Bank of America snížila doporučení pro NVR na „podprůměrný výkon“; objednávky nových domů ve 3. čtvrtletí meziročně klesly o 7 % a tržby z výstavby domů o 8 % na 2,35 mld. USD.
NVR Inc. (NYSE:NVR) received a downgrade from Bank of America on Friday as the investment firm warned that weakening homebuyer demand, rising construction costs and pressure on profit margins could weigh on the homebuilder’s earnings through 2027.
Bank of America analyst Rafe Jadrosich downgraded NVR from Buy to Underperform and lowered the price forecast to $5,900 from $6,725.
Jadrosich cited disappointing third-quarter results, slowing sales in key markets and concerns that NVR’s valuation remains elevated despite deteriorating fundamentals.
Weak Homebuyer Demand Raises ConcernsNVR reported third-quarter earnings of $89.45 per share, about 12% below Bank of America’s forecast of $101.53.
New home orders fell 7% year over year to 4,391, missing the firm’s estimate by 14%. The average selling price of new orders declined 4%.
Homebuilding revenue dropped 8% to $2.35 billion, while home deliveries fell 7%.
Jadrosich highlighted weakening demand in NVR’s core Mid-Atlantic markets, where the company has historically maintained a competitive advantage.
Philadelphia and Richmond slipped 10 and 13 positions, respectively, in Bank of America’s September housing market rankings. Baltimore and Virginia Beach also showed signs of weakness.
Mid-Atlantic orders declined 4%, while orders per community plunged 19% year over year.
The analyst said the slowdown was particularly concerning because NVR had previously maintained stronger sales momentum than many competitors.
Rising Costs Threaten Profit MarginsBank of America expects additional pressure on NVR’s margins as the company adjusts home prices to attract buyers while facing higher land, labor and construction costs.
NVR’s adjusted homebuilding gross margin contracted 246 basis points year over year to 19.3% in the third quarter. Its homebuilding operating margin fell 322 basis points to 13%.
Jadrosich warned that weaker sales could force NVR to offer more competitive pricing to maintain its home delivery schedule.
The company’s business model relies on options to purchase developed lots, which could create pressure to sustain sales volumes as land purchase commitments come due.
Meanwhile, higher lumber and transportation costs, along with persistent shortages of finished lots, could further weigh on profitability.
NVR’s vertical integration could also expose it to rising construction material costs earlier than some competitors.
Labor shortages have added another challenge. The company’s backlog conversion rate declined to about 48% from 56% a year earlier.
Earnings Forecasts Cut, Buybacks Expected to SlowBank of America lowered its 2026 and 2027 earnings estimates by 5% and 10%, respectively.
The firm now expects earnings of $345.39 per share in 2026 and $357.42 in 2027.
Jadrosich also expects NVR’s share repurchases to slow as weaker earnings and declining cash reserves limit its ability to sustain aggressive buybacks.
The company repurchased approximately $2.1 billion in shares in 2024 and $1.8 billion in 2025, exceeding its free cash flow in both years.
Bank of America forecasts repurchases of $1.4 billion in 2026, followed by $1.1 billion annually in 2027 and 2028.
The analyst also warned that stock-based compensation expenses could increase in 2027 if NVR resumes its traditional four-year stock option grant cycle.
Valuation Remains Elevated Despite Earnings WeaknessJadrosich said NVR’s valuation has become harder to justify as earnings expectations weaken.
Bank of America’s 2026 and 2027 earnings forecasts have declined 25% and 33%, respectively, since the beginning of the year. However, NVR shares have fallen only 16% over that period.
The stock trades at approximately 17 times projected 2027 earnings, above its historical average.
The revised $5,900 price forecast is based on 16.5 times estimated 2027 earnings, down from the firm’s previous valuation multiple of 17 times.
Despite acknowledging NVR’s strong market position and operating history, Jadrosich remains cautious until demand, land costs and profit margins show clearer signs of improvement.
NVR Price Action: NVR shares were down 0.81% at $6,060.96 at the time of publication on Friday, according to Benzinga Pro data.
, /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2026 of $248.6 million, or $89.45 per diluted share. For the third quarter ended September 30, 2026, net income and diluted earnings per share decreased 27% and 20%, respectively, when compared to 2025 third quarter net income of $342.7 million, or $112.33 per diluted share. Consolidated revenues for the third quarter of 2026 totaled $2.40 billion, compared to $2.61 billion in the third quarter of 2025.
For the nine months ended September 30, 2026, consolidated revenues were $6.61 billion, a 13% decrease from $7.61 billion reported for the same period of 2025. Net income for the nine months ended September 30, 2026 was $683.4 million, a decrease of 30% when compared to net income for the nine months ended September 30, 2025 of $976.0 million. Diluted earnings per share for the nine months ended September 30, 2026 was $240.54, a decrease of 24% from $315.33 per diluted share for the same period of 2025.
Homebuilding
New orders in the third quarter of 2026 decreased by 7% to 4,391 units, when compared to 4,735 units in the third quarter of 2025. The average sales price of new orders in the third quarter of 2026 was $442,100, a decrease of 5% when compared to the third quarter of 2025. The cancellation rate in the third quarter of 2026 was 21% compared to 19% in the third quarter of 2025. Settlements in the third quarter of 2026 decreased by 7% to 5,268 units, compared to 5,639 units in the third quarter of 2025. The average settlement price in the third quarter of 2026 was $445,900, a decrease of 2% when compared to the third quarter of 2025. Our backlog of homes sold but not settled as of September 30, 2026 increased on a unit basis by 10% to 10,121 units and increased on a dollar basis by 4% to $4.59 billion when compared to the respective backlog unit and dollar balances as of September 30, 2025.
Homebuilding revenues of $2.35 billion in the third quarter of 2026 decreased by 8% compared to homebuilding revenues of $2.56 billion in the third quarter of 2025. Gross profit margin in the third quarter of 2026 decreased to 18.3%, from 21.0% in the third quarter of 2025. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $24.8 million. Income before tax from the homebuilding segment totaled $299.7 million in the third quarter of 2026, a decrease of 27% when compared to the third quarter of 2025.
Mortgage Banking
Mortgage closed loan production in the third quarter of 2026 totaled $1.38 billion, a decrease of 10% when compared to the third quarter of 2025. Income before tax from the mortgage banking segment totaled $35.0 million in the third quarter of 2026, an increase of 7% when compared to $32.7 million in the third quarter of 2025.
About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.
Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.
NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Homebuilding:
Revenues
$ 2,349,284
$ 2,560,343
$ 6,463,934
$ 7,459,055
Other income
12,209
22,000
52,353
73,800
Cost of sales
(1,920,068)
(2,021,398)
(5,235,824)
(5,856,756)
Selling, general and administrative
(135,017)
(142,736)
(442,709)
(457,023)
Interest expense
(6,692)
(6,855)
(20,244)
(20,721)
Homebuilding income
299,716
411,354
817,510
1,198,355
Mortgage Banking:
Mortgage banking fees
53,146
49,162
145,915
152,296
Interest income
4,293
4,881
11,905
13,180
Other income
1,271
1,400
3,340
3,794
General and administrative
(23,470)
(22,397)
(72,750)
(73,515)
Interest expense
(268)
(327)
(897)
(900)
Mortgage banking income
34,972
32,719
87,513
94,855
Income before taxes
334,688
444,073
905,023
1,293,210
Income tax expense
(86,083)
(101,385)
(221,601)
(317,209)
Net income
$ 248,605
$ 342,688
$ 683,422
$ 976,001
Basic earnings per share
$ 93.49
$ 119.26
$ 251.99
$ 333.86
Diluted earnings per share
$ 89.45
$ 112.33
$ 240.54
$ 315.33
Basic weighted average shares outstanding
2,659
2,874
2,712
2,923
Diluted weighted average shares outstanding
2,779
3,051
2,841
3,095
NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
September 30, 2026
December 31, 2025
ASSETS
Homebuilding:
Cash and cash equivalents
$ 1,091,315
$ 1,883,844
Restricted cash
37,549
34,348
Receivables
54,560
32,742
Inventory:
Lots and housing units, covered under sales agreements with customers
1,941,337
1,410,695
Unsold lots and housing units
384,837
252,029
Land under development
21,792
39,312
Building materials and other
24,821
21,524
2,372,787
1,723,560
Contract land deposits, net
916,747
851,458
Property, plant and equipment, net
109,860
103,770
Operating lease right-of-use assets
120,701
110,535
Other assets
359,355
349,306
5,062,874
5,089,563
Mortgage Banking:
Cash and cash equivalents
34,071
32,642
Restricted cash
6,596
6,047
Mortgage loans held for sale, net
346,874
571,596
Property and equipment, net
7,256
7,727
Operating lease right-of-use assets
21,741
23,953
Other assets
86,538
125,402
503,076
767,367
Total assets
$ 5,565,950
$ 5,856,930
NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
September 30, 2026
December 31, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable
$ 365,207
$ 259,244
Accrued expenses and other liabilities
306,013
376,976
Customer deposits
285,364
249,210
Operating lease liabilities
136,289
117,589
Senior notes
907,659
909,160
2,000,532
1,912,179
Mortgage Banking:
Accounts payable and other liabilities
106,690
53,738
Operating lease liabilities
23,735
26,144
130,425
79,882
Total liabilities
2,130,957
1,992,061
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares
issued as of both September 30, 2026 and December 31, 2025
206
206
Additional paid-in capital
3,255,240
3,155,367
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of
both September 30, 2026 and December 31, 2025
(16,710)
(16,710)
Deferred compensation liability
16,710
16,710
Retained earnings
17,070,191
16,386,769
Less treasury stock at cost – 17,911,054 and 17,755,943 shares as of September
30, 2026 and December 31, 2025, respectively
(16,890,644)
(15,677,473)
Total shareholders' equity
3,434,993
3,864,869
Total liabilities and shareholders' equity
$ 5,565,950
$ 5,856,930
NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Units
Average
Price
Units
Average
Price
Units
Average
Price
Units
Average
Price
New orders, net of cancellations:
Mid Atlantic (1)
1,641
$ 499.0
1,714
$ 529.7
5,639
$ 499.1
5,510
$ 525.1
North East (2)
232
$ 733.2
433
$ 647.1
1,091
$ 647.5
1,234
$ 664.6
Mid East (3)
891
$ 417.7
931
$ 431.9
3,260
$ 421.0
3,101
$ 425.0
South East (4)
1,627
$ 356.7
1,657
$ 368.6
6,024
$ 356.2
5,614
$ 361.8
Total
4,391
$ 442.1
4,735
$ 464.8
16,014
$ 439.6
15,459
$ 456.8
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Units
Average
Price
Units
Average
Price
Units
Average
Price
Units
Average
Price
Settlements:
Mid Atlantic (1)
1,786
$ 501.4
2,008
$ 517.9
4,925
$ 510.2
6,159
$ 527.8
North East (2)
477
$ 603.7
420
$ 694.6
1,295
$ 624.9
1,365
$ 651.7
Mid East (3)
1,090
$ 432.5
1,200
$ 423.8
2,868
$ 430.7
3,295
$ 416.1
South East (4)
1,915
$ 362.6
2,011
$ 357.9
5,253
$ 362.9
5,428
$ 358.8
Total
5,268
$ 445.9
5,639
$ 454.0
14,341
$ 450.7
16,247
$ 459.1
As of September 30,
2026
2025
Units
Average Price
Units
Average Price
Backlog:
Mid Atlantic (1)
3,874
$ 508.6
3,419
$ 539.7
North East (2)
769
$ 681.3
924
$ 676.0
Mid East (3)
2,025
$ 419.1
1,851
$ 431.3
South East (4)
3,453
$ 359.7
2,971
$ 379.1
Total
10,121
$ 453.0
9,165
$ 479.5
NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Average active communities:
Mid Atlantic (1)
147
125
135
122
North East (2)
26
34
28
28
Mid East (3)
96
100
97
96
South East (4)
185
191
183
180
Total
454
450
443
426
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Homebuilding data:
New order cancellation rate
21.0 %
19.4 %
16.3 %
17.1 %
Lots controlled at end of period
185,300
175,300
Mortgage banking data:
Loan closings
$ 1,381,742
$ 1,539,781
$ 3,789,439
$ 4,527,982
Capture rate
85 %
86 %
85 %
86 %
Common stock information:
Shares outstanding at end of period
2,644,276
2,860,899
Number of shares repurchased
37,088
35,224
181,984
178,178
Aggregate cost of shares repurchased
$ 237,218
$ 276,405
$ 1,226,951
$ 1,331,212
(1)
Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2)
New Jersey and Eastern Pennsylvania
(3)
New York, Ohio, Western Pennsylvania, Indiana and Illinois
(4)
North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky
Key Takeaways NVR's second-quarter earnings fell 22.6% as homebuilding revenues missed estimates by 5.2%.NVR trades at 15.9X forward earnings, while its $5,425 price target trails the current stock price.NVR repurchased $989.7 million in shares in first-half 2026 and authorized another $750 million. NVR, Inc. (NVR - Free Report) has pulled back, but a lower share price alone does not make the stock clearly attractive. Investors have to weigh a high-quality operating model against declining earnings, lower revenues and a valuation that still looks full versus homebuilding peers.
The case now rests on balance. NVR’s asset-light lot strategy and buybacks support long-term per-share value, while weaker profitability and a price target below the current market price argue for restraint.
NVR’s Earnings Miss Resets ExpectationsSecond-quarter 2026 earnings of $83.96 per share fell 22.6% year over year and missed the Zacks Consensus Estimate by 11.5%. Homebuilding revenues of $2.28 billion also came in below the consensus mark by 5.2%.
The miss reflected lower settlements, softer pricing and margin pressure. Full-year earnings are projected to decline 14.8%, keeping expectations under pressure even though net new orders rose and backlog expanded.
NVR’s Valuation Leaves Limited CushionNVR trades at about 15.9X forward 12-month earnings, above the homebuilding sub-industry’s 11.1X multiple and slightly ahead of its five-year median of 15.1X. That premium leaves less room for disappointment when earnings estimates are moving lower.
The stock price of $6,381.79 also sits above the $5,425 price target, which reflects 13.55X forward earnings. KB HOME (KBH - Free Report) gives investors another homebuilder to compare when assessing whether affordability pressure is already reflected in valuations across the group. Toll Brothers, Inc. (TOL - Free Report) , with its luxury-home positioning, offers a different demand profile within the same cyclical industry.
NVR’s Asset-Light Model Supports QualityNVR’s biggest structural strength is its lot strategy. The company generally buys finished lots from third-party developers rather than tying up large amounts of capital in raw land development.
That approach limits exposure to entitlement delays, infrastructure spending and long-duration land risk. NVR controlled 184,400 lots at the end of the second quarter, giving it future supply without abandoning a model built around capital flexibility.
NVR’s Buybacks Strengthen Per-Share ValueCapital returns remain central to NVR’s investment case. The company repurchased 144,896 shares for $989.7 million during the first half of 2026, including 54,716 shares for $357.8 million in the second quarter.
The board also authorized an additional $750 million repurchase program with no expiration date. The offset is that homebuilding cash declined to $1.09 billion from $1.88 billion at year-end 2025 as inventory, contract land deposits and buybacks absorbed capital.
NVR’s Scores Favor Patience Over AggressionThe bottom line is that NVR’s operating discipline still deserves respect, but the stock does not offer a clean bargain after the earnings and revenue miss. Premium valuation, declining profit expectations and a price target below the market price make the risk-reward balance less favorable.
NVR currently carries a Zacks Rank #3 (Hold). That rank does not point to a strong near-term buying opportunity, especially with the current-year earnings outlook still under pressure. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The Style Scores are mixed. NVR has a VGM Score of B and Momentum Score of B, which provide some support for investors who focus on broader style characteristics and price trends.
However, the Value Score of C and Growth Score of C reinforce the need for patience. Investors may find NVR’s capital efficiency and buybacks attractive, but the stock’s valuation and earnings trajectory suggest a measured stance rather than an aggressive entry point.
NVR (NVR - Free Report) came out with quarterly earnings of $83.96 per share, missing the Zacks Consensus Estimate of $94.82 per share. This compares to earnings of $108.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -11.45%. A quarter ago, it was expected that this homebuilder would post earnings of $78.25 per share when it actually produced earnings of $67.76, delivering a surprise of -13.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
NVR, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $2.28 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.23%. This compares to year-ago revenues of $2.55 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
NVR shares have lost about 12.9% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for NVR?While NVR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for NVR was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $107.42 on $2.59 billion in revenues for the coming quarter and $371.11 on $9.59 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, M/I Homes (MHO - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This homebuilder is expected to post quarterly earnings of $3.17 per share in its upcoming report, which represents a year-over-year change of -28.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
M/I Homes' revenues are expected to be $1.18 billion, up 1.8% from the year-ago quarter.
, /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2026 of $236.5 million, or $83.96 per diluted share. For the second quarter ended June 30, 2026, net income and diluted earnings per share decreased 29% and 23%, respectively, when compared to 2025 second quarter net income of $333.7 million, or $108.54 per diluted share. Consolidated revenues for the second quarter of 2026 totaled $2.33 billion, compared to $2.60 billion in the second quarter of 2025.
For the six months ended June 30, 2026, consolidated revenues were $4.21 billion, a 16% decrease from $5.00 billion reported for the same period of 2025. Net income for the six months ended June 30, 2026 was $434.8 million, a decrease of 31% when compared to net income for the six months ended June 30, 2025 of $633.3 million. Diluted earnings per share for the six months ended June 30, 2026 was $151.38, a decrease of 26% from $203.20 per diluted share for the same period of 2025.
Homebuilding
New orders in the second quarter of 2026 increased by 9% to 5,885 units, when compared to 5,379 units in the second quarter of 2025. The average sales price of new orders in the second quarter of 2026 was $437,100, a decrease of 5% when compared to the second quarter of 2025. The cancellation rate in the second quarter of 2026 was 15% compared to 17% in the second quarter of 2025. Settlements in the second quarter of 2026 decreased by 8% to 5,058 units, compared to 5,475 units in the second quarter of 2025. The average settlement price in the second quarter of 2026 was $450,700, a decrease of 3% when compared to the second quarter of 2025. Our backlog of homes sold but not settled as of June 30, 2026 increased on a unit basis by 9% to 10,998 units and increased on a dollar basis by 5% to $4.99 billion when compared to the respective backlog unit and dollar balances as of June 30, 2025.
Homebuilding revenues of $2.28 billion in the second quarter of 2026 decreased by 11% compared to homebuilding revenues of $2.55 billion in the second quarter of 2025. Gross profit margin in the second quarter of 2026 decreased to 19.2%, from 21.5% in the second quarter of 2025. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $21.7 million. Income before tax from the homebuilding segment totaled $293.2 million in the second quarter of 2026, a decrease of 30% when compared to the second quarter of 2025.
Mortgage Banking
Mortgage closed loan production in the second quarter of 2026 totaled $1.35 billion, a decrease of 13% when compared to the second quarter of 2025. Income before tax from the mortgage banking segment totaled $25.4 million in the second quarter of 2026, a decrease of 14% when compared to $29.6 million in the second quarter of 2025.
About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.
Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.
NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Homebuilding:
Revenues
$ 2,279,771
$ 2,548,267
$ 4,114,650
$ 4,898,712
Other income
12,095
25,088
40,144
51,800
Cost of sales
(1,841,217)
(1,999,983)
(3,315,756)
(3,835,358)
Selling, general and administrative
(150,721)
(149,170)
(307,692)
(314,287)
Interest expense
(6,698)
(6,685)
(13,552)
(13,866)
Homebuilding income
293,230
417,517
517,794
787,001
Mortgage Banking:
Mortgage banking fees
46,585
50,547
92,769
103,134
Interest income
3,983
4,493
7,612
8,299
Other income
1,292
1,301
2,069
2,394
General and administrative
(26,153)
(26,425)
(49,280)
(51,118)
Interest expense
(296)
(300)
(629)
(573)
Mortgage banking income
25,411
29,616
52,541
62,136
Income before taxes
318,641
447,133
570,335
849,137
Income tax expense
(82,183)
(113,396)
(135,518)
(215,824)
Net income
$ 236,458
$ 333,737
$ 434,817
$ 633,313
Basic earnings per share
$ 87.65
$ 114.52
$ 158.75
$ 214.78
Diluted earnings per share
$ 83.96
$ 108.54
$ 151.38
$ 203.20
Basic weighted average shares outstanding
2,698
2,914
2,739
2,949
Diluted weighted average shares outstanding
2,816
3,075
2,872
3,117
NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
June 30, 2026
December 31, 2025
ASSETS
Homebuilding:
Cash and cash equivalents
$ 1,093,736
$ 1,883,844
Restricted cash
44,562
34,348
Receivables
49,642
32,742
Inventory:
Lots and housing units, covered under sales agreements with customers
1,877,430
1,410,695
Unsold lots and housing units
307,698
252,029
Land under development
21,067
39,312
Building materials and other
29,094
21,524
2,235,289
1,723,560
Contract land deposits, net
927,380
851,458
Property, plant and equipment, net
99,248
103,770
Operating lease right-of-use assets
110,893
110,535
Other assets
348,163
349,306
4,908,913
5,089,563
Mortgage Banking:
Cash and cash equivalents
50,938
32,642
Restricted cash
8,023
6,047
Mortgage loans held for sale, net
396,678
571,596
Property and equipment, net
7,723
7,727
Operating lease right-of-use assets
22,538
23,953
Other assets
75,807
125,402
561,707
767,367
Total assets
$ 5,470,620
$ 5,856,930
NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
June 30, 2026
December 31, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable
$ 375,478
$ 259,244
Accrued expenses and other liabilities
311,697
376,976
Customer deposits
294,698
249,210
Operating lease liabilities
117,947
117,589
Senior notes
908,162
909,160
2,007,982
1,912,179
Mortgage Banking:
Accounts payable and other liabilities
46,849
53,738
Operating lease liabilities
24,593
26,144
71,442
79,882
Total liabilities
2,079,424
1,992,061
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares
issued as of both June 30, 2026 and December 31, 2025
206
206
Additional paid-in capital
3,223,670
3,155,367
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of
both June 30, 2026 and December 31, 2025
(16,710)
(16,710)
Deferred compensation liability
16,710
16,710
Retained earnings
16,821,586
16,386,769
Less treasury stock at cost – 17,877,177 and 17,755,943 shares as of June 30, 2026
and December 31, 2025, respectively
(16,654,266)
(15,677,473)
Total shareholders' equity
3,391,196
3,864,869
Total liabilities and shareholders' equity
$ 5,470,620
$ 5,856,930
NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Units
Average
Price
Units
Average
Price
Units
Average
Price
Units
Average
Price
New orders, net of cancellations:
Mid Atlantic (1)
2,081
$ 499.2
1,930
$ 531.3
3,998
$ 499.2
3,796
$ 523.0
North East (2)
390
$ 639.4
424
$ 655.3
859
$ 624.4
801
$ 674.0
Mid East (3)
1,186
$ 419.2
1,072
$ 424.2
2,369
$ 422.2
2,170
$ 422.0
South East (4)
2,228
$ 353.3
1,953
$ 361.7
4,397
$ 356.0
3,957
$ 359.0
Total
5,885
$ 437.1
5,379
$ 458.1
11,623
$ 438.6
10,724
$ 453.3
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Units
Average Price
Units
Average Price
Units
Average Price
Units
Average Price
Settlements:
Mid Atlantic (1)
1,721
$ 511.1
2,101
$ 537.2
3,139
$ 515.3
4,151
$ 532.6
North East (2)
452
$ 621.1
474
$ 651.7
818
$ 637.2
945
$ 632.5
Mid East (3)
1,056
$ 429.4
1,082
$ 415.8
1,778
$ 429.6
2,095
$ 411.6
South East (4)
1,829
$ 364.1
1,818
$ 363.3
3,338
$ 363.0
3,417
$ 359.2
Total
5,058
$ 450.7
5,475
$ 465.4
9,073
$ 453.5
10,608
$ 461.8
As of June 30,
2026
2025
Units
Average
Price
Units
Average
Price
Backlog:
Mid Atlantic (1)
4,019
$ 509.2
3,713
$ 532.6
North East (2)
1,014
$ 632.9
911
$ 698.4
Mid East (3)
2,224
$ 426.2
2,120
$ 426.8
South East (4)
3,741
$ 362.5
3,325
$ 371.6
Total
10,998
$ 453.9
10,069
$ 472.1
NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Average active communities:
Mid Atlantic (1)
133
120
129
120
North East (2)
28
26
29
25
Mid East (3)
95
94
97
93
South East (4)
186
186
182
175
Total
442
426
437
413
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Homebuilding data:
New order cancellation rate
14.9 %
16.5 %
14.4 %
16.0 %
Lots controlled at end of period
184,400
171,400
Mortgage banking data:
Loan closings
$ 1,354,713
$ 1,555,280
$ 2,407,697
$ 2,988,201
Capture rate
85 %
87 %
84 %
87 %
Common stock information:
Shares outstanding at end of period
2,678,153
2,883,215
Number of shares repurchased
54,716
65,834
144,896
142,954
Aggregate cost of shares repurchased
$ 357,777
$ 471,413
$ 989,733
$ 1,054,807
(1)
Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2)
New Jersey and Eastern Pennsylvania
(3)
New York, Ohio, Western Pennsylvania, Indiana and Illinois
(4)
North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky
NVR má ve 2. čtvrtletí vykázat nižší zisk i tržby, protože slabší trh s bydlením tlumí poptávku. Konsensus čeká EPS 95,80 USD a tržby 2,41 miliardy USD.
Key Takeaways NVR is expected to post lower earnings and revenues amid a softer housing market.NVR's homebuilding business is likely to have faced pressure as affordability challenges curb buyer demand.NVR is expected to see modest improvement in orders and backlog despite settlement and margin pressure. NVR, Inc. (NVR - Free Report) is expected to report lower earnings in the second quarter of 2026. Homebuilding revenues are also likely to have decreased on a year-over-year basis, given soft demand and margin headwinds.
In the last reported quarter, earnings and homebuilding revenues missed the Zacks Consensus Estimate by 13.4% and 7.9%, respectively. Also, both metrics declined on a year-over-year basis by 29% and 22%.
The company’s earnings beat the consensus mark in three of the last four quarters and missed once, the average surprise being 2.5%.
How Are Estimates Placed for NVR Stock?The Zacks Consensus Estimate for the to-be-reported quarter’s EPS has increased to $95.80 from $95.20 in the past 30 days. The estimated figure indicates a 11.74% decrease from the year-ago EPS of $108.54.
The consensus mark for revenues is pegged at $2.41 billion, indicating a decrease of 5.6% from the year-ago reported figure of $2.55 billion.
Factors Likely to Shape NVR’s Q2 ResultsNVR's second-quarter Homebuilding revenues are expected to have remained under pressure as elevated mortgage rates and higher homeownership costs are likely to have continued to limit affordability across many markets. Affordability challenges, coupled with cautious consumer sentiment, are expected to have delayed purchase decisions and moderated buyer demand during the quarter. The company is also likely to have maintained elevated sales incentives to support demand amid the challenging housing environment.
Our model predicts Homebuilding revenues (which accounted for 97.8% of total revenues in 2025) to decline 5.5% year over year to $2.41 billion in the to-be-reported quarter. For the quarter to be reported, we anticipate total settlements to decrease 6.7% to 5,107 units on a year-over-year basis.
The company's bottom line is expected to have decreased year over year in the quarter as elevated sales incentives are likely to have weighed on profitability. At the same time, higher lot, labor and building materials costs are expected to have increased construction expenses, creating additional pressure on homebuilding margins. We expect the homebuilding gross margin to be 18.3%, down 320 basis points year over year.
Our model predicts total new orders to increase slightly by 0.8% year over year to 5,421 units. The backlog is currently pegged at 10,484 units, which indicates an increase from 10,069 units reported a year ago. We expect the value of the backlog to be $4.77 billion, implying a slight increase from $4.75 billion in the corresponding year-ago quarter.
What the Zacks Model Unveils for NVROur proven model does not conclusively predict an earnings beat for NVR for the quarter to be reported. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
NVR’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NVR’s Zacks Rank: NVR currently carries a Zacks Rank #3 (Hold).
Stocks With the Favorable CombinationHere are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Dycom Industries, Inc. (DY - Free Report) currently has an Earnings ESP of +0.47% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
With the average surprise being 25%, Dycom’s earnings beat estimates in the last four quarters. Dycom’s earnings for the to-be-reported quarter are expected to increase 39.3%.
Owens Corning (OC - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank of 3 at present.
For the quarter to be reported, Owens Corning’s earnings are expected to decline 27.3%. OC’s earnings beat estimates in three of the last four quarters and missed on one occasion, the average surprise being 3.8%.
United Rentals (URI - Free Report) currently has an Earnings ESP of +1.39% and a Zacks Rank of 2.
The company’s earnings beat estimates in one of the trailing four quarters and missed on the other three occasions, the average negative surprise being 1.5%. United Rentals’ earnings for the quarter are expected to increase 11.5%.
