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Century Communities, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 22 April 2026: press release. Guidance figures: 2 lowered. The quarter’s numbers.

Key takeaways

  • Net income fell on lower revenue: Net income was $24.4 million, or $0.84 per diluted share, against $39.4 million and $1.26 a year earlier. Total revenues were $789.7 million, against $903.2 million. Source
  • Deliveries fell 11.9 percent: Deliveries were 2,013 homes, down from 2,284. The average sales price was $364,700, down from $386,900 a year earlier. Source
  • Net contracts fell 11.6 percent: Net new home contracts were 2,379, against 2,692 a year earlier. Century Complete contracts fell 17.5 percent to 785. Source
  • March orders weighed on the quarter: Management said higher interest rates, gas prices and consumer sentiment weighed most on orders in March, usually the quarter's highest sales month. Demand at the start of the quarter was roughly in line with a year earlier. Source
  • Full-year guidance lowered: Management reduced full-year 2026 delivery and home sales revenue ranges, citing the Middle East conflict, gas prices and interest rates. Ranges are listed under guidance. Source
  • Adjusted margin rose sequentially: Adjusted homebuilding gross margin was 19.7%, up 140 basis points from 18.3% in the fourth quarter and down from 21.6% a year earlier. Management cited lower incentives and direct costs. Source
  • Leverage ratios rose: Homebuilding debt to capital was 32.2%, up from 29.1% at year-end. Net homebuilding debt to net capital was 30.5%, up from 25.9%. Source

“We performed well in the first quarter given continued market pressures which intensified even further beginning in early March,”

Dale Francescon, Executive Chairman

Guidance

AreaPeriodFigureAgainst last quarter
Home deliveries SourceFull year 20269,500 to 10,500 homesLowered from 10,000 to 11,000 homes
Home sales revenues SourceFull year 2026$3.5 billion to $3.8 billionLowered from $3.6 billion to $4.1 billion

What changed from last quarter

  • Guidance lowered: Full-year 2026 home delivery range reduced, citing the Middle East conflict, gas prices and interest rates. Source
  • Guidance lowered: Full-year 2026 home sales revenue range reduced to $3.5 billion to $3.8 billion. Source
  • New: Quarterly cash dividend increased 10 percent to $0.32 per share from $0.29. Source

Results and profitability

  • Net income fell on lower revenue: Net income was $24.4 million, or $0.84 per diluted share, against $39.4 million and $1.26 a year earlier. Total revenues were $789.7 million, against $903.2 million. Source
  • Adjusted EPS of $0.88: Adjusted net income was $25.6 million, or $0.88 per diluted share, against $43.4 million and $1.39 a year earlier. Adjusted figures exclude inventory impairment, lot abandonment, restructuring and purchase accounting items. Source
  • EBITDA declined year over year: Adjusted EBITDA was $55.4 million and EBITDA was $52.0 million, against $78.1 million and $72.5 million in the first quarter 2025. Source
  • Financial services revenue rose: Financial services revenues were $22.4 million, up from $18.5 million, with pre-tax income of $7.6 million. Source

Deliveries, contracts and communities

  • Deliveries fell 11.9 percent: Deliveries were 2,013 homes, down from 2,284. The average sales price was $364,700, down from $386,900 a year earlier. Source
  • Net contracts fell 11.6 percent: Net new home contracts were 2,379, against 2,692 a year earlier. Century Complete contracts fell 17.5 percent to 785. Source
  • Regional deliveries varied: Deliveries were 277 in the West, 344 in Mountain, 371 in Texas, 315 in Southeast and 706 in Century Complete. Mountain fell 19.8 percent and Southeast rose 4.0 percent. Source
  • Community count edged down: Selling communities ended at 316, against 318 a year earlier and up from 305 at December 31. Southeast communities fell 26.2 percent, while West and Mountain rose. Source

“Given the impact of the conflict in the Middle East as well as higher gas prices and interest rates on our order activity”

Scott Dixon, Chief Financial Officer

Demand and the order book

  • March orders weighed on the quarter: Management said higher interest rates, gas prices and consumer sentiment weighed most on orders in March, usually the quarter's highest sales month. Demand at the start of the quarter was roughly in line with a year earlier. Source
  • Full-year guidance lowered: Management reduced full-year 2026 delivery and home sales revenue ranges, citing the Middle East conflict, gas prices and interest rates. Ranges are listed under guidance. Source
  • Traffic and sales rose through quarter: Management said traffic and net sales increased sequentially throughout the quarter. The first-quarter cancellation rate was below the levels seen through most of 2025. Source
  • Backlog units and dollars declined: Backlog ended at 1,155 homes, down from 1,258, and at $438.5 million, down from $521.1 million a year earlier. Average backlog price was $379,600, down from $414,200. Source

Margins, incentives and costs

  • Adjusted margin rose sequentially: Adjusted homebuilding gross margin was 19.7%, up 140 basis points from 18.3% in the fourth quarter and down from 21.6% a year earlier. Management cited lower incentives and direct costs. Source
  • Reported gross margin at 17.8%: Homebuilding gross margin was 17.8%, against 19.9% a year earlier. Interest in cost of home sales revenues was $13.2 million, up from $12.8 million. Source
  • SG&A ratio at 15.8 percent: SG&A expense was $116.1 million, down from $120.8 million a year earlier, equal to 15.8 percent of home sales revenues. No inventory impairment was recorded, against $0.4 million a year earlier. Source

Inventory, specs and land

  • Finished specs reduced sharply: Finished specs were reduced 16 percent sequentially and 31 percent against the prior-year quarter. Source
  • Lot count fell, controlled lots down: Total lots were 58,537, down from 79,014 a year earlier. Controlled lots fell 43.9 percent, while owned lots fell 4.3 percent. Source

Balance sheet and liquidity

  • Liquidity of $886.1 million: Total liquidity was $886.1 million, including $89.8 million of cash, against $1.1 billion at December 31. Stockholders' equity was $2.6 billion. Source
  • Leverage ratios rose: Homebuilding debt to capital was 32.2%, up from 29.1% at year-end. Net homebuilding debt to net capital was 30.5%, up from 25.9%. Source
  • Book value per share eased: Book value per share was $88.75 at March 31, against a record $89.21 at December 31. Source

Capital returns and dividend

  • Dividend raised 10 percent: The quarterly dividend rose to $0.32 per share from $0.29. The company paid $1.16 per share in dividends across 2025. Source
  • Buybacks of $40.0 million: The company repurchased 617,087 shares for $40.0 million, against 333,881 shares for $20.0 million in the fourth quarter. Source

Figures management reported

FigureReported
Home deliveries Source2,013
Net new home contracts Source2,379
Homes in backlog Source1,155
Selling communities Source316
Owned and controlled lots Source58,537

Risks management discussed

  • Demand: Higher interest rates, gas prices and consumer sentiment weighed on order activity, most in March. Source
  • External: Management cited the Middle East conflict as affecting order activity and full-year guidance. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.