CCS

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Century Communities (CCS) has drawn fresh attention after its board declared a quarterly cash dividend of $0.32 per share, payable on September 9, 2026, to shareholders of record on August 26. See our latest analysis for Century Communities. Century Communities' share price has eased slightly in the past week, yet the 30-day share price return of 6.64% and 90-day gain of 45.9% point to strong recent momentum, while the 1-year total shareholder return of 10.06% reflects more measured progress over a longer period. If this dividend update has you thinking about where else capital could work hard, it might be a good moment to scan opportunities in 20 top founder-led companies Bulls point to Century Communities' recent outperformance, dividend commitment and earnings optimism. Bears worry the good news is already reflected in the US$70.63 share price. Do the current numbers argue more for value or for caution? Century Communities' most followed valuation narrative places fair value at $78 per share, compared with the latest close at $70.63, which frames the stock as modestly undervalued on that view. Read the complete narrative. Want to see why this narrative still reaches a higher fair value even with softer revenue and margin assumptions baked in? The key is how future profits and the valuation multiple interact over time. Result: Fair Value of $78 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, if U.S. housing undersupply persists or if Century Communities successfully grows its community count, the current undervalued narrative could face a serious rethink. Find out about the key risks to this Century Communities narrative. That 9.4% “undervalued” fair value for Century Communities rests on analyst assumptions about future earnings and P/E. A different read comes from the current P/E of 15x. It sits slightly above the Consumer Durables industry at 14.2x and above peers at 11.5x, but below an estimated fair ratio of 17.4x. This mix of slightly richer pricing than the group, yet below the fair ratio, suggests some valuation risk if sector sentiment cools, but also room for the multiple to move higher if the story unfolds in line with current expectations. Which side of that tradeoff appears more realistic to you right now, given the recent guidance cuts and buybacks? See what the numbers say about this price — find out in our valuation breakdown. With sentiment mixed on Century Communities, this is a moment to move quickly, test the numbers yourself and weigh both sides of the story. To help frame that view, you can review the 2 key rewards and 3 important warning signs If Century Communities has sharpened your focus, do not stop here. Fresh ideas often come from comparing different types of opportunities side by side using a structured stock search. Target potential value opportunities by scanning companies that currently look mispriced on fundamentals using the 50 high quality undervalued stocks. Prioritize resilience by reviewing companies highlighted in the 83 resilient stocks with low risk scores that combine lower risk scores with more defensive profiles. Spot earlier stage opportunities with stronger balance sheets and quality metrics through the screener containing 18 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CCS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record book value and community count despite macro headwinds, driven by a 6% sequential increase in absorption rates that defied historical seasonal declines. Successfully balanced pace and price by reducing incentives by 50 basis points sequentially while maintaining consistent order activity throughout the quarter. Strategic shift toward Adjustable Rate Mortgages (ARMs) significantly addressed affordability, with ARM volume increasing to 35% of originations from less than 5% a year ago. Operational efficiency reached a company record with cycle times averaging 112 calendar days, contributing to a 5% sequential reduction in direct construction costs. Maintained a disciplined inventory strategy with approximately 3 finished spec homes per community to serve immediate buyer demand without overextending capital. Capital allocation remained focused on shareholder value, repurchasing 3% of outstanding shares year-to-date at a significant 32% discount to book value. Raised full-year delivery guidance to 9,750–10,500 homes, assuming a further sequential increase in deliveries during the fourth quarter. Expects average community count to grow in the low to mid-single-digit range for 2026, providing a foundation for 10% annual delivery growth over the next several years. Management anticipates third-quarter incentives will remain consistent with first-half levels, serving as the primary variable for maintaining gross margins. Land acquisition and development spend is projected at $1 billion to $1.2 billion for 2026, with the flexibility to scale based on evolving market conditions. Full-year SG&A is targeted at approximately 14% of home sales revenue, benefiting from effective management of fixed costs despite commission and advertising pressures. Identified potential upward pressure on land development costs due to rising fuel and asphalt prices, though management is currently resisting vendor increases. Noted that the tailwinds previously provided by declining lumber prices have likely ended, with costs now trending flat to slightly up. Second-quarter gross margin improvement of 120 basis points (excluding prior-period warranty adjustments) was driven by genuine cost reductions and lower incentives. The Mountain region shows mixed dynamics, with strength in Las Vegas and Utah offsetting continued affordability challenges in the high-priced Colorado market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified incentive reduction as the primary lever, supported by the continued introduction of ARM products to lower buyer costs without sacrificing price. Direct construction cost containment remains a focus, though macro variables make the back half of the year difficult to predict with certainty. Texas is showing signs of recovery, particularly in Houston and San Antonio, where the company is targeting entry-level buyers with incentive-driven sales. The company is actively scaling its Dallas operations, utilizing a significant position in finished lots (VDLs) to grow the division. Management confirmed they are actively monitoring the M&A marketplace and will pursue transactions that fit their platform, citing a track record of 9 acquisitions since 2013. Current inventory levels across the industry are viewed as normal, with a moderation in the 'crazy discounting' seen earlier in the year. Early July activity is following typical seasonal patterns, which are historically slower due to the holiday and summer timing. Management noted it is currently too early to discern the specific impact of the most recent interest rate increases on consumer traffic.

This article first appeared on GuruFocus. Earnings Per Diluted Share: $1.26, increased by 11% year-over-year and 50% sequentially. Home Sales Revenues: $898 million with an average sales price of $358,000. Deliveries: 2,506 homes, a 25% sequential increase. Adjusted Gross Margin: 20%, increased by 30 basis points sequentially. Net Income: $36 million. SG&A as a Percent of Home Sales Revenues: 14.2%. Financial Services Revenues: $25 million, with pretax income of $10 million. Net Homebuilding Debt to Net Capital Ratio: 31.9%. Stockholders' Equity: $2.6 billion. Liquidity: $802 million. Community Count: Ended the quarter with 330 communities, up 4% sequentially. Share Repurchase: 353,000 shares for $20 million at an average price of $55.54. Guidance for Home Deliveries: 9,750 to 10,500 homes for full year 2026. Guidance for Home Sales Revenues: $3.5 billion to $3.8 billion for full year 2026. Warning! GuruFocus has detected 6 Warning Signs with CCS. Is CCS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Century Communities Inc (NYSE:CCS) delivered strong second-quarter results with earnings per diluted share of $1.26, marking an 11% year-over-year increase and a 50% sequential increase. The company exceeded its home delivery guidance with 2,506 homes delivered, surpassing the expected range of 2,200 to 2,400 homes. Century Communities Inc (NYSE:CCS) achieved a record book value per share of $90.24 and ended the quarter with a record 330 open communities. The company successfully reduced direct construction costs by 5% on a sequential basis and achieved a company record cycle time of 112 calendar days. Century Communities Inc (NYSE:CCS) repurchased 1% of its shares outstanding at a 38% discount to book value, contributing to a year-to-date acquisition total of 3% at a 32% discount. The company continues to face macroeconomic challenges and weak consumer sentiment, which could impact future performance. Incentives remain a headwind to margins, although they have been reduced slightly in the second quarter. The Texas market, while showing improvement, still requires significant incentives to drive sales, particularly in entry-level segments. Rising fuel costs and potential commodity price increases, such as lumber, could impact future construction costs and margins. The Colorado market remains challenging due to high price points, which could affect sales and profitability in that region. Q: Can you discuss the variables that might allow Century Communities to drive gross margins higher in a flattish environment? A: John Dixon, Interim CFO, explained that incentives are the biggest driver of margin profiles. The company has successfully reduced incentives, partly due to the introduction of ARM products. Holding the line on construction costs and managing finished lot costs are also crucial factors. Q: How is the Texas market performing, and what is the outlook for Century Communities there? A: Robert Francescon, Co-CEO, noted that Texas is showing signs of recovery. The company has a strong position in Houston, focusing on entry-level buyers. San Antonio is performing well, and Austin is picking up. Dallas is still developing, but the company is optimistic about its future in Texas. Q: Are there any concerns about potential price increases from vendors due to rising fuel and commodity costs? A: Robert Francescon mentioned that while there are requests for price increases, especially in land development due to higher oil prices, the company is pushing back. Lumber costs have stabilized, but they are being monitored closely. Q: What is the current status of incentives, and how does it affect sales and closings? A: Robert Francescon confirmed that incentives are at 1,200 basis points, down 50 basis points sequentially. John Dixon added that the company is maintaining a consistent sold and closed percentage, with 50% to 60% of units sold and closed each quarter. Q: How is the company managing its community count and what is the expected growth? A: John Dixon stated that the company expects a mid-single-digit increase in average community count year-over-year. The current count is 330 communities, and there is potential for further growth in the back half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Deliveries of 2,506 Homes Generating $927.2 Million in Total Revenues - - Net New Home Contracts of 2,615 - - Ending Community Count Increased Sequentially to 330, a Company Record - - Net Income of $36.1 Million, or $1.26 Per Diluted Share - - Book Value Per Share of $90.24, a Company Record - GREENWOOD VILLAGE, Colo., July 22, 2026 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS), one of the nation's largest homebuilders, today announced financial results for its second quarter ended June 30, 2026. Second Quarter 2026 Highlights Net income of $36.1 million, or $1.26 per diluted share Adjusted net income of $37.3 million, or $1.30 per diluted share Total revenues of $927.2 million Community count of 330, a Company record Deliveries of 2,506 homes Net new home contracts of 2,615 Homebuilding gross margin of 18.1% Adjusted homebuilding gross margin of 20.0% Repurchased 352,811 shares of common stock for $19.6 million "We delivered strong second quarter results despite continued headwinds from macro challenges and weak consumer sentiment, with earnings per diluted share of $1.26 increasing by 11% on a year-over-year basis and 50% sequentially," said Dale Francescon, Executive Chairman. "We continued to invest in our business and ended the quarter with 330 open communities, a Company record. Our balance sheet remains strong with $2.6 billion of stockholders' equity and $802 million of liquidity, and we repurchased 352,811 shares of our common stock for $19.6 million at a 38% discount to our Company record book value per share of $90.24 while maintaining our quarterly cash dividend of $0.32 per share and continuing to position Century for future growth." Rob Francescon, Chief Executive Officer and President, said, "Our deliveries of 2,506 homes grew by 25% on a sequential basis and exceeded our guidance on stronger order activity, with our net orders of 2,615 homes increasing by 3% on a year-over-year basis and 10% sequentially. Our net orders were relatively stable throughout the quarter, with our traffic posting a sequential gain of 9% in the second quarter. Our adjusted homebuilding gross margin of 20.0% increased by 30 basis points on a sequential basis, benefitting from lower incentives and direct costs as we controlled our costs and inventory levels." Second Quarter 2026 Results Net income for the second quarter 2026 was $36.1 million, or $1.26 per diluted share. Adjusted net income was $37.3 million, or $1.30 per diluted share. Total revenues were $927.2 million, with second quarter home sales revenues totaling $897.5 million. Deliveries totaled 2,506 homes. The average sales price of home deliveries for the second quarter 2026 was $358,200. Net new home contracts in the second quarter 2026 were 2,615, and at the end of the second quarter 2026, the Company had 1,264 homes in backlog, representing $469.3 million of backlog dollar value. Adjusted homebuilding gross margin percentage, excluding interest and purchase price accounting, was 20.0% in the second quarter of 2026, and homebuilding gross margin was 18.1%. Selling, general, and administrative expenses as a percent of home sales revenues was 14.2% in the quarter. Adjusted EBITDA and EBITDA for the second quarter 2026 were $78.2 million and $71.0 million, respectively. Financial services revenues and pre-tax income were $25.4 million and $9.9 million, respectively, in the second quarter 2026. Balance Sheet and Liquidity The Company ended the second quarter 2026 with a strong financial position, including $2.6 billion of stockholders' equity and $802.4 million of total liquidity, including $132.0 million of cash, including cash equivalents and cash held in escrow. Book value per share was $90.24, a Company record, as of June 30, 2026. During the second quarter, consistent with Century's disciplined capital allocation approach to enhance the long-term value of the Company and return capital to our stockholders, Century maintained its quarterly cash dividend of $0.32 per share and repurchased 352,811 shares of common stock for $19.6 million. As of June 30, 2026, homebuilding debt to capital equaled 34.2% and net homebuilding debt to net capital equaled 31.9%. Full Year 2026 Outlook Scott Dixon, Chief Financial Officer of the Company, commented, "We are raising the midpoint and low end of our full year 2026 home delivery guidance to be in the range of 9,750 to 10,500 homes, with our home sales revenues expected to be in the range of $3.5 billion to $3.8 billion." Webcast and Conference Call The Company will host a webcast and conference call on Wednesday, July 22, 2026, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's second quarter 2026 results, provide commentary, and conduct a question-and-answer session. To participate in the call, please dial 833-461-5787 (domestic) or 585-542-9983 (international) and enter the conference ID 338 306 020. The live webcast will be available at www.centurycommunities.com in the Investors section. 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 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 2026, including anticipated home deliveries and home sales revenues. 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 statements: changes in general economic conditions, including interest rates, inflation, and employment levels; consumer confidence and affordability concerns; the impact of geopolitical conflicts including in the Middle East, tariffs and increased costs, immigration reform and enforcement, 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 availability and cost of financing; home incentive levels; the ability to identify and acquire desirable land and dispose of land when appropriate; availability and pricing for land, labor and raw materials and other resources; reliance on contractors and key personnel; the effect of competition; risks associated with the Company's mortgage lending business and increased use of adjustable-rate mortgages; risks associated with the Company's multi-family rental businesses; future impairment and restructuring charges; the effect of tax changes; the effect of recent federal housing legislation; 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. As of June 30,20262025% ChangeOwned Controlled TotalOwned Controlled TotalOwned Controlled TotalWest3,5462,4886,0343,9483,0977,045(10.2)%(19.7)%(14.4)%Mountain7,4912,2039,6948,9051,34410,249(15.9)%63.9%(5.4)%Texas13,7252,98116,70614,9005,49320,393(7.9)%(45.7)%(18.1)%Southeast4,8646,24711,1115,0958,39213,487(4.5)%(25.6)%(17.6)%Century Complete4,05512,52816,5834,57112,95617,527(11.3)%(3.3)%(5.4)%Total 33,68126,44760,12837,41931,28268,701(10.0)%(15.5)%(12.5)%% of Total56.0 %44.0 %100.0 %54.5 %45.5 %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 specified factors that management believes affect comparability. The Company believes excluding specified factors that management believes affect comparability 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) abandonment of lot option contracts; (iv) restructuring costs; (v) loss on debt extinguishment; (vi) impairment on other investment; and (vii) purchase price accounting for acquired work in process inventory; 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. 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. 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, abandonment of lot option contracts, stock-based compensation expense, restructuring costs, loss on debt extinguishment, impairment on other investment, and purchase price accounting for acquired work in process inventory, 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 other specified factors that management believes affect comparability. Accordingly, the Company's management believes that these measurements are useful for comparing general operating performance from period to period. EBITDA and 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 other specified factors that management believes affect comparability. 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. 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 homebuilding 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. Contact Information: Tyler Langton, Senior Vice President of Investor Relations and [email protected] Category: Earnings View original content to download multimedia:https://www.prnewswire.com/news-releases/century-communities-reports-second-quarter-2026-results-302832539.html

Interested in Century Communities, Inc.? Here are five stocks we like better. Century Communities beat second-quarter expectations, reporting EPS of $1.26 and delivering 2,506 homes, both aided by stronger order activity and improved absorption rates despite weak consumer sentiment and broader macro headwinds. Margins improved as lower incentives and construction costs helped lift gross margin, while cycle times hit a record low and cancellation rates fell to 13.2% year over year. Management raised full-year guidance for 2026 deliveries and revenue, and said the company is leaning into affordability with increased use of adjustable-rate mortgages and continued share repurchases/dividend support. 2 Real-Estate Related Stocks Showing Signs Of Being Undervalued Century Communities (NYSE:CCS) reported stronger second-quarter 2026 results, with management citing improved order activity, higher deliveries, lower incentives and tighter cost controls despite what executives described as macroeconomic headwinds and weak consumer sentiment. Executive Chairman Dale Francescon said the homebuilder delivered earnings of $1.26 per diluted share, up 11% from a year earlier and 50% sequentially. The company delivered 2,506 homes in the quarter, ahead of its guidance range of 2,200 to 2,400 homes. Francescon said deliveries benefited from a stronger absorption rate, which rose 6% from the prior quarter, compared with a historical average second-quarter decline of 7% over the previous five years. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks 3 Undervalued Dividend Payers For Volatile Market Conditions “We delivered strong second quarter results despite continued headwinds from macro challenges and weak consumer sentiment,” Dale Francescon said. Chief Executive Officer Rob Francescon said net orders totaled 2,615 homes in the second quarter, up 3% year over year and 10% sequentially. He said most of the increase came from improved absorption rates, and order activity remained consistent throughout the quarter, with June orders roughly in line with April and May. → 3 Photonics Companies Making Quantum Tech Possible The company averaged 321 communities during the quarter and ended the period with 330 communities, up 4% sequentially and a company record. Rob Francescon noted that the net increase in community count occurred in June, meaning second-quarter orders did not receive a meaningful benefit from the higher quarter-end community count. Traffic in the second quarter was about 9% higher than first-quarter levels, and June traffic was 18% higher than April levels. The cancellation rate declined year over year to 13.2%. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Rob Francescon said order activity so far in July has been in line with typical seasonality, though he said it was too early to determine the effect of recent interest-rate increases on buyers. Century reported second-quarter home sales revenue of $898 million, with an average sales price of $358,000. Chief Financial Officer Scott Dixon said pretax income was $49 million and net income was $36 million. The company’s GAAP homebuilding gross margin was 18.1%, while adjusted gross margin was 20%. Both increased 30 basis points from the first quarter. Dixon noted that first-quarter margins had benefited by 90 basis points from a reduction to the company’s warranty accrual and rebate collections above prior estimates. Excluding that first-quarter benefit, he said second-quarter gross margin would have increased by 120 basis points sequentially, driven by lower incentives and direct construction costs. Rob Francescon said incentives on delivered homes averaged 1,200 basis points, down about 50 basis points from the first quarter of 2026 and 100 basis points from the fourth quarter of 2025. He said incentives on closed homes were relatively consistent during the second quarter, and the company expects third-quarter incentives to be consistent with levels seen in the first half of the year, assuming current market conditions. Direct construction costs on delivered homes declined 5% sequentially. Cycle times averaged 112 calendar days, down from both the prior year and prior quarter and a company record. Finished lot costs were flat sequentially, and the company continues to expect average finished lot costs for 2026 to be only 2% to 3% higher than fourth-quarter 2025 levels. Rob Francescon said adjustable-rate mortgages accounted for nearly 35% of the mortgages originated by the company by principal volume in the second quarter. That was up from about 30% in the first quarter of 2026 and less than 5% in the first quarter of 2025. “Receptivity of our buyers to ARMs has been increasing, and this increased adoption of ARMs could help partially address the market’s affordability challenges,” he said. In response to an analyst question, Rob Francescon said the company believes it can push ARM usage higher, calling the products an affordable option for many buyers based on how long they may stay in their homes. Century ended the quarter with just over 60,000 owned and controlled lots. Rob Francescon said owned lots declined 2% sequentially, while total lot count rose 3% as the company continued to manage its land position. The company expects 2026 land acquisition and development spending of $1 billion to $1.2 billion, with flexibility to raise or lower that amount depending on market conditions. Dixon said Century ended the quarter with $2.6 billion in stockholders’ equity and a book value per share of $90.24, a company record. The company maintained its quarterly dividend of $0.32 per share and repurchased 353,000 shares for $20 million at an average price of $55.54 during the quarter. Through the first half of the year, Century repurchased 970,000 shares for $60 million, representing more than 3% of shares outstanding at the start of the year. The company raised the midpoint and low end of its full-year 2026 delivery guidance. It now expects: Home deliveries of 9,750 to 10,500 homes for 2026. Home sales revenue of $3.5 billion to $3.8 billion. Third-quarter deliveries of 2,500 to 2,700 homes, with a further sequential increase expected in the fourth quarter. Full-year tax rate of 26% to 27%. During the question-and-answer portion of the call, management said it remains constructive on Texas, where selling communities increased. Dixon said Houston remains a strong market for the company, especially among entry-level and first-time buyers, while San Antonio has been a “bright spot.” He said Austin appears to be improving, while the Dallas operation is still scaling. Asked about vendor cost pressures, Rob Francescon said the company has received requests tied to higher oil prices, including diesel and asphalt on the land development side, but is pushing back on those increases. He said lumber tailwinds have likely ended, with costs “flat to up” but not yet meaningful on a percentage basis. On competitive conditions, Rob Francescon said inventory levels appear to be in normal ranges and that the company has not seen “crazy discounting” to the extent it had last year or earlier this year. Dixon added that Century ended June with slightly below three finished spec homes per community, a level management said it views as appropriate for serving buyers. “We are effectively balancing pace and price and controlling our costs and inventory levels,” Dixon said. Century Communities, Inc is a national homebuilder and land developer headquartered in Greenwood Village, Colorado. The company is engaged in the acquisition, development, construction and sale of single- and multi-family residential homes, offering a range of floor plans and design options to homebuyers. In addition to its core homebuilding activities, Century Communities provides ancillary services such as mortgage financing, title and closing services, and insurance products through its wholly owned subsidiaries, aiming to deliver a comprehensive homebuying experience. Founded in 2009, Century Communities rapidly expanded through both organic growth and strategic land acquisitions, positioning itself in high-growth markets across the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Century Communities Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Century Communities (CCS) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +106.35%. A quarter ago, it was expected that this single-family homebuilder would post earnings of $0.61 per share when it actually produced earnings of $0.88, delivering a surprise of +44.26%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Century Communities, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $927.23 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.86%. This compares to year-ago revenues of $1 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Century Communities shares have added about 7.5% since the beginning of the year versus the S&P 500's gain of 9.7%. While Century Communities has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Century Communities was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $971 million in revenues for the coming quarter and $3.84 on $3.77 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Meritage Homes (MTH), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This homebuilder is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -36.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meritage Homes' revenues are expected to be $1.43 billion, down 12.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Century Communities, Inc. (CCS) : Free Stock Analysis Report Meritage Homes Corporation (MTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research