NVR Orders Accelerated as Prices and Margins Fell

The Tip Desk · July 23, 2026 · 2 min read

Second-quarter revenue fell 10% to $2.33 billion, improving from a 22% first-quarter decline.

NVR, Inc. (NVR), the homebuilder, reported a 9% increase in second-quarter new orders as demand strengthened despite continued pressure on prices and profitability.

The order gain accelerated from 7% in the first quarter and 3% in the fourth quarter of 2024, extending a reversal from declines in the prior two quarters. Cancellations improved to 14.9% from 16.5% a year earlier, though the rate edged up from roughly 14% in the first quarter.

Revenue fell 10% year over year to $2.33 billion, compared with a 22% decline in the first quarter, and rose 24% sequentially. Net income declined 29% to $236.5 million, while diluted earnings fell 23% to $83.96 a share. The smaller per-share decline reflected a 7% reduction in shares outstanding.

The order recovery was volume-led. The average new-order price fell 5% to $437,100, a steeper decline than the first quarter’s 2%, while average active communities increased 4% to 442. Orders rose 14% in the South East and 11% in the Mid East, while the North East posted an 8% decline.

Settlements fell 8% to 5,058 homes, narrowing from a 22% first-quarter decline and rising 26% sequentially. The weakness was concentrated in the Mid Atlantic, where closings dropped 18%, while South East settlements were roughly unchanged. The average settlement price declined 3% to $450,700.

Homebuilding revenue declined 11% to $2.28 billion, while homebuilding income dropped 30% to $293.2 million. Gross margin contracted to 19.2% from 21.5% a year earlier and 19.6% in the first quarter, marking a fifth consecutive quarterly decline. Mortgage-banking income fell 14% to $25.4 million as the mortgage capture rate decreased to 85% from 87%.

Backlog provided the clearest forward signal: units increased 9% to 10,998 and value rose 5% to $4.99 billion, reversing declines at the end of 2024. The larger order book entered the coming quarters with selling prices and homebuilding margins still moving lower.