As No. 10 on the 2026 Builder 100 list, Century Communities reported net income of $12.6 million, or $0.44 per diluted share, in the third quarter as higher mortgage rates and economic uncertainty continued to weigh on home buyer demand, particularly among the company’s first-time buyer base.
Adjusted net income was $28.8 million, or $1.01 per diluted share, while total revenue reached $864.5 million. Home sales revenue totaled $842.5 million on 2,442 deliveries, with an average sales price of $345,000.
“The third quarter was marked by a significant rise in interest rates, continued inflation, and macroeconomic uncertainty, which weighed heavily on consumer confidence in general and first-time home buyers in particular,” executive chairman Dale Francescon said.
Despite the challenging demand environment, Francescon said the company continued to make progress operationally. Century ended the quarter with 343 communities, up 7% year over year and 4% sequentially, marking a company record.
“Our direct construction costs, finished lot costs, and fixed G&A excluding advertising all decreased versus the prior quarter as we continued to effectively manage our costs and grew our book value per share to a company record $90.61,” he said.
Century generated 2,284 net new-home contracts during the quarter and ended Sept. 30 with a backlog of 1,106 homes valued at $414 million.
Adjusted home building gross margin, excluding interest, purchase price accounting, and inventory impairment, was 19.3%. GAAP home building gross margin was 15%, including inventory impairment charges, while home building gross margin excluding inventory impairment was 17.3%.
HistoryMaker Expands Dallas-Fort Worth Footprint
Century also highlighted its early October acquisition of substantially all of the assets of HistoryMaker Homes, a Texas home builder operating exclusively in the Dallas-Fort Worth metroplex.
According Francescon, the transaction will increase Century’s Dallas division from 12 to 41 active communities, based on Sept. 30 figures. On a trailing 12-month basis through the third quarter, deliveries associated with the expanded operation will increase from 211 to 669 homes.
“In early October, we acquired substantially all of the assets of HistoryMaker Homes in support of our strategy of deepening our share in existing markets to drive improved margins and returns,” Francescon said. “This acquisition will accelerate our growth in the largest housing market in the country and one we believe will benefit from solid long-term fundamentals.”
Century Updates 2026 Outlook
“Given the impact of increased mortgage rates on our orders and deliveries, we now expect our full year 2026 home deliveries to be in the range of 9,350 to 9,650 homes, including 100 deliveries from HistoryMaker in the fourth quarter, and our home sales revenues to be in the range of $3.3 billion to $3.4 billion,” chief financial officer Scott Dixon said.
Century finished the third quarter with $2.6 billion of stockholders’ equity and $863.8 million of total liquidity, including $119.8 million of cash, cash equivalents, and cash held in escrow. The company also increased its revolving credit facility to $1.2 billion and extended its maturity to November 2030. Book value per share reached a company record $90.61 as of Sept. 30.
