NVR INC (NVR) · Material Event (8-K) SEC Filing

EX-99.1 2 q22026ex991_earningsrelease.htm EX-99.1 DocumentExhibit 99.1NVR, INC. ANNOUNCES SECOND QUARTER RESULTSJuly 23, 2026, Reston, VA NVR, Inc. (NYSE NVR), one of the nation s largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2026 of $236.5 million, or $83.96 per diluted share. For the second quarter ended June 30, 2026, net income and diluted earnings per share decreased 29% and 23%, respectively, when compared to 2025 second quarter net income of $333.7 million, or $108.54 per diluted share. Consolidated revenues for the second quarter of 2026 totaled $2.33 billion, compared to $2.60 billion in the second quarter of 2025. For the six months ended June 30, 2026, consolidated revenues were $4.21 billion, a 16% decrease from $5.00 billion reported for the same period of 2025. Net income for the six months ended June 30, 2026 was $434.8 million, a decrease of 31% when compared to net income for the six months ended June 30, 2025 of $633.3 million. Diluted earnings per share for the six months ended June 30, 2026 was $151.38, a decrease of 26% from $203.20 per diluted share for the same period of 2025.HomebuildingNew orders in the second quarter of 2026 increased by 9% to 5,885 units, when compared to 5,379 units in the second quarter of 2025. The average sales price of new orders in the second quarter of 2026 was $437,100, a decrease of 5% when compared to the second quarter of 2025. The cancellation rate in the second quarter of 2026 was 15% compared to 17% in the second quarter of 2025. Settlements in the second quarter of 2026 decreased by 8% to 5,058 units, compared to 5,475 units in the second quarter of 2025. The average settlement price in the second quarter of 2026 was $450,700, a decrease of 3% when compared to the second quarter of 2025. Our backlog of homes sold but not settled as of June 30, 2026 increased on a unit basis by 9% to 10,998 units and increased on a dollar basis by 5% to $4.99 billion when compared to the respective backlog unit and dollar balances as of June 30, 2025.Homebuilding revenues of $2.28 billion in the second quarter of 2026 decreased by 11% compared to homebuilding revenues of $2.55 billion in the second quarter of 2025. Gross profit margin in the second quarter of 2026 decreased to 19.2%, from 21.5% in the second quarter of 2025. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $21.7 million. Income before tax from the homebuilding segment totaled $293.2 million in the second quarter of 2026, a decrease of 30% when compared to the second quarter of 2025.Mortgage BankingMortgage closed loan production in the second quarter of 2026 totaled $1.35 billion, a decrease of 13% when compared to the second quarter of 2025. Income before tax from the mortgage banking segment totaled $25.4 million in the second quarter of 2026, a decrease of 14% when compared to $29.6 million in the second quarter of 2025. About NVRNVR, 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, 1 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.2NVR, Inc.Consolidated Statements of Income(in thousands, except per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Homebuilding Revenues $ 2,279,771 $ 2,548,267 $ 4,114,650 $ 4,898,712 Other income 12,095 25,088 40,144 51,800 Cost of sales (1,841,217) (1,999,983) (3,315,756) (3,835,358) Selling, general and administrative (150,721) (149,170) (307,692) (314,287) Interest expense (6,698) (6,685) (13,552) (13,866) Homebuilding income 293,230 417,517 517,794 787,001 Mortgage Banking Mortgage banking fees 46,585 50,547 92,769 103,134 Interest income 3,983 4,493 7,612 8,299 Other income 1,292 1,301 2,069 2,394 General and administrative (26,153) (26,425) (49,280) (51,118) Interest expense (296) (300) (629) (573) Mortgage banking income 25,411 29,616 52,541 62,136 Income before taxes 318,641 447,133 570,335 849,137 Income tax expense (82,183) (113,396) (135,518) (215,824) Net income $ 236,458 $ 333,737 $ 434,817 $ 633,313 Basic earnings per share $ 87.65 $ 114.52 $ 158.75 $ 214.78 Diluted earnings per share $ 83.96 $ 108.54 $ 151.38 $ 203.20 Basic weighted average shares outstanding 2,698 2,914 2,739 2,949 Diluted weighted average shares outstanding 2,816 3,075 2,872 3,117 3 NVR, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) June 30, 2026 December 31, 2025 ASSETS Homebuilding Cash and cash equivalents $ 1,093,736 $ 1,883,844 Restricted cash 44,562 34,348 Receivables 49,642 32,742 Inventory Lots and housing units, covered under sales agreements with customers 1,877,430 1,410,695 Unsold lots and housing units 307,698 252,029 Land under development 21,067 39,312 Building materials and other 29,094 21,524 2,235,289 1,723,560 Contract land deposits, net 927,380 851,458 Property, plant and equipment, net 99,248 103,770 Operating lease right-of-use assets 110,893 110,535 Other assets 348,163 349,306 4,908,913 5,089,563 Mortgage Banking Cash and cash equivalents 50,938 32,642 Restricted cash 8,023 6,047 Mortgage loans held for sale, net 396,678 571,596 Property and equipment, net 7,723 7,727 Operating lease right-of-use assets 22,538 23,953 Other assets 75,807 125,402 561,707 767,367 Total assets $ 5,470,620 $ 5,856,930 4 NVR, Inc. Consolidated Balance Sheets (Continued) (in thousands, except share and per share data) (unaudited) June 30, 2026 December 31, 2025 LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding Accounts payable $ 375,478 $ 259,244 Accrued expenses and other liabilities 311,697 376,976 Customer deposits 294,698 249,210 Operating lease liabilities 117,947 117,589 Senior notes 908,162 909,160 2,007,982 1,912,179 Mortgage Banking Accounts payable and other liabilities 46,849 53,738 Operating lease liabilities 24,593 26,144 71,442 79,882 Total liabilities 2,079,424 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 June 30, 2026 and December 31, 2025 206 206 Additional paid-in capital 3,223,670 3,155,367 Deferred compensation trust 106,697 shares of NVR, Inc. common stock as of both June 30, 2026 and December 31, 2025 (16,710) (16,710) Deferred compensation liability 16,710 16,710 Retained earnings 16,821,586 16,386,769 Less treasury stock at cost 17,877,177 and 17,755,943 shares as of June 30, 2026 and December 31, 2025, respectively (16,654,266) (15,677,473) Total shareholders' equity 3,391,196 3,864,869 Total liabilities and shareholders' equity $ 5,470,620 $ 5,856,930 5 NVR, Inc. Operating Activity (dollars in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Units Average Price Units Average Price Units Average Price Units Average Price New orders, net of cancellations Mid Atlantic (1) 2,081 $ 499.2 1,930 $ 531.3 3,998 $ 499.2 3,796 $ 523.0 North East (2) 390 $ 639.4 424 $ 655.3 859 $ 624.4 801 $ 674.0 Mid East (3) 1,186 $ 419.2 1,072 $ 424.2 2,369 $ 422.2 2,170 $ 422.0 South East (4) 2,228 $ 353.3 1,953 $ 361.7 4,397 $ 356.0 3,957 $ 359.0 Total 5,885 $ 437.1 5,379 $ 458.1 11,623 $ 438.6 10,724 $ 453.3 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Units Average Price Units Average Price Units Average Price Units Average Price Settlements Mid Atlantic (1) 1,721 $ 511.1 2,101 $ 537.2 3,139 $ 515.3 4,151 $ 532.6 North East (2) 452 $ 621.1 474 $ 651.7 818 $ 637.2 945 $ 632.5 Mid East (3) 1,056 $ 429.4 1,082 $ 415.8 1,778 $ 429.6 2,095 $ 411.6 South East (4) 1,829 $ 364.1 1,818 $ 363.3 3,338 $ 363.0 3,417 $ 359.2 Total 5,058 $ 450.7 5,475 $ 465.4 9,073 $ 453.5 10,608 $ 461.8 As of June 30, 2026 2025 Units Average Price Units Average Price Backlog Mid Atlantic (1) 4,019 $ 509.2 3,713 $ 532.6 North East (2) 1,014 $ 632.9 911 $ 698.4 Mid East (3) 2,224 $ 426.2 2,120 $ 426.8 South East (4) 3,741 $ 362.5 3,325 $ 371.6 Total 10,998 $ 453.9 10,069 $ 472.1 6 NVR, Inc. Operating Activity (Continued) (dollars in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Average active communities Mid Atlantic (1) 133 120 129 120 North East (2) 28 26 29 25 Mid East (3) 95 94 97 93 South East (4) 186 186 182 175 Total 442 426 437 413 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Homebuilding data New order cancellation rate 14.9 % 16.5 % 14.4 % 16.0 % Lots controlled at end of period 184,400 171,400 Mortgage banking data Loan closings $ 1,354,713 $ 1,555,280 $ 2,407,697 $ 2,988,201 Capture rate 85 % 87 % 84 % 87 % Common stock information Shares outstanding at end of period 2,678,153 2,883,215 Number of shares repurchased 54,716 65,834 144,896 142,954 Aggregate cost of shares repurchased $ 357,777 $ 471,413 $ 989,733 $ 1,054,807 (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 Investor Relations Contact Ryan Sheplee (703) 956-4243 ir nvrinc.com 7