Century munities(US:CCS)2026-01-29 00:45Home Deliveries and Construction - As of December 31, 2025, the company delivered 10,792 residential units, including 10,387 new homes, 105 previously leased rental homes, and 300 multi-family units[28]. - Approximately 94% of the 10,387 new homes delivered had purchase prices below the Federal Housing Administration-insured mortgage limits, and about 99% were built as move-in ready homes[20]. - The homebuilding operations are organized into five reportable segments: West, Mountain, Texas, Southeast, and Century Complete[19]. - The homebuilding industry experiences seasonal fluctuations, with the highest new home order activity typically occurring in spring, leading to more home deliveries in the second half of the year[44]. - The majority of cash receipts from home deliveries occur during the second half of the year, influenced by seasonal patterns[324]. Lot Position and Pipeline Management - The company reduced its lot pipeline by terminating certain contracts, resulting in a charge of $11.2 million recorded as other expense[33]. - The owned and under control lot position was 60,916 as of December 31, 2025, with 57.1% owned and 42.9% controlled through option contracts, a decrease from 80,632 as of December 31, 2024[33]. Market Strategy and Operations - The company operates in 16 states and over 45 markets, with a focus on affordable housing options across various buyer segments[24][21]. - The strategy includes maintaining a strong balance sheet, controlling costs, and increasing market share through organic growth and acquisitions[30]. - The company aims to provide strong, risk-adjusted returns on stockholders' equity and inventory while adapting to market changes[29]. - The Century Complete brand primarily targets entry-level homebuyers and aims to offer homes at lower prices than resales and other new home offerings[41]. Financial Services and Borrowings - The Financial Services segment is primarily driven by Inspire, which originates mortgage loans primarily for homebuilding customers, indicating a strong correlation with homebuilding operations[46]. - Inspire sells nearly all originated loans within 30 days, primarily using third-party mortgage repurchase facilities, minimizing the duration of loan ownership[47]. - Borrowings under the Credit Agreement bear interest at a floating rate between 1.45% and 2.30% per annum, based on the company's leverage ratio[317]. - The company has fixed rate debt with an average interest rate of 5.3% and variable rate debt with an average interest rate of 5.5% as of December 31, 2025[320]. Employee and Workplace Safety - The total number of employees as of December 31, 2025, was 1,660, a decrease of approximately 11.4% compared to December 31, 2024[60]. - Employee compensation packages include competitive base pay and performance-based bonuses, aimed at attracting and retaining top talent[62]. - The company has established Century University for employee training, covering various operational and safety topics[63]. - The recordable injury rate for Century's direct employees was 0.68% in 2025, reflecting a commitment to workplace health and safety[69]. Community Engagement and Ethical Standards - The Century Communities Foundation, a nonprofit controlled by employees, supports local initiatives and community engagement[70]. - The company emphasizes ethical standards in vendor partnerships, expecting compliance with laws and workplace policies[66]. Economic and Regulatory Environment - The company faces competition in the homebuilding industry characterized by low barriers to entry, impacting land acquisition and pricing strategies[54]. - The company is subject to various local, state, and federal regulations that can impose costs and delays in homebuilding projects[48]. - Inflation has adversely impacted homebuilding operations, leading to higher costs and potentially weakened demand for homes[321].