Key Highlights

  • Adjusted diluted EPS of USD 1.01 trailed the USD 1.20 consensus estimate, while GAAP diluted EPS was USD 0.44.
  • Total revenue of USD 864.5 million fell 11.8% and came in below the USD 949.8 million consensus estimate.
  • Adjusted homebuilding gross margin was 19.3%, and the GAAP margin of 15.0% included USD 19.6 million of impairments.
  • Full-year guidance now targets 9,350 to 9,650 deliveries and sales revenue of USD 3.3 billion to USD 3.4 billion.

Century Communities, Inc. (NYSE:CCS) reported third-quarter 2026 adjusted net income of USD 28.8 million, or USD 1.01 per diluted share, below a consensus estimate of USD 1.20. GAAP net income was USD 12.6 million, or USD 0.44 per diluted share, compared with USD 37.4 million, or USD 1.25 per share, a year earlier. Total revenue was USD 864.5 million, down from USD 980.3 million and below a consensus estimate of USD 949.8 million.

The homebuilder delivered 2,442 homes at an average price of USD 345,000, and home sales revenue was USD 842.5 million. Net new contracts totaled 2,284, down 4.3%, and backlog ended at 1,106 homes valued at USD 414.0 million. Management tied the slowdown to a rise of roughly 75 basis points in mortgage rates that made buyers more cautious in September, and said those conditions have continued into October.

Margins, Mix and Balance Sheet

GAAP homebuilding gross margin was 15.0%, or 17.3% excluding inventory impairments tied to six communities in the Bay Area, Houston and South Florida. Adjusted gross margin was 19.3%, down 70 basis points from the second quarter on higher incentives, which averaged about 1,300 basis points on closed homes against 1,200 in the prior quarter. Selling, general and administrative expense was 14.1% of home sales revenue. Financial services contributed USD 21.2 million of revenue and USD 6.2 million of pre-tax income.

Ending community count reached a record 343, up 7% from a year earlier, and Century Complete, which accounted for 38% of deliveries, grew its count to 122. Book value per share hit a record USD 90.61. Total liquidity was USD 863.8 million, homebuilding debt to capital stood at 36.8%, and the revolving credit line was amended to USD 1.2 billion with maturity extended to November 2030. The company repurchased 169,903 shares for USD 11.6 million and maintained a USD 0.32 quarterly dividend.

Guidance Lowered, HistoryMaker Added

The company now projects 2026 deliveries of 9,350 to 9,650 homes, including about 100 from HistoryMaker Homes in the fourth quarter, with home sales revenue of USD 3.3 billion to USD 3.4 billion. Management cited mortgage rate pressure on orders and deliveries. It anticipates fourth-quarter incentives running 200 to 250 basis points above third-quarter levels, SG&A near 14% of home sales revenue for the quarter and a full-year tax rate around 26%.

CEO Rob Francescon said the October 7 purchase of HistoryMaker Homes deepens the company's presence in Dallas-Fort Worth. The deal lifts the Dallas division from 12 to 41 active communities and triples trailing-twelve-month deliveries from 211 to 669 homes. Management said capital allocation now prioritizes liquidity and keeping debt to capital at or below current levels.

Reference Points for the Next Report

Four readings frame the fourth quarter. Incentives come first, with the guided step-up of 200 to 250 basis points from about 1,300. Community count is second, with a year-end target of 360 to 370 including 29 from HistoryMaker. Orders are third, as the 2,284 contracts and a cancellation rate of 14.6% compare against the 1,106-home backlog. The fourth is leverage: the revolver carried USD 456.0 million at quarter end against USD 51.5 million at the end of 2025.