NVR’s second quarter results weakened across profit, revenue and homebuilding output even as new orders rose.
Net income fell 29% to $236.5 million from $333.7 million a year earlier, and diluted earnings per share dropped 23% to $83.96 from $108.54. Quarterly revenue declined 10% to $2.33 billion from $2.60 billion.
For the first six months of 2026, revenue fell 16% to $4.21 billion from $5.00 billion. Net income declined 31% to $434.8 million from $633.3 million, while diluted earnings per share slid 26% to $151.38 from $203.20.
In homebuilding, new orders increased 9% to 5,885 units from 5,379 a year ago. But the average sales price on those orders fell 5% to $437,100, and the cancellation rate improved to 15% from 17%. Settlements dropped 8% to 5,058 homes from 5,475, with the average settlement price down 3% to $450,700.
Backlog moved higher. Homes sold but not yet settled rose 9% to 10,998 units, and backlog value increased 5% to $4.99 billion.
Homebuilding revenue declined 11% to $2.28 billion from $2.55 billion. Gross margin narrowed to 19.2% from 21.5%, a drop of 2.3 percentage points. Income before tax in the homebuilding segment fell 30% to $293.2 million.
Mortgage banking also softened. Closed loan production fell 13% to $1.35 billion, and income before tax in the segment slipped 14% to $25.4 million from $29.6 million. As a result of these announcements, the company's shares have moved -3.69% on the market, and are now trading at a price of $6115.33. Check out the company's full 8-K submission here.
