NVR profit falls 27% as affordability squeeze cuts margins and new orders

NVR's third-quarter profit fell 27% as the homebuilder sold fewer homes at lower prices and its margins narrowed under what it called continued affordability challenges and weak consumer sentiment.

Net income came to $248.6 million, or $89.45 a diluted share, down from $342.7 million, or $112.33 a share, a year earlier, according to the earnings release NVR filed with an 8-K on Thursday. Consolidated revenue slipped to $2.40 billion from $2.61 billion.

Orders and prices slide

New orders fell 7% to 4,391 homes, and the average price of those orders dropped 5% to $442,100. The cancellation rate rose to 21% from 19% a year earlier.

Settlements, the homes NVR actually delivered, also fell 7%, to 5,268 units, at an average price of $445,900, down 2%.

Margin squeeze

Homebuilding gross margin fell to 18.3% from 21.0%. The company blamed higher lot costs, pricing pressure tied to affordability and weak sentiment, and about $24.8 million of contract land deposit impairments.

Homebuilding pretax income fell 27% to $299.7 million. The mortgage banking unit was a bright spot, with pretax income up 7% to $35.0 million even as closed loan production fell 10% to $1.38 billion.

Backlog builds

NVR ended September with a backlog of 10,121 homes sold but not yet settled, up 10% in units and 4% in dollars, to $4.59 billion, from a year earlier.

For the first nine months, net income fell 30% to $683.4 million, or $240.54 a diluted share, on revenue of $6.61 billion, down 13%.

By the numbers

• Q3 net income: $248.6 million, down 27%
• Diluted EPS: $89.45, versus $112.33
• New orders: 4,391, down 7%
• Gross margin: 18.3%, versus 21.0%
• Backlog: 10,121 homes, $4.59 billion

Sources

1. NVR, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0000906163-26-000099

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