Operating margins have contracted significantly to 12.0% in 2026Q1 from 19.2% in 2024Q1, reflecting an inability to scale fixed costs against a 20% year-over-year revenue decline.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 9.7B | 10.32B | 10.54B | 9.53B | 10.54B | 8.96B | 7.55B | 7.4B | 7.18B | 6.31B | 5.83B | 5.17B | 4.45B | 4.22B | 3.19B | 2.66B | 3.05B | 2.76B | 3.69B | 5.13B | 6.13B | 5.28B | 4.25B | 3.68B | 3.06B | 2.62B | 2.32B | 2.01B | 1.56B | 1.15B | 1.07B |
| Revenue Growth % | -8.09% | -2.08% | 10.58% | -9.52% | 17.62% | 18.74% | 1.96% | 3.14% | 13.65% | 8.29% | 12.87% | 16.09% | 5.53% | 32.21% | 19.67% | -12.68% | 10.73% | -25.37% | -28% | -16.38% | 16.28% | 24.12% | 15.57% | 20.03% | 16.78% | 13.23% | 15.48% | 28.64% | 35.16% | 7.86% | 23.1% |
| Cost of Goods Sold | 7.49B | 7.95B | 7.85B | 7.05B | 7.66B | 6.76B | 5.94B | 5.85B | 5.69B | 4.99B | 4.71B | 4.12B | 3.57B | 3.42B | 2.58B | 2.17B | 2.44B | 2.19B | 3.18B | 4.23B | 4.7B | 3.74B | 3.16B | 2.71B | 2.34B | 2B | 1.83B | 1.6B | 1.27B | 990.3M | 899M |
| COGS % of Revenue | - | 77.04% | 74.46% | 73.95% | 72.71% | 75.48% | 78.68% | 79.04% | 79.33% | 79.04% | 80.75% | 79.74% | 80.2% | 81.21% | 80.76% | 81.27% | 79.89% | 79.3% | 86.14% | 82.41% | 76.64% | 70.86% | 74.26% | 73.74% | 76.22% | 76.31% | 78.92% | 79.98% | 81.36% | 85.81% | 84.03% |
| Gross Profit | 2.21B | 2.37B | 2.69B | 2.48B | 2.88B | 2.2B | 1.61B | 1.55B | 1.48B | 1.32B | 1.12B | 1.05B | 880.92M | 769.57M | 613.51M | 499.23M | 613.67M | 570.42M | 512.03M | 902.28M | 1.43B | 1.54B | 1.09B | 965.7M | 790.76M | 621.46M | 488.5M | 401.7M | 290.8M | 163.7M | 170.9M |
| Gross Margin % | 22.82% | 22.96% | 25.54% | 26.05% | 27.29% | 24.52% | 21.32% | 20.96% | 20.67% | 20.96% | 19.25% | 20.26% | 19.8% | 18.25% | 19.24% | 18.73% | 20.11% | 20.7% | 13.86% | 17.59% | 23.36% | 29.14% | 25.74% | 26.26% | 25.81% | 23.69% | 21.08% | 20.02% | 18.64% | 14.19% | 15.97% |
| Gross Profit Growth % | - | -11.97% | 8.43% | -13.64% | 30.93% | 36.57% | 3.71% | 4.57% | 12.08% | 17.92% | 7.22% | 18.82% | 14.47% | 25.44% | 22.89% | -18.65% | 7.58% | 11.4% | -43.25% | -37.03% | -6.78% | 40.52% | 13.27% | 22.12% | 27.24% | 27.22% | 21.61% | 38.14% | 77.64% | -4.21% | 28.59% |
| Operating Expenses | 689.41M | 699.13M | 705.46M | 661.24M | 706.83M | 726.31M | 631.03M | 602.73M | 588M | 523.9M | 500.53M | 468.46M | 430.45M | 390.84M | 365.61M | 313.62M | 290.65M | 260.63M | 308.74M | 403.56M | 516.6M | 436.58M | 260.8M | 305.23M | 226.21M | 245.82M | 200.28M | 195.5M | 156.7M | 124.1M | 110.1M |
| OpEx % of Revenue | - | 6.77% | 6.69% | 6.93% | 6.71% | 8.11% | 8.36% | 8.14% | 8.19% | 8.3% | 8.59% | 9.07% | 9.67% | 9.27% | 11.46% | 11.77% | 9.52% | 9.46% | 8.36% | 7.87% | 8.42% | 8.28% | 6.14% | 8.3% | 7.38% | 9.37% | 8.64% | 9.74% | 10.05% | 10.75% | 10.29% |
| Selling, General & Admin | 689.41M | 699.13M | 699.1M | 680.04M | 625.3M | 563.43M | 509.73M | 527.4M | 512.71M | 460.8M | 443.32M | 424.01M | 407.87M | 355.62M | 334.96M | 294.51M | 290.65M | 260.63M | 340.32M | 376.02M | 471.31M | 377.08M | 286.39M | 255.79M | 250.02M | 204.88M | 186.44M | 180.8M | 143.3M | 110.8M | 94.7M |
| SG&A % of Revenue | - | 6.77% | 6.63% | 7.13% | 5.93% | 6.29% | 6.76% | 7.13% | 7.15% | 7.3% | 7.6% | 8.21% | 9.17% | 8.43% | 10.5% | 11.05% | 9.52% | 9.46% | 9.22% | 7.33% | 7.68% | 7.15% | 6.74% | 6.96% | 8.16% | 7.81% | 8.05% | 9.01% | 9.19% | 9.6% | 8.85% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 6.36M | -18.8M | 81.53M | 162.88M | 121.3M | 75.33M | 75.29M | 63.1M | 57.21M | 44.45M | 22.58M | 35.21M | 30.65M | 19.11M | 0 | 0 | -31.58M | 27.53M | 45.29M | 59.5M | -25.59M | 49.44M | -23.81M | 40.95M | 13.84M | 14.7M | 13.4M | 13.3M | 15.4M |
| Operating Income | 1.52B | 1.67B | 1.99B | 1.82B | 2.17B | 1.47B | 977.42M | 948.21M | 895.14M | 799.41M | 621.72M | 578.25M | 450.48M | 401.21M | 247.91M | 185.6M | 323.01M | 309.79M | 171.71M | 498.73M | 916.26M | 1.1B | 833.08M | 660.48M | 502.4M | 375.64M | 288.21M | 206.2M | 134.1M | 39.6M | 60.8M |
| Operating Margin % | 15.71% | 16.19% | 18.85% | 19.11% | 20.58% | 16.41% | 12.95% | 12.81% | 12.48% | 12.66% | 10.66% | 11.19% | 10.12% | 9.52% | 7.77% | 6.96% | 10.58% | 11.24% | 4.65% | 9.72% | 14.94% | 20.86% | 19.6% | 17.96% | 16.4% | 14.32% | 12.44% | 10.28% | 8.6% | 3.43% | 5.68% |
| Operating Income Growth % | - | -15.91% | 9.06% | -15.98% | 47.53% | 50.43% | 3.08% | 5.93% | 11.98% | 28.58% | 7.52% | 28.36% | 12.28% | 61.84% | 33.57% | -42.54% | 4.27% | 80.42% | -65.57% | -45.57% | -16.74% | 32.1% | 26.13% | 31.46% | 33.75% | 30.33% | 39.77% | 53.77% | 238.64% | -34.87% | 115.6% |
| EBITDA | 1.55B | 1.7B | 2.01B | 1.84B | 2.19B | 1.49B | 999.41M | 969.03M | 915.31M | 822.07M | 643.99M | 599.78M | 468.09M | 414.6M | 256.01M | 192.28M | 330.27M | 319.51M | 185.35M | 515.76M | 930.42M | 1.11B | 841.93M | 668.9M | 510.06M | 390.8M | 302.05M | 220.9M | 147.5M | 52.9M | 76.2M |
| EBITDA Margin % | 15.98% | 16.43% | 19.03% | 19.29% | 20.75% | 16.63% | 13.24% | 13.09% | 12.76% | 13.02% | 11.05% | 11.61% | 10.52% | 9.83% | 8.03% | 7.22% | 10.82% | 11.59% | 5.02% | 10.06% | 15.17% | 21.06% | 19.81% | 18.19% | 16.65% | 14.89% | 13.04% | 11.01% | 9.46% | 4.58% | 7.12% |
| EBITDA Growth % | -19.93% | -15.45% | 9.06% | -15.88% | 46.77% | 49.07% | 3.13% | 5.87% | 11.34% | 27.65% | 7.37% | 28.13% | 12.9% | 61.95% | 33.14% | -41.78% | 3.37% | 72.38% | -64.06% | -44.57% | -16.27% | 31.98% | 25.87% | 31.14% | 30.52% | 29.38% | 36.74% | 49.76% | 178.83% | -30.58% | 77.21% |
| D&A (Non-Cash Add-back) | 25.47M | 24.51M | 18.38M | 16.92M | 17.4M | 19.46M | 21.99M | 20.82M | 20.17M | 22.67M | 22.27M | 21.53M | 17.61M | 13.39M | 8.1M | 6.67M | 7.26M | 9.71M | 13.64M | 17.04M | 14.16M | 10.69M | 8.86M | 8.43M | 7.66M | 15.16M | 13.84M | 14.7M | 13.4M | 13.3M | 15.4M |
| EBIT | 1.64B | 1.79B | 2.14B | 1.96B | 2.29B | 1.64B | 1.14B | 1.05B | 983.77M | 869.95M | 682.32M | 626.13M | 476.14M | 441.08M | 282.61M | 209.47M | 328.42M | 309.79M | 181.11M | 553.34M | 916.26M | 1.1B | 833.08M | 660.48M | 502.4M | 375.64M | 282.59M | 206.2M | 134.1M | 39.6M | 36.8M |
| Net Interest Income | -10.23M | -10.95M | -27.78M | -27.74M | -39.52M | -53.12M | -40.87M | -25.38M | -25.08M | -24.18M | -21.71M | -23.56M | -23.14M | -22.39M | -7.53M | -1.89M | -6.03M | -8.4M | -9.7M | -8.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 17.71M | 17.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.98M | 3.96M | 4.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 27.94M | 28.84M | 27.78M | 27.74M | 39.52M | 53.12M | 40.87M | 25.38M | 25.08M | 24.18M | 21.71M | 23.56M | 23.14M | 22.39M | 7.53M | 1.89M | 6.03M | 11.38M | 13.66M | 13.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 87.12M | 90.5M | 127.95M | 105.92M | 84.01M | 120.07M | 100.61M | 77.58M | 64.59M | 47.5M | 39.97M | 24.96M | 3.07M | 17.49M | 27.17M | 21.97M | -618K | -11.38M | -13.66M | 40.78M | 46.71M | 43.93M | 38.93M | 35.7M | -375.49M | 19.02M | -21.36M | -21M | -23.7M | 14.3M | -12.1M |
| Pretax Income | 1.61B | 1.76B | 2.12B | 1.93B | 2.25B | 1.59B | 1.08B | 1.03B | 959.73M | 846.91M | 661.7M | 603.21M | 453.55M | 418.7M | 275.08M | 207.58M | 322.39M | 298.41M | 167.46M | 539.5M | 962.97M | 1.14B | 872M | 696.17M | 536.02M | 394.66M | 266.85M | 185.2M | 110.4M | 53.9M | 48.7M |
| Pretax Margin % | 16.61% | 17.07% | 20.06% | 20.22% | 21.38% | 17.75% | 14.29% | 13.86% | 13.38% | 13.41% | 11.35% | 11.68% | 10.19% | 9.93% | 8.63% | 7.79% | 10.56% | 10.83% | 4.53% | 10.52% | 15.7% | 21.69% | 20.52% | 18.93% | 17.49% | 15.04% | 11.52% | 9.23% | 7.08% | 4.67% | 4.55% |
| Income Tax | 373.02M | 422.12M | 433.58M | 336.76M | 527.62M | 353.68M | 176.78M | 147.26M | 162.53M | 309.39M | 236.44M | 220.28M | 171.92M | 152.22M | 94.49M | 78.16M | 116.39M | 106.23M | 66.56M | 205.55M | 375.56M | 446.86M | 348.8M | 276.38M | 204.55M | 157.86M | 108.61M | 76.3M | 44.3M | 25M | 22.9M |
| Effective Tax Rate % | 23.15% | 23.96% | 20.5% | 17.46% | 23.42% | 22.24% | 16.4% | 14.36% | 16.94% | 36.53% | 35.73% | 36.52% | 37.9% | 36.36% | 34.35% | 37.65% | 36.1% | 35.6% | 39.75% | 38.1% | 39% | 39.05% | 40% | 39.7% | 38.16% | 40% | 40.7% | 41.2% | 40.13% | 46.38% | 47.02% |
| Net Income | 1.24B | 1.34B | 1.68B | 1.59B | 1.73B | 1.24B | 901.25M | 878.54M | 797.2M | 537.52M | 425.26M | 382.93M | 281.63M | 266.48M | 180.59M | 129.42M | 206M | 192.18M | 100.89M | 333.95M | 587.41M | 697.56M | 523.2M | 419.79M | 331.47M | 236.79M | 158.25M | 108.9M | 56.7M | 28.9M | 25.8M |
| Net Margin % | 12.77% | 12.98% | 15.95% | 16.69% | 16.37% | 13.8% | 11.94% | 11.87% | 11.11% | 8.51% | 7.29% | 7.41% | 6.33% | 6.32% | 5.66% | 4.86% | 6.75% | 6.97% | 2.73% | 6.51% | 9.58% | 13.22% | 12.31% | 11.41% | 10.82% | 9.03% | 6.83% | 5.43% | 3.64% | 2.5% | 2.41% |
| Net Income Growth % | -21.96% | -20.34% | 5.67% | -7.76% | 39.53% | 37.22% | 2.58% | 10.2% | 48.31% | 26.4% | 11.06% | 35.97% | 5.69% | 47.56% | 39.54% | -37.18% | 7.19% | 90.48% | -69.79% | -43.15% | -15.79% | 33.32% | 24.63% | 26.65% | 39.98% | 49.64% | 45.31% | 92.06% | 96.19% | 12.02% | 49.13% |
| Net Income (Continuing) | 1.24B | 1.34B | 1.68B | 1.59B | 1.73B | 1.24B | 901.25M | 878.54M | 797.2M | 537.52M | 425.26M | 382.93M | 281.63M | 266.48M | 180.59M | 129.42M | 206M | 192.18M | 100.89M | 333.95M | 587.41M | 697.56M | 523.2M | 419.79M | 331.47M | 236.79M | 158.25M | 108.9M | 66.1M | 28.9M | 25.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 423.02 | 436.55 | 506.69 | 463.31 | 491.82 | 320.48 | 230.09 | 221.13 | 194.82 | 126.77 | 103.61 | 89.99 | 63.50 | 54.81 | 35.12 | 23.01 | 33.42 | 31.26 | 17.04 | 54.14 | 88.05 | 89.61 | 66.42 | 48.39 | 36.05 | 24.86 | 14.98 | 9.01 | 4.26 | 2.18 | 1.70 |
| EPS Growth % | -15.67% | -13.84% | 9.36% | -5.8% | 53.46% | 39.28% | 4.05% | 13.5% | 53.68% | 22.35% | 15.14% | 41.72% | 15.85% | 56.06% | 52.63% | -31.15% | 6.91% | 83.45% | -68.53% | -38.51% | -1.74% | 34.91% | 37.26% | 34.23% | 45.01% | 65.95% | 66.26% | 111.5% | 95.41% | 28.24% | 51.79% |
| EPS (Basic) | - | 462.00 | 540.88 | 491.52 | 525.20 | 345.38 | 244.11 | 241.29 | 194.82 | 144.00 | 110.53 | 95.21 | 65.83 | 56.25 | 36.04 | 23.66 | 34.96 | 33.10 | 18.76 | 61.61 | 104.08 | 110.36 | 80.83 | 59.28 | 47.20 | 29.87 | 17.42 | 10.69 | 5.10 | 2.44 | 1.76 |
| Diluted Shares Outstanding | 2.93M | 3.07M | 3.32M | 3.44M | 3.51M | 3.86M | 3.92M | 3.97M | 4.09M | 4.24M | 4.1M | 4.25M | 4.43M | 4.86M | 5.14M | 5.62M | 6.17M | 6.15M | 5.92M | 6.17M | 6.67M | 7.78M | 7.88M | 8.67M | 9.3M | 9.53M | 10.56M | 12.09M | 13.31M | 13.26M | 15.18M |
| Basic Shares Outstanding | 2.78M | 2.9M | 3.11M | 3.24M | 3.29M | 3.58M | 3.69M | 3.64M | 4.09M | 3.73M | 3.85M | 4.02M | 4.28M | 4.74M | 5.01M | 5.47M | 5.89M | 5.81M | 5.38M | 5.42M | 5.64M | 6.32M | 6.47M | 7.08M | 7.35M | 7.93M | 9.08M | 10.19M | 11.12M | 11.84M | 14.66M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geographic and lot supply concentration
As reported in recent financial statements, NVR experienced a 20% year-over-year revenue decline in 2026Q1, signaling a significant deceleration in delivery volume that warrants further investigation into whether this reflects a broader cooling of demand or specific regional constraints within their core Mid-Atlantic homebuilding markets.
The sharp revenue drop in the most recent quarter suggests that the company's transactional model is highly sensitive to current interest rate environments and buyer affordability. Investors should monitor whether this contraction is a temporary seasonal anomaly or the beginning of a sustained period of lower settlement activity.
Based on NVR's reported figures, gross margins have compressed from 26.2% in 2024Q1 to 21.6% in 2026Q1, indicating that the company is facing increased difficulty in maintaining its premium pricing power against rising construction costs and a more challenging competitive landscape for finished residential lots.
The erosion of gross margin suggests that the asset-light model, while efficient, remains vulnerable to input cost volatility that cannot be fully passed to the consumer. This trend may indicate that the company is sacrificing profitability to maintain sales velocity in a softening housing market.
According to recent SEC filings, NVR's operating margin fell to 12.0% in 2026Q1 from 19.2% in 2024Q1, demonstrating that the company's fixed cost structure is failing to scale efficiently as revenue declines, which may indicate a loss of operational leverage during this period of reduced housing demand.
The inability to maintain operating margins during a revenue downturn suggests that SG&A expenses are becoming stickier relative to the top line. Analysts should evaluate whether management can effectively right-size their overhead to align with the current, lower-volume environment.
Data from the latest income statements reveals that EPS growth has turned negative, with a 28.5% year-over-year decline in 2026Q1, suggesting that the company's aggressive share repurchase strategy is currently insufficient to offset the underlying deterioration in net income and the broader cyclical downturn in homebuilding.
While the company's capital allocation remains focused on per-share value, the sharp drop in net income highlights the inherent volatility of the business model. Investors should be cautious of relying on share count reduction to support EPS when the core operational profitability is facing such significant downward pressure.
Quick answers to the most common questions about buying NVR stock.
For fiscal year 2025, NVR, Inc. (NVR) reported total revenue of $10.32B. This represents a 864.9% increase compared to $1.07B in 1996.
NVR, Inc. (NVR) is profitable, generating $1.34B in net income for the fiscal year ending 2025 with a net profit margin of 13.0%.
NVR, Inc. (NVR) reported an operating income of $1.67B, resulting in an operating profit margin of 16.2%. This margin reflects the operational efficiency of the business before interest and taxes.
NVR, Inc. (NVR) generated $2.37B in gross profit for the year, representing a gross profit margin of 23.0%. This demonstrates the company's core pricing power and production efficiency.