NVR Q2 net income drops 29% to $236.46 million; revenue falls 10% to $2.33 billion

NVR posted Q2 net income of $236.46 million, down 29% year over year, as revenue fell 10% to $2.33 billion.

Homebuilding gross margin narrowed 2.3 percentage points to 19.2%, with contract land deposit impairments of about $21.7 million.

New orders rose 9% to 5,885 units, while the cancellation rate eased 1.6 percentage points to 14.9%.

Backlog climbed 9% to 10,998 units, while the average backlog price dropped 4% to $453,900.

Management flagged continued demand pressure from affordability, elevated inventory in some markets, weak sentiment and volatility, with expectations for further margin pressure.