $1.38 billion. The capture rate was 85% compared with 86%. NVR repurchased 37,088 shares for $237,218 during the quarter and 181,984 shares for $1,226,951 during the nine-month period. Homebuilding cash and cash equivalents were $1,091,315 as of September 30, 2026, compared with $1,883,844 as of December 31, 2025, while senior notes were 907,659 compared with 909,160.
The release provided no financial outlook. The reported operating indicators place attention on whether backlog conversion can support future settlements while new-order pricing, cancellation rates and homebuilding gross margin reflect affordability and cost pressures.
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate and other metrics was not provided.
- Previous-period outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash dividends were not reported.
- A tax rate was not reported.
- Prior-quarter comparisons were not reported.
- The third-quarter prior-year average sales price of new orders was not printed as a dollar figure in the narrative.
- The third-quarter prior-year average settlement price was not printed as a dollar figure in the narrative.
- The prior-year backlog dollar balance was not printed.
- Named executive quotes were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.