What is the revenue and EPS growth rate for Century Communities year over year?

What guidance did Century Communities's management provide for the next earnings period?

What is Century Communities's gross profit margin?

What factors drove the changes in Century Communities's revenue and profit?

What does Century Communities do and what are its main business segments?

What were the key takeaways from Century Communities's earnings call?

What is the market's earnings forecast for Century Communities next quarter?

What were the key takeaways from Century Communities’s earnings call?

- **Record 2025 performance**: 10,792 units delivered, $153M cash flow, 7% share repurchased, and 10% annual growth potential in 2026. 
- **Operational efficiency**: 114-day cycle times, $13K cost reduction per home, 30% spec inventory decline. 
- **Q4 momentum**: 13% sequential order growth, 1,300bps incentives, and 18.3% adjusted gross margin. 
- **2026 outlook**: 10,000-11,000 deliveries, cautious Q1 (2,100-2,200 homes), and 14.5% Q1 SG&A ratio. 
- **Strategic flexibility**: 61,000 owned/control lots, 26,000 optioned lots with $74M deposits, and 25.9% net debt to capital ratio.

**【Management Remarks】**
- Delivered 10,792 residential units in 2025, including 3,435 in Q4, with record net orders of 2,702 homes in Q4 (13% sequential growth vs. historical 6% decline). 
- Repurchased 7% of shares outstanding in 2025, spent $1.2B on land, and ended with record book value per share of $89 and $153M cash flow from operations.
- Reduced direct construction costs by $13K per home and cycle times to 114 days, cutting finished spec inventory by 30%.
- 2026 growth potential: 10% annual deliveries (10,000-11,000 homes) based on existing lot count, with flexibility to adjust land takedowns via option strategy.

**【CEO Commentary】**
- Q4 net orders up 10% YoY and 13% sequentially, driven by 12% YoY increase in absorption rates (2.9 homes/community). 
- Incentives averaged 1,300bps in Q4 (vs. 600-1,300bps since 2024), with plans to reduce by 50bps in Q1 2026.
- Direct construction costs down 4% sequentially, cycle times at 114 days (10% YoY improvement). 
- 2026 community count expected to grow low-mid single digits, with 61,000 owned/control lots and 26,000 optioned lots secured by $74M deposits.

**【CFO Financial Commentary】**
- Q4 GAAP net income $36M ($1.21 EPS), adjusted net income $47M ($1.59 EPS). Home sales revenue $1.1B (16% sequential growth), ASP $367K (5% sequential decline due to incentives). 
- Adjusted gross margin 18.3%, impacted by 100bps inventory impairment. 
- 2026 guidance: 10,000-11,000 deliveries, $3.6B-$4.1B revenue. Q1 2026 deliveries 2,100-2,200 homes, SG&A 14.5% of revenue. 
- $1.1B liquidity, 25.9% net debt to capital ratio, $178M returned to shareholders in 2025.

**【Q&A Highlights】**
- Spring 2026 outlook: Hopeful for improvement vs. 2025's disappointing spring, citing traffic trends and potential policy support. 
- Margins: Q4 incentives at 1,300bps expected to decline 50bps in Q1, with 2026 gross margin dependent on sales pace and market conditions. 
- Community growth: 2025 average community count 311, 2026 expected low-mid single-digit growth. 
- Spec inventory: 2025 starts 2,069, cycle times 114 days, enabling quick ramp if market improves. 
- Share buybacks: $1.5M shares remaining under repurchase program.

Century Communities, Inc. (CCS) Q4 2025 Earnings Call Transcript

- **Operational Strength**: 3% YTD direct cost reduction, 115-day cycle times, and 20.1% gross margin despite 6% Q/Q contract decline.
- **Share Repurchases**: $20M in Q3, 6% YTD, at 23% discount to book value.
- **Strategic Growth**: 5% Y/Y community count expansion, 20% ARM penetration in financial services.
- **Profitability**: 12.6% SG&A ratio, $70M EBITDA, and 31.4% net debt/cap ratio.
- **Guidance**: 10,000-10,250 homes for 2025, with cautious Q4 outlook on incentives.

**【Management Opening Remarks】**
- Delivered 2,486 homes in Q3, hitting the high end of guidance, with adjusted homebuilding gross margin of 20.1% (up sequentially). 
- Repurchased $20M in shares, bringing year-to-date repurchases to 6% of outstanding shares.
- Despite muted demand due to economic uncertainty, management sees pent-up demand for affordable new homes.
- Maintained disciplined G&A control and refinanced debt at lower rates.

**【CEO Operational Update】**
- Direct construction costs down 3% YTD; cycle times improved to 115 days (1/3 of divisions under 100 days).
- Q3 net new contracts down 6% vs. prior quarter (better than historical 9% decline).
- Incentives on closed homes averaged 1,100bps (lower than expected 100bps increase), but expect 100bps increase in Q4.
- Ending community count up 5% Y/Y to 321, with 2025e growth in mid-single digits.
- Financial services ARMs now 20% of originations vs. <5% in Q1, driven by affordability benefits.

**【CFO Financial Results】**
- Q3 net income $37M ($1.25 EPS), up 10% vs. prior quarter; EBITDA $70M.
- Home sales $955M (-2% vs. prior quarter), with ASP $384K (+2% Q/Q).
- Adjusted gross margin 20.1% (vs. 20.0% prior quarter), driven by lower direct costs.
- SG&A as % of home sales 12.6% (vs. 13.0% full year target).
- Refinanced $500M debt at 6.625%, improving net debt/cap ratio to 31.4%.
- Full year guidance narrowed to 10,000-10,250 homes ($3.8-3.9B sales).

**【Q&A Highlights】**
- **Gross Margin**: Cost savings offset 50bps of incentive increases, but Q4 may see 100bps margin decline.
- **Community Growth**: 5% Y/Y ending count driven by existing market share gains (top 10 in 13/50 markets).
- **Consumer Behavior**: Cautious but desire for new homes; October orders stable vs. Q3.
- **Land Strategy**: Exiting non-core projects, maintaining 62,000 owned/control lots.
- **Tariffs**: No impact in 2025, but 2026 outlook uncertain.


Century Communities, Inc. (CCS) Q3 2025 Earnings Call Transcript

- **Resilient Execution**: Q2 deliveries (+13% sequential) and net orders improved despite 1,050bps incentives, driven by disciplined land management and cost control. 
- **Gross Margin Pressure**: Adjusted margin 20% (down 160bps YoY), with Q3 expected to decline another 100bps. Direct costs down 3% YoY, offset by land inflation. 
- **Community Expansion**: Record 327 communities, with 2024 starts up 28% YoY. Year-end 2025 growth in mid-single digits. 
- **Financial Strength**: Book value per share $86.39 (+10% YoY). $48M Q2 share buybacks at 37% discount to book value. 
- **Guidance Update**: 2025 deliveries 10,000-10,500 homes, revenue $3.8B-$4B, reflecting cautious market outlook.

**【Management Opening Remarks】**
- Q2 execution maintained despite elevated mortgage rates and affordability constraints. Deliveries of 2,587 homes exceeded guidance (2,300-2,500), driven by incentives. Net orders and absorption rates improved sequentially in May/June, with cancellation rates stable at historical lows. Century Complete brand absorption rates remained flat YoY. Community count reached 327 (record high), with year-end 2025 growth expected in mid-single digits. Share repurchases totaled $48M in Q2, bringing YTD to $104M. Book value per share increased 10% YoY to $86.39.

**【CEO Commentary】**
- Q2 net new contracts: 2,546 homes. 100% of community count growth occurred in June, limiting Q2 order benefits. Direct construction costs declined 3% YoY and 2% sequentially. Land strategy focused on renegotiating terms for controlled lots, with 12,000 lots exited in Q2 ($2.6M charges). Incentives increased to 1,050bps (vs. 900bps in Q1), expected to rise another 100bps in Q3. Cycle times improved to 4 months. Land pipeline of 70,000 lots maintained discipline, with no land banking agreements. 2024 lot starts up 28% YoY.

**【CFO Financial Commentary】**
- Q2 home sales revenue: $976M (+10% sequentially). Deliveries flat YoY at 2,587. Average sales price: $378K (-3% YoY) due to incentives. Adjusted gross margin: 20% (vs. 21.6% Q1), driven by 150bps incentive impact. EBITDA: $66M; adjusted EBITDA: $76M. Financial services revenue: $23.8M, benefiting from $47.3M MSR sale. Tax rate: 26%; full-year guidance 25%-26%. Net debt to capital: 31% (Q1: 30.1%). Share repurchases: $48M ($54.35 avg price). Revised 2025 guidance: deliveries 10,000-10,500 homes, revenue $3.8B-$4B.

**【Q&A Highlights】**
- **Land Strategy:** Q2 land investment reduced, 12,000 lots exited. Traditional option agreements allow flexibility vs. land banking. No broad land price capitulation, but selective renegotiations. 
- **Mortgage Products:** 70% government-backed loans, 30% conventional. ARM adoption increased sequentially. 
- **Regional Performance:** West strongest (Vegas, Atlanta, Charlotte), Mountain mixed (Colorado affordability), Texas (Houston/San Antonio stable). Century Complete brand outperformed in Carolinas/Midwest. 
- **Gross Margin Outlook:** Q3 adjusted margin expected to decline 100bps due to incentives. Direct costs improving, offset by land inflation. 
- **Impairment Risk:** $7M Q2 charge for 5 Florida closeout communities. No significant additional impairments expected unless market deteriorates. 
- **Inventory Management:** Starts (2,485) matched sales to control spec inventory. Q3 deliveries 2,300-2,500, reflecting seasonal slowdown. 
- **Build Times:** 4-month average, improving sequentially. No plans for vertical integration. 
- **Incentives Mix:** Combination of rate buy-downs and price cuts, weighted towards aged inventory.

Century Communities, Inc. (CCS) Q2 2025 Earnings Call Transcript

- **Resilient Execution Amid Weakness**: Delivered 2,284 homes (-3% YoY) with stable 20.1% gross margin despite 6% decline in net contracts.
- **Aggressive Incentive Strategy**: Q2 incentives to rise 200bps to 1,100bps, targeting 2.8% absorption rate amid soft demand.
- **Pipeline Expansion**: Community count up 26% YoY to 318, positioning for 10%+ annual delivery growth post-2025.
- **Financial Discipline**: $56M share buyback at 13% discount to book value; Q1 dividend increased 12% to $0.29/share.
- **Risk Management**: 80% materials US-made/USMCA-exempt; $71M non-refundable deposits on 43,000 controlled lots.

**【Dale Francescon: Executive Chairman Overview】**
- **Economic Challenges**: First-quarter absorption rate of 2.8 was below expectations due to elongated sales cycles and affordability constraints.
- **Delivery Resilience**: Delivered 2,284 homes (-3% YoY) with average sales price down 1%, yet maintained stable gross margin of 20.1%.
- **Pipeline Growth**: Community count increased 26% YoY to 318, targeting mid-single-digit growth for 2025 year-end count.
- **Tariff Mitigation**: 80% of materials are US-made or USMCA-exempt; price protection agreements with suppliers reduce risk.

**【Robert Francescon: CEO Operational Update】**
- **Incentive Strategy**: Q1 incentives rose to 900bps (vs. 800bps in Q4), with Q2 expected to increase another 200bps to drive sales.
- **Cost Control**: Direct construction costs down 4% YoY; cycle times remain stable at 4 months.
- **Workforce Adjustment**: Mid-April layoffs and cost-saving programs to reduce fixed costs, benefiting Q3/Q4 margins.
- **Land Position**: 80,000 owned/control lots (55% controlled), with low-risk option agreements ($71M non-refundable deposits).

**【John Dixon: CFO Financial Highlights】**
- **Q1 Results**: $884M revenue (-4% YoY), $1.26 EPS, 21.6% adjusted gross margin.
- **Guidance Update**: Full-year deliveries revised to 10,400-11,000 homes (prev. 11,500-12,000), reflecting 2.8% absorption rate.
- **Margin Pressures**: Q2 gross margin expected to decline due to higher incentives; SG&A as % of revenue to remain elevated at 13.5%.
- **Balance Sheet**: $788M liquidity, $2.6B equity, and no debt maturities until 2027.

**【Key Q&A Takeaways】**
- **Absorption Rate Disparity**: Century Complete brand outperformed core regions due to less competition; Texas underperformed at 2.1 rate.
- **Incentive Mix**: Price cuts and buydowns (mid-5% rates) are used for complete homes, while new orders focus on non-price incentives.
- **Community Growth**: 70% of 2025 community openings will come in Q2/Q3, supporting back-half delivery ramp.
- **Tariff Impact**: No near-term cost impact expected; suppliers absorbing costs through USMCA compliance.


Century Communities (CCS)-23 Apr 25-2025 Q1 Earnings call transcript

- **Deliveries Surge**: 2024 full year deliveries up 15% to 11,007 homes, Q4 at record 3,198 homes. Community count hits 322 (+28% YoY). 
- **Profit Margins Expand**: Adjusted gross margin +80bps to 23.3%, adjusted net income +36% YoY. 
- **Order Momentum**: Q4 contracts +5% YoY, full year +21% YoY. 
- **Affordability Play**: 92% of Q4 homes priced below FHA limits; 60% of mortgage closings via low-rate FHA/VA/USDA loans. 
- **Leadership Shift**: Dale transitions to Executive Chairman, Rob becomes Sole CEO with no immediate operational changes.

**【Dale Francescon - Executive Chairman Summary】**
- **Record Deliveries and Growth**: Full year 2024 deliveries reached 11,007 homes (+15% YoY), with Q4 deliveries at 3,198 homes and $1.2B in revenue, both quarterly records. Community count rose to 322 (+28% YoY). 
- **Profitability Improvements**: Adjusted gross margin increased 80bps to 23.3%, and SG&A as a % of revenue declined 40bps. Adjusted net income grew 36% YoY, with Q4 up 18%.
- **Shareholder Returns**: Repurchased 3% of shares and increased dividend by 30%.
- **Order Momentum**: Q4 net contracts +5% YoY, full year +21% YoY. January 2025 orders tracking seasonal pace but below 2024 levels.
- **Affordability Focus**: 92% of Q4 deliveries priced below FHA limits; captive mortgage subsidiary closed 60% of loans via FHA/VA/USDA programs.
- **Leadership Transition**: Dale moves to Executive Chairman, Rob becomes Sole CEO, with no immediate operational changes.

**【Robert Francescon - CEO Operational Update】**
- **Community Expansion**: Ended Q4 with 322 communities (+28% YoY, +6% QoQ), targeting mid-single-digit growth in 2025 community count. 
- **Geographic Diversification**: 31% of 2024 deliveries in Florida/Texas, with balanced exposure across 17 states.
- **Cost Control**: Direct construction costs flat QoQ, full year down 2%. Incentives on closed homes rose to 800bps (Q3: 700bps), with Q4 new orders at 900bps.
- **Cycle Times**: Average 4 months, supporting efficient inventory management.
- **Land Position**: 80,000+ owned/control lots, with 25% via Century Complete (finished lots only).

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