Century Communities Posts Adjusted EPS of $1.01, Cuts 2026 Outlook
Key Facts
Century Communities reported results on October 28 for the third quarter ended September 30, 2026, posting adjusted earnings of $1.01 per diluted share. The figure was $0.22 below analysts’ estimate of $1.23, according to an estimate cited by Investing.com. Revenue was $864.47 million, compared with consensus estimates of $949.85 million. On a GAAP basis, net income was $12.6 million, or $0.44 per diluted share. Adjusted net income was $28.8 million, highlighting the gap between GAAP and adjusted earnings for the quarter.
Revenue fell to $864.467 million from $980.284 million in the same quarter of 2025, while net income declined to $12.617 million from $37.403 million. The results came as the company delivered 2,442 homes, down 1.8% year over year from 2,486 homes. The average selling price also fell to $345,000 from $384.2 thousand, a decline of 10.2%. Net new contracts totaled 2,284, compared with 2,386 in the third quarter of 2025, down 4.3%. The figures show declines in revenue, prices and contracts alongside lower deliveries.
The GAAP homebuilding gross margin was 15.0%, including inventory impairment charges, while the adjusted margin was 19.3%. The company attributed demand pressures to higher interest rates, persistent inflation and economic uncertainty, factors its chairman and chief executive said had weighed on consumer confidence, particularly among first-time homebuyers. The CEO said mortgage rates rising by about 75 basis points in September made buyers more cautious and weakened home affordability. Average incentives on closed homes rose to about 13% in the third quarter from 12% in the second quarter. The company expected incentives to increase by 2 to 2.5 percentage points in the fourth quarter.
The pressures described by the company are consistent with U.S. housing market indicators reported for October. The National Association of Home Builders said mortgage rates had exceeded 7% in recent weeks and that higher fuel prices and inflation had weakened buyer traffic. The share of builders cutting prices rose to 43% in October, the highest during the 2020 to 2026 period, while 65% reported using sales incentives. New-home sales fell 0.6% in September to a seasonally adjusted annual rate of 676,000 homes. That level was 5.3% below a year earlier, the association said, citing the Department of Housing and Urban Development and the Census Bureau.
Century Communities lowered its fiscal 2026 outlook, forecasting deliveries of 9,350 to 9,650 homes and home sales revenue of $3.3 billion to $3.4 billion. The company said the updated outlook reflected higher mortgage rates and their effect on demand and deliveries. In an expansion move, it acquired most of the assets of HistoryMaker Homes on October 7. The company said the deal would increase its active communities in the Dallas division from 12 to 41 and raise deliveries over the 12 months ended in the third quarter from 211 to 669 homes. The company also increased its revolving credit facility to $1.2 billion and extended its maturity to November 2030.
The company’s shares, traded under the ticker CCS, closed at $56.69 on October 28, the day results were announced. The price data provided did not include the session’s trading range. The company had announced that its quarterly results would be released after the market close on Wednesday, October 28. The quarter therefore combined year-over-year declines in revenue and net income with an expected expansion of the company’s presence in the Dallas area following the HistoryMaker deal. The new annual outlook and fourth-quarter incentives put deliveries and revenue at the center of the company’s plans for the coming period.