NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

, /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2026 of $198.4 million, or $67.76 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2026 decreased 34% and 29%, respectively, when compared to 2025 first quarter net income of $299.6 million, or $94.83 per diluted share. Consolidated revenues for the first quarter of 2026 totaled $1.88 billion, which decreased 22% from $2.40 billion in the first quarter of 2025. Homebuilding New orders in the first quarter of 2026 increased by 7% to 5,738 units, when compared to 5,345 units in the first quarter of 2025. The average sales price of new orders in the first quarter of 2026 was $440,100, a decrease of 2% when compared with the first quarter of 2025. The cancellation rate in the first quarter of 2026 was 14% compared to 16% in the first quarter of 2025. Settlements in the first quarter of 2026 decreased by 22% to 4,015 units, compared to 5,133 units in the first quarter of 2025. The decrease in settlements was primarily attributable to a 15% lower backlog balance of homes sold but not settled entering the first quarter of 2026 compared to the same period in 2025. The average settlement price in the first quarter of 2026 was $457,000, which remained relatively flat when compared to the first quarter of 2025. As of March 31, 2026 our backlog of homes totaled 10,171 units, which was flat compared to March 31, 2025, while the dollar value of backlog declined 3% to $4.70 billion. Homebuilding revenues of $1.83 billion in the first quarter of 2026 decreased by 22% compared to homebuilding revenues of $2.35 billion in the first quarter of 2025. Gross profit margin in the first quarter of 2026 decreased to 19.6%, compared to 21.9% in the first quarter of 2025. Gross profit margin was negatively impacted by continued pricing pressure and higher lot costs. Income before tax from the homebuilding segment totaled $224.6 million in the first quarter of 2026, a decrease of 39% when compared to the first quarter of 2025. Mortgage Banking Mortgage closed loan production in the first quarter of 2026 totaled $1.05 billion, a decrease of 27% when compared to the first quarter of 2025. Income before tax from the mortgage banking segment totaled $27.1 million in the first quarter of 2026, a decrease of 17% when compared to $32.5 million in the first quarter of 2025. Effective Tax Rate Our effective tax rate for the three months ended March 31, 2026 was 21.2% compared to 25.5% for the three months ended March 31, 2025. The decrease in the effective tax rate in the first quarter of 2026 was primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $12.6 million and $2.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. About NVR NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com. Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law. NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2026 2025 Homebuilding: Revenues 1,834,879 $ 2,350,445 Other income 28,049 26,712 Cost of sales (1,474,539) (1,835,375) Selling, general and administrative (156,971) (165,117) Interest expense (6,854) (7,181) Homebuilding income 224,564 369,484 Mortgage Banking: Mortgage banking fees 46,184 52,587 Interest income 3,629 3,806 Other income 777 1,093 General and administrative (23,127) (24,693) Interest expense (333) (273) Mortgage banking income 27,130 32,520 Income before taxes 251,694 402,004 Income tax expense (53,335) (102,428) Net income $ 198,359 $ 299,576 Basic earnings per share $ 71.33 $ 100.41 Diluted earnings per share $ 67.76 $ 94.83 Basic weighted average shares outstanding 2,781 2,984 Diluted weighted average shares outstanding 2,928 3,159 NVR, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) March 31, 2026 December 31, 2025 ASSETS Homebuilding: Cash and cash equivalents $ 1,645,786 $ 1,883,844 Restricted cash 40,606 34,348 Receivables 35,423 32,742 Inventory: Lots and housing units, covered under sales agreements with customers 1,652,220 1,410,695 Unsold lots and housing units 244,499 252,029 Land under development 19,433 39,312 Building materials and other 22,358 21,524 1,938,510 1,723,560 Contract land deposits, net 938,981 851,458 Property, plant and equipment, net 100,899 103,770 Operating lease right-of-use assets 108,985 110,535 Other assets 335,331 349,306 5,144,521 5,089,563 Mortgage Banking: Cash and cash equivalents 36,281 32,642 Restricted cash 7,014 6,047 Mortgage loans held for sale, net 287,475 571,596 Property and equipment, net 7,892 7,727 Operating lease right-of-use assets 23,035 23,953 Other assets 79,560 125,402 441,257 767,367 Total assets $ 5,585,778 $ 5,856,930 NVR, Inc. Consolidated Balance Sheets (Continued) (in thousands, except share and per share data) (unaudited) March 31, 2026 December 31, 2025 LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding: Accounts payable $ 332,321 $ 259,244 Accrued expenses and other liabilities 374,987 376,976 Customer deposits 273,422 249,210 Operating lease liabilities 116,040 117,589 Senior notes 908,662 909,160 2,005,432 1,912,179 Mortgage Banking: Accounts payable and other liabilities 61,162 53,738 Operating lease liabilities 25,150 26,144 86,312 79,882 Total liabilities 2,091,744 1,992,061 Commitments and contingencies Shareholders' equity: Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2026 and December 31, 2025 206 206 Additional paid-in capital 3,202,642 3,155,367 Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both March 31, 2026 and December 31, 2025 (16,710) (16,710) Deferred compensation liability 16,710 16,710 Retained earnings 16,585,128 16,386,769 Less treasury stock at cost – 17,823,503 and 17,755,943 shares as of March 31, 2026 and December 31, 2025, respectively (16,293,942) (15,677,473) Total shareholders' equity 3,494,034 3,864,869 Total liabilities and shareholders' equity $ 5,585,778 $ 5,856,930 NVR, Inc. Operating Activity (dollars in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Units Average Price Units Average Price New orders, net of cancellations: Mid Atlantic (1) 1,917 $ 499.3 1,866 $ 514.5 North East (2) 469 $ 612.0 377 $ 695.0 Mid East (3) 1,183 $ 425.3 1,098 $ 419.9 South East (4) 2,169 $ 358.8 2,004 $ 356.3 Total 5,738 $ 440.1 5,345 $ 448.5 Three Months Ended March 31, 2026 2025 Units Average Price Units Average Price Settlements: Mid Atlantic (1) 1,418 $ 520.4 2,050 $ 527.9 North East (2) 366 $ 657.1 471 $ 613.2 Mid East (3) 722 $ 430.0 1,013 $ 407.1 South East (4) 1,509 $ 361.7 1,599 $ 354.6 Total 4,015 $ 457.0 5,133 $ 457.9 As of March 31, 2026 2025 Units Average Price Units Average Price Backlog: Mid Atlantic (1) 3,659 $ 515.7 3,884 $ 535.7 North East (2) 1,076 $ 625.6 961 $ 694.4 Mid East (3) 2,094 $ 431.4 2,130 $ 422.6 South East (4) 3,342 $ 369.6 3,190 $ 372.9 Total 10,171 $ 462.0 10,165 $ 475.9 NVR, Inc. Operating Activity (Continued) (dollars in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Average active communities: Mid Atlantic (1) 124 120 North East (2) 31 24 Mid East (3) 99 93 South East (4) 178 164 Total 432 401 Three Months Ended March 31, 2026 2025 Homebuilding data: New order cancellation rate 14 % 16 % Lots controlled at end of period 181,700 167,600 Mortgage banking data: Loan closings $ 1,052,984 $ 1,432,922 Capture rate 83 % 86 % Common stock information: Shares outstanding at end of period 2,731,827 2,944,615 Number of shares repurchased 90,180 77,120 Aggregate cost of shares repurchased $ 631,956 $ 583,394 (1) Maryland, Virginia, West Virginia, Delaware and Washington, D.C. (2) New Jersey and Eastern Pennsylvania (3) New York, Ohio, Western Pennsylvania, Indiana and Illinois (4) North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky View original content:https://www.prnewswire.com/news-releases/nvr-inc-announces-first-quarter-results-302749387.html SOURCE NVR, INC. Investor Relations Contact: Ryan Sheplee, (703) 956-4243, [email protected]