Century Communities, Inc. reported a decline in financial performance for the fiscal year ended December 31, 2025, with total revenues of $4.1 billion, down 6.4% from $4.4 billion in 2024. The company delivered 10,792 residential units, including 10,387 new homes, 105 previously leased rental homes, and 300 multi-family units, reflecting a 3.9% decrease in total residential units delivered compared to the previous year. Net income fell to $147.6 million, or $4.86 per diluted share, a significant drop from $333.8 million, or $10.40 per diluted share, in 2024. The decrease in profitability was attributed to slower absorption rates and increased sales incentives amid challenging market conditions, including elevated mortgage rates and economic uncertainty.
In 2025, Century Communities experienced a 3.3% decrease in net new home contracts, totaling 10,326, compared to 10,676 in 2024. The average sales price of new homes also decreased by 3.3% to $378,000, primarily due to higher incentives offered to buyers. The company's homebuilding gross margin percentage declined to 17.6% from 21.5% in the prior year, driven by increased incentives and inventory impairment charges. The company ended the year with a backlog of 789 homes, down 7.2% from the previous year, with a total backlog value of $283.7 million, reflecting a 19.2% decrease.
Strategically, Century Communities has focused on managing its lot pipeline, resulting in a reduction of owned and controlled lots to 60,916 as of December 31, 2025, down from 80,632 in 2024. The company has terminated certain contracts that no longer met its investment criteria, which contributed to this decrease. Additionally, the company repurchased 2.3 million shares for approximately $143.6 million during the year, as part of its ongoing stock repurchase program, which has 2.4 million shares remaining available for repurchase.
Looking ahead, Century Communities anticipates that its homebuilding markets will continue to be influenced by macroeconomic conditions, including interest rates and consumer confidence. The company remains committed to providing affordable housing options and adapting its strategies to meet changing market demands. However, it acknowledges the uncertainty surrounding future demand for homes, particularly in light of potential economic downturns and ongoing inflationary pressures. The company plans to continue offering incentives to facilitate home purchases and maintain its competitive position in the market.
About Century Communities, Inc.
Century Communities, Inc. is a leading U.S. homebuilder specializing in the development, design, construction, and sale of affordable single-family homes across 17 states. It operates through multiple brands targeting entry-level, move-up, and lifestyle buyers, offering move-in ready homes and some customization. The company also provides mortgage, title, insurance, and rental property development services, focusing on efficient, scalable operations and community engagement.
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