NVR first-quarter profit falls as tariffs, rates squeeze homebuilders

Published: 2026-04-22 10:04:00 ET NVR

Published on 04/22/2026 at 10:04 am EDT

April 22 (Reuters) - NVR on Wednesday posted a fall in first-quarter profit and revenue as rising costs, compounded by economic uncertainty, kept prospective buyers on the sidelines.

Shares of the Reston, Virginia-based homebuilder fell 6% during morning trading.

U.S. homebuilders have been squeezed on margins and sales volumes amid elevated interest rates and rising raw material costs driven by persistent inflation and President Donald Trump's tariffs.

Total settlements, or completed home sales, in the first quarter of 2026 decreased by 22% year-on-year to 4,015 units, as the company entered the period with a smaller backlog of homes awaiting completion.

The company's homebuilding gross profit margin slipped to 19.6% from 21.9% a year ago, citing pricing pressure and higher lot costs.

The average sales price of new orders in the quarter ended March 31 fell 2% to $440,100.

First-quarter consolidated revenues dropped by 22% to $1.88 billion, beating analysts' estimate of $1.84 billion, according to LSEG compiled data. Homebuilding revenues also fell 22% from a year earlier.

Quarterly profit decreased 29% to $94.83 per share.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim Zahid)