NVR Inc. Reports Q3 2026 Earnings: EPS Decreases 20% on Softening Homebuilding Demand

Executive Summary

On October 22, 2026, NVR, Inc. (NYSE: NVR) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) furnished with Exhibit 99.1, reporting financial results for the third quarter and nine months ended September 30, 2026.

Key Financial Highlights

Third Quarter 2026 vs. Third Quarter 2025

• Consolidated Revenue: $2.40 billion, down 8% compared to $2.61 billion in Q3 2025.
• Net Income: $248.6 million, down 27% compared to $342.7 million in Q3 2025.
• Diluted EPS: $89.45, declining 20% compared to $112.33 in Q3 2025.
• Effective Tax Rate / Provision: Income tax expense was $86.1 million against pretax income of $334.7 million.

Nine Months Ended September 30, 2026

• Consolidated Revenues: $6.61 billion (-13% YoY from $7.61 billion).
• Net Income: $683.4 million (-30% YoY from $976.0 million).
• Diluted EPS: $240.54 (-24% YoY from $315.33).

Operational Segment Performance

Homebuilding Segment

• Homebuilding Revenues: $2.35 billion, down 8% from $2.56 billion in Q3 2025.
• Gross Profit Margin: Decreased to 18.3% from 21.0% in Q3 2025. Management cited headwinds including higher lot costs, pricing pressure linked to affordability challenges and weaker consumer sentiment, as well as $24.8 million in contract land deposit impairments.
• New Orders: 4,391 units, down 7% YoY from 4,735 units.
• Average New Order Price: $442,100, down 5% YoY.
• Cancellation Rate: Rose to 21% compared to 19% in Q3 2025.
• Settlements: 5,268 units, a decrease of 7% YoY; average settlement price dipped 2% to $445,900.
• Backlog: Increased 10% in units to 10,121 units and 4% in dollar value to $4.59 billion as of September 30, 2026.
• Pretax Income: $299.7 million, a 27% drop from $411.4 million in Q3 2025.

Mortgage Banking Segment

• Closed Loan Production: $1.38 billion, down 10% from Q3 2025.
• Pretax Income: $35.0 million, up 7% compared to $32.7 million in Q3 2025.

Balance Sheet & Liquidity Insights

• Cash and Cash Equivalents (Homebuilding): $1.09 billion as of September 30, 2026, down from $1.88 billion as of December 31, 2025.
• Contract Land Deposits (Net): $916.7 million, up from $851.5 million at year-end 2025.
• Diluted Share Count: 2,779 thousand shares in Q3 2026, down from 3,051 thousand shares in Q3 2025, demonstrating ongoing share repurchase activity.