NVR · Q1 2026 Earnings

Cautious

NVR, Inc.

Reported April 22, 2026

30-second summary

Homebuilding gross margin printed 19.6%, the first sub-20% quarter in recent memory and 230bps below Q1-2025's 21.9%, while settlements fell 22% YoY (-29% QoQ) to 4,015 units — revenue fell 22% to $1.88B as the depleted entering backlog flowed through. The offsetting positive: new orders of 5,738 units (+7% YoY) exceeded settlements by 1,723, with backlog at 10,171 units / $4.70B (flat units, -3% dollars YoY). This is a margin-down, demand-stabilizing print — orders running above settlements answers last quarter's most important watch item, but the gross margin floor broke.

Headline numbers

EPS

Q1 FY2026

$67.76

Revenue

Q1 FY2026

$1.88B

-22.0% YoY

Gross margin

Q1 FY2026

19.6%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$1.88B	-22.0%	$2.71B	-30.6%
EPS	$67.76	—	$121.54	-44.2%
Gross margin	19.6%	—	20.4%	-80bps

Guidance

No prior guidance provided for Q1 FY2026 or FY2026 full year; unable to assess beat/miss or guidance changes.

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Homebuilding	$1.83B	-22.0%

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
New Orders (Net)	5,738 units
Average Sales Price of New Orders	$440,100
Cancellation Rate	14%
Settlements	4,015 units
Average Settlement Price	$457,000
Backlog Units	10,171 units
Backlog Dollar Value	$4.70 billion
Mortgage Loan Closings	$1.053 billion

Management tone

No earnings call is held and no transcript exists; NVR's disclosure is the numerical release only. What the print communicates without commentary: management traded margin for volume. New orders +7% YoY at a new ASP that's 2% lower, cancellations down 200bps YoY, order/settlement spread of +1,723 units — but gross margin broke 20% on pricing pressure and higher lot costs. The strategic posture implied by the numbers: defend order velocity at the cost of near-term margin, then let backlog conversion drive 2H revenue support.

Answers to last quarter's watch list

Whether Q1 FY2026 gross margin holds or breaks lower. Broke lower. Gross margin printed 19.6%, 230bps below Q1 FY2025 and the first sub-20% print in recent memory. Press release cites pricing pressure and higher lot costs — looks structural, not transitory.

Resolved negatively

Whether the order recovery sustains and broadens. Sustained and broadened. New orders of 5,738 in Q1 FY2026 are up 7% YoY with growth across all four regions, and cancellations fell to 14% from 16% in Q1 FY2025.

Resolved positively

Backlog re-acceleration. Mixed. Q1 orders (5,738) exceeded settlements (4,015) by 1,723 units — the reversal the watch item required. Backlog units are flat YoY at 10,171 and dollar value is -3% YoY at $4.70B. Status: Resolved positively on direction, neutral on absolute level

New order ASP trajectory. Continued to soften. New order ASP of $440,100 is -2% YoY from $448,500. Settlement ASP held essentially flat. The pricing pressure on new orders will flow through realized margin as Q1 orders settle in 2H FY2026.

Resolved negatively

Mortgage Banking sustainability. Pretax income $27.1M, -17% YoY vs. $32.5M; closed loan production fell to $1.053B (-27% YoY) tracking settlement volumes.

Resolved negatively

What to watch into next quarter

Whether gross margin stabilizes near 19.6% or breaks toward 19%. Q1 broke the 20% line. A Q2 print holding ~19.5% would confirm a new steady-state band; a break toward 19% would force a further re-rate of normalized earnings power. Watch lot cost commentary and any contract land deposit impairment disclosure.

Whether the order momentum sustains into Q2. Q1 orders of 5,738 (+7% YoY) are the strongest since the slowdown began. Q2 is a seasonally larger order quarter — sustained YoY growth would signal durable improvement rather than a pull-forward.

Settlement pace as backlog converts. Backlog of 10,171 units (flat YoY) now supports settlement recovery; Q1 settlements of 4,015 were the trough. Watch whether Q2 settlements step back toward 5,000+.

New order ASP — does the slide continue? $440,100 in Q1 is down 2% YoY. A further drop in Q2 would mean NVR is paying for the order recovery with persistent price concession, and that compounds into 2H realized margin.

Cancellation rate durability. 14.0% is the cleanest demand positive in the print. A Q2 print at or below 15% confirms buyer stress has materially eased; a back-up toward 17%+ would say Q1 was a head-fake.

Sources

NVR, Inc. Q1 2026 Earnings Release — https://www.sec.gov/Archives/edgar/data/906163/000090616326000034/q12026ex991_earningsrelease.htm

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