Century Communities, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance for the year ended December 31, 2025. The company, headquartered in Greenwood Village, Colorado, is primarily engaged in the design, development, construction, marketing, and sale of single-family attached and detached homes. Additionally, it provides mortgage, title, and insurance services to its homebuyers and offers homes under the Century Communities and Century Complete brands. The company operates in 18 states in the United States and was founded in 2002.
In the year ended December 31, 2025, Century Communities faced challenges as net new home contracts decreased by 3.3% compared to the prior year. The company experienced a slowing in demand amidst elevated mortgage rates, macro-economic and geopolitical uncertainty, and broader concerns about affordability by homebuyers. Despite these challenges, Century Communities delivered 10,387 new homes during the year, with approximately 94% of deliveries made to entry-level homebuyers below the Federal Housing Administration-insured mortgage limits. The average sales price per new home decreased by 3.3% primarily due to higher incentives during 2025. The company also strategically managed its lot pipeline, resulting in 60,916 lots owned and controlled at the end of 2025.
In terms of financial performance, Century Communities generated total revenues of $4.1 billion in 2025, a decrease of 6.4% from the prior year. The company's income before income tax expense was $194.4 million, down from $440.1 million in the prior year. Net income for 2025 was $147.6 million, or $4.86 per diluted share, compared to $333.8 million, or $10.40 per diluted share in the prior year. The company also paid quarterly cash dividends to its stockholders and repurchased 2.3 million shares for a total purchase price of approximately $143.6 million during the year.
Century Communities' homebuilding gross margin percentage decreased to 17.6% in 2025 from 21.5% in the prior year. Additionally, the company's adjusted homebuilding gross margin, excluding certain factors, decreased by 3.4% compared to the prior year.
The company's Financial Services segment generated income before income tax expense of $19.2 million in 2025, representing a decrease of 28.2% from the prior year. While the capture rate of Century homebuyers increased by 2%, the number of mortgages originated and the number of loans sold to third parties decreased by 5.8% and 8.3%, respectively, compared to the prior year.
Century Communities' multi-family sales revenue amounted to $97.2 million in 2025, and the company generated $4.9 million in income before income tax expense from its Century Living operations.
Today the company's shares have moved -1.85% to a price of $67.85. For more information, read the company's full 10-K submission here.
