NVR third-quarter net income falls 27% to $248.6 million as gross margin drops to 18.3%

NVR Inc. (NVR), one of the nation's largest homebuilding and mortgage banking companies, said on Thursday that third-quarter net income fell 27% to $248.6 million, or $89.45 per diluted share, as higher lot costs and pricing pressure weighed on homebuilding margins.

The results were disclosed in a press release attached to a regulatory filing covering the quarter ended Sept. 30.

Consolidated revenue for the quarter totaled $2.40 billion, compared with $2.61 billion a year earlier.

Here's how the company did:

• Net income: $248.6 million vs. $342.7 million a year earlier
• Diluted earnings per share: $89.45 vs. $112.33 a year earlier
• Revenue: $2.40 billion vs. $2.61 billion a year earlier

Net income declined 27% and diluted earnings per share declined 20%. Diluted weighted average shares fell to 2.78 million from 3.05 million.

For the first nine months of 2026, consolidated revenue was $6.61 billion, down 13% from $7.61 billion. Net income was $683.4 million, down 30% from $976.0 million.

Diluted earnings per share for the nine months were $240.54, down 24% from $315.33 a year earlier.

In homebuilding, new orders fell 7% to 4,391 units from 4,735 a year earlier. The average sales price of new orders was $442,100, down 5% from a year earlier.

Settlements decreased 7% to 5,268 units from 5,639. The average settlement price was $445,900, down 2%. The cancellation rate rose to 21% from 19%.

Homebuilding revenue was $2.35 billion, down 8% from $2.56 billion. Gross profit margin fell to 18.3% from 21.0%.

The company cited higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and contract land deposit impairments totaling approximately $24.8 million.

Income before tax from the homebuilding segment was $299.7 million, down 27% from a year earlier.

Backlog of homes sold but not yet settled rose 10% in units to 10,121 as of Sept. 30. Dollar backlog rose 4% to $4.59 billion.

In mortgage banking, closed loan production totaled $1.38 billion, down 10% from a year earlier.

Income before tax from the mortgage banking segment was $35.0 million, up 7% from $32.7 million.

The company repurchased 37,088 shares in the quarter for $237.2 million, compared with 35,224 shares for $276.4 million a year earlier.

For the first nine months, the company repurchased 181,984 shares for $1.23 billion, compared with 178,178 shares for $1.33 billion a year earlier.

Shares outstanding at the end of the period were 2,644,276, compared with 2,860,899 a year earlier. The company controlled 185,300 lots at the end of the period, compared with 175,300.

Average active communities rose to 454 from 450 in the quarter.

The release did not include new financial guidance for future periods, and it contains no executive quotes.

NVR operates in two business segments, homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes names in thirty-seven metropolitan areas in sixteen states and Washington, D.C.