Deliveries

FY2024 to FY2025

10,900 to 11,300 homes "

11,700 to 12,400 homes " " "

raised

Home Sales Revenue

FY2024 to FY2025

$4.3 billion to $4.4 billion "

$4.5 billion to $4.8 billion "

raised

Tax Rate

FY2024 to FY2025

24.5% to 25% "

25% to 26% "

raised

SG&A as a % of Home Sales Revenue

FY2024 to FY2025

Decline on a year‐over‐year with further decreases anticipated in FY2025 "

Expected to decline year‐over‐year "

no change

Community Count

FY2024 to FY2025

310 to 320 "

Increase in mid‐ to high single‐digit percentage range "

raised

Average Sales Price

FY2024 to FY2025

Approximately $390,000 "

Flat to slightly down "

lowered

Absorption Pace

FY2025

no prior guidance

3.2x " "

no prior guidance

Cost Inflation

FY2025

no prior guidance

3% to 5% "

no prior guidance

Delivery Growth Beyond 2025

FY2025

no prior guidance

At least 10% growth in 2026 "

no prior guidance

Acquisitions Impact on 2025 Guidance

FY2025

no prior guidance

Does not presume any additional acquisitions "

no prior guidance

Sales Momentum

Q1 earnings showed strong net new contracts with a 42% YoY increase. " Q2 reported a 20% YoY increase " , and Q3 highlighted robust order growth (19% YoY increase across regions). "

Q4 reported net new contracts growing by 5% YoY and 4% sequentially, supported by a 100% spec model and attractive incentives. "

Sales momentum remains positive but with moderation compared to earlier quarters, maintaining strength above historical averages.

Absorption Trends

Q1 improvement to 3.8 and sequential gains were noted. " Q2 showed positive absorption trends with higher order growth. " Q3 expected absorptions to remain similar despite seasonal moderation. "

Q4 noted absorptions down 15% YoY with a flattish outlook for 2025, though the company anticipates seasonal adjustments. " "

Absorption trends continue to face headwinds, reflecting persistent pressure that requires careful seasonal management.

Incentive Costs and Mortgage Rate Buydowns

Q1 saw slightly reduced closed-home incentives (~700 basis points) with robust use of buydowns (over 75% of buyers). " " Q2 described an increase in incentives on new orders (~700 basis points). " Q3 reported further increases (closed-home incentives averaging 700–800 basis points) impacting margins. " "

Q4 further increased new order incentives to approximately 900 basis points while continuing to rely on mortgage buydowns, increasing pressure on margins. " "

Incentives have been trending upward across quarters as mortgage rate volatility persists, intensifying margin pressure.

M&A Activity and Acquisition Integration Risks

Q1 mentioned the Landmark Homes acquisition with a modest 20 bp margin drag. " Q2 had no detailed discussion, while Q3 detailed acquisitions (Anglia Homes and Landmark Homes) with integration in progress and modest margin drag. " "

Q4 announced the completion of two new acquisitions in Nashville and Houston with full integration achieved and no significant integration risks observed. " "

M&A activity has increased and integration outcomes have improved over time, reducing earlier integration risks.

Regional Market Expansion and Strong Local Fundamentals

Q1 emphasized growth in the Southeast and Texas with increased community counts. " Q2 expanded across 18 states and 45 markets, with a focus on Texas and the Southeast’s affordability and employment strength. " Q3 reinforced a focus on Texas, the Southeast, and Century Complete markets with favorable local fundamentals. " "

Q4 highlighted key markets such as Southern California (Orange County), Phoenix, and Texas, and noted healthy supply conditions across regions. " "

The expansion strategy remains consistent, with continued emphasis on regions with robust fundamentals and gradual diversification.

Community Growth, Controlled Inventory, and Land Position

Q1 achieved a record community count of 253 and 75,000 controlled lots. " Q2 reported 266 communities and about 78,000 lots with emphasis on affordable markets. " " Q3 recorded 305 communities and over 80,000 lots, reinforcing asset growth. " "

Q4 reported a record 322 communities (28% YoY increase) and maintained over 80,000 owned and controlled lots with a geographically balanced portfolio. " "

Community and lot inventory growth have been robust and accelerating, strengthening the company’s competitive land position.

Operational Efficiency and Cycle Time Improvements

Q1 maintained cycle times at 4–5 months with a 2% reduction in direct construction costs. " Q2 saw incremental improvements returning to pre-COVID cycle times. " " Q3 showcased effective cost control and a 100 bp reduction in SG&A as a percentage of home sales. " "

Q4 reported cycle times stabilizing at about 4 months with modest sequential improvements in cost control for construction and finished lot costs. "

Operational efficiency has been consistently maintained with gradual cycle time improvements and effective cost management.

Capital Allocation Strategies (Share Buybacks and Dividends)

Q1 reported share buybacks of ~$16 million and a dividend increase to $0.26 per share. " Q2 saw an increased buyback authorization and repurchases of 464,980 shares worth $37 million. " " Q3 provided no further updates.

Q4 repurchased approximately 400,000 shares for $30.7 million and maintained the $0.26 quarterly dividend, contributing to over $115 million returned to shareholders in 2024. " "

Capital allocation remains consistent, with ongoing opportunistic buybacks and steady dividend increases reinforcing shareholder returns.

Financial Leverage and Rising Debt Risks

Q1 maintained a net homebuilding debt to net capital ratio of 24.9% with strong liquidity. " Q2 saw a modest increase to 28.1% while maintaining ample liquidity and no near-term maturities. " Q3 experienced a rise to over 38% in net debt to capital, prompting risk considerations. " "

Q4 improved the ratio to 27.4%, expanded its unsecured credit facility to $900 million, and maintained a solid debt maturity profile with no imminent deadlines. "

After a spike in Q3, financial leverage improved in Q4 as debt management measures took effect, reflecting a cautious but effective approach.

Emerging External Risks (Mortgage Volatility, Labor Challenges, Regulatory Actions)

Q1 focused on interest rate uncertainty and heavy reliance on mortgage buydowns (over 75% of closings). " " " Q2 provided detailed insights on mortgage volatility affecting incentive levels while briefly noting labor issues and regulatory considerations. " " " Q3 emphasized mortgage rate impacts with less focus on labor or regulatory risks. " "

Q4 offered a comprehensive review of external risks: acknowledging mortgage rate volatility and its impact, noting no observed labor challenges despite immigration concerns, and minimal regulatory issues. " " "

Mortgage volatility remains persistent, while labor challenges and regulatory risks continue to be monitored; Q4 shows a more explicit and comprehensive risk disclosure.

Future Cost Pressures from Rising Land Development Expenses

Q1 set expectations that rising land costs would be more of a 2025 issue, with consolidated costs expected to be flat to slightly up. " Q2 did not mention this topic, and Q3 indicated that lot costs would remain stable through Q4 and early Q1 2025 before normal inflation pressures emerge. "

Q4 did not explicitly address future cost pressures from rising land development expenses.

The expectation of rising land costs remains a cautious outlook for later periods (2025), with no new commentary provided in Q4.