NVR (NYSE:NVR), one of the nation's largest homebuilding and mortgage banking companies, reported a challenging start to 2026, with first-quarter net income falling 34% to $198.4 million.
The company's diluted earnings per share (EPS) stood at $67.76, a 29% decrease from the $95.42 reported in the first quarter of 2025.
Consolidated revenue for the quarter ended March 31, 2026, was $1.88 billion, a 22% year-over-year decline.
The contraction was primarily driven by the homebuilding segment, where revenues also fell 22% to $1.83 billion.
The company's mortgage banking operations faced similar headwinds, with income in that segment declining to $27.1 million, down from the $48.5 million recorded in the same period last year.
The decline in revenue was largely a result of a 22% drop in home settlements, which totaled 4,015 units in the first quarter.
However, underlying demand showed signs of resilience as new orders increased 7% to 5,738 units.
Despite the growth in volume, the average sales price of new orders saw a slight softening compared to peak levels in 2025.
NVR's backlog remained substantial at 10,171 units, though the total dollar value of the backlog declined 3% to $4.70 billion.