Century Communities Inc Reports Q1 2025 Earnings: EPS at $1.26, Revenue at $903.2 Million, Both Below Estimates

Century Communities Inc (CCS) Releases First Quarter 2025 Earnings

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Apr 23, 2025
Summary
  • Revenue: $903.2 million, slightly below the estimated $924.63 million.
  • Earnings Per Share (EPS): $1.26, missing the estimated EPS of $1.71.
  • Net Income: $39.4 million, with an adjusted net income of $42.2 million.
  • Home Deliveries: 2,284 homes, contributing to total revenues of $903.2 million.
  • Community Count: Increased by 26% year-over-year to 318 communities.
  • Gross Margin: Homebuilding gross margin at 19.9%, with an adjusted margin of 21.6% excluding certain costs.
  • Stock Repurchase and Dividend: Repurchased 753,337 shares for $55.6 million and increased quarterly cash dividend by 12% to $0.29 per share.
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On April 23, 2025, Century Communities Inc (CCS, Financial) released its 8-K filing detailing its financial performance for the first quarter of 2025. Century Communities Inc, a prominent homebuilder, is involved in the development, design, construction, marketing, and selling of single-family homes across various segments, including West, Mountain, Texas, Southeast, and Century Complete. The company also provides financial services such as mortgage, title, and insurance services to homebuyers.

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Performance Overview and Challenges

Century Communities Inc reported a net income of $39.4 million, translating to $1.26 per diluted share, which fell short of the analyst estimate of $1.71 per share. The adjusted net income was $42.2 million, or $1.36 per diluted share. Total revenues for the quarter were $903.2 million, slightly below the estimated $924.63 million. The company delivered 2,284 homes and secured 2,692 net new home contracts during the quarter.

The company faced challenges such as economic uncertainty, interest rate volatility, and a decline in consumer confidence, which impacted the spring selling season. Executive Chairman Dale Francescon noted,

“Over the past few months, we have seen an increase in economic uncertainty, interest rate volatility and decline in consumer confidence, which have contributed to a slower than typical spring selling season.”

Financial Achievements and Industry Importance

Despite the challenges, Century Communities Inc achieved a homebuilding gross margin of 19.9%, with an adjusted gross margin of 21.6% excluding certain costs. The company's community count increased by 26% year-over-year to 318, reflecting its expansion efforts. The balance sheet remains robust with $2.6 billion in stockholders' equity and $788 million in liquidity, which is crucial for sustaining operations and growth in the real estate industry.

Key Financial Metrics

The average sales price of home deliveries was $386,900. The company's backlog at the end of the quarter included 1,258 homes, valued at $521.1 million. Selling, general, and administrative expenses accounted for 13.7% of home sales revenues. Adjusted EBITDA was reported at $76.3 million, while EBITDA stood at $72.5 million.

Financial services revenues contributed $18.5 million, with a pre-tax income of $2.4 million. The company's book value per share increased by 11% year-over-year to $84.41, and it repurchased 753,337 shares for $55.6 million, enhancing shareholder value.

Balance Sheet and Liquidity

Century Communities Inc ended the quarter with a strong financial position, including $124.5 million in cash. The company increased its senior unsecured credit facility capacity to $1.0 billion, providing additional financial flexibility. The homebuilding debt to capital ratio was 32.4%, up from 30.3% at the end of 2024, indicating a slight increase in leverage.

Analysis and Outlook

The company's performance in the first quarter of 2025 highlights the challenges posed by macroeconomic factors, yet it demonstrates resilience through strategic expansions and financial management. The increase in community count and strong liquidity position are positive indicators for future growth. However, the reduced full-year guidance for home deliveries and revenues reflects ongoing market uncertainties.

Chief Financial Officer Scott Dixon commented on the outlook,

“With the ongoing economic uncertainty, interest rate volatility, and declining consumer confidence impacting our order activity, we are reducing our full year 2025 home delivery guidance to be in the range of 10,400 to 11,000 homes and our home sales revenues to be in the range of $4.0 to $4.2 billion.”

Explore the complete 8-K earnings release (here) from Century Communities Inc for further details.