The sharp EPS miss and margin compression confirm deteriorating profitability despite unit order growth. Watch for further pricing weakness and cost pressures in the next quarter; the backlog increase provides some near-term revenue visibility but at lower average prices.
Price Chart
Executive Summary
NVR reported Q2 2026 diluted EPS of $83.96, a 22.6% decline YoY and an 11.5% miss vs consensus of $94.82. Consolidated revenue fell 10% to $2.33B, slightly below the $2.36B estimate. Homebuilding gross margin contracted to 19.2% from 21.5% due to pricing pressure, higher lot costs, and $21.7M in land deposit impairments. New orders rose 9% but average selling prices declined 5%, signaling ongoing affordability headwinds.
Key Financial Metrics
Key Facts
- Diluted EPS $83.96 vs $108.54 YoY (-23%) and vs consensus $94.82 (-11.5%)
- Consolidated revenue $2.33B vs $2.60B YoY (-10%)
- Homebuilding gross margin 19.2% vs 21.5% YoY
- New orders +9% to 5,885 units but average price -5% to $437,100
- Settlements -8% to 5,058 units; average settlement price -3% to $450,700
- Backlog units +9% to 10,998; dollar value +5% to $4.99B
- Mortgage banking income $25.4M vs $29.6M YoY (-14%)
- Share repurchases: 54,716 shares for $357.8M in Q2; YTD $989.7M
Financial Impact
EPS miss of ~$10.86 vs consensus; revenue shortfall of ~$30M; gross margin compression of 230 bps
Risk Factors
- Continued affordability challenges and weak consumer sentiment pressuring pricing and margins
- Higher lot costs and land deposit impairments may persist
- Mortgage banking income declining on lower origination volume
- Share repurchases provide EPS support but cannot offset fundamental earnings decline
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000906163-26-000086 |
| Document: nvr-20260723.htm | 0000906163-26-000086 |
| Document: 0000906163-26-000086-index-headers.html | 0000906163-26-000086 |
| Document: 0000906163-26-000086-index.html | 0000906163-26-000086 |
| Document: 0000906163-26-000086.txt | 0000906163-26-000086 |
| 8-K Data (Synthetic) | 0000906163-26-000086 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | Court Ruling | $6,257.45 $6,338.92 | ▲ +1.30% | ▼ −0.83% | $5,964.11 (−4.69%) |
Aug 19, 2026 6w ago | Court Ruling | $6,418.86 $6,368.12 | ▼ −0.79% | ▼ −0.40% | $5,964.11 (−7.08%) |
Aug 11, 2026 7w ago | Insider Buy | $6,429.96 $6,248.37 | ▼ −2.82% | ▼ −2.42% | $5,964.11 (−7.24%) |
Jul 23, 2026 10w ago | 8-K | $6,155.02 $6,288.68 | ▼ −2.17% | ▼ −1.70% | $5,964.11 (+3.10%) |
May 15, 2026 19w ago | 8-K | $5,712.11 $6,008.05 | ▲ +5.18% | ▲ +3.56% | $5,964.11 (+4.41%) |
Apr 22, 2026 23w ago | 8-K | $6,563.05 $6,273.85 | ▲ +4.41% | ▲ +4.46% | $5,964.11 (+9.13%) |
Mar 17, 2026 28w ago | DEFA14A | $6,565.98 $6,464.57 | ▼ −1.54% | ▲ +1.11% | $5,964.11 (−9.17%) |
Mar 6, 2026 30w ago | Court Ruling | $6,921.86 $6,424.88 | ▼ −7.18% | ▼ −5.65% | $5,964.11 (−13.84%) |
US Market Status
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