NVR (NVR) Q1 2026 earnings summary

Executive summary

• Revenues for Q1 2026 were $1.88 billion, down 22% year-over-year, with net income of $198.4 million, a 34% decrease from Q1 2025; diluted EPS was $67.76, down 29% year-over-year.

• New home orders increased 7% to 5,738 units, but average sales price fell 2% to $440,100.

• Homebuilding gross profit margin declined to 19.6% from 21.9% in Q1 2025, reflecting pricing pressure and higher lot costs.

• Home settlements dropped 22% to 4,015 units, with a flat average settlement price of $457,000.

• Backlog remained flat at 10,171 units, with a 3% decrease in dollar value.

Financial highlights

• Net income: $198.4 million (Q1 2026), down from $299.6 million (Q1 2025).

• Revenue: $1.88 billion, down from $2.40 billion year-over-year.

• Gross profit margin: 19.6% (Q1 2026) vs. 21.9% (Q1 2025).

• Mortgage banking closed loan production was $1.05 billion, down 27%; segment income before tax was $27.1 million, down 17%.

• Effective tax rate decreased to 21.2% from 25.5% year-over-year, due to higher stock option tax benefits.

Outlook and guidance

• Management expects continued margin pressure from higher land prices and community repositioning.

• Demand for new homes remains challenged by affordability, high inventory in some markets, and economic volatility.

• The company believes its strong balance sheet and disciplined lot acquisition strategy position it well for future opportunities.

• Forward-looking statements highlight risks from economic conditions, interest rates, regulation, competition, and supply chain factors.