Century Communities, Inc.

Greetings. Welcome to the Century Communities Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please note, this conference call is being recorded. I will now turn the conference over to Tyler Langton, Senior Vice President of Investor Relations for Century Communities. Thank you. You may begin.

Good afternoon. Thank you for joining us today for Century Communities earnings conference call for the second quarter, 2026. 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 to be filed shortly, 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. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the earnings release furnished to the SEC and posted on our investor relations website. 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 Francescon, Executive Chairman Rob Francescon, Chief Executive Officer, 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. We delivered strong second quarter results despite continued headwinds from macro challenges and weak consumer sentiment. With earnings per diluted share of $1.26, increasing by 11% on a year-over-year basis and 50% sequentially. Our deliveries of 2,506 homes exceeded our guidance of 2,200 to 2,400 on a stronger absorption rate, which increased by 6% on a quarter-over-quarter basis compared to a historic average second quarter decline of 7% over the previous five years. We coupled this improvement in our sales pace with effective management of our incentives and costs. Our adjusted gross margin of 20% increased by 30 basis points on a sequential basis, benefiting from lower incentives and direct costs. We also continued to successfully control our fixed general and administrative costs, while our financial services business generated strong results. As a result, we grew our book value per share to a company record of $90.24. We ended the quarter with a company record 330 open communities and expect our average community count in 2026 to increase in the low to mid single digit percentage range on a year over year basis. Our land acquisition and development spend continues to be supportive of increased scale and allow for a 10% annual delivery growth over the next several year period once market conditions improve. During the second quarter, we continued our balanced approach to capital allocation and repurchased 1% of our shares outstanding at a 38% discount to book value bringing our year-to-date acquisition total to 3% at a 32% discount to book value. We are pleased by our second quarter results as we navigate market headwinds and position century for the years ahead. I'll now turn the call over to Rob to discuss our strategy, operations, and land positions in more detail.