Homebuilder NVR Third-Quarter Net Income Falls 27% to $248.6 Million as Higher Lot Costs and Pricing Pressure Cut Gross Margin to 18.3%
NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, on October 22 released its results for the third quarter ended September 30, 2026 via PR Newswire: net income of $248.6 million, or $89.45 per diluted share, down 27% and 20% respectively from $342.7 million, or $112.33 per diluted share, in the third quarter of 2025. Consolidated revenues totaled $2.40 billion, compared with $2.61 billion a year earlier.
Homebuilding drove the decline. Homebuilding revenues of $2.35 billion fell 8% from $2.56 billion a year earlier, and gross profit margin narrowed to 18.3% from 21.0%. The company said the margin was hurt by higher lot costs, pricing pressure from continued affordability challenges and weak consumer sentiment, and contract land deposit impairments totaling approximately $24.8 million. Income before tax from homebuilding was $299.7 million, down 27%.
New orders decreased 7% to 4,391 units, from 4,735 a year earlier, with the average sales price of new orders down 5% to $442,100 and the cancellation rate rising to 21% from 19%. Settlements decreased 7% to 5,268 units, from 5,639, at an average settlement price of $445,900, down 2%. The backlog of homes sold but not settled rose 10% in units to 10,121 and 4% in dollars to $4.59 billion as of September 30.
Mortgage banking was steadier: closed loan production totaled $1.38 billion, down 10%, while income before tax from the segment rose 7% to $35.0 million from $32.7 million. For the first nine months of 2026, consolidated revenues were $6.61 billion, down 13%; net income was $683.4 million, down 30%; and diluted earnings per share were $240.54, down 24%.
NVR builds homes under the Ryan Homes, NVHomes and Heartland Homes brands and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C. The release gave no outlook for the coming quarter.
Source: GSM·America
Source: GSM · USA (original Chinese edition)
Photo: 美国一处在建新房的木框架（资料图，新泽西州 Ewing Township）。照片：Famartin 摄，CC BY-SA 4.0，经维基共享资源／A new wood-frame house under construction in Ewing Township, New Jersey (file photo). Photo: Famartin, CC BY-SA 4.0, via Wikimedia Commons
