NVR (NYSE: NVR) slips on lower revenue, but backlog edges higher

What happened

NVR, Inc. (NYSE: NVR) said net income for the third quarter ended September 30, 2026, fell to $248.6 million from $342.7 million a year earlier. Diluted earnings per share fell to $89.45 from $112.33. Consolidated revenue fell to $2.40 billion from $2.61 billion.

Homebuilding revenue fell to $2.35 billion from $2.56 billion. New orders fell 7% to 4,391 units. Settlements fell 7% to 5,268 units. The cancellation rate rose to 21% from 19%. Backlog increased 10% to 10,121 units and 4% to $4.59 billion. Average sales price of new orders fell to $442,100, and average settlement price was $445,900. Average active communities rose to 454 from 450.

Homebuilding income fell to $299.7 million from $411.4 million. Mortgage banking income rose to $35.0 million from $32.7 million. Nine-month homebuilding revenue was $6.46 billion, down from $7.46 billion, and nine-month mortgage banking income was $87.5 million, down from $94.9 million. Mortgage capture rate was 85% versus 86% a year earlier.

NVR ended the quarter with $1.09 billion in homebuilding cash and cash equivalents, down from $1.88 billion at December 31, 2025. Homebuilding senior notes were $907.7 million. The company repurchased 181,984 shares in the first nine months for $1.23 billion.

Key numbers

Metric	Latest	Change	Source
Net income	$248.6 million	from $342.7 million, -27%	SEC 8-K
Diluted EPS	$89.45 per diluted share	from $112.33 per diluted share, -20%	SEC 8-K
Consolidated revenues	$2.40 billion	from $2.61 billion, -8%	SEC 8-K
Homebuilding revenues	$2.35 billion	from $2.56 billion, -8%	SEC 8-K
Mortgage closed loan production	$1.38 billion	-10%	SEC 8-K
Backlog	10,121 units	from 9,165 units, +10%	SEC 8-K

Read more: NVR (NVR) stock analysis and investment case

Why it matters

OptimistFi's case is that NVR can compound value if its pre-sold model keeps generating cash through housing cycles while buybacks lift per-share returns. This quarter is mixed. Consolidated revenue fell about $210 million year over year, and homebuilding income dropped to $299.7 million from $411.4 million.

The company still repurchased 37,088 shares for $237.2 million, and mortgage banking income rose 7% to $35.0 million. Homebuilding gross margin slipped to 18.3% from 21.0%. NVR said higher lot costs, pricing pressure from affordability challenges and weak consumer sentiment, plus about $24.8 million of contract land deposit impairments, hurt the quarter.

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What's next

The next quarterly report is the next scheduled test. A stronger case would pair steadier gross margin with backlog staying above 10,121 units and continued repurchases. A weaker reading would be another decline in backlog, settlements or margin after the third quarter's slowdown.

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