10-Q · April 22, 2026
Century Communities reported Q1 2026 revenue of $789.7M, down 12.6% year-over-year, with homebuilding gross margin declining to 17.8% from 19.9% a year ago. GAAP diluted EPS was $0.84 (adjusted diluted EPS $0.88) but…
Earnings analysis · 10-Q
CCS earnings analysis
Filed July 22, 2026 · Our reading of the company's report
The latest report
Century Communities delivered a sequential rebound in Q2, with $927.227 million of revenue and $1.26 GAAP diluted EPS, while gross margin expanded to 18.1%. Nevertheless, revenue remained 7.3% below the prior-year…
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Century Communities delivered a sequential rebound in Q2, with $927.227 million of revenue and $1.26 GAAP diluted EPS, while gross margin expanded to 18.1%. Nevertheless, revenue remained 7.3% below the prior-year quarter as deliveries and prices declined amid incentives and affordability pressure. Orders, backlog and select profit centers improved, but first-half operating cash usage increased to $132.4 million and revolver debt increased materially, leaving the overall filing balanced rather than unequivocally positive.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.26
What stood out
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Sequential earnings rebound despite YoY sales decline
Q2 revenue was $927.227 million, up 17.4% from $790 million in Q1 2026 but down 7.3% from $1.001 billion in Q2 2025. GAAP diluted EPS was $1.26, up from $0.84 sequentially and $1.14 a year ago.
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Margins improved YoY and sequentially
Homebuilding gross margin improved 50 bps year over year to 18.1% from 17.6%, although it declined 80 bps from 18.9% in Q1 2026. Operating margin was about 5.1%, versus 5.0% a year ago and 4.2% in Q1, supported by lower direct construction costs and no current-quarter inventory impairment.
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Texas and Financial Services outperformed
Texas was the only core homebuilding segment with revenue growth, rising $9.4 million to $156.873 million; pretax income increased 29.3% to $10.507 million. Financial Services revenue increased to $25.444 million from $23.774 million and pretax income rose to $9.896 million from $6.224 million.
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Century Complete profit growth offset lower sales
Century Complete pretax income rose 38.8% to $20.809 million despite revenue falling $24.154 million to $224.581 million, reflecting higher gross margin from lower direct construction costs and the absence of prior-year impairment charges.
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Orders and backlog modestly improved
Net new contracts increased 2.7% to 2,615 and backlog units increased 3.9% to 1,264; backlog value edged up 0.7% to $469.272 million. However, backlog average sales price declined 3.0% to $371.3 thousand, consistent with incentive-related pricing pressure.
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Working-capital investment drove cash burn
Net cash used in operations widened to $132.4 million in the first six months from $47.6 million a year earlier, primarily from construction expenditures. Cash and equivalents were $92.334 million, while revolver borrowings rose to $329.6 million from $51.5 million at year-end.
What to watch
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Revised mortgage risk reflects growing ARM usage
The revised mortgage-financing risk highlights greater ARM dependence: ARMs represented nearly 35% of mortgage principal originated in Q2 2026, versus approximately 30% in Q1 2026 and less than 5% in Q1 2025. Higher rates, tighter underwriting, or reduced ARM liquidity could impair affordability and demand.
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Inflation, tariffs and energy volatility updated
The revised inflation risk cites Middle East-related energy volatility and higher fuel and transportation costs during the first six months of 2026. Management notes construction cycles remained approximately three to four months, but sustained cost inflation or tariffs could pressure input costs, incentives and margins.
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New housing-law implementation uncertainty
The revised government-regulation risk addresses the 21st Century ROAD to Housing Act, enacted in July 2026. Its rulemaking-dependent effects on permitting, development, financing and demand remain uncertain, creating potential execution and cost risk.
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Affordability pressure reduced volume and pricing
Home sales revenue declined to $897.528 million from $976.467 million as deliveries fell 3.1% to 2,506 and average delivered-home price declined 5.1% to $358.2 thousand. Management attributes the decline principally to slower absorption and higher incentives.
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Revolver-funded leverage increased
Leverage increased as homebuilding debt to capital rose to 34.2% from 29.1% at December 31, 2025, and net homebuilding debt to net capital rose to 31.9% from 25.9%. The additional revolver borrowing carries a variable rate of 5.2%.
Management's outlook
The 10-Q does not provide a quantitative earnings or revenue outlook. Management says demand and market conditions remain uncertain, while it expects to fund liquidity needs for at least the next 12 months from cash, operations and available financing.
Earlier filings 4
10-Q · July 24, 2025
Century Communities reported quarterly revenues of $1,000,724 (in thousands) for Q2 2025, up $97,491 (in thousands) sequentially but down $38,726 (in thousands) year-over-year. Gross margin compressed to 18.6% (from…
10-Q · April 24, 2025
Century Communities reported Q1 2025 revenue of $903,232,000 and diluted EPS of $1.26, with gross margin compressed to 19.8% and operating margin to 5.9%. Operating cash flow was negative $(36,580,000) and free cash…
10-K · January 30, 2025
Century Communities (CCS) positions itself as a large, multi-state affordable homebuilder focused on move-in-ready product, land control and selective M&A; it delivered 11,007 homes in 2024 and held 80,632 owned and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.