Century Communities' Q4 Demand and Softer 2025 Outlook: A Shift in the Investment Narrative?

Century Communities reported FY25 results with revenue of $4.12 bln and net income of $147.6 mln. Despite softer annual figures, the company highlighted record Q4 net new contracts and efficiency gains. The shares rose over the past week, influencing the investment narrative. The company's investment story is now focused on efficiency and disciplined capital returns, with record Q4 contracts and continued community openings suggesting underlying buyer interest. However, mounting pressure on profit margins and a lower price target from JPMorgan highlight the importance of execution on margins.