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NVR reported Q2 FY2026 revenue of $2.3 billion, down −10.5% from Q2 FY2025, while diluted EPS was $83.96, down −22.6%. The filing said consolidated revenue declined as homebuilding revenue fell 11%, reflecting an 8% decline in units settled and a 3% decline in average settlement price.
For the quarter to September 30, 2026, NVR reported adjusted EPS of $89.45 against consensus adjusted EPS of $106.11, or −15.7% against the consensus. Revenue, as the consensus counts it, was $2.3 billion against consensus revenue of $2.6 billion, or −9.75% against the consensus.
NVR reported gross margin of 20.9% in Q2 FY2026, versus 23.0% a year earlier, and operating margin of 14.0%, versus 17.5%. The filing attributed lower homebuilding gross margin to higher lot costs, pricing pressure associated with affordability challenges and weak consumer sentiment, as well as contract land deposit impairments. Free cash flow was −$157.6 million, compared with $27.0 million in Q2 FY2025. The filing reported that mortgage loan closing volume decreased 13% during the quarter, consistent with the homebuilding-revenue decline.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.3 billion | $2.6 billion | −10.5% |
| Diluted EPS | $83.96 | $108.54 | −22.6% |
| Gross margin | 20.9% | 23.0% | −2.2 percentage points |
| Operating margin | 14.0% | 17.5% | −3.5 percentage points |
| Free cash flow | −$157.6 million | $27.0 million | −682.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $89.45 | $106.11 | Missed by 15.7% |
| Revenue | $2.3 billion | $2.6 billion | Missed by 9.75% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
NVR did not provide an earnings-call transcript or other latest-call commentary for this page. The company’s Q2 FY2026 filing said new orders, net of cancellations, increased 9% from a year earlier, while the average sales price of new orders decreased 5%.
The filing attributed the increase in new orders to a 4% increase in the average number of active communities and a 5% higher sales absorption rate. It attributed the lower new-order price to pricing pressure and a relative product-mix shift from single-family detached homes to single-family attached homes, which generally sell at lower prices.
NVR’s filing reported that its cancellation rate decreased to 14.9% in Q2 FY2026 from 16.5% a year earlier. The company said backlog at June 30, 2026 increased 9% to 10,998 units and 5% to $4,992,229 on a dollar basis from June 30, 2025; it attributed the unit increase primarily to higher new orders, partly offset in dollar terms by a 4% lower average backlog-unit price.
The filing said the company historically uses a substantial portion of excess liquidity for share repurchases while also funding its homebuilding and mortgage-banking operations. NVR reported repurchasing 144,896 shares for an aggregate purchase price of $989,733 during the first six months of 2026, with approximately $1,059,864 remaining under Board-approved authorizations as of June 30, 2026.
Guidance
NVR’s management guidance is not available in the provided materials. The company’s filing states that forward-looking statements involve risks and uncertainties, including economic conditions, interest rates, financing availability, land and labor costs, and consumer demand factors.