Century Communities (CCS) Q1 2026 earnings summary

Executive summary

• Delivered 2,013 homes in Q1 2026, generating $789.7 million in total revenues, with net income of $24.4 million ($0.84 per diluted share), and adjusted net income of $25.6 million ($0.88 per diluted share); community count grew 4% sequentially.

• Net new home contracts fell 11.6% to 2,379, reflecting softer demand amid elevated mortgage rates and affordability pressures.

• Increased quarterly cash dividend by 10% to $0.32 per share and repurchased 617,087 shares for $40 million at a 27% discount to book value.

• Finished spec inventory was down 16% sequentially and 31% year-over-year, reflecting effective inventory management.

• National homebuilder with operations in 16 states and over 45 markets, focusing on affordable new homes and supported by strong demographic trends.

Financial highlights

• Q1 2026 revenues were $789.7 million, down 12.6% year-over-year; home sales revenues were $734.1 million, with an average sales price of $364,700; adjusted EBITDA was $55.4 million.

• Net income for Q1 2026 was $24.4 million; adjusted net income was $25.6 million; diluted EPS was $0.84; adjusted diluted EPS was $0.88.

• Homebuilding gross margin was 17.8%, down from 19.9% year-over-year; adjusted gross margin was 19.7%.

• Financial services revenues were $22.4 million, with pre-tax income of $7.6 million.

• Book value per share as of March 31, 2026, was $88.75.

Outlook and guidance

• Full-year 2026 home delivery guidance reduced to 9,500–10,500 homes; home sales revenues expected at $3.5–$3.8 billion due to market headwinds including Middle East conflict, higher gas prices, and interest rates.

• Q2 2026 deliveries expected to range from 2,200 to 2,400 homes, with further sequential increases in Q3 and Q4.

• Incentives on closed homes expected to remain similar in Q2 2026 as in Q1.

• Average community count for 2026 expected to increase in the low to mid single-digit percentage range year-over-year.

• Management expects continued uncertainty in demand due to macroeconomic and geopolitical factors, inflation, and mortgage rate volatility.