NVR Q2 Earnings: Profit Drops 29% but New Orders Rise 9%
NVR is trading near its 52-week low of $5,501.01 (9.7% above the low).
Summary
NVR reported a 29% drop in Q2 net income on lower revenue and compressed margins, but new orders rose 9% and backlog grew, offering a counterbalance to the profit decline.
Key Events · Earnings and Guidance · NVR
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Earnings Miss
Q2 net income fell 29% to $236.5M, with diluted EPS of $83.96 vs. $108.54 a year ago. Revenue declined 10.6% to $2.33B.
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Margin Compression
Homebuilding gross margin dropped to 19.2% from 21.5%, hurt by higher lot costs, pricing pressure, and $21.7M in land deposit impairments.
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New Order Growth
New orders increased 9% to 5,885 units, and the cancellation rate improved to 15% from 17%, indicating resilient buyer demand.
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Backlog Expansion
Backlog rose 9% in units to 10,998 and 5% in dollar value to $4.99B, providing revenue visibility despite near-term headwinds.
Analysis · NVR · Real Estate & Construction
NVR's second-quarter net income fell 29% to $236.5 million, with earnings per share of $83.96 missing last year's $108.54. Revenue dropped 10.6% to $2.33 billion, pressured by lower average selling prices and higher lot costs. Gross margin contracted to 19.2% from 21.5%, partly due to $21.7 million in land deposit impairments. However, new orders grew 9% to 5,885 units, and backlog increased 9% to 10,998 units, signaling resilient demand despite affordability headwinds. The results follow a challenging first quarter and a recently expanded $750 million buyback authorization, which may support shares as the housing cycle navigates mixed signals.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1645 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NVR was trading at $6,033.53 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $16.3B. The 52-week trading range was $5,501.01 to $8,618.28. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.