RESTON, Va., Oct. 22, 2026 /PRNewswire/ -- 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," "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 Nine Months Ended September
30, 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
NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
September 30, 2026 December 31, 2025
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
NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
September 30, 2026 December 31, 2025
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 206 206
issued as of both September 30, 2026 and December 31, 2025
Additional paid-in capital 3,255,240 3,155,367
Deferred compensation trust - 106,697 shares of NVR, Inc. common stock as of (16,710) (16,710)
both September 30, 2026 and December 31, 2025
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 (16,890,644) (15,677,473)
30, 2026 and December 31, 2025, respectively
Total shareholders' equity 3,434,993 3,864,869
Total liabilities and shareholders' equity $5,565,950 $5,856,930
NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Units Average Units Average Units Average Units Average
Price Price Price Price
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 Units Average Units Average Units Average
Price Price Price 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 Units Average
Price 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
NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended September 30, Nine Months Ended September
30,
2026 2025 2026 2025
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
(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
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SOURCE NVR, INC.
