Century Communities (CCS) Q4 2025 earnings summary

Executive summary

• Delivered 10,792 residential units in 2025, exceeding guidance, with 10,387 new homes and 3,030 new homes in Q4, supported by a cycle-tested management team and a 23-year profitability record.

• Achieved record net orders of 2,702 homes in Q4, up 13% sequentially and 10% year-over-year, reflecting pent-up demand for affordable homes.

• Reduced direct construction costs by $13,000 per home and cycle times by 13 days to a record 114 days.

• Repurchased over 7% of shares outstanding in 2025 and increased book value per share to a record $89.21.

• Operates in 16 states and over 45 markets, focusing on affordable new homes through two brands and integrated mortgage, title, and insurance services.

Financial highlights

• Fiscal year 2025 revenues totaled $4.12 billion, with net income of $147.6 million ($4.86 per diluted share); Q4 net income was $36 million ($1.21 per diluted share).

• Q4 home sales revenue was $1.1 billion, up 16% sequentially; average sales price decreased 5% quarter-over-quarter due to higher incentives.

• Full year 2025 homebuilding gross margin was 17.6%; Q4 GAAP homebuilding gross margin was 15.4%, with adjusted gross margin at 18.3%.

• Generated $153 million in cash flow from operations in 2025 and ended the year with $1.1 billion in liquidity.

• Returned $178 million to shareholders via dividends and buybacks in 2025; annual dividend was $1.16 per share.

Outlook and guidance

• 2026 new home deliveries expected between 10,000-11,000; home sales revenue guidance of $3.6-$4.1 billion.

• Guidance assumes no significant changes in the economic environment and projects a mid-single digit increase in average open communities.

• SG&A as a percent of home sales revenue expected at 13% for 2026, 14.5% in Q1.

• Ability to grow deliveries by 10% annually in 2026 and 2027 based on current lot count, if market conditions improve.

• Land acquisition and development expense expected to remain flat in 2026, with finished lot costs rising only in the low single digits.