EX-99.1 2 ccs-20251022xex99_1.htm EX-99.1 CCS 93025 Earnings Release 8-K Exhibit 991



Picture 1



Century Communities Reports Third Quarter 2025 Results



- Deliveries of 2,486 Homes Generating $980.3 Million in Total Revenues -

- Net New Home Contracts of 2,386 -

- Net Income of $37.4 Million, or $1.25 Per Diluted Share -

- Adjusted Net Income of $45.7 Million, or $1.52 Per Diluted Share -

- Book Value per Share of $87.74, a Company Record -



Greenwood Village, Colorado (October 22, 2025) – Century Communities, Inc. (NYSE: CCS), one of the nation’s largest homebuilders, today announced financial results for its third quarter ended September 30, 2025.



Third Quarter 2025 Highlights

·

Net income of $37.4 million, or $1.25 per diluted share

·

Adjusted net income of $45.7 million, or $1.52 per diluted share

·

Total revenues of $980.3 million

·

Community count of 321

·

Deliveries of 2,486 homes

·

Net new home contracts of 2,386

·

Homebuilding gross margin of 17.9%

·

Adjusted homebuilding gross margin of 20.1%

·

Repurchased 296,903 shares of common stock for $20.0 million

·

Closed on private offering of $500 million of 6.625% Senior Notes due 2033 and extinguished $500 million of 6.750% Senior Notes due 2027

“In the third quarter, we performed well in a challenging environment and generated solid financial and operational results, meeting or exceeding our expectations, including the delivery of 2,486 homes to achieve the high end of our guidance,” said Dale Francescon, Executive Chairman. “While buyers remain cautious given the current level of economic uncertainty, they still have a desire to own a new home. We expect any interest rate relief and improvement in consumer confidence will start to unlock buyer demand, which Century is well positioned to meet given the growth in our community count.”

Rob Francescon, Chief Executive Officer and President, said, “Our adjusted homebuilding gross margin of 20.1% was consistent with second quarter 2025 levels, as we continued to see reductions in our direct costs and were able to limit increases in our incentives even in the seasonally slower third quarter. Our balance sheet remains strong with $2.6 billion of stockholders’ equity and $836 million of liquidity, and our book value per share increased to $87.74, a Company record. In the third quarter, we repurchased an additional 296,903 shares of our common stock for $20.0 million, which coupled with our purchases earlier in the year, represents a reduction of 6% from shares outstanding at the beginning of the year.”

Third Quarter 2025 Results

Net income for the third quarter 2025 was $37.4 million, or $1.25 per diluted share. Adjusted net income was $45.7 million, or $1.52 per diluted share.

Total revenues were $980.3 million, with third quarter home sales revenues totaling $955.2 million. Deliveries totaled 2,486 homes. The average sales price of home deliveries for the third quarter 2025 was $384,200.

 

Net new home contracts in the third quarter 2025 were 2,386, and at the end of the third quarter 2025, the Company had 1,117 homes in backlog, representing $416.9 million of backlog dollar value.

Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was 20.1% in the third quarter of 2025. Homebuilding gross margin percentage excluding inventory impairment in the third quarter 2025 was 18.3%, and homebuilding gross margin was 17.9% compared to 17.6% for the second quarter of 2025. Selling, general, and administrative expenses as a percent of home sales revenues was 12.6% in the quarter. Adjusted EBITDA and EBITDA for the third quarter 2025 were $82.3 million and $69.7 million, respectively.

Financial services revenues and pre-tax income were $19.4 million and $3.0 million, respectively, in the third quarter 2025.

Balance Sheet and Liquidity

The Company ended the third quarter 2025 with a strong financial position, including $2.6 billion of stockholders’ equity and $835.8 million of total liquidity, including $174.8 million of cash. During the quarter, we closed on a private offering of $500 million of 6.625% Senior Notes due 2033, with the proceeds being used to redeem our $500 million of 6.750% Senior Notes due 2027.

Our book value per share was a Company record $87.74 as of September 30, 2025.

During the third quarter, consistent with our disciplined capital allocation approach to enhance the long-term value of the Company and return capital to our shareholders, we maintained our quarterly cash dividend of $0.29 per share and repurchased 296,903 shares of common stock for $20.0 million.

As of September 30, 2025, homebuilding debt to capital equaled 34.5% and net homebuilding debt to net capital equaled 31.4%.

Full Year 2025 Outlook

Scott Dixon, Chief Financial Officer of the Company, commented, “We are narrowing our full year 2025 home delivery guidance to be in the range of 10,000 to 10,250 homes and our home sales revenues to be in the range of $3.8 to $3.9 billion.”

Webcast and Conference Call

The Company will host a webcast and conference call on Wednesday, October 22, 2025, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s third quarter 2025 results, provide commentary, and conduct a question-and-answer session. To participate in the call, please dial 800-549-8228 (domestic) or 646-564-2877 (international) and enter the conference ID 80774. The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through October 29, 2025, by dialing 888-660-6264 (domestic) or 646-517-3975 (international) and entering conference ID 80774. A replay of the webcast will be available on the Company’s website for at least one year.

About Century Communities

Century Communities, Inc. (NYSE: CCS) is one of the nation’s largest homebuilders and a recognized industry leader in online home sales. Newsweek has named the Company one of America's Most Trustworthy Companies for three consecutive years, and one of the World's Most Trustworthy Companies (2025). Century Communities has also been designated as one of U.S. News & World Report’s Best Companies to Work For (2025-2026). Through its Century Communities and Century Complete brands, Century's mission is to build attractive, high-quality homes at affordable prices to provide its valued customers with A HOME FOR EVERY DREAM®. Century is engaged

 

in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Company operates in 16 states and over 45 markets across the U.S., and also offers mortgage, title, insurance brokerage, and escrow services in select markets through its Inspire Home Loans, Parkway Title, IHL Home Insurance Agency, and IHL Escrow subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.

Non-GAAP Financial Measures

In addition to the Company’s operating results presented in accordance with United States generally accepted accounting principles (GAAP), this press release includes the following non-GAAP financial measures: adjusted net income, adjusted diluted earnings per share, adjusted homebuilding gross margin, EBITDA, adjusted EBITDA, and ratio of net homebuilding debt to net capital. These non-GAAP financial measures should not be used as a substitute for the Company’s operating results presented in accordance with GAAP, and an analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Please refer to the reconciliation of each of the above referenced non-GAAP financial measures following the historical financial information presented in this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “continue,” “will,” “may,” “should,” “potential,” “guidance” and “outlook” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements in this release include the Company’s operating and financial guidance for 2025, including without limitation anticipated home deliveries and revenues, and the Company’s expectation that expect any interest rate relief and improvement in consumer confidence will start to unlock buyer demand. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. The following important factors could cause actual results to differ materially from those expressed in the forward-looking statement: adverse changes in general economic conditions, including increased interest rates, inflation, and employment levels; lower consumer confidence; the potential impact of tariffs and increased costs, immigration reform, global supply chain disruptions, labor, land and raw material or other resource shortages and delays, and municipal and utility delays on the Company’s business, industry and the broader economy; the ability to identify and acquire desirable land; availability and cost of financing; the effect of tax changes; reliance on contractors and key personnel; availability and pricing for land, labor and raw materials and other resources; home incentive levels; future impairment and restructuring charges; the ability to pay dividends in the future; and the other factors included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law.















 

Picture 7



Century Communities, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share amounts)





 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2025

 

2024

 

2025

 

2024

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenues

 

$

 955,162 

 

$

 1,116,125 

 

$

 2,815,365 

 

$

 3,055,941 

Land sales and other revenues

 

 

 5,764 

 

 

 650 

 

 

 7,209 

 

 

 2,242 

Total homebuilding revenues

 

 

 960,926 

 

 

 1,116,775 

 

 

 2,822,574 

 

 

 3,058,183 

Financial services revenues

 

 

 19,358 

 

 

 20,091 

 

 

 61,666 

 

 

 66,676 

Total revenues

 

 

 980,284 

 

 

 1,136,866 

 

 

 2,884,240 

 

 

 3,124,859 

Homebuilding Cost of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Cost of home sales revenues

 

 

 (780,566)

 

 

 (873,081)

 

 

 (2,285,233)

 

 

 (2,386,208)

Cost of land sales and other revenues

 

 

 (6,303)

 

 

 (170)

 

 

 (7,199)

 

 

 (207)

Total homebuilding cost of revenues

 

 

 (786,869)

 

 

 (873,251)

 

 

 (2,292,432)

 

 

 (2,386,415)

Financial services costs

 

 

 (16,371)

 

 

 (17,021)

 

 

 (50,095)

 

 

 (47,894)

Selling, general, and administrative

 

 

 (119,895)

 

 

 (132,972)

 

 

 (369,491)

 

 

 (373,054)

Inventory impairment

 

 

 (3,180)

 

 

 (1,373)

 

 

 (10,951)

 

 

 (1,942)

Other (expense) income, net

 

 

 (6,131)

 

 

 (2,337)

 

 

 (13,832)

 

 

 (10,690)

Income before income tax expense

 

 

 47,838 

 

 

 109,912 

 

 

 147,439 

 

 

 304,864 

Income tax expense

 

 

 (10,435)

 

 

 (26,892)

 

 

 (35,798)

 

 

 (73,789)

Net income

 

$

 37,403 

 

$

 83,020 

 

$

 111,641 

 

$

 231,075 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 1.26 

 

$

 2.65 

 

$

 3.69 

 

$

 7.31 

Diluted

 

$

 1.25 

 

$

 2.59 

 

$

 3.65 

 

$

 7.19 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 29,645,795 

 

 

 31,336,756 

 

 

 30,266,752 

 

 

 31,596,995 

Diluted

 

 

 30,019,153 

 

 

 32,025,015 

 

 

 30,611,011 

 

 

 32,117,917 



 

Picture 6



Century Communities, Inc.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share amounts)









 

 

 

 

 

 



 

 

 

 

 

 



 

September 30,

 

December 31,



 

2025

 

2024

Assets

 

(unaudited)

 

(audited)

Cash and cash equivalents

 

$

 130,075 

 

$

 149,998 

Cash held in escrow

 

 

 44,717 

 

 

 3,004 

Accounts receivable

 

 

 70,454 

 

 

 50,318 

Inventories

 

 

 3,584,246 

 

 

 3,454,337 

Mortgage loans held for sale

 

 

 183,527 

 

 

 236,926 

Prepaid expenses and other assets

 

 

 525,345 

 

 

 419,384 

Property and equipment, net

 

 

 91,800 

 

 

 155,176 

Deferred tax assets, net

 

 

 22,702 

 

 

 22,220 

Goodwill

 

 

 41,109 

 

 

 41,109 

Total assets

 

$

 4,693,975 

 

$

 4,532,472 

Liabilities and stockholders' equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

 168,989 

 

$

 133,086 

Accrued expenses and other liabilities

 

 

 283,990 

 

 

 302,317 

Notes payable

 

 

 1,147,370 

 

 

 1,107,909 

Revolving line of credit

 

 

 339,000 

 

 

 135,500 

Mortgage repurchase facilities

 

 

 176,604 

 

 

 232,804 

Total liabilities

 

 

 2,115,953 

 

 

 1,911,616 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding

 

 

 —

 

 

 —

Common stock, $0.01 par value, 100,000,000 shares authorized, 29,383,819 and 30,961,227 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

 

 

 294 

 

 

 310 

Additional paid-in capital

 

 

 399,491 

 

 

 526,959 

Retained earnings

 

 

 2,178,237 

 

 

 2,093,587 

Total stockholders' equity

 

 

 2,578,022 

 

 

 2,620,856 

Total liabilities and stockholders' equity

 

$

 4,693,975 

 

$

 4,532,472 





 

Picture 5



Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)



Net New Home Contracts



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,



 

2025

 

 

2024

 

 

% Change

 

 

2025

 

 

2024

 

 

% Change

West

 

 337 

 

 

 365 

 

 

 (7.7)

%

 

 

 1,052 

 

 

 1,181 

 

 

 (10.9)

%

Mountain

 

 418 

 

 

 463 

 

 

 (9.7)

%

 

 

 1,216 

 

 

 1,626 

 

 

 (25.2)

%

Texas

 

 433 

 

 

 454 

 

 

 (4.6)

%

 

 

 1,436 

 

 

 1,488 

 

 

 (3.5)

%

Southeast

 

 388 

 

 

 396 

 

 

 (2.0)

%

 

 

 1,159 

 

 

 1,232 

 

 

 (5.9)

%

Century Complete

 

 810 

 

 

 885 

 

 

 (8.5)

%

 

 

 2,761 

 

 

 2,682 

 

 

 2.9 

%

Total

 

 2,386 

 

 

 2,563 

 

 

 (6.9)

%

 

 

 7,624 

 

 

 8,209 

 

 

 (7.1)

%



Home Deliveries 



(dollars in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

 

 

 

 

 



 

2025

 

2024

 

% Change

 



 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

West

 

 369 

 

$

 591.0 

 

 363 

 

$

 662.9 

 

 1.7 

%

 

 (10.8)

%

Mountain

 

 401 

 

 

 506.0 

 

 513 

 

 

 528.4 

 

 (21.8)

%

 

 (4.2)

%

Texas

 

 460 

 

 

 293.8 

 

 530 

 

 

 300.9 

 

 (13.2)

%

 

 (2.4)

%

Southeast

 

 423 

 

 

 413.8 

 

 427 

 

 

 421.9 

 

 (0.9)

%

 

 (1.9)

%

Century Complete

 

 833 

 

 

 268.9 

 

 1,001 

 

 

 264.6 

 

 (16.8)

%

 

 1.6 

%

Total / Weighted Average

 

 2,486 

 

$

 384.2 

 

 2,834 

 

$

 393.8 

 

 (12.3)

%

 

 (2.4)

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,

 

 

 

 

 

 



 

2025

 

2024

 

% Change

 



 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

West

 

 1,007 

 

$

 597.4 

 

 972 

 

$

 634.3 

 

 3.6 

%

 

 (5.8)

%

Mountain

 

 1,226 

 

 

 517.2 

 

 1,494 

 

 

 524.8 

 

 (17.9)

%

 

 (1.4)

%

Texas

 

 1,418 

 

 

 295.6 

 

 1,439 

 

 

 303.4 

 

 (1.5)

%

 

 (2.6)

%

Southeast

 

 1,127 

 

 

 427.5 

 

 1,155 

 

 

 429.1 

 

 (2.4)

%

 

 (0.4)

%

Century Complete

 

 2,579 

 

 

 263.2 

 

 2,749 

 

 

 263.0 

 

 (6.2)

%

 

 0.1 

%

Total / Weighted Average

 

 7,357 

 

$

 382.7 

 

 7,809 

 

$

 391.3 

 

 (5.8)

%

 

 (2.2)

%



 

Picture 10 

Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)





Selling Communities





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

Increase/Decrease



 

2025

 

2024

 

 

Amount

 

% Change

West

 

 38 

 

 27 

 

 

 11 

 

 40.7 

%

Mountain

 

 53 

 

 49 

 

 

 4 

 

 8.2 

%

Texas

 

 73 

 

 74 

 

 

 (1)

 

 (1.4)

%

Southeast

 

 45 

 

 38 

 

 

 7 

 

 18.4 

%

Century Complete

 

 112 

 

 117 

 

 

 (5)

 

 (4.3)

%

Total

 

 321 

 

 305 

 

 

 16 

 

 5.2 

%



Backlog



(dollars in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

 

 

 

 

 

 

 



 

2025

 

2024

 

% Change

 



 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

West

 

 204 

 

$

 115,035 

 

$

 563.9 

 

 315 

 

$

 196,385 

 

$

 623.4 

 

 (35.2)

%

 

 (41.4)

%

 

 (9.5)

%

Mountain

 

 139 

 

 

 73,330 

 

 

 527.6 

 

 295 

 

 

 171,990 

 

 

 583.0 

 

 (52.9)

%

 

 (57.4)

%

 

 (9.5)

%

Texas

 

 195 

 

 

 59,212 

 

 

 303.6 

 

 315 

 

 

 99,066 

 

 

 314.5 

 

 (38.1)

%

 

 (40.2)

%

 

 (3.5)

%

Southeast

 

 139 

 

 

 61,170 

 

 

 440.1 

 

 219 

 

 

 94,202 

 

 

 430.1 

 

 (36.5)

%

 

 (35.1)

%

 

 2.3 

%

Century Complete

 

 440 

 

 

 108,177 

 

 

 245.9 

 

 436 

 

 

 109,761 

 

 

 251.7 

 

 0.9 

%

 

 (1.4)

%

 

 (2.3)

%

Total / Weighted Average

 

 1,117 

 

$

 416,924 

 

$

 373.3 

 

 1,580 

 

$

 671,404 

 

$

 424.9 

 

 (29.3)

%

 

 (37.9)

%

 

 (12.1)

%



Lot Inventory





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

 

 

 

 

 

 

 



 

2025

 

2024

 

% Change

 



 

 

 

 

 

 

 

 



 

Owned

 

Controlled

 

Total

 

Owned

 

Controlled

 

Total

 

 

Owned

 

Controlled

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West

 

 3,709 

 

 

 2,207 

 

 

 5,916 

 

 

 4,445 

 

 

 3,703 

 

 

 8,148 

 

 

 (16.6)

%

 

 (40.4)

%

 

 (27.4)

%

Mountain

 

 8,522 

 

 

 1,292 

 

 

 9,814 

 

 

 8,681 

 

 

 4,808 

 

 

 13,489 

 

 

 (1.8)

%

 

 (73.1)

%

 

 (27.2)

%

Texas

 

 14,713 

 

 

 3,198 

 

 

 17,911 

 

 

 12,413 

 

 

 9,693 

 

 

 22,106 

 

 

 18.5 

%

 

 (67.0)

%

 

 (19.0)

%

Southeast

 

 5,221 

 

 

 7,857 

 

 

 13,078 

 

 

 5,563 

 

 

 12,127 

 

 

 17,690 

 

 

 (6.1)

%

 

 (35.2)

%

 

 (26.1)

%

Century Complete

 

 4,318 

 

 

 11,202 

 

 

 15,520 

 

 

 4,584 

 

 

 14,104 

 

 

 18,688 

 

 

 (5.8)

%

 

 (20.6)

%

 

 (17.0)

%

Total

 

 36,483 

 

 

 25,756 

 

 

 62,239 

 

 

 35,686 

 

 

 44,435 

 

 

 80,121 

 

 

 2.2 

%

 

 (42.0)

%

 

 (22.3)

%

% of Total

 

 58.6% 

 

 

 41.4% 

 

 

 100.0% 

 

 

 44.5% 

 

 

 55.5% 

 

 

 100.0% 

 

 

 

 

 

 

 

 

 

 





 



Picture 2



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)





Adjusted net income and adjusted diluted earnings per share (“Adjusted EPS”) are non-GAAP financial measures that the Company believes are useful to management, investors and other users of its financial information in evaluating its operating results and understanding its operating trends without the effect of certain non-recurring items. The Company believes excluding certain non-recurring items provides more comparable assessment of its financial results from period to period. The Company defines adjusted net income as consolidated net income before (i) income tax expense; (ii) inventory impairment; (iii) abandonment of lot option contracts; (iv) restructuring costs; (v) loss on debt extinguishment; (vi) impairment on other investment; and (vii) purchase price accounting for acquired work in process inventory; in each case, as applicable during a period, less adjusted income tax expense, calculated using the Company’s estimated annual effective tax rate after discrete items for the applicable period. Adjusted EPS is calculated by dividing adjusted net income by weighted average common shares – diluted.



Adjusted Net Income and Adjusted Diluted Earnings Per Share

(in thousands, except share and per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2025

 

2024

 

2025

 

2024

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 37,403 

 

$

 83,020 

 

$

 111,641 

 

$

 231,075 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

 29,645,795 

 

 

 31,336,756 

 

 

 30,266,752 

 

 

 31,596,995 

Dilutive effect of stock-based compensation awards

 

 

 373,358 

 

 

 688,259 

 

 

 344,259 

 

 

 520,922 

Weighted average common shares outstanding - diluted

 

 

 30,019,153 

 

 

 32,025,015 

 

 

 30,611,011 

 

 

 32,117,917 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 1.26 

 

$

 2.65 

 

$

 3.69 

 

$

 7.31 

Diluted

 

$

 1.25 

 

$

 2.59 

 

$

 3.65 

 

$

 7.19 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 37,403 

 

$

 83,020 

 

$

 111,641 

 

$

 231,075 

Income tax expense

 

 

 10,435 

 

 

 26,892 

 

 

 35,798 

 

 

 73,789 

Income before income tax expense

 

 

 47,838 

 

 

 109,912 

 

 

 147,439 

 

 

 304,864 

Inventory impairment

 

 

 3,180 

 

 

 1,373 

 

 

 10,951 

 

 

 1,942 

Abandonment of lot option contracts(1)

 

 

 5,159 

 

 

 2,124 

 

 

 9,306 

 

 

 3,941 

Restructuring costs

 

 

 —

 

 

 —

 

 

 1,505 

 

 

 —

Loss on debt extinguishment

 

 

 1,361 

 

 

 —

 

 

 1,361 

 

 

 —

Impairment on other investment

 

 

 —

 

 

 —

 

 

 —

 

 

 7,722 

Purchase price accounting for acquired work in process inventory

 

 

 2,830 

 

 

 3,446 

 

 

 6,763 

 

 

 5,999 

Adjusted income before income tax expense

 

 

 60,368 

 

 

 116,855 

 

 

 177,325 

 

 

 324,468 

Adjusted income tax expense(2)

 

 

 (14,657)

 

 

 (28,283)

 

 

 (43,054)

 

 

 (78,534)

Adjusted net income

 

$

 45,711 

 

$

 88,572 

 

$

 134,271 

 

$

 245,934 



 

 

 

 

 

 

 

 

 

 

 

 

Denominator - Diluted

 

 

 30,019,153 

 

 

 32,025,015 

 

 

 30,611,011 

 

 

 32,117,917 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share

 

$

 1.52 

 

$

 2.77 

 

$

 4.39 

 

$

 7.66 



(1)

Beginning in the third quarter of 2025, we added “Abandonment of lot option contracts” as an adjustment in our non-GAAP adjusted net income calculation. Accordingly, we have recast the corresponding prior period information to conform to the current presentation and calculation.



(2)

The tax rates used in calculating adjusted net income for the three and nine months ended September  30, 2025 were 24.3%, respectively, which are reflective of our GAAP tax rates for the nine months ended September 30, 2025. The tax rates used in calculating adjusted net income for the three and nine months ended September 30, 2024 were 24.2%, respectively, which are reflective of our GAAP tax rates for the nine months ended September 30, 2024.



 

 



 

Picture 9



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)



Adjusted homebuilding gross margin excluding inventory impairment (if applicable), interest in cost of home sales revenues, and purchase price accounting for acquired work in process inventory (if applicable), is not a  measurement of financial performance under GAAP; however, the Company’s management believes that this information is meaningful as it isolates the impact that inventory impairment,  indebtedness, and acquisitions have on homebuilding gross margin and permits the Company’s stockholders to make better comparisons with the Company’s competitors, who adjust gross margins in a similar fashion.  This non-GAAP financial measure should not be used as a substitute for the Company’s GAAP operating results.  An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.



Adjusted Homebuilding Gross Margin

(in thousands)





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2025

 

% 

 

2024

 

% 

Home sales revenues

 

$

 955,162 

 

 100.0 

%

 

$

 1,116,125 

 

 100.0 

%

Cost of home sales revenues

 

 

 (780,566)

 

 (81.7)

%

 

 

 (873,081)

 

 (78.2)

%

Inventory impairment

 

 

 (3,180)

 

 (0.3)

%

 

 

 (1,373)

 

 (0.1)

%

Homebuilding gross margin

 

 

 171,416 

 

 17.9 

%

 

 

 241,671 

 

 21.7 

%

Add: Inventory impairment

 

 

 3,180 

 

 0.3 

%

 

 

 1,373 

 

 0.1 

%

Adjusted homebuilding gross margin excluding inventory impairment

 

 

 174,596 

 

 18.3 

%

 

 

 243,044 

 

 21.8 

%

Add: Interest in cost of home sales revenues

 

 

 15,005 

 

 1.6 

%

 

 

 16,492 

 

 1.5 

%

Add: Purchase price accounting for acquired work in process inventory

 

 

 2,830 

 

 0.3 

%

 

 

 3,446 

 

 0.3 

%

Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory

 

$

 192,431 

 

 20.1 

%

 

$

 262,982 

 

 23.6 

%



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2025

 

% 

 

2024

 

% 

Home sales revenues

 

$

 2,815,365 

 

 100.0 

%

 

$

 3,055,941 

 

 100.0 

%

Cost of home sales revenues

 

 

 (2,285,233)

 

 (81.2)

%

 

 

 (2,386,208)

 

 (78.1)

%

Inventory impairment

 

 

 (10,951)

 

 (0.4)

%

 

 

 (1,942)

 

 (0.1)

%

Homebuilding gross margin

 

 

 519,181 

 

 18.4 

%

 

 

 667,791 

 

 21.9 

%

Add: Inventory impairment

 

 

 10,951 

 

 0.4 

%

 

 

 1,942 

 

 0.1 

%

Adjusted homebuilding gross margin excluding inventory impairment

 

 

 530,132 

 

 18.8 

%

 

 

 669,733 

 

 21.9 

%

Add: Interest in cost of home sales revenues

 

 

 41,994 

 

 1.5 

%

 

 

 42,117 

 

 1.4 

%

Add: Purchase price accounting for acquired work in process inventory

 

 

 6,763 

 

 0.2 

%

 

 

 5,999 

 

 0.2 

%

Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory

 

$

 578,889 

 

 20.6 

%

 

$

 717,849 

 

 23.5 

%



 



Picture 1



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)



EBITDA and Adjusted EBITDA



EBITDA and adjusted EBITDA are non-GAAP financial measures the Company uses as supplemental measures in evaluating operating performance. The Company defines EBITDA as net income before (i) income tax expense, (ii) interest in cost of home sales revenues, (iii) other interest expense (income), and (iv) depreciation and amortization expense. The Company defines adjusted EBITDA as EBITDA before inventory impairment, abandonment of lot option contracts,  restructuring costs, loss on debt extinguishment,  impairment on other investment, and purchase price accounting for acquired work in process inventory, in each case as applicable during a period. The Company believes EBITDA and adjusted EBITDA provide an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, and items considered to be non-recurring. Accordingly, the Company’s management believes that these measurements are useful for comparing general operating performance from period to period. Neither EBITDA nor adjusted EBITDA should be considered in addition to, and not as a substitute for, consolidated net income in accordance with GAAP as a measure of performance. The presentation of adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by unusual or non-recurring items. Each of EBITDA and adjusted EBITDA is limited as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported under GAAP.



(in thousands)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2025

 

2024

 

% Change

 

2025

 

2024

 

% Change

Net income

 

$

 37,403 

 

$

 83,020 

 

 

 (54.9)

%

 

$

 111,641 

 

$

 231,075 

 

 

 (51.7)

%

Income tax expense

 

 

 10,435 

 

 

 26,892 

 

 

 (61.2)

%

 

 

 35,798 

 

 

 73,789 

 

 

 (51.5)

%

Interest in cost of home sales revenues

 

 

 15,005 

 

 

 16,492 

 

 

 (9.0)

%

 

 

 41,994 

 

 

 42,117 

 

 

 (0.3)

%

Interest expense (income)

 

 

 876 

 

 

 (369)

 

 

 (337.4)

%

 

 

 445 

 

 

 (2,693)

 

 

 (116.5)

%

Depreciation and amortization expense

 

 

 6,005 

 

 

 6,272 

 

 

 (4.3)

%

 

 

 18,868 

 

 

 17,437 

 

 

 8.2 

%

EBITDA

 

$

 69,724 

 

$

 132,307 

 

 

 (47.3)

%

 

$

 208,746 

 

$

 361,725 

 

 

 (42.3)

%

Inventory impairment

 

 

 3,180 

 

 

 1,373 

 

 

 131.6 

%

 

 

 10,951 

 

 

 1,942 

 

 

 463.9 

%

Abandonment of lot option contracts(1)

 

 

 5,159 

 

 

 2,124 

 

 

 142.9 

%

 

 

 9,306 

 

 

 3,941 

 

 

 136.1 

%

Restructuring costs

 

 

 —

 

 

 —

 

 

NM

 

 

 

 1,505 

 

 

 —

 

 

NM

 

Loss on debt extinguishment

 

 

 1,361 

 

 

 —

 

 

NM

 

 

 

 1,361 

 

 

 —

 

 

NM

 

Impairment on other investment

 

 

 —

 

 

 —

 

 

NM

 

 

 

 —

 

 

 7,722 

 

 

NM

 

Purchase price accounting for acquired work in process inventory

 

 

 2,830 

 

 

 3,446 

 

 

 (17.9)

%

 

 

 6,763 

 

 

 5,999 

 

 

 12.7 

%

Adjusted EBITDA

 

$

 82,254 

 

$

 139,250 

 

 

 (40.9)

%

 

$

 238,633 

 

$

 381,329 

 

 

 (37.4)

%



(1)

Beginning in the third quarter of 2025, we added “Abandonment of lot option contracts” as an adjustment in our non-GAAP adjusted EBITDA calculation. Accordingly, we have recast the corresponding prior period information to conform to the current presentation and calculation.



NM – Not Meaningful

 

Picture 4

Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)



Ratio of Net Homebuilding Debt to Net Capital

The following table presents the Company’s ratio of net homebuilding debt to net capital, which is a non-GAAP financial measure.  The Company calculates this by dividing net homebuilding debt (homebuilding debt less cash and cash equivalents, and cash held in escrow) by net capital (net homebuilding debt plus total stockholders’ equity). Homebuilding debt is total debt minus outstanding borrowings under construction loan agreement and mortgage repurchase facilities. The most directly comparable GAAP measure is the ratio of homebuilding debt to capital. The Company believes the ratio of net homebuilding debt to net capital is a relevant and useful financial measure to investors in understanding the leverage employed in its operations and as an indicator of the Company’s ability to obtain external financing. 

(in thousands)







 

 

 

 

 

 



 

September 30,

 

December 31,



 

2025

 

2024

Notes payable

 

$

 1,147,370 

 

$

 1,107,909 

Revolving line of credit

 

 

 339,000 

 

 

 135,500 

Construction loan agreements

 

 

 (131,151)

 

 

 (102,436)

Total homebuilding debt

 

 

 1,355,219 

 

 

 1,140,973 

Total stockholders' equity

 

 

 2,578,022 

 

 

 2,620,856 

Total capital

 

$

 3,933,241 

 

$

 3,761,829 

Homebuilding debt to capital

 

 

 34.5% 

 

 

 30.3% 



 

 

 

 

 

 

Total homebuilding debt

 

$

 1,355,219 

 

$

 1,140,973 

Cash and cash equivalents

 

 

 (130,075)

 

 

 (149,998)

Cash held in escrow

 

 

 (44,717)

 

 

 (3,004)

Net homebuilding debt

 

 

 1,180,427 

 

 

 987,971 

Total stockholders' equity

 

 

 2,578,022 

 

 

 2,620,856 

Net capital

 

$

 3,758,449 

 

$

 3,608,827 



 

 

 

 

 

 

Net homebuilding debt to net capital

 

 

 31.4% 

 

 

 27.4% 





Contact Information:

Tyler Langton, Senior Vice President of Investor Relations

303-268-8345

InvestorRelations@CenturyCommunities.com



Category: 
Earnings