NVR (NVR) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $236.5 million, down 29% year-over-year, with diluted EPS at $83.96, down 23%.

• Consolidated revenues for Q2 2026 were $2.33 billion, a 10% decrease from Q2 2025.

• Homebuilding gross margin fell to 19.2% from 21.5% year-over-year, pressured by higher lot costs and pricing challenges.

• New orders increased 9% year-over-year, but average sales price declined 5% due to product mix shift and pricing pressure.

• Backlog units rose 9% to 10,998, while backlog dollar value increased 5% to $4.99 billion.

Financial highlights

• Q2 2026 homebuilding revenue: $2.28 billion (down 11% year-over-year); mortgage banking revenue: $46.6 million (down 8%).

• Homebuilding segment income before tax was $293.2 million, down 30% year-over-year.

• Mortgage banking income before tax was $25.4 million, a 14% decrease from Q2 2025.

• Q2 2026 mortgage closed loan production totaled $1.35 billion, down 13% year-over-year.

• SG&A expense as a percentage of revenue increased to 6.6% from 5.9% year-over-year.

Outlook and guidance

• Management expects continued demand and margin pressure due to affordability, high inventory, and economic volatility.

• The company believes its strong balance sheet and disciplined lot acquisition strategy position it to capitalize on future market opportunities.

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