NVR Homebuilding Margin Falls to 18.3% on Lot Costs

The Tip Desk · October 22, 2026 · 2 min read

Net income was $248.6 million, or $89.45 a share, as homebuilding gross profit margin compressed to 18.3% from 19.2% in the second quarter.

NVR, Inc. (NVR), one of the nation’s largest homebuilding and mortgage banking companies, reported net income of $248.6 million, or $89.45 a share, for the third quarter ended September 30, 2026, down 27% and 20% from $342.7 million, or $112.33 a share, a year earlier.

Consolidated revenues were $2.40 billion. Homebuilding remained the core of the result. Homebuilding revenues were $2.35 billion, down 8% from $2.56 billion a year earlier. Income before tax from the homebuilding segment was $299.7 million.

The company said gross profit margin in the third quarter decreased to 18.3%, from 21.0% in the third quarter of 2025. It attributed the margin pressure to higher lot costs, pricing pressure from continued affordability challenges and weak consumer sentiment, and contract land deposit impairments totaling approximately $24.8 million. Those impairments were larger than the approximately $21.7 million recorded in the second quarter.

New orders reversed to a 7% year-over-year decline to 4,391 units after a 9% increase to 5,885 units in the second quarter. The average sales price of new orders was $442,100, matching the 5% year-over-year decline seen in the second quarter. The cancellation rate rose to 21% from 15% in the second quarter.

Settlements declined 7% year over year to 5,268 units. The average settlement price was $445,900. Backlog of homes sold but not settled as of September 30, 2026, was 10,121 units and $4.59 billion, up 10% and 4% from year-ago unit and dollar balances.

Mortgage closed loan production totaled $1.38 billion. Income before tax from the mortgage banking segment was $35.0 million, up 7% from $32.7 million a year earlier. The company said the homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names in thirty-seven metropolitan areas in sixteen states and Washington, D.C.

For the nine months ended September 30, 2026, consolidated revenues were $6.61 billion, a 13% decrease from $7.61 billion for the same period of 2025. Net income for the nine months was $683.4 million, a decrease of 30% from $976.0 million a year earlier. Diluted earnings per share for the nine months were $240.54, down 24% from $315.33 a share.

Homebuilding income before tax for the nine months was $817.5 million. Mortgage banking income for the nine months was $87.5 million. Lots controlled at end of period were 185,300. Shares outstanding at end of period were 2,644,276.