Reston, Virginia, October 22nd / PRNewswire / -- NVR, Inc. (New York Stock Exchange ticker: NVR), one of the largest residential construction and mortgage lending companies in the United States, announced a net profit of $248.6 million for the third quarter ending September 30, 2026, which is $89.45 per diluted share.
For the third quarter as of September 30, 2026, net profit and diluted earnings per share decreased by 27% and 20%, respectively, compared to $342.7 million and $112.33 in the third quarter of 2025. The consolidated revenue for the third quarter of 2026 was $2.4 billion, which is lower than $2.61 billion in the third quarter of 2025.
For the first nine months ending September 30, 2026, consolidated revenue amounted to $6.61 billion, a decrease of 13% compared to $7.61 billion in the same period of 2025. For the same period, net profit was $683.4 million, which is a 30% decline from $976.0 million in 2025. Diluted earnings per share for the first nine months were $240.54, representing a 24% reduction from $315.33 in the same period of 2025.
Residential Construction Business
In the third quarter of 2026, new orders decreased by 7% to 4,391 units, compared to 4,735 units in the third quarter of 2025. The average selling price of new orders in the third quarter of 2026 was $442,100, which is a 5% decrease from the same period last year. The cancellation rate in the third quarter was 21%, higher than the 19% in the third quarter of 2025. Deliveries in the third quarter also decreased by 7% to 5,268 units, compared to 5,639 units in the third quarter of 2025. The average delivery price in the third quarter was $445,900, which represents a 2% decrease from the same period last year. As of September 30, 2026, the backlog of sold but undelivered homes increased by 10% in terms of units to 10,121 units, and by 4% in terms of value to $4.59 billion, an increase from the corresponding backlog balance as of September 30, 2025.
In the third quarter of 2026, the revenue from residential construction business was $2.35 billion, which represents an 8% decrease from $2.56 billion in the third quarter of 2025. The gross margin for the third quarter dropped to 18.3%, lower than 21.0% in the same period of 2025. The company stated that the gross margin was affected by higher land costs, ongoing affordability challenges and pricing pressures due to weak consumer sentiment, as well as the negative impact of a write-down of approximately $24.8 million in contract land deposits. The pre-tax profit from residential construction business in the third quarter of 2026 was $299.7 million, a 27% decrease compared to the same period last year.
Mortgage lending banking business
In the third quarter of 2026, the total volume of mortgage loans closed amounted to 1.38 billion US dollars, a decrease of 10% compared to the third quarter of 2025. The pre-tax profit from mortgage banking operations was 35 million US dollars, which represents a 7% increase from 32.7 million US dollars in the third quarter of 2025.
About NVR
NVR, Inc. It mainly operates in two business segments: residential construction and mortgage banking. Its residential construction business sells and builds residences under the brands Ryan Homes, NVHomes, and Heartland Homes, covering 37 metropolitan areas in 16 states and the District of Columbia. For more information, please refer to www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, and www.heartlandluxuryhomes.com.
Certain statements in this press release constitute “forward-looking statements” as defined by 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. Some, but not all, of these forward-looking statements can be identified by words such as “believes,” “expects,” “may,” “will,” “should,” “could,” “anticipates,” or their negative counterparts, as well as other similar expressions. Except for historical facts, all statements in this document are forward-looking statements. These forward-looking statements may include projections regarding market trends, the financial condition and financial performance of NVR, business strategies, the outcome of pending litigation or investigations, and management’s plans and objectives for future operations. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results, performance, or achievements of NVR to differ significantly from those stated or implied in the forward-looking statements. Relevant risk factors include, but are not limited to: overall economic and business conditions (national and regional); changes in interest rates; the ability of NVR and its customers to obtain appropriate financing; increased regulation in the mortgage lending industry; the ability of the company’s mortgage lending subsidiaries to sell the loans they issue to the secondary market; competition; the availability and cost of land and other raw materials used in the residential construction business of NVR; labor shortages; the economic impact of major pandemics or epidemics; slowdowns caused by weather; construction suspensions; government regulations; fluctuations and instability in the stock and other financial markets; the availability of mortgage financing; and other factors that are largely beyond NVR’s control. Except as required by law, NVR assumes no obligation to update such forward-looking statements.
