Century Communities (CCS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $903.2M, down 4.8% year-over-year, with net income of $39.4M ($1.26 per diluted share), and 2,284 homes delivered; net new contracts fell 6.1% to 2,692.

• Economic uncertainty, interest rate volatility, and lower consumer confidence led to a slower spring selling season and elongated sales cycles.

• Community count increased 26% year-over-year to 318, with book value per share up 11% to $84.41.

• The company maintained stable homebuilding gross margins and focused on balancing pace and price while managing costs and incentives.

• Repurchased 753,337 shares for $55.6M and increased quarterly dividend by 12% to $0.29 per share.

Financial highlights

• Adjusted EBITDA was $76.3M, down 30.4% year-over-year; adjusted net income was $42.2M ($1.36 per diluted share), down 40.9%.

• Adjusted homebuilding gross margin was 21.6%, down from 22.8% year-over-year; GAAP gross margin was 19.9%.

• SG&A as a percent of home sales revenue was 13.7% in Q1.

• Backlog at quarter-end was 1,258 homes valued at $521.1M, down 21.9% in value year-over-year.

• Book value per share increased 11% year-over-year to $84.41.

Outlook and guidance

• Full-year 2025 home delivery guidance reduced to 10,400–11,000 homes and home sales revenue to $4.0–$4.2B, with sequential increases in deliveries expected in Q3 and Q4.

• Incentive levels expected to increase by up to 200 basis points in Q2, impacting gross margins.

• Management expects continued uncertainty in homebuilding demand due to macroeconomic and geopolitical factors.

• Targeting 10% annual delivery growth over several years, supported by lot and community count increases, subject to market demand.

• Focused on cost control, cycle time reduction, and matching starts with sales to maintain optimal spec inventory.