NVR hit by rising rates and costs in Q1

Published: 2026-04-22 14:18:20 ET NVR

US homebuilder NVR reported a sharp decline in its Q1 performance, amid a backdrop of high interest rates and rising raw materials costs. These factors, combined with tariffs and persistent inflation, weighed on demand and the group's operations. The stock fell about 4% during trading on Wednesday, reflecting investor concerns over this unfavorable environment.

Esteban Tesson

Published on 04/22/2026 at 02:18 pm EDT

The number of homes delivered plunged 22% y-o-y to 4,015 units, primarily due to a lower backlog at the start of the period. Gross margin from homebuilding operations contracted to 19.6%, compared to 21.9% a year earlier, driven by rising land costs and pricing pressures. The average price of new orders also slipped 2% to $440,100.Consolidated revenue decreased by 22% to $1.88bn, a level nonetheless slightly above market expectations. Quarterly earnings fell 29% to $67.76 per share, confirming the significant impact of economic conditions on the group's profitability.