Century Communities (CCS) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw increased economic uncertainty, interest rate volatility, and eroding consumer confidence, resulting in a slower spring selling season, elongated sales cycles, and lower home demand.

• Delivered 2,284 homes (down 3.1% year-over-year), with net new contracts at 2,692 (down 6.1%), and average sales price at $386,900 (down 1.1%).

• Net income was $39.4M ($1.26 per diluted share); adjusted net income was $42.2M ($1.36 per diluted share).

• Community count increased 26% year-over-year to 318; book value per share rose 11% to $84.41.

• Repurchased 753,337 shares for $55.6M and increased quarterly dividend by 12% to $0.29 per share.

Financial highlights

• Q1 2025 revenues were $903.2M, down 4.8% year-over-year; home sales revenues were $883.7M.

• Net income fell 38.8% year-over-year to $39.4M; adjusted net income dropped 41.0% to $42.2M.

• Adjusted homebuilding gross margin was 21.6%, down from 22.8% year-over-year; GAAP gross margin was 19.9%.

• Adjusted EBITDA was $76.3M, a 30.4% decrease year-over-year.

• Book value per share increased 11% year-over-year to $84.41.

Outlook and guidance

• Full-year 2025 home delivery guidance reduced to 10,400–11,000 homes; home sales revenue guidance set at $4.0–$4.2B.

• Q2 2025 deliveries expected between 2,300–2,500 homes, with sequential increases anticipated in Q3 and Q4.

• Average absorption rate for 2025 expected at approximately 2.8%.

• Incentive levels expected to increase by up to 200 basis points in Q2, impacting gross margins.

• Ongoing economic uncertainty, interest rate volatility, and declining consumer confidence expected to impact order activity.