Century Communities — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $864.5 million, down from $980.3 million in the prior year quarter.
• Net income was $12.6 million ($0.44 per diluted share), compared to $37.4 million ($1.26 per basic share) in the prior year quarter.
• Adjusted net income was $28.8 million ($1.01 per diluted share), compared to $45.7 million ($1.52 per diluted share) in the prior year quarter.
• Home sales revenues totaled $842.5 million.
• Deliveries totaled 2,442 homes, with an average sales price of $345,000.
• Net new home contracts were 2,284.
• GAAP homebuilding gross margin was 15.0% (inclusive of $19.6 million inventory impairment charges).
• Adjusted homebuilding gross margin was 19.3%.
• Homebuilding gross margin excluding inventory impairment was 17.3%.
• Selling, general, and administrative expenses were 14.1% of home sales revenues.
• Adjusted EBITDA was $63.4 million; EBITDA was $37.1 million.
• Financial services revenues were $21.2 million with pre-tax income of $6.2 million.
• Stockholders' equity was $2.6 billion.
• Total liquidity was $863.8 million, including $119.8 million in cash and cash equivalents.
• Homebuilding debt to capital was 36.8%; net homebuilding debt to net capital was 34.9%.
• Book value per share was $90.61, a company record.

Guidance and Future Outlook:

• Full year 2026 home deliveries are expected to be in the range of 9,350 to 9,650 homes, including 100 deliveries from HistoryMaker in the fourth quarter.
• Full year 2026 home sales revenues are expected to be in the range of $3.3 billion to $3.4 billion.

Business Segments and Product Lines:

• Ending community count increased to 343, a company record, representing a 7% year-over-year increase and a 4% sequential increase.
• The company acquired substantially all assets of HistoryMaker Homes on October 7, 2026.
• The HistoryMaker acquisition increases the Dallas division's active communities from 12 to 41 as of September 30, 2026.
• The acquisition triples the Dallas division's deliveries from 211 to 669 homes on a trailing-twelve-month basis.
• Century will maintain a land relationship with HistoryMaker's sister land development company for Dallas-Fort Worth communities.
• Net new home contracts by region for the quarter: West (268, -20.5% YoY), Mountain (350, -16.3% YoY), Texas (524, +21.0% YoY), Southeast (302, -22.2% YoY), and Century Complete (840, +3.7% YoY).
• Deliveries by region for the quarter: West (278, -24.7% YoY), Mountain (386, -3.7% YoY), Texas (540, +17.4% YoY), Southeast (310, -26.7% YoY), and Century Complete (928, +11.4% YoY).
• Backlog totaled 1,106 homes with a dollar value of $414.0 million.

Market and Competitive Landscape:

• The third quarter was impacted by a significant rise in interest rates, continued inflation, and macroeconomic uncertainty, weighing on consumer confidence and first-time homebuyers.
• The company operates in 16 states and over 45 markets across the U.S.
• HistoryMaker focuses on entry-level and move-up homes in the Dallas-Fort Worth metroplex.

Risks and Challenges:

• Risks include changes in general economic conditions, interest rates, inflation, employment levels, consumer confidence, and affordability concerns.
• Potential impacts from geopolitical conflicts, tariffs, immigration reform, global supply chain disruptions, and labor or material shortages.
• Risks associated with the availability and cost of financing, land acquisition, and the mortgage lending business.
• Specific risks related to the HistoryMaker Homes acquisition, including the possibility of not realizing anticipated benefits.
• Risks regarding multi-family rental businesses, future impairment charges, and tax changes.

Management Commentary and Tone:

• Executive Chairman Dale Francescon noted that despite macroeconomic pressures, the company made good operational progress, growing the community count to a record 343 and decreasing direct construction costs, finished lot costs, and fixed G&A (excluding advertising) versus the prior quarter.
• CEO Rob Francescon stated the HistoryMaker acquisition supports the strategy of deepening share in existing markets to drive improved margins and returns, specifically in the largest housing market in the country.
• CFO Scott Dixon commented on the impact of increased mortgage rates on orders and deliveries, leading to the revised full-year guidance.

Other Key Points:

• The company repurchased 169,903 shares of common stock for $11.6 million during the quarter.
• The company maintained its quarterly cash dividend of $0.32 per share.
• The revolving line of credit capacity was increased to $1.2 billion, with maturity extended to November 2030.
• The company amended its revolving line of credit at the end of the quarter.