Century Communities Reports 4.8% Revenue Decline to $903.2 Million in Q1 2025

Century Communities, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $903.2 million, a decrease of 4.8% from $948.5 million in the same period last year. The decline was primarily attributed to a 3.1% drop in the number of homes delivered, totaling 2,284, and a slight decrease in the average sales price of homes to $386,900 from $391,200. The company's net income also fell significantly, reaching $39.4 million, or $1.26 per diluted share, compared to $64.3 million, or $2.00 per diluted share, in the prior year, marking a 38.8% decline in profitability.

In terms of operational metrics, Century Communities experienced a 6.1% decrease in net new home contracts, totaling 2,692 for the quarter. The backlog of homes also decreased by 20.9%, with 1,258 homes valued at $521.1 million compared to 1,590 homes valued at $667.2 million a year earlier. The company attributed these changes to a slowing demand influenced by elevated mortgage rates and broader economic uncertainties, which have affected buyer confidence and affordability.

Strategically, Century Communities has continued to expand its operations, with a focus on affordable housing. The company reported an increase in its selling communities, which rose to 318 from 253 a year ago, reflecting a 25.7% increase. This growth was supported by the acquisition of Anglia Homes in 2024, which added to its land pipeline. The company also reported a significant increase in its revolving line of credit, which rose to $237 million from $135.5 million, providing additional liquidity to support ongoing operations and land development.

The financial services segment of Century Communities saw a notable decline, with income before income tax expense dropping 76.5% to $2.4 million, driven by lower margins on mortgages and a decrease in the fair value of its mortgage servicing portfolio. The company originated 1,467 mortgages during the quarter, a decrease of 2.6% from the previous year. Despite these challenges, Century Communities remains optimistic about its long-term prospects, citing a continued need for affordable housing and a strategic focus on managing its lot pipeline effectively.

Looking ahead, Century Communities anticipates that market conditions will remain challenging, influenced by macroeconomic factors such as interest rates and consumer confidence. However, the company believes it is well-positioned to navigate these uncertainties, supported by its diverse product offerings and strategic land acquisitions. The management remains committed to adapting its operational strategies to align with market dynamics while continuing to prioritize shareholder returns through dividends and stock repurchases.