Century Communities Reports Third Quarter 2025 Results

Rhea-AI Summary

Century Communities (NYSE: CCS) reported Q3 2025 results for the quarter ended September 30, 2025, delivering 2,486 homes and generating $980.3 million in total revenues. Net income was $37.4 million (earnings $1.25 per diluted share) and adjusted net income was $45.7 million (adjusted $1.52 per diluted share). Adjusted homebuilding gross margin was 20.1% and backlog stood at $416.9 million.

The company completed a private offering of $500 million of 6.625% senior notes due 2033, redeemed $500 million of 6.75% notes due 2027, repurchased 296,903 shares for $20.0 million, maintained a quarterly dividend of $0.29 per share, and reported a record book value per share of $87.74.

Positive

• Deliveries of 2,486 homes
• Total revenues of $980.3 million
• Adjusted net income of $45.7 million
• Record book value per share of $87.74
• Closed $500 million 6.625% senior notes due 2033

Negative

• Backlog dollar value of only $416.9 million
• Homebuilding debt to capital at 34.5%

Insights

Senior Housing Finance Analyst

Century delivered solid Q3 results with record book value, strong margins, repurchases, and tightened full-year delivery guidance.

Century Communities reported $980.3 million of revenue and net income of $37.4 million ($1.25 per diluted share) for the third quarter 2025, with deliveries of 2,486 homes and net new contracts of 2,386. Adjusted homebuilding gross margin held at 20.1%, adjusted net income was $45.7 million, and book value per share rose to a company record of $87.74. The company also completed a liability management move by issuing $500 million of 6.625% senior notes due 2033 to redeem like‑amount 6.75% notes due 2027, and repurchased 296,903 shares for $20.0 million.

The business mechanism is straightforward: stable unit volumes and improving direct-cost control sustained margins despite soft demand; balance-sheet actions preserved liquidity ($835.8 million) while locking in longer-term funding. Risks and dependencies include continued buyer caution and sensitivity to interest-rate and consumer-confidence shifts, which the company itself cites; backlog stood at $416.9 million across 1,117 homes, a near-term demand indicator to monitor. Key watch items over the next quarters include delivery pace relative to the narrowed full-year delivery guidance of 10,000–10,250 homes, trends in adjusted homebuilding gross margin, backlog conversion into closings, and the impact of the note redemption on interest expense and liquidity across the remainder of 2025.

- 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, Colo., Oct. 22, 2025 /PRNewswire/ -- 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.

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

 

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

 

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)	%

 

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 %

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.

 

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	%

 

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

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

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SOURCE Century Communities, Inc.

FAQ

What were Century Communities (CCS) Q3 2025 revenues and net income?

Century reported $980.3 million in total revenues and net income of $37.4 million in Q3 2025.

How many homes did CCS deliver and sign in Q3 2025?

Century delivered 2,486 homes and recorded 2,386 net new home contracts in Q3 2025.

What was Century's adjusted homebuilding gross margin in Q3 2025?

Adjusted homebuilding gross margin was reported at 20.1% for Q3 2025.

How did Century's capital actions in Q3 2025 affect shareholders (CCS)?

Century repurchased 296,903 shares for $20.0 million, maintained a $0.29 quarterly dividend, and issued $500 million of 6.625% notes due 2033.

What is Century Communities' backlog and book value per share as of Sept 30, 2025?

Backlog dollar value was $416.9 million and book value per share was a record $87.74 as of Sept 30, 2025.

What full-year 2025 guidance did Century (CCS) provide on Oct 22, 2025?

Century narrowed full-year 2025 delivery guidance to 10,000–10,250 homes and home sales revenue guidance to $3.8–$3.9 billion.