NVR · NVR, Inc.

NVR, Inc. faced significant headwinds in the first quarter of 2026, with consolidated revenues declining 22% to $1.88 billion. The top-line contraction was primarily driven by a 22% decrease in homebuilding settlements to 4,015 units, a result of a 15% lower backlog entering the quarter compared to the prior year period. While the average settlement price remained relatively flat at $457,000, profitability came under pressure. Homebuilding gross margins contracted 230 basis points to 19.6%, which management attributed to continued pricing pressure and escalating lot costs. Consequently, homebuilding pre-tax income fell 39% to $224.6 million. The mortgage banking segment also experienced a slowdown, with closed loan production dropping 27% to $1.05 billion, leading to a 17% decline in segment pre-tax income to $27.1 million. Despite the operational challenges, the effective tax rate decreased to 21.2% from 25.5%, largely due to a $12.6 million tax benefit from stock option exercises, providing a partial offset to the pre-tax income decline. Operationally, the company demonstrated resilience on the demand side; new orders increased 7% to 5,738 units, and the cancellation rate improved to 14% from 16% in the prior year. The backlog remained stable in unit count at 10,171 units, though the dollar value slipped 3% to $4.70 billion. NVR continued its capital return program, repurchasing 90,180 shares for approximately $632 million during the quarter.