v3.25.2
Reporting Segments
 6 Months Ended
Jun. 30, 2025
Reporting Segments [Abstract]  
Reporting Segments 2. Reporting Segments

Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 16 states. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions offers a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections. Our Century Complete brand has operations in nine states and is managed separately from our four geographic regions, and it is considered a separate operating segment.

We have presented our homebuilding operations as the following reportable segments as of June 30, 2025:

 

West (California and Washington)

Mountain (Arizona, Colorado, Nevada, and Utah)

Texas

Southeast (Florida, Georgia, North Carolina, South Carolina, and Tennessee)

Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, and South Carolina)

We have identified our Financial Services operations, which provide mortgage, title, insurance brokerage and escrow services to our homebuyers, and Century Living, which is engaged in the development, construction, management, and disposition of multi-family rental properties currently all located in Colorado, as reportable segments.

Our Corporate operations are a non-operating segment, as it serves to support our homebuilding operations, and to a lesser extent our Financial Services operations, through various functions, such as our executive, finance, treasury, human resources, accounting and legal departments.

Our Executive Chairman and our Chief Executive Officer, collectively, have been determined to be our Chief Operating Decision Makers (“CODMs”) to make key operating decisions and assess performance. The management of our four Century Communities geographic regions, Century Complete, our Financial Services segment, and our Century Living segment reports to our CODMs. The CODMs evaluate the segment’s operating performance and allocates resources for all of our reportable segments based on income before income tax expense. For all of the segments, the CODMs use segment income before income tax expense in the annual budget and forecasting process. The CODMs consider budget-to-actual forecast variances for income before tax expense on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. The measure of segment assets is reported on the consolidated balance sheets as total assets. Except for those accounting policies for Century Living which are described below, the accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Beginning in the first quarter of 2025, we have separately reported our Century Living segment as a reportable segment, which was previously included in our Corporate segment, in order to reflect the distinct nature of our multi-family rental operations. Accordingly, we have recast the corresponding segment information for the three and six months ended June 30, 2024.

During the first quarter of 2025, our strategy evolved for our Century Living multi-family rental properties to be predominantly focused on the disposition of the assets. Accordingly, we have determined that these multi-family rental operations have become part of our ordinary activities, and revenue is recognized from the sale of these properties when performance obligations are satisfied, generally when the respective properties are delivered and title has passed to the buyers, and rental income and expenses from these properties during lease-up is recognized as other income on the condensed consolidated statement of operations. We record multi-family rental property inventory within prepaid and other assets on the condensed consolidated balance sheet, and cash flows from development activities and the disposition of properties are recorded as operating activities on the condensed consolidated statement of cash flows.

The following tables summarize total revenue, significant expenses, and income (loss) before income tax expense by segment (in thousands):

Three months ended June 30, 2025

West

Mountain

Texas

Southeast

Century Complete

Financial Services

Century Living

Corporate

Total

Revenue

$

201,894

$

206,387

$

147,460

$

172,474

$

248,735

$

23,774

$

—

$

—

$

1,000,724

Cost of home sales

(159,451)

(170,619)

(121,515)

(141,138)

(204,756)

—

—

317

(797,162)

Inventory impairment

—

—

—

(3,803)

(3,557)

—

—

—

(7,360)

Selling, general and administrative

(17,094)

(18,327)

(17,587)

(15,775)

(24,779)

—

(161)

(35,114)

(128,837)

Financial services costs

—

—

—

—

—

(17,550)

—

—

(17,550)

Other segment items (1)

(358)

(2,322)

(232)

(572)

(648)

—

1,623

(223)

(2,732)

Income (loss) before tax expense

$

24,991

$

15,119

$

8,126

$

11,186

$

14,995

$

6,224

$

1,462

$

(35,020)

$

47,083

Three months ended June 30, 2024

West

Mountain

Texas

Southeast

Century Complete

Financial Services

Century Living

Corporate

Total

Revenue

$

203,677

$

258,921

$

146,007

$

154,149

$

255,037

$

21,659

$

—

$

—

$

1,039,450

Cost of home sales

(155,454)

(202,572)

(113,306)

(112,875)

(199,625)

—

—

(3,724)

(787,556)

Inventory impairment

—

—

—

—

(570)

—

—

—

(570)

Selling, general and administrative

(16,005)

(21,392)

(14,899)

(15,010)

(25,874)

—

(534)

(32,259)

(125,973)

Financial services costs

—

—

—

—

—

(15,996)

—

—

(15,996)

Other segment items (1)

(49)

(592)

29

(421)

68

—

(115)

2,358

1,278

Income (loss) before tax expense

$

32,169

$

34,365

$

17,831

$

25,843

$

29,036

$

5,663

$

(649)

$

(33,625)

$

110,633

Six months ended June 30, 2025

West

Mountain

Texas

Southeast

Century Complete

Financial Services

Century Living

Corporate

Total

Revenue

$

383,616

$

431,418

$

284,102

$

306,919

$

455,594

$

42,308

$

—

$

—

$

1,903,957

Cost of home sales

(300,960)

(351,300)

(230,820)

(246,192)

(373,526)

—

—

(1,868)

(1,504,666)

Inventory impairment

—

—

—

(3,803)

(3,968)

—

—

—

(7,771)

Selling, general and administrative

(34,105)

(38,747)

(34,531)

(30,725)

(47,460)

—

(382)

(63,646)

(249,596)

Financial services costs

—

—

—

—

—

(33,724)

—

—

(33,724)

Other segment items (1)

(2,165)

(2,810)

(274)

(833)

(1,823)

—

416

(1,110)

(8,599)

Income (loss) before tax expense

$

46,386

$

38,561

$

18,477

$

25,366

$

28,817

$

8,584

$

34

$

(66,624)

$

99,601

Six months ended June 30, 2024

West

Mountain

Texas

Southeast

Century Complete

Financial Services

Century Living

Corporate

Total

Revenue

$

376,325

$

513,200

$

277,280

$

315,807

$

458,797

$

46,585

$

—

$

—

$

1,987,994

Cost of home sales

(285,746)

(405,102)

(215,990)

(237,711)

(362,047)

—

—

(6,531)

(1,513,127)

Inventory impairment

—

—

-

—

(570)

—

—

—

(570)

Selling, general and administrative

(31,375)

(43,186)

(29,244)

(30,597)

(46,017)

—

(981)

(58,682)

(240,082)

Financial services costs

—

—

-

—

—

(30,873)

—

—

(30,873)

Other segment items (1)

(328)

(2,739)

(343)

(860)

(27)

—

(412)

(3,681)

(8,390)

Income (loss) before tax expense

$

58,876

$

62,173

$

31,703

$

46,639

$

50,136

$

15,712

$

(1,393)

$

(68,894)

$

194,952

(1) Includes cost of land sales and other revenues, and other income (expense).

The following table summarizes total assets by segment (in thousands):

June 30,

December 31,

2025

2024

West

$

881,976

$

780,991

Mountain

1,017,738

1,026,047

Texas

894,191

834,815

Southeast

595,819

616,747

Century Complete

448,249

468,256

Financial Services

321,370

478,730

Century Living

266,789

217,899

Corporate

153,358

108,987

Total assets

$

4,579,490

$

4,532,472

Century Living assets include primarily multi-family rental properties under construction and properties that are in lease-up, which are included in prepaid and other assets on the condensed consolidated balance sheets. Corporate assets include primarily costs associated with certain cash and cash equivalents, certain property and equipment, deferred tax assets, certain receivables, and prepaid insurance.