#USA #Greenwood Village #Century Communities #homebuilder #New Home

Overview

Century Communities, Inc. has reported notable financial results for the fourth quarter and full year 2025, demonstrating solid performance in a challenging economic landscape. The company, one of the largest homebuilders in the United States, saw a significant increase in its residential unit deliveries and profitability, marking a promising end to the year.

Financial Performance Highlights

In the fourth quarter of 2025, Century Communities achieved a net income of $36.0 million, or $1.21 per diluted share. Adjusted net income was even more impressive at $47.1 million, translating to $1.59 per diluted share. The total revenues for this quarter surged to $1.2 billion, with residential unit deliveries reaching 3,435, inclusive of 3,030 new homes. The gross margin for homebuilding was reported at 15.4%, and the adjusted gross margin stood at 18.3%.

The full year results further illustrated Century Communities' strength, with net income amounting to $147.6 million ($4.86 per diluted share) and adjusted net income at $181.7 million ($5.99 per diluted share). The comprehensive total revenues for 2025 hit $4.1 billion, bolstered by the delivery of 10,792 residential units including 10,387 new homes. Throughout the year, the company maintained a gross margin of 17.6% for homebuilding and a robust adjusted gross margin of 19.9%.

Market Position and Strategy

Dale Francescon, Executive Chairman, expressed confidence in Century Communities' performance despite ongoing economic uncertainties, emphasizing that the sequential increases in net orders and home deliveries were indicative of pent-up demand for affordable housing. The remarkable rise of 13% in net orders and 22% in deliveries from the previous quarter reflects a strong market position and adaptive strategy amidst fluctuating economic conditions.

CEO Rob Francescon highlighted a productive operational year, stating that 2025 marked the company's 23rd consecutive year of profitability. He pointed out enhancements in reducing direct construction costs and administrative expenses, contributing to a greater efficiency in operations. The year concluded with a book value per share hitting a record $89.21, a significant achievement reflecting the company's solid financial stance.

Share Repurchase and Dividends

In alignment with their capital allocation strategy to enhance shareholder value, Century Communities repurchased 333,881 shares for $20 million in the fourth quarter alone, contributing to the repurchase of over 2.26 million shares throughout 2025—signifying more than 7% of the shares outstanding at the start of the year. Additionally, the company maintained a consistent quarterly dividend of $0.29 per share, reiterating its commitment to return capital to stockholders.

Looking Ahead: 2026 Outlook

As Century Communities sets its sights on 2026, CFO Scott Dixon articulated expectations for a new home delivery range between 10,000 and 11,000 homes, along with projected home sales revenues of $3.6 billion to $4.1 billion. These forecasts reflect an anticipated increase in the average number of open communities during the year.

The company remains optimistic about the upcoming year, leveraging its operational efficiencies and strong liquidity position of $1.1 billion to ensure sustained growth in the residential market.

Conclusion

Century Communities is strategically positioned to navigate the challenges of the housing market amidst economic uncertainties effectively. With a commitment to delivering quality homes and enhancing shareholder value, the company continues to be a leader in the homebuilding industry. Investors and homebuyers alike can look forward to seeing how Century Communities will capitalize on the demand for affordable housing in the coming year.