NVR · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

NVR INC · 2026-11-04 · Importance 48 · Surprise 40

Homebuilding gross margin declined to 18.3% in the third quarter of 2026 from 21.1% a year earlier, and to 19.0% for the first nine months from 21.5%. Higher lot and certain construction costs pressured margins in both periods. Contract land deposit impairments were approximately $24.8 million in the quarter, compared with $18.9 million in 2025, and $55.4 million for the nine months, compared with $40.1 million. Nine-month homebuilding gross profit fell to $1.228 billion from $1.602 billion.

Key facts

• NVR's homebuilding gross profit margin declined to 18.3% in Q3 2026 from 21.1% in Q3 2025. source
• NVR's Q3 2026 homebuilding gross margin fell to 18.3% from 21.1%, primarily due to higher lot and certain construction costs; margins also reflected contract land deposit impairments of approximately $24,800 versus $18,900 in Q3 2025. source
• NVR's first-nine-month 2026 homebuilding gross margin declined to 19.0% from 21.5%; higher lot and certain construction costs and contract land deposit impairments of approximately $55,400 versus $40,100 were negative factors. source