To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Market Performance - Major indexes experienced a pullback, with the Dow down 797 points (-1.65%), S&P 500 down 113 points (-1.66%), Nasdaq down 536 points (-2.29%), and Russell 2000 down 67 points (-2.77%) [1][7] - Despite the pullback, indexes remain up over the past five trading days and the past month, although the gains are narrowing [1] Federal Reserve Insights - Federal Reserve members are reconsidering further interest rate cuts due to a lack of new data on jobs and inflation, exacerbated by the government shutdown [2] - Minneapolis Fed President Neel Kashkari expressed opposition to the recent rate cut and emphasized the need for new economic data before supporting further cuts [3] - St. Louis Fed President Alberto Musalem called for caution in proceeding with rate cuts, indicating potential market volatility [3] Sector Rotation - There has been a rotation out of speculative AI stocks and some established tech firms, with Palantir (PLTR) dropping 6.5% and AngloGold Ashanti (AU) down 5.2% [4] - Traders are shifting towards value stocks that have been underperforming, such as Merck (MRK) which rose 1.6% and Berkshire Hathaway (BRK.B) which increased by 2% [4] Earnings Reports - Applied Materials (AMAT) reported fiscal Q4 earnings of $2.17 per share, exceeding estimates, with revenues of $6.80 billion also surpassing expectations, although the stock fell 2.5% in late trading due to lower revenue guidance for the next quarter [5] - Beazer Homes (BZH) reported fiscal Q4 earnings of $1.02 per share, significantly above the anticipated 80 cents, with revenues of $791.9 million exceeding expectations, though both figures showed a decline compared to the previous year [6]

Core Insights - Beazer Homes (BZH) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, but down from $1.69 per share a year ago, indicating an earnings surprise of +33.75% [1] - The company generated revenues of $791.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 17.35%, although this represents a decline from year-ago revenues of $806.16 million [2] - Beazer shares have underperformed the market, losing about 20.7% year-to-date compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $468.28 million, while for the current fiscal year, the estimate is $1.82 on revenues of $2.36 billion [7] - The estimate revisions trend for Beazer was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Building Products - Home Builders industry, to which Beazer belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Beazer's stock performance [5]

Financial Data and Key Metrics Changes - Fiscal 2025 ended with an average active community count of 164, up 14% from the previous year [4] - Net debt to net capitalization was reduced below 40%, and book value per share grew to nearly $43 [4][10] - Fourth quarter adjusted EBITDA was approximately $64 million, with diluted earnings per share at $1.02 [11] Business Line Data and Key Metrics Changes - In the fourth quarter, 1,400 homes were closed, exceeding expectations, with a gross margin of 17.2% [11] - The Texas sales pace improved to 1.8 in the quarter, up from 1.3 in the previous quarter [7] - The company executed 83 model home sale leasebacks, contributing to balance sheet efficiency [11] Market Data and Key Metrics Changes - The macro environment remains challenging, with consumer confidence and affordability issues persisting [5] - Recent decreases in months supply of new homes and improvements in affordability due to wage growth and lower mortgage rates were noted [5][6] Company Strategy and Development Direction - The company is focused on enhancing returns and capitalizing on a differentiated strategy, including cost savings of about $10,000 per home [6][8] - A campaign named "Enjoy the Great Indoors" was launched to increase brand awareness and highlight the benefits of owning a Beazer home [9] - The goal is to achieve a community count of over 200 within the next two years [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, expecting better selling conditions if current trends persist [6] - The company anticipates a decrease in net leverage in fiscal 2026, aiming for a net debt to net capitalization ratio in the low 30% range by the end of fiscal 2027 [10] - Management acknowledged the challenges in the current market but emphasized operational agility and strategic discipline [20] Other Important Information - The company repurchased about 1.5 million shares, representing approximately 5% of the company [17] - A new rights agreement was authorized to protect deferred tax assets, totaling over $140 million [18][19] Q&A Session Summary Question: Regarding gross margin guidance - Management acknowledged the expected decline in gross margin to 16% in Q1 due to higher incentives and a greater percentage of spec sales [23] Question: Orders and sales pace expectations - Management indicated that October was sluggish but expected improvement in November and December, aligning with seasonal patterns [26] Question: Land costs impact on margins - Management noted that newer communities have better margins, despite potentially higher land costs, and emphasized the importance of product mix [31][32] Question: Spec home strategy - Management expressed a desire to reduce the spec ratio but acknowledged the current market dynamics necessitating a higher percentage of spec sales [48] Question: Land sales strategy - Management discussed the strategy of selling off larger communities and reinvesting in higher return locations, expecting aggregate land sales to exceed $100 million [44][46] Question: Energy efficiency tax credits - Management highlighted the growth potential of energy efficiency tax credits and the importance of the rights plan for shareholders [75][76]

Beazer Homes USA, Inc. Q4 2025 Earnings Presentation 1 | Disclaimers This presentation as well as some statements by us in periodic press releases, other public disclosures and some oral statements by us to analysts, stockholders and others during presentations, are "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our expectations or beliefs concerning future events or results, and it is possible that such ev ...

Financial Performance - Total revenue for fiscal 2025 was $2,371.6 million, up from $2,330.2 million in fiscal 2024, reflecting a growth of 1.8%[156] - Net income (GAAP) for the fiscal year ended September 30, 2025, was $45,588 thousand, a decrease of 67.5% from $140,175 thousand in 2024[158] - Adjusted EBITDA (Non-GAAP) for the fiscal year ended September 30, 2025, was $157,719 thousand, down 35.5% from $243,418 thousand in 2024[158] - Homebuilding revenue for the fiscal year ended September 30, 2025, was $2,302,630 thousand, a slight increase of 0.4% from $2,292,984 thousand in 2024[166] - Homebuilding gross profit decreased by $84.2 million to $329.4 million for the fiscal year ended September 30, 2025, compared to $413.6 million in the prior year, with a gross margin decline of 370 basis points to 14.3%[172] - Operating income for the total homebuilding segment was $36.6 million for the fiscal year ended September 30, 2025, a decrease of $106.4 million compared to the prior year[181] - Net cash provided by operating activities was $32.0 million for the fiscal year ended September 30, 2025, driven by income before income taxes of $40.9 million[192] Land Acquisition and Development - Beazer Homes spent $491.9 million on land acquisition and $192.0 million on land development in fiscal 2025, compared to $507.8 million and $268.7 million in fiscal 2024, respectively[41] - The company controls a total of 25,660 lots, including 10,287 lots held for sale and 3,663 lots under development as of September 30, 2025[46] - The total remaining purchase price under all land option agreements was $1.61 billion, with non-refundable amounts incurred totaling $333.4 million[43] - The company expects to exercise substantially all of its option agreements, subject to market conditions and seller satisfaction of contract terms[44] - The company invested $684.0 million in land acquisition and development during fiscal 2025, an 11.9% decrease from $776.5 million in fiscal 2024[153] Market Conditions and Challenges - Demand for homes softened during fiscal 2025 due to elevated interest rates, despite multiple rate cuts by the Federal Reserve[74] - Elevated mortgage interest rates negatively affect home affordability, impacting consumer purchasing power and potentially reducing revenues and earnings[77] - The enactment of H.R. 1 limits annual deductions for real estate property taxes and mortgage interest, potentially reducing homeownership affordability[79] - Competition in the homebuilding industry is intense, with many competitors having greater financial resources, which could impact market share and pricing[82] - Cancellation rates during fiscal 2025 remained within historical norms, but significant cancellations could adversely affect sales revenue and inventory levels[83] Sales and Orders - Net new orders for fiscal 2025 were 3,890, a decrease of 7.8% from 4,221 in the prior year, with orders per community per month dropping to 2.0 from 2.4[153] - The backlog reflects 945 homes with a dollar value of $516.5 million as of September 30, 2025, compared to 1,482 homes valued at $797.2 million in 2024[50] - The average selling price (ASP) in backlog increased to $546.5 thousand as of September 30, 2025, up from $537.9 thousand in 2024[50] Employee and Corporate Culture - The company employs 1,018 persons, including 261 in sales and marketing and 207 in construction as of September 30, 2025[64] - The company is committed to fostering a culture of inclusivity and employee engagement through various programs and benefits[67] Financial Position and Debt - The total debt to total capitalization ratio was 45.2% as of September 30, 2025, down 20 basis points from the prior year, indicating improved capital allocation strategies[148] - The company has significant restrictions imposed by its debt agreements, which could limit its ability to incur additional debt and affect financial flexibility[108] - The company's credit ratings and access to capital could be adversely affected by negative changes, impacting liquidity and borrowing costs[107] Risks and Liabilities - The company is facing potential liabilities from construction defect, product liability, and warranty claims, which are common in the homebuilding industry[95] - Insurance coverage for construction defects is becoming increasingly expensive and may not be adequate to cover all liabilities, potentially impacting financial condition[99] - Cybersecurity breaches and IT failures pose risks that could disrupt operations and result in significant financial liabilities[104] - Global economic and political instability could adversely affect the supply chain and overall business operations, impacting financial performance[105] Sustainability and Energy Efficiency - Beazer Homes achieved its goal of building 100% Zero Energy Ready homes in fiscal 2025, qualifying for an Energy-Efficiency Tax Credit of $5,000 per home[91] - The Inflation Reduction Act of 2022 increased Energy-Efficiency Tax Credits, but future credits may be disallowed after June 30, 2026, impacting tax expenses[92] - The evolving legal and regulatory landscape regarding sustainability could entail significant costs and affect the company's ability to meet stakeholder expectations[103] Shareholder Actions - Approximately 5% of outstanding shares were repurchased during fiscal 2025 for an aggregate purchase price of $33.1 million, with remaining authorization to purchase up to $87.5 million[118] - The Company approved a new share repurchase program authorizing up to $100.0 million, replacing a prior program with $8.3 million remaining[205] - The Company has not paid any dividends during fiscal years 2025, 2024, or 2023, and future dividends will depend on financial condition and Board decisions[136]

Exhibit 99.1 Beazer Homes Fiscal Fourth Quarter 2025 Highlights and Comparison to Fiscal Fourth Quarter 2024 • Net income from continuing operations of $45.6 million, or $1.52 per diluted share, compared to net income from continuing operations of $140.2 million, or $4.53 per diluted share, in fiscal 2024 • Adjusted EBITDA of $157.7 million, down 35.2% • Homebuilding revenue of $2.30 billion, up 0.4% on a 0.9% increase in average selling price (ASP) to $520.1 thousand, partially offset by a 0.5% decrease in ...

Nov 13, 2025 4:15 PM Eastern Standard Time Beazer Homes Reports Fourth Quarter and Full Fiscal 2025 Results Share ATLANTA--(BUSINESS WIRE)--Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2025. "Fiscal 2025 was both productive and challenging. We finished the year on a positive note, with solid fourth quarter results and continued progress toward each of our Multi-Year Goals," said Allan P. Merrill, the Company's C ...

Core Insights - Beazer Homes is addressing the significant affordability barriers faced by homebuyers due to high interest rates, home prices, and inflation [1] Company Focus - Beazer Homes is recognized as the country's 1 energy efficient homebuilder, emphasizing its commitment to improving home affordability and enhancing the quality of life for homeowners [1] - The company highlights its advanced home performance and curated choices as key factors in making homes more affordable and comfortable [1]

Core Insights - Beazer Homes is addressing the significant affordability barriers faced by homebuyers due to high interest rates, home prices, and inflation [1] - The company emphasizes its commitment to improving home affordability through advanced home performance and curated choices [1] - Beazer Homes positions itself as the leading energy-efficient homebuilder in the United States, highlighting its role in promoting a healthier and more comfortable lifestyle for homeowners [1]