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Century Communities — Jul 23, 2025 release

Fiscal 2025 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001576940-25-000054
Open on SEC.gov ↗
Showing in the filing
Community count growth
“mid-single digit percentage range”
Period
FY2025
Measure
Company-defined measure
Source
Prose
All guidance in this release · 3
Community count growth for FY2025
“mid-single digit percentage range”
Home delivery for FY2025
“10,000 to 10,500 homes”
Home sales revenues for FY2025
“$3.8 to $4.0 billion”
Exhibit 99.1 · full document
CCS 6.30.25 Earnings Release 8-K Exhibit 99.1   Century Communities Reports Second Quarter 2025 Results  - Deliveries of 2,587 Homes Generating $1.0 Billion in Total Revenues - - Net New Home Contracts of 2,546 - - Net Income of $34.9 Million, or $1.14 Per Diluted Share - - Adjusted Net Income of $42.1 Million, or $1.37 Per Diluted Share - - Community Count Increased 23% YoY to a Company record 327 – - Recognized as One of the 2025 Best Companies to Work For by U.S. News & World Report -  Greenwood Village, Colorado (July 23 , 2025 ) – Century Communities, Inc. (NYSE: CCS), one of the nation’s largest homebuilders , today announced financial results for its second quarter ended June 30, 2025.  Second Quarter 2025 Highlights · Net income of $34.9 million, or $1.14 per diluted share · Adjusted net income of $42.1 million, or $1.37 per diluted share · Pre-tax income of $47.1 million · Total revenues of $1.0 billion · Community count of 327, a Company record · Deliveries of 2,587 homes · Net new home contracts of 2,546 · Repurchased 883,602 shares of common stock, or roughly 3% of shares outstanding · Book value per share of $86.39, a Company record “Our second quarter results were in line with our expectations as we continued to execute well in a challenging environment resulting from elevated mortgage rates, affordability constraints, economic uncertainty and lower consumer confidence,” said Dale Francescon, Executive Chairman. “Despite the market headwinds, second quarter deliveries of 2,587 homes increased by 13% on a sequential basis as customers responded to incentives and we were able to sell and close a greater number of homes within the quarter. We continued to focus on balancing pace with price during the quarter, successfully managed our costs, and drove further improvement in our cycle times.” Rob Francescon, Chief Executive Officer and President, said, “Our community count grew by 23% on a year-over-year basis to 327, a Company record, and we continue to expect our 2025 year end community count to increase in the mid-single digit percentage range. We remained disciplined on the land front and reassessed deals to ensure that they met our targets in the current environment. Our balance sheet remains strong with $2.6 billion of stockholders’ equity and $858 million of liquidity, and our book value per share of $86.39 increased by 10% on a year-over-year basis. In the second quarter, we repurchased 883,602 shares of our common stock, or roughly 3% of our shares outstanding at the beginning of the quarter, for $48.0 million.” Second Quarter 2025 Results Net income for the second quarter 2025 was $34.9 million, or $1.14 per diluted share. Adjusted net income, which excludes inventory impairment and purchase price accounting, was $ 42.1 million, or $1.37 per diluted share. Total revenues were $1.0 billion, with second quarter home sales revenues totaling $976.5 million. Deliveries totaled 2,587 homes. The average sales price of home deliveries for the second quarter 2025 was $377,500 . Net new home contracts in the second quarter 2025 were 2,546, and at the end of the second quarter 2025 , the Company had 1,217   homes in backlog, representing $466.0 million of backlog dollar value.   Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was 20.0% in the second quarter of 2025. Adjusted homebuilding gross margin percentage excluding inventory impairment in the second quarter 2025 was 18.4%, and homebuilding gross margin was 17.6%. Selling, general, and administrative expenses as a percent of home sales revenues was 13.2% in the quarter . Adjusted EBITDA and EBITDA for the second quarter 2025 were $75.9 million and $66.5 million, respectively. Financial services revenues and pre-tax income were $23.8 million and $6.2 million, respectively, in the second quarter 2025. Balance Sheet and Liquidity The Company ended the second quarter 2025 with a strong financial position, including $2.6 billion of stockholders’ equity and $857.6 million of total liquidity, including $127.6 million of cash. Our book value per share was $86.39 as of June 30, 2025. During the second quarter, consistent with our disciplined capital allocation approach to enhance the long-term value of the Company and return capital to our shareholders, we maintained our quarterly cash dividend of $0.29 per share and repurchased 883,602 shares of common stock for $48.0 million. As of June 30, 2025, homebuilding debt to capital equaled 33.3% and net homebuilding debt to net capital equaled 31.0% . Full Year 2025 Outlook Scott Dixon, Chief Financial Officer of the Company, commented, “Due to current market conditions, we are revising our full year 2025 home delivery guidance to be in the range of 10,000 to 10,500 homes and our home sales revenues to be in the range of $3.8 to $4.0 billion .” Webcast and Conference Call The Company will host a webcast and conference call on Wednesday, July 23, 2025, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s second quarter 2025 results, provide commentary, and conduct a question-and-answer session. To participate in the call, please dial 800-549-8228 (domestic) or 646-564-2877 (international) and enter the conference ID 57087. The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through July 30, 2025, by dialing 888-660-6264 (domestic) or 646-517-3975 (international) and entering conference ID 57087. A replay of the webcast will be available on the Company’s website for at least one year. About Century Communities Century Communities, Inc. (NYSE: CCS) is one of the nation’s largest homebuilders and a recognized industry leader in online home sales.  Newsweek  has named the Company one of America's Most Trustworthy Companies for three consecutive years, and one of the World's Most Trustworthy Companies (2025). Century Communities has also been designated as one of  U.S. News & World Report’s  Best Companies to Work For (2025-2026).   Through its Century Communities and Century Complete brands, Century's mission is to build attractive, high-quality homes at affordable prices to provide its valued customers with A HOME FOR EVERY DREAM®. Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Company operates in 16 states and over 45 markets across the U.S., and also offers mortgage, title, insurance brokerage, and escrow services in select markets through its Inspire Home Loans, Parkway Title, IHL Home Insurance Agency, and IHL Escrow subsidiaries. To learn more about Century Communities, please visit  www.centurycommunities.com .   Non-GAAP Financial Measures In addition to the Company’s operating results presented in accordance with United States generally accepted accounting principles (GAAP), this press release includes the following non-GAAP financial measures: adjusted net income, adjusted diluted earnings per share, adjusted homebuilding gross margin, EBITDA, adjusted EBITDA, and ratio of net homebuilding debt to net capital. These non-GAAP financial measures should not be used as a substitute for the Company’s operating results presented in accordance with GAAP, and an analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Please refer to the reconciliation of each of the above referenced non-GAAP financial measures following the historical financial information presented in this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “continue,” “will,” “may,” “should,” “potential,” “guidance” and “outlook” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements in this release include the Company’s operating and financial guidance for 2025, including without limitation anticipated home deliveries and revenues and increased community count. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. The following important factors could cause actual results to differ materially from those expressed in the forward-looking statement: adverse changes in general economic conditions, including increased interest rates, inflation, and employment levels; lower consumer confidence; the potential impact of tariffs and increased costs, immigration reform, global supply chain disruptions, labor, land and raw material or other resource shortages and delays, and municipal and utility delays on the Company’s business, industry and the broader economy; the ability to identify and acquire desirable land; availability and cost of financing; the effect of tax changes; reliance on contractors and key personnel; availability and pricing for land, labor and raw materials and other resources; home incentive levels; future impairment and restructuring charges; the ability to pay dividends in the future; and the other factors included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law.     Century Communities, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts)                                 Three Months Ended June 30,   Six Months Ended June 30,    2025   2024   2025   2024 Revenues                         Homebuilding Revenues                         Home sales revenues   $ 976,467    $ 1,017,414    $ 1,860,204    $ 1,939,816  Land sales and other revenues     483      377      1,445      1,593  Total homebuilding revenues     976,950      1,017,791      1,861,649      1,941,409  Financial services revenues     23,774      21,659      42,308      46,585  Total revenues     1,000,724      1,039,450      1,903,957      1,987,994  Homebuilding Cost of Revenues                         Cost of home sales revenues     (797,162)     (787,556)     (1,504,666)     (1,513,127) Cost of land sales and other revenues     (69)      —     (897)     (37) Total homebuilding cost of revenues     (797,231)     (787,556)     (1,505,563)     (1,513,164) Financial services costs     (17,550)     (15,996)     (33,724)     (30,873) Selling, general, and administrative     (128,837)     (125,973)     (249,596)     (240,082) Inventory impairment     (7,360)     (570)     (7,771)     (570) Other ( expense ) income, net     (2,663)     1,278      (7,702)     (8,353) Income before income tax expense     47,083      110,633      99,601      194,952  Income tax expense     (12,229)     (26,909)     (25,363)     (46,897) Net income   $ 34,854    $ 83,724    $ 74,238    $ 148,055                           Earnings per share:                         Basic   $ 1.15    $ 2.65    $ 2.43    $ 4.67  Diluted   $ 1.14    $ 2.61    $ 2.40    $ 4.60  Weighted average common shares outstanding:                         Basic     30,366,109      31,648,130      30,582,376      31,728,544  Diluted     30,680,708      32,092,789      30,912,086      32,165,798      Century Communities, Inc. C onsolidated Balance Sheet s (Unaudited) (in thousands, except share amounts)                                 June 30,   December 31,    2025   2024 Assets   (unaudited)   (audited) Cash and cash equivalents   $ 93,246    $ 149,998  Cash held in escrow     34,349      3,004  Accounts receivable     68,893      50,318  Inventories     3,509,639      3,454,337  Mortgage loans held for sale     184,390      236,926  Prepaid expenses and other assets     539,684      419,384  Property and equipment, net     86,865      155,176  Deferred tax assets, net     21,315      22,220  Goodwill     41,109      41,109  Total assets   $ 4,579,490    $ 4,532,472  Liabilities and stockholders' equity             Liabilities:             Accounts payable   $ 145,269    $ 133,086  Accrued expenses and other liabilities     283,588      302,317  Notes payable     1,135,202      1,107,909  Revolving line of credit     270,000      135,500  Mortgage repurchase facilities     181,440      232,804  Total liabilities     2,015,499      1,911,616  Stockholders' equity:             Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding      —      — Common stock, $0.01 par value, 100,000,000 shares authorized, 29,679,571 and 30,961,227 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively     297      310  Additional paid-in capital     414,002      526,959  Retained earnings     2,149,692      2,093,587  Total stockholders' equity     2,563,991      2,620,856  Total liabilities and stockholders' equity   $ 4,579,490    $ 4,532,472       Century Communities, Inc. Homebuilding Operational Data (Unaudited)  Net New Home Contracts                                           Three Months Ended June 30,     Six Months Ended June 30,    2025     2024     % Change     2025     2024     % Change West   323      376      (14.1) %     715      816      (12.4) % Mountain   336      552      (39.1) %     798      1,163      (31.4) % Texas   504      520      (3.1) %     1,003      1,034      (3.0) % Southeast   384      386      (0.5) %     771      836      (7.8) % Century Complete   999      946      5.6  %     1,951      1,797      8.6  % Total   2,546      2,780      (8.4) %     5,238      5,646      (7.2) %  Home Deliveries    (dollars in thousands)                                     Three Months Ended June 30,                2025   2024   % Change      Homes   Average Sales Price   Homes   Average Sales Price   Homes   Average Sales Price West   335    $ 602.5    325    $ 626.7    3.1  %   (3.9) % Mountain   396      521.0    486      532.7    (18.5) %   (2.2) % Texas   501      294.2    485      301.1    3.3  %   (2.3) % Southeast   401      429.9    349      441.3    14.9  %   (2.6) % Century Complete   954      260.5    972      262.2    (1.9) %   (0.6) % Total / Weighted Average   2,587    $ 377.5    2,617    $ 388.8    (1.1) %   (2.9) %                                     Six Months Ended June 30,                2025   2024   % Change      Homes   Average Sales Price   Homes   Average Sales Price   Homes   Average Sales Price West   638    $ 601.0    609    $ 617.3    4.8  %   (2.6) % Mountain   825      522.6    981      523.0    (15.9) %   (0.1) % Texas   958      296.5    909      304.9    5.4  %   (2.8) % Southeast   704      435.7    728      433.4    (3.3) %   0.5  % Century Complete   1,746      260.5    1,748      262.1    (0.1) %   (0.6) % Total / Weighted Average   4,871    $ 381.9    4,975    $ 389.9    (2.1) %   (2.1) %      Century Communities, Inc. Homebuilding Operational Data (Unaudited)   Selling Communities                                               As of June 30,     Increase/Decrease    2025   2024     Amount   % Change West   36    26      10    38.5  % Mountain   51    47      4    8.5  % Texas   75    45      30    66.7  % Southeast   43    34      9    26.5  % Century Complete   122    114      8    7.0  % Total   327    266      61    22.9  %  Backlog  (dollars in thousands)                                                                                                          As of June 30,                      2025   2024   % Change      Homes   Dollar Value   Average Sales Price   Homes   Dollar Value   Average Sales Price   Homes   Dollar Value   Average Sales Price West   236    $ 142,012    $ 601.7    313    $ 213,931    $ 683.5    (24.6) %   (33.6) %   (12.0) % Mountain   122      66,572      545.7    345      198,484      575.3    (64.6) %   (66.5) %   (5.1) % Texas   222      67,939      306.0    293      87,826      299.7    (24.2) %   (22.6) %   2.1  % Southeast   174      75,720      435.2    250      107,965      431.9    (30.4) %   (29.9) %   0.8  % Century Complete   463      113,747      245.7    552      146,417      265.2    (16.1) %   (22.3) %   (7.4) % Total / Weighted Average   1,217    $ 465,990    $ 382.9    1,753    $ 754,623    $ 430.5    (30.6) %   (38.2) %   (11.1) %  Lot Inventory                                                                                                                   As of June 30,                      2025   2024   % Change                       Owned   Controlled   Total   Owned   Controlled   Total     Owned   Controlled   Total                                                        West   3,948      3,097      7,045      4,434      3,665      8,099      (11.0) %   (15.5) %   (13.0) % Mountain   8,905      1,344      10,249      8,651      4,987      13,638      2.9  %   (73.0) %   (24.8) % Texas   14,900      5,493      20,393      9,777      9,823      19,600      52.4  %   (44.1) %   4.0  % Southeast   5,095      8,392      13,487      5,461      12,446      17,907      (6.7) %   (32.6) %   (24.7) % Century Complete   4,571      12,956      17,527      4,454      14,399      18,853      2.6  %   (10.0) %   (7.0) % Total   37,419      31,282      68,701      32,777      45,320      78,097      14.2  %   (31.0) %   (12.0) % % of Total   54.5%      45.5%      100.0%      42.0%      58.0%      100.0%                            Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)   Adjusted net income and adjusted diluted earnings per share (“Adjusted EPS”) are non-GAAP financial measures that the Company believe s are useful to management, investors and other users of its financial information in evaluating its operating results and understanding its operating trends without the effect of certain non-recurring items. The Company believe s excluding certain non-recurring items provides more comparable assessment of its financial results from period to period. The Company define s   adjusted net income as consolidated net income before (i) income tax expense; (ii) inventory impairment; (iii) restructuring costs; (iv) impairment on other investment; (v) purchase price accounting for acquired work in process inventory; and (vi) loss on debt extinguishment; in each case, as applicable during a period, less adjusted income tax expense, calculated using the Company’s estimated annual effective tax rate after discrete items for the applicable period. Adjusted EPS is calculated by dividing adjusted net income by weighted average common shares – diluted.  Adjusted Net Income and Adjusted Diluted Earnings Per Share (in thousands, exce pt share and per share amounts)                               Three Months Ended June 30,   Six Months Ended June 30,    2025   2024   2025   2024 Numerator                         Net income   $ 34,854    $ 83,724    $ 74,238    $ 148,055  Denominator                         Weighted average common shares outstanding - basic     30,366,109      31,648,130      30,582,376      31,728,544  Dilutive effect of stock-based compensation awards     314,599      444,659      329,710      437,254  Weighted average common shares outstanding - diluted     30,680,708      32,092,789      30,912,086      32,165,798  Earnings per share:                         Basic   $ 1.15    $ 2.65    $ 2.43    $ 4.67  Diluted   $ 1.14    $ 2.61    $ 2.40    $ 4.60                           Adjusted earnings per share                         Numerator                         Net income   $ 34,854    $ 83,724    $ 74,238    $ 148,055  Income tax expense     12,229      26,909      25,363      46,897  Income before income tax expense     47,083      110,633      99,601      194,952  Inventory impairment     7,360      570      7,771      570  Restructuring costs      —      —     1,505       — Impairment on other investment      —      —      —     7,722  Purchase price accounting for acquired work in process inventory     2,041      973      3,933      2,553  Adjusted income before income tax expense     56,484      112,176      112,810      205,797  Adjusted income tax expense (1)     (14,384)     (26,985)     (28,727)     (49,506) Adjusted net income   $ 42,100    $ 85,191    $ 84,083    $ 156,291                           Denominator - Diluted     30,680,708      32,092,789      30,912,086      32,165,798                           Adjusted diluted earnings per share   $ 1.37    $ 2.65    $ 2.72    $ 4.86   (1) The tax rates used in calculating adjusted net income for the three and six months ended June  3 0 , 2025 were 25.5%, respectively, which are reflective of our GAAP tax rates for the six months ended June 30, 2025. The tax rates used in calculating adjusted net income for the three and six months ended June 30, 2024 were 24.1%, respectively, which are reflective of our GAAP tax rates for the six months ended June 30, 2024.           C entury Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)  Adjusted homebuilding gross margin excluding  inventory impairment (if applicable),   interest in cost of home sales revenues, and   purchase price accounting for acquired work in process inventory (if applicable) , is not a   measurement of financial performance under GAAP ; however, the Company’s management believes that this information is meaningful as it isolates the impact that inventory impairment ,   indebtedness , and acquisitions have on homebuilding gross margin and permits the Company’s stockholders to make better comparisons with the Company’s competitors, who adjust gross margins in a similar fashion.  This non-GAAP financial measure should not be used as a substitute for the Company’s GAAP operating results.  An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP .  Adjusted Homebuilding Gross Margin (in thousands)                                                       Three Months Ended June 30,    2025   %     2024   %   Home sales revenues   $ 976,467    100.0  %   $ 1,017,414    100.0  % Cost of home sales revenues     (797,162)   (81.6) %     (787,556)   (77.4) % Inventory impairment     (7,360)   (0.8) %     (570)   (0.1) % Homebuilding gross margin     171,945    17.6  %     229,288    22.5  % Add: Inventory impairment     7,360    0.8  %     570    0.1  % Adjusted homebuilding gross margin excluding inventory impairment     179,305    18.4  %     229,858    22.6  % Add: Interest in cost of home sales revenues     14,204    1.5  %     13,592    1.3  % Add: Purchase price accounting for acquired work in process inventory     2,041    0.2  %     973    0.1  % Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory   $ 195,550    20.0  %   $ 244,423    24.0  %                                                                                    Six Months Ended June 30,    2025   %     2024   %   Home sales revenues   $ 1,860,204    100.0  %   $ 1,939,816    100.0  % Cost of home sales revenues     (1,504,666)   (80.9) %     (1,513,127)   (78.0) % Inventory impairment     (7,771)   (0.4) %     (570)   (0.0) % Homebuilding gross margin     347,767    18.7  %     426,119    22.0  % Add: Inventory impairment     7,771    0.4  %     570    0.0  % Adjusted homebuilding gross margin excluding inventory impairment     355,538    19.1  %     426,689    22.0  % Add: Interest in cost of home sales revenues     26,989    1.5  %     25,625    1.3  % Add: Purchase price accounting for acquired work in process inventory     3,933    0.2  %     2,553    0.1  % Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory   $ 386,460    20.8  %   $ 454,867    23.4  %      C entury Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)  EBITDA and Adjusted EBITDA  EBITDA and adjusted EBITDA are non-GAAP financial measures the Company use s as supplemental measure s in evaluating operating performance. The Company define s EBITDA as net income before (i) income tax expense, (ii) interest in cost of home sales revenues, (iii) other interest expense (income), and (iv) depreciation and amortization expense. The Company define s   adjusted EBITDA as EBITDA before inventory impairment, restructuring costs, impairment on other investment, purchase price accounting for acquired work in process inventory and loss on debt extinguishment, in each case as applicable during a period. The Company believe s EBITDA and adjusted EBITDA provide an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, and items considered to be non-recurring. Accordingly, the Company’s management believes that these measurements are useful for comparing general operating performance from period to period. Neither EBITDA n or adjusted EBITDA should be considered in addition to, and not as a substitute for, consolidated net income in accordance with GAAP as a measure of performance. The presentation of a djusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by unusual or non-recurring items. Each of EBITDA and adjusted EBITDA is limited as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported under GAAP.  (in thousands)                                                Three Months Ended June 30,   Six Months Ended June 30,    2025   2024   % Change   2025   2024   % Change Net income   $ 34,854    $ 83,724      (58.4) %   $ 74,238    $ 148,055      (49.9) % Income tax expense     12,229      26,909      (54.6) %     25,363      46,897      (45.9) % Interest in cost of home sales revenues     14,204      13,592      4.5  %     26,989      25,625      5.3  % Interest income     (1,229)     (810)     51.7  %     (431)     (2,324)     (81.5) % Depreciation and amortization expense     6,434      5,689      13.1  %     12,862      11,165      15.2  % EBITDA   $ 66,492    $ 129,104      (48.5) %   $ 139,021    $ 229,418      (39.4) % Inventory impairment     7,360      570      1,191.2  %     7,771      570      1,263.3  % Restructuring costs      —      —     NM       1,505       —     NM   Impairment on other investment      —      —     NM        —     7,722      NM   Purchase price accounting for acquired work in process inventory     2,041      973      109.8  %     3,933      2,553      54.1  % Adjusted EBITDA   $ 75,893    $ 130,647      (41.9) %   $ 152,230    $ 240,263      (36.6) %  NM – Not Meaningful   Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)  Ratio of Net Homebuilding Debt to Net Capital The following table presents the Company’s ratio of net homebuilding debt to net capital, which is a non-GAAP financial measure.  The Company calculates this by dividing net homebuilding debt ( homebuilding debt less   cash and cash equivalents , and cash held in escrow ) by net capital (net homebuilding debt plus total stockholders’ equity). Homebuilding debt is total debt minus outstanding borrowings under construction loan agreement and   mortgage repurchase facilities. The most directly comparable GAAP measure is the ratio of debt to capital. The Company believes the ratio of net homebuilding debt to net capital is a relevant and useful financial measure to investors in understanding the leverage employed in its operations and as an indicator of the Company’s ability to obtain external financing .   (in thousands)                   June 30,   December 31,    2025   2024 Notes payable   $ 1,135,202    $ 1,107,909  Revolving line of credit     270,000      135,500  Construction loan agreements     (127,687)     (102,436) Total homebuilding debt     1,277,515      1,140,973  Total stockholders' equity     2,563,991      2,620,856  Total capital   $ 3,841,506    $ 3,761,829  Homebuilding debt to capital     33.3%      30.3%               Total homebuilding debt   $ 1,277,515    $ 1,140,973  Cash and cash equivalents     (93,246)     (149,998) Cash held in escrow     (34,349)     (3,004) Net homebuilding debt     1,149,920      987,971  Total stockholders' equity     2,563,991      2,620,856  Net capital   $ 3,713,911    $ 3,608,827               Net homebuilding debt to net capital     31.0%      27.4%    Contact Information: Tyler Langton, Senior Vice President of Investor Relations 303-268-8345 Investor R elations @CenturyCommunities.com  Category:   Earnings  
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.