Century Communities Posts $1.2B Q4 Revenue, $36M Income with 15.4% Gross Margin
Century Communities delivered Q4 revenues of $1.2 billion and net income of $36.0 million, with adjusted net income of $47.1 million and homebuilding gross margin of 15.4%. It repurchased 333,881 shares for $20.0 million, lifted book value per share to a record $89.21, and held homebuilding debt-to-capital at 29.1%.
1. Strong Fourth Quarter Results Exceed Estimates
Century Communities delivered 3,435 residential units in Q4 2025, including 3,030 new homes, driving total revenues of $1.2 billion. Net income reached $36.0 million, or $1.21 per diluted share, while adjusted net income was $47.1 million, or $1.59 per diluted share, topping consensus forecasts. The company achieved a homebuilding gross margin of 15.4% and an adjusted gross margin of 18.3%, supported by reduced construction cycle times and disciplined cost management. Net new home contracts rose to 2,702, and backlog stood at 789 homes, representing $283.7 million in future revenue.
2. Full Year 2025 Performance and Profitability Milestones
For the full year, Century Communities reported net income of $147.6 million ($4.86 per share) and adjusted net income of $181.7 million ($5.99 per share) on revenues of $4.1 billion. The builder delivered 10,792 residential units, including 10,387 new homes at an average sales price of $378,000. Net new home contracts totaled 10,326, and full‐year adjusted EBITDA was $349.7 million. Homebuilding gross margin improved to 17.6% (adjusted 19.9%), while SG&A expenses were 12.9% of home sales revenue, reflecting ongoing operational efficiencies.
3. Robust Balance Sheet and Capital Return Strategy
Century Communities ended Q4 with $2.6 billion of shareholders’ equity and $1.1 billion of total liquidity, including $158.0 million of cash. The company repurchased 333,881 shares for $20.0 million in Q4 and 2,267,723 shares for $143.6 million over the full year, representing over 7% of shares outstanding at the start of 2025. Book value per share reached a record $89.21. Homebuilding debt to capital was 29.1%, with net homebuilding debt to net capital at 25.9%, underscoring strong financial flexibility.
4. 2026 Outlook Reflects Stable Delivery Guidance
Assuming no significant economic shifts, Century Communities projects 2026 new home deliveries between 10,000 and 11,000 units and home sales revenues of $3.6 billion to $4.1 billion. Guidance factors in a mid-single-digit increase in open communities and sustained absorption rates consistent with H2 2025. The company maintains a quarterly cash dividend of $0.29 per share and plans continued share repurchases, reinforcing its commitment to disciplined capital allocation and shareholder returns.