NVR reported net income of $363.8 million for the quarter ended December 31, 2025, or $121.54 per diluted share, outperforming the consensus estimate of $104.96. Although earnings per share fell 13% from $139.93 in Q4 2024, the result reflects controlled cost management and stronger-than-expected mortgage banking results. Consolidated revenues reached $2.71 billion, down 5% from $2.85 billion a year earlier, but still topping consensus sales projections.

Settlements decreased 8% to 5,668 homes, while new orders rose 3% to 4,951 units. Average order prices dipped 3% to $454,200, but average settlement prices climbed 3% to $464,900. Homebuilding revenues of $2.64 billion declined 5%, and segment gross margin contracted to 20.4% from 23.6%, impacted by $35.7 million of land deposit impairments, higher lot costs and consumer affordability challenges. Income before tax in the segment fell 22% to $411.5 million.

Closed loan production totaled $1.51 billion, an 11% decline versus Q4 2024, but income before tax rose 24% to $57.2 million. The lift was driven by higher gains in the secondary market on loan sales, partially offsetting production headwinds. For the full year, mortgage closed loan production reached $6.04 billion, down 4%, with segment pre-tax income of $152.0 million, a modest 2% decline.

NVR's backlog of homes sold but not yet settled fell 15% in unit terms to 8,448 and 16% in dollar terms to $4.01 billion versus year-end 2024. Cancellation rates edged down slightly to 16.6%, but the shrinkage in backlog underscores ongoing affordability pressures. Management highlighted that while order activity remains stable, elevated lot costs and rising interest rates may weigh on future demand durability.