Century Communities Reports Second Quarter 2025 Results

- Deliveries of 2,587 Homes Generating $1.0 Billion in Total Revenues -
- Net New Home Contracts of 2,546 -
- Net Income of $34.9 Million, or $1.14 Per Diluted Share -
- Adjusted Net Income of $42.1 Million, or $1.37 Per Diluted Share -
- Community Count Increased 23% YoY to a Company record 327 -
- Recognized as One of the 2025 Best Companies to Work For by U.S. News & World Report -

GREENWOOD VILLAGE, Colo., July 23, 2025 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS), one of the nation's largest homebuilders, today announced financial results for its second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

    --  Net income of $34.9 million, or $1.14 per diluted share
    --  Adjusted net income of $42.1 million, or $1.37 per diluted share
    --  Pre-tax income of $47.1 million
    --  Total revenues of $1.0 billion
    --  Community count of 327, a Company record
    --  Deliveries of 2,587 homes
    --  Net new home contracts of 2,546
    --  Repurchased 883,602 shares of common stock, or roughly 3% of shares
        outstanding
    --  Book value per share of $86.39, a Company record

"Our second quarter results were in line with our expectations as we continued to execute well in a challenging environment resulting from elevated mortgage rates, affordability constraints, economic uncertainty and lower consumer confidence," said Dale Francescon, Executive Chairman. "Despite the market headwinds, second quarter deliveries of 2,587 homes increased by 13% on a sequential basis as customers responded to incentives and we were able to sell and close a greater number of homes within the quarter. We continued to focus on balancing pace with price during the quarter, successfully managed our costs, and drove further improvement in our cycle times."

Rob Francescon, Chief Executive Officer and President, said, "Our community count grew by 23% on a year-over-year basis to 327, a Company record, and we continue to expect our 2025 year end community count to increase in the mid-single digit percentage range. We remained disciplined on the land front and reassessed deals to ensure that they met our targets in the current environment. Our balance sheet remains strong with $2.6 billion of stockholders' equity and $858 million of liquidity, and our book value per share of $86.39 increased by 10% on a year-over-year basis. In the second quarter, we repurchased 883,602 shares of our common stock, or roughly 3% of our shares outstanding at the beginning of the quarter, for $48.0 million."

Second Quarter 2025 Results

Net income for the second quarter 2025 was $34.9 million, or $1.14 per diluted share. Adjusted net income, which excludes inventory impairment and purchase price accounting, was $42.1 million, or $1.37 per diluted share.

Total revenues were $1.0 billion, with second quarter home sales revenues totaling $976.5 million. Deliveries totaled 2,587 homes. The average sales price of home deliveries for the second quarter 2025 was $377,500.

Net new home contracts in the second quarter 2025 were 2,546, and at the end of the second quarter 2025, the Company had 1,217 homes in backlog, representing $466.0 million of backlog dollar value.

Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was 20.0% in the second quarter of 2025. Adjusted homebuilding gross margin percentage excluding inventory impairment in the second quarter 2025 was 18.4%, and homebuilding gross margin was 17.6%. Selling, general, and administrative expenses as a percent of home sales revenues was 13.2% in the quarter. Adjusted EBITDA and EBITDA for the second quarter 2025 were $75.9 million and $66.5 million, respectively.

Financial services revenues and pre-tax income were $23.8 million and $6.2 million, respectively, in the second quarter 2025.

Balance Sheet and Liquidity

The Company ended the second quarter 2025 with a strong financial position, including $2.6 billion of stockholders' equity and $857.6 million of total liquidity, including $127.6 million of cash.

Our book value per share was $86.39 as of June 30, 2025.

During the second 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 883,602 shares of common stock for $48.0 million.

As of June 30, 2025, homebuilding debt to capital equaled 33.3% and net homebuilding debt to net capital equaled 31.0%.

Full Year 2025 Outlook

Scott Dixon, Chief Financial Officer of the Company, commented, "Due to current market conditions, we are revising our full year 2025 home delivery guidance to be in the range of 10,000 to 10,500 homes and our home sales revenues to be in the range of $3.8 to $4.0 billion."

Webcast and Conference Call

The Company will host a webcast and conference call on Wednesday, July 23, 2025, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's second 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 57087. The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through July 30, 2025, by dialing 888-660-6264 (domestic) or 646-517-3975 (international) and entering conference ID 57087. 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 increased community count. 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 June 30,                Six Months Ended June 30,


                                                                                                                       2025                          2024              2025                          2024



     
              Revenues



     Homebuilding Revenues



     Home sales revenues                                                                                   $
            976,467             $
            1,017,414 $
            1,860,204             $
            1,939,816



     Land sales and other revenues                                                                                       483                             377               1,445                           1,593



     Total homebuilding revenues                                                                                     976,950                       1,017,791           1,861,649                       1,941,409



     Financial services revenues                                                                                      23,774                          21,659              42,308                          46,585



     Total revenues                                                                                                1,000,724                       1,039,450           1,903,957                       1,987,994



     
              Homebuilding Cost of Revenues



     Cost of home sales revenues                                                                                   (797,162)                      (787,556)        (1,504,666)                    (1,513,127)



     Cost of land sales and other revenues                                                                              (69)                                             (897)                           (37)



     Total homebuilding cost of revenues                                                                           (797,231)                      (787,556)        (1,505,563)                    (1,513,164)



     Financial services costs                                                                                       (17,550)                       (15,996)           (33,724)                       (30,873)



     Selling, general, and administrative                                                                          (128,837)                      (125,973)          (249,596)                      (240,082)



     Inventory impairment                                                                                            (7,360)                          (570)            (7,771)                          (570)



     Other (expense) income, net                                                                                     (2,663)                          1,278             (7,702)                        (8,353)



     Income before income tax expense                                                                                 47,083                         110,633              99,601                         194,952



     Income tax expense                                                                                             (12,229)                       (26,909)           (25,363)                       (46,897)



     Net income                                                                                             $
            34,854                $
            83,724    $
            74,238               $
            148,055





     
              Earnings per share:



     Basic                                                                                                    $
            1.15                  $
            2.65      $
            2.43                  $
            4.67



     Diluted                                                                                                  $
            1.14                  $
            2.61      $
            2.40                  $
            4.60



     
              Weighted average common shares outstanding:



     Basic                                                                                                        30,366,109                      31,648,130          30,582,376                      31,728,544



     Diluted                                                                                                      30,680,708                      32,092,789          30,912,086                      32,165,798


                                                                                                       
              
                Century Communities, Inc.

                                                                                                      
              
                Consolidated Balance Sheets

                                                                                                              
              
                (Unaudited)

                                                                                                        
              (in thousands, except share amounts)




                                                                                                                                                                            June 30,                       December 31,


                                                                                                                                                                        2025                      2024



              
                Assets                                                                                                                              (unaudited)               (audited)



              Cash and cash equivalents                                                                                                                     $
             93,246         $
              149,998



              Cash held in escrow                                                                                                                                      34,349                       3,004



              Accounts receivable                                                                                                                                      68,893                      50,318



              Inventories                                                                                                                                           3,509,639                   3,454,337



              Mortgage loans held for sale                                                                                                                            184,390                     236,926



              Prepaid expenses and other assets                                                                                                                       539,684                     419,384



              Property and equipment, net                                                                                                                              86,865                     155,176



              Deferred tax assets, net                                                                                                                                 21,315                      22,220



              Goodwill                                                                                                                                                 41,109                      41,109



              Total assets                                                                                                                               $
             4,579,490       $
              4,532,472



              
                Liabilities and stockholders' equity



              Liabilities:



              Accounts payable                                                                                                                             $
             145,269         $
              133,086



              Accrued expenses and other liabilities                                                                                                                  283,588                     302,317



              Notes payable                                                                                                                                         1,135,202                   1,107,909



              Revolving line of credit                                                                                                                                270,000                     135,500



              Mortgage repurchase facilities                                                                                                                          181,440                     232,804



              Total liabilities                                                                                                                                     2,015,499                   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, 29,679,571 and 30,961,227 shares issued                                                       297                         310
    and outstanding at June 30, 2025 and December 31, 2024, respectively



              Additional paid-in capital                                                                                                                              414,002                     526,959



              Retained earnings                                                                                                                                     2,149,692                   2,093,587



              Total stockholders' equity                                                                                                                            2,563,991                   2,620,856



              Total liabilities and stockholders' equity                                                                                                 $
             4,579,490       $
              4,532,472


                                 
              
         Century Communities, Inc.

                               
              
         Homebuilding Operational Data

                                        
         
              (Unaudited)





     
                Net New Home Contracts




                                                        Three Months Ended June 30,                Six Months Ended June 30,


                                         2025       2024                            % Change  2025              2024         % Change



     West                                323        376               (14.1)            715    816               (12.4)

                                                                          %                                        %



     Mountain                            336        552               (39.1)            798  1,163               (31.4)

                                                                          %                                        %



     Texas                               504        520                (3.1)          1,003  1,034                (3.0)

                                                                          %                                        %



     Southeast                           384        386                (0.5)            771    836                (7.8)

                                                                          %                                        %


      Century Complete                    999        946                  5.6           1,951  1,797                  8.6

                                                                          %                                        %



     Total                             2,546      2,780                (8.4)          5,238  5,646                (7.2)

                                                                          %                                        %



     
                Home Deliveries


     (dollars in thousands)




                                                  Three Months Ended June 30,


                                                2025                                            2024                   % Change


                                   Homes                Average Sales               Homes                  Average Sales           Homes Average Sales
                                          Price                                           Price                         Price



     West                           335 $
             602.5                       325          $
          626.7     3.1
                                                                                                                                 %
                                                                                                             %               (3.9)



     Mountain                       396            521.0                       486                  532.7  (18.5)
                                                                                                                                 %
                                                                                                             %               (2.2)



     Texas                          501            294.2                       485                  301.1     3.3
                                                                                                                                 %
                                                                                                             %               (2.3)



     Southeast                      401            429.9                       349                  441.3    14.9
                                                                                                                                 %
                                                                                                             %               (2.6)



     Century Complete               954            260.5                       972                  262.2   (1.9)
                                                                                                                                 %
                                                                                                             %               (0.6)



     Total / Weighted Average     2,587 $
             377.5                     2,617          $
          388.8   (1.1)
                                                                                                                                 %
                                                                                                             %               (2.9)




                                                   Six Months Ended June 30,


                                                2025                                            2024                   % Change


                                   Homes                Average Sales               Homes                  Average Sales           Homes Average Sales
                                          Price                                           Price                         Price



     West                           638 $
             601.0                       609          $
          617.3     4.8
                                                                                                                                 %
                                                                                                             %               (2.6)



     Mountain                       825            522.6                       981                  523.0  (15.9)
                                                                                                                                 %
                                                                                                             %               (0.1)



     Texas                          958            296.5                       909                  304.9     5.4
                                                                                                                                 %
                                                                                                             %               (2.8)



     Southeast                      704            435.7                       728                  433.4   (3.3)
                                                                                                                                 %
                                                                                                             %                 0.5



     Century Complete             1,746            260.5                     1,748                  262.1   (0.1)
                                                                                                                                 %
                                                                                                             %               (0.6)



     Total / Weighted Average     4,871 $
             381.9                     4,975          $
          389.9   (2.1)
                                                                                                                                 %
                                                                                                             %               (2.1)


                  
              
                Century Communities, Inc.

                
              
                Homebuilding Operational Data

                         
              
                (Unaudited)







     
             Selling Communities




                                                           As of June
                                                            30,              Increase/Decrease


                                     2025          2024               Amount                   % Change


      West                             36            26                   10         38.5

                                                                                     %


      Mountain                         51            47                    4          8.5

                                                                                     %


      Texas                            75            45                   30         66.7

                                                                                     %


      Southeast                        43            34                    9         26.5

                                                                                     %


       Century                        122           114                    8          7.0
       Complete
                                                                                     %


      Total                           327           266                   61         22.9

                                                                                     %



     
                Backlog


     (dollars in thousands)




                                               
         
               As of June 30,


                                                            2025                                                  2024                 % Change


                               Homes          Dollar                         Average       Homes                   Dollar             Average                             Homes       Dollar
                                               Value                                                        Value                                                               Value       Average
                                                       Sales                                                   Sales                                      Sales
                                                         Price                                                     Price                                        Price



     West                       236 $
     142,012         $
             601.7               313       $
     213,931            $
     683.5  (24.6)
                                                                                                                                                    %                  %
                                                                                                                                %              (33.6)             (12.0)



     Mountain                   122     66,572                    545.7               345          198,484               575.3  (64.6)              (66.5)              (5.1)
                                                                                                                                                    %
                                                                                                                                %                                      %



     Texas                      222     67,939                    306.0               293           87,826               299.7  (24.2)
                                                                                                                                                    %                  %
                                                                                                                                %              (22.6)                2.1



     Southeast                  174     75,720                    435.2               250          107,965               431.9  (30.4)
                                                                                                                                                    %                  %
                                                                                                                                %              (29.9)                0.8



     Century Complete           463    113,747                    245.7               552          146,417               265.2  (16.1)              (22.3)              (7.4)
                                                                                                                                                    %
                                                                                                                                %                                      %



     Total / Weighted Average 1,217 $
     465,990         $
             382.9             1,753       $
     754,623            $
     430.5  (30.6)
                                                                                                                                                    %                  %
                                                                                                                                %              (38.2)             (11.1)



     
                Lot Inventory




                                                
        
          As of June 30,


                                                  2025                                       2024                           % Change




                                         Owned                Controlled               Total                   Owned                  Controlled          Total Owned Controlled Total





     West                        3,948   3,097       7,045           4,434      3,665                   8,099        (11.0)          (15.5)      (13.0)
                                                                                                                                     %
                                                                                                                     %                           %



     Mountain                    8,905   1,344      10,249           8,651      4,987                  13,638           2.9           (73.0)      (24.8)
                                                                                                                                     %
                                                                                                                     %                           %



     Texas                      14,900   5,493      20,393           9,777      9,823                  19,600          52.4           (44.1)         4.0
                                                                                                                                     %
                                                                                                                     %                           %



     Southeast                   5,095   8,392      13,487           5,461     12,446                  17,907         (6.7)          (32.6)      (24.7)
                                                                                                                                     %
                                                                                                                     %                           %


      Century Complete            4,571  12,956      17,527           4,454     14,399                  18,853           2.6           (10.0)       (7.0)
                                                                                                                                     %
                                                                                                                     %                           %



     Total                      37,419  31,282      68,701          32,777     45,320                  78,097          14.2           (31.0)      (12.0)
                                                                                                                                     %
                                                                                                                     %                           %



     % of Total                 54.5 % 45.5 %    100.0 %         42.0 %    58.0 %                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) restructuring costs; (iv) impairment on other investment; (v) purchase price accounting for acquired work in process inventory; and (vi) loss on debt extinguishment; 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 June 30,                Six Months Ended June 30,


                                                                                        2025                         2024          2025                          2024



     
                Numerator



     Net income                                                               $
           34,854             $
              83,724 $
           74,238             $
              148,055



     
                Denominator



     Weighted average common shares outstanding - basic                            30,366,109                     31,648,130      30,582,376                      31,728,544



     Dilutive effect of stock-based compensation awards                               314,599                        444,659         329,710                         437,254



     Weighted average common shares outstanding - diluted                          30,680,708                     32,092,789      30,912,086                      32,165,798



     
                Earnings per share:



     Basic                                                                      $
           1.15               $
              2.65   $
           2.43                $
              4.67



     Diluted                                                                    $
           1.14               $
              2.61   $
           2.40                $
              4.60





     
                Adjusted earnings per share



     
                Numerator



     Net income                                                               $
           34,854             $
              83,724 $
           74,238             $
              148,055



     Income tax expense                                                                12,229                         26,909          25,363                          46,897



     Income before income tax expense                                                  47,083                        110,633          99,601                         194,952



     Inventory impairment                                                               7,360                            570           7,771                             570



     Restructuring costs                                                                                                             1,505



     Impairment on other investment                                                                                                                                 7,722



     Purchase price accounting for acquired work in process inventory                   2,041                            973           3,933                           2,553



     Adjusted income before income tax expense                                         56,484                        112,176         112,810                         205,797



     Adjusted income tax expense(1)                                                  (14,384)                      (26,985)       (28,727)                       (49,506)



     
                Adjusted net income                                         $
           42,100             $
              85,191 $
           84,083             $
              156,291





     
                Denominator - Diluted                                            30,680,708                     32,092,789      30,912,086                      32,165,798





     
                Adjusted diluted earnings per share                           $
           1.37               $
              2.65   $
           2.72                $
              4.86




     (1) The tax rates used in calculating adjusted net income for the three and six months ended June 30, 2025 were 25.5%, respectively, which are reflective of our GAAP tax rates for the six months ended June 30, 2025. The tax rates used in calculating adjusted net income for the three
            and six months ended June 30, 2024 were 24.1%, respectively, which are reflective of our GAAP tax rates for the six months ended June 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 June 30,


                                                                                                         2025                         %                        2024           %



              Home sales revenues                                                               $
         976,467     100.0                  $
            1,017,414          100.0

                                                                                                                       %                                                 %



              Cost of home sales revenues                                                            (797,162)   (81.6)                           (787,556)        (77.4)

                                                                                                                       %                                                 %



              Inventory impairment                                                                     (7,360)    (0.8)                               (570)         (0.1)

                                                                                                                       %                                                 %



              Homebuilding gross margin                                                                171,945      17.6                              229,288           22.5

                                                                                                                       %                                                 %



              Add: Inventory impairment                                                                  7,360       0.8                                  570            0.1

                                                                                                                       %                                                 %



              Adjusted homebuilding gross margin excluding inventory impairment                        179,305      18.4                              229,858           22.6

                                                                                                                       %                                                 %



              Add: Interest in cost of home sales revenues                                              14,204       1.5                               13,592            1.3

                                                                                                                       %                                                 %



              Add: Purchase price accounting for acquired work in process inventory                      2,041       0.2                                  973            0.1

                                                                                                                       %                                                 %



              Adjusted homebuilding gross margin excluding interest, inventory impairment and   $
         195,550      20.0                    $
            244,423           24.0

                                                                                                                       %                                                 %
    purchase price accounting for acquired work in process inventory










                                                                                                     
              
         Six Months Ended June 30,


                                                                                                         2025                         %                        2024           %



              Home sales revenues                                                             $
         1,860,204     100.0                  $
            1,939,816          100.0

                                                                                                                       %                                                 %



              Cost of home sales revenues                                                          (1,504,666)   (80.9)                         (1,513,127)        (78.0)

                                                                                                                       %                                                 %



              Inventory impairment                                                                     (7,771)    (0.4)                               (570)         (0.0)

                                                                                                                       %                                                 %



              Homebuilding gross margin                                                                347,767      18.7                              426,119           22.0

                                                                                                                       %                                                 %



              Add: Inventory impairment                                                                  7,771       0.4                                  570            0.0

                                                                                                                       %                                                 %



              Adjusted homebuilding gross margin excluding inventory impairment                        355,538      19.1                              426,689           22.0

                                                                                                                       %                                                 %



              Add: Interest in cost of home sales revenues                                              26,989       1.5                               25,625            1.3

                                                                                                                       %                                                 %



              Add: Purchase price accounting for acquired work in process inventory                      3,933       0.2                                2,553            0.1

                                                                                                                       %                                                 %



              Adjusted homebuilding gross margin excluding interest, inventory impairment and   $
         386,460      20.8                    $
            454,867           23.4

                                                                                                                       %                                                 %
    purchase price accounting for acquired work in process inventory

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, restructuring costs, impairment on other investment, purchase price accounting for acquired work in process inventory and loss on debt extinguishment, 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 June 30,                      Six Months Ended June 30,


                                                                           2025                  2024                 % Change              2025                    2024            % Change



     Net income                                                       $
      34,854      $
              83,724      (58.4)           $
        74,238             $
        148,055      (49.9)
                                                                                                                  %                                                          %



     Income tax expense                                                   12,229                  26,909      (54.6)                 25,363                    46,897      (45.9)
                                                                                                                  %                                                          %



     Interest in cost of home sales revenues                              14,204                  13,592         4.5                  26,989                    25,625         5.3
                                                                                                                  %                                                          %



     Interest income                                                     (1,229)                  (810)       51.7                   (431)                  (2,324)     (81.5)
                                                                                                                  %                                                          %



     Depreciation and amortization expense                                 6,434                   5,689        13.1                  12,862                    11,165        15.2
                                                                                                                  %                                                          %



     EBITDA                                                           $
      66,492     $
              129,104      (48.5)          $
        139,021             $
        229,418      (39.4)
                                                                                                                  %                                                          %



     Inventory impairment                                                  7,360                     570     1,191.2                   7,771                       570     1,263.3

                                                                                                                  %                                                          %



     Restructuring costs                                                                                        NM                  1,505                                   NM



     Impairment on other investment                                                                             NM                                           7,722          NM



     Purchase price accounting for acquired work in process inventory      2,041                     973       109.8
                                                                                                                                                                             %
                                                                                                                  %                  3,933                     2,553        54.1



     Adjusted EBITDA                                                  $
      75,893     $
              130,647      (41.9)          $
        152,230             $
        240,263      (36.6)
                                                                                                                  %                                                          %




              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 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)




                                                    June 30,               December 31,


                                                 2025             2024



     Notes payable                        $
     1,135,202      $
      1,107,909



     Revolving line of credit                  270,000            135,500



     Construction loan agreements            (127,687)         (102,436)



     Total homebuilding debt                 1,277,515          1,140,973



     Total stockholders' equity              2,563,991          2,620,856



     Total capital                        $
     3,841,506      $
      3,761,829



     Homebuilding debt to capital               33.3 %            30.3 %





     Total homebuilding debt              $
     1,277,515      $
      1,140,973



     Cash and cash equivalents                (93,246)         (149,998)



     Cash held in escrow                      (34,349)           (3,004)



     Net homebuilding debt                   1,149,920            987,971



     Total stockholders' equity              2,563,991          2,620,856



     Net capital                          $
     3,713,911      $
      3,608,827





     Net homebuilding debt to net capital       31.0 %            27.4 %

Contact Information:
Tyler Langton, Senior Vice President of Investor Relations
303-268-8345
InvestorRelations@CenturyCommunities.com

Category:
Earnings

View original content to download multimedia:https://www.prnewswire.com/news-releases/century-communities-reports-second-quarter-2025-results-302512295.html

SOURCE Century Communities, Inc.