NVR Q3 2026 Net Income Falls 27% Amid Pricing Pressure

NVR, Inc. reported third-quarter 2026 net income of $248.6 million, or $89.45 per diluted share, a 27% decline from the prior year period. The Reston, Virginia-based homebuilder and mortgage lender recorded consolidated revenues of $2.40 billion for the quarter, down from $2.61 billion in the third quarter of 2025.

The decrease in profitability was driven primarily by the homebuilding segment, where income before tax fell 27% to $299.7 million. NVR attributed the margin compression to higher lot costs, pricing pressure stemming from affordability challenges, and weak consumer sentiment. The company also recorded contract land deposit impairments totaling approximately $24.8 million during the period.

Homebuilding gross profit margin dropped to 18.3% in the third quarter of 2026, compared to 21.0% in the same quarter of 2025. New orders decreased by 7% to 4,391 units, while the average sales price for new orders fell 5% to $442,100. Settlements declined by 7% to 5,268 units, with an average settlement price of $445,900, a 2% decrease year-over-year.

Despite the decline in current sales activity, NVR’s backlog of homes sold but not settled increased by 10% on a unit basis to 10,121 units as of September 30, 2026. The backlog grew by 4% on a dollar basis to $4.59 billion compared to the balance at the end of the previous year. The cancellation rate for the quarter was 21%, up from 19% in the third quarter of 2025.

In the mortgage banking segment, closed loan production totaled $1.38 billion, a 10% decrease from the prior year quarter. However, income before tax for this segment rose 7% to $35.0 million, surpassing the $32.7 million reported in the third quarter of 2025.

For the nine months ended September 30, 2026, NVR reported consolidated revenues of $6.61 billion, a 13% decrease from $7.61 billion in the same period of 2025. Net income for the nine-month period was $683.4 million, down 30% from $976.0 million previously. Diluted earnings per share for the nine months stood at $240.54, a 24% decrease from $315.33 in the prior year period.

NVR operates through two segments: homebuilding and mortgage banking. Its homebuilding operations sell and build homes under the Ryan Homes, NVHomes and Heartland Homes trade names across thirty-seven metropolitan areas in sixteen states and Washington, D.C.