Century Communities, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Century Communities, Inc. Second Quarter 2025 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, July 23, 2025. I would now like to turn the conference over to Tyler Langton. Please go ahead.

Good afternoon. Thank you for joining us today for Century Communities' earnings conference call for the second quarter of 2025. Before the call begins, I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described or implied in the forward-looking statements. Certain of these risks and uncertainties can be found under the heading risk factors in the company's latest 10-K, as supplemented by our latest 10-Q and other SEC filings. We undertake no duty to update our forward-looking statements. Additionally, certain non-GAAP financial measures will be discussed on this conference call. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Hosting the call today are Dale Francescan, Executive Chairman, Rob Francescan, Chief Executive Officer and President, and Scott Dixon, Chief Financial Officer. Following today's prepared remarks, we will open up the line for questions. With that, I'll turn the call over to Dale.

Thank you, Tyler, and good afternoon, everyone. In the second quarter, we continued to execute well in a challenging environment, generating results that were in line with the expectations outlined during our first quarter conference call back in April. Similar to the trends from the first quarter, order activity for new homes has continued to be impacted by elevated mortgage rates, affordability constraints, economic uncertainty, and lower consumer confidence. While we saw improvement in our order activity as the second quarter progressed, buyers are still cautious and hesitant, and as expected, our incentives increased in the second quarter as we look to maintain an appropriate sales base. Despite the market headwinds, our deliveries of 2,587 homes increased 13% on a sequential basis and exceeded our guidance of 2,300 to 2,500 homes as customers responded to incentives, enabling us to sell and close a greater number of homes within the quarter. While the spring selling season was clearly muted compared to historical trends, we continue to believe that there is underlying demand for affordable new homes supported by solid demographic trends, and we were encouraged by several trends that we saw during the second quarter. Both our net orders and absorption rates increased on a sequential basis in May and June, while our cancellation rates remained in line with the levels we have seen over the past several years and well below our pre-COVID averages in the 20% to 25% range. Also, absorption rates for our Century Complete brand were roughly flat on a year-over-year basis. And we believe the business continues to benefit from its focus on markets where there is less direct competition from other large builders. However, despite these positive trends, our second quarter absorptions were below seasonal expectations. And given typical seasonality, so far in July, our absorption rate is trending below second quarter 2025 levels. Our Indian community count increased to 327 communities at the end of the second quarter, a record for the company. While we have remained disciplined on the land front and reassessed deals to make sure they pencil in the current environment, we also continue to expect our year-end 2025 community count to increase in the mid-single-digit percentage range on a year-over-year basis, which will provide a strong base to execute from over the next couple of years. As we have stated in the past, we are not focused on growth for the sake of growth alone, and we look to balance pace and price at the community level to optimize our returns. We are also taking a balanced approach towards capital allocation. We repurchased $48 million of our shares in the second quarter, or approximately 3% of shares outstanding at the beginning of the quarter, bringing our year-to-date total to $104 million, or 5% of our shares outstanding at the beginning of the year. Additionally, since the start of 2024, we have repurchased over 8% of our shares outstanding. Our book value per share increased by 10% on a year-over-year basis to $86.39 a company record. Before turning the call over to Rob, I wanted to highlight that Century was recently recognized as one of the best companies to work for by U.S. News and Work Report. It is our people that make Century Communities a great company, and I want to thank our team members for all they do to create a culture of excellence in support of our mission of providing our customers a home for every dream. I'll now turn the call over to Rob to discuss our operations and land position in more detail.