NVR earnings analysis
What we found in NVR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NVR reported Q1 results for 2026 showing a substantial decline in consolidated revenue and earnings as a result of ongoing market pressures. Revenue fell 22% year-over-year to $1.88 billion, with diluted EPS declining by 29% to $67.76. Segment performance varied, with significant revenue losses in the Mid Atlantic and North East segments, while overall market headwinds include reduced home orders and increased lot costs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline of 22%
- Consolidated revenues for Q1 2026 were $1.88 billion, down from $2.35 billion in Q1 2025, reflecting ongoing market challenges.
- Diluted EPS Drop of 29%
- Diluted EPS decreased to $67.76 from $94.83 year-over-year, marking a significant negative trend for the company.
- Gross Margin Compression
- The gross profit margin fell to 19.6% in Q1 2026 from 21.9% in Q1 2025, adversely impacted by pricing pressures.
- Homebuilding New Orders Increased 7%
- Despite overall revenue declines, new orders rose 7% compared to the prior year, indicating some demand resilience.
- Cash Flow from Operations Positive
- Operating cash flow was $339.69 million, highlighting continued liquidity despite increasing market challenges.
- Share Repurchase Program Ongoing
- NVR repurchased 90,180 shares at an aggregate cost of $631.96 million, reaffirming commitment to returning capital to shareholders.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Revenue Decline
- Consolidated revenue fell 22% year-over-year, significantly impacting overall financial health.
- Gross Margin Pressures Persist
- The gross margin percentage decreased from 21.9% to 19.6%, indicating ongoing profitability challenges.
- Increased Lot Costs
- Rising land costs are expected to continue applying pressure on margins and overall profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $67.76
- Gross margin
- 19.6%
- Segment
- Mid Atlantic: $738,026, North East: $240,484, Mid East: $310,452, South East: $545,917
What they said about what is next.
Management indicated uncertainty regarding the impact of ongoing market conditions on future performance.
The filing reads worse than the one before it.
What came before.
- 10-K · February 11, 2026
- NVR emphasizes a conservative, pre‑sold homebuilding model with a lot purchase strategy that limits direct land development and typical forfeitable deposits (up to 10% of lot price). Backlog and cancellations worsened…
- 10-Q · November 5, 2025
- NVR reported Q3 2025 diluted EPS of $112.33 on consolidated revenue of $2,609,505,000, with year-over-year revenue and margin pressure but continued strong cash generation. Homebuilding remains the main driver…
- 10-Q · August 6, 2025
- NVR reported Q2 results with revenues essentially flat year-over-year at $2,598,814 (in thousands) and diluted EPS of $108.54, beating consensus. Margins improved sequentially (gross and operating) versus Q1 but remain…
- 10-Q · May 5, 2025
- NVR reported Q1 2025 consolidated revenues of $2,403,032,000 (up $69,569,000 vs Q1 2024) but saw meaningful margin compression and an earnings decline. Diluted EPS fell to $94.83 from $116.41 in Q1 2024 and gross margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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