Core Insights - Beazer Homes reported a net loss for fiscal Q3 2025, with diluted earnings per share at $(0.01), missing analyst estimates of $0.42 and down from $0.88 in the same quarter last year [1][2] - Homebuilding revenue was $535.4 million, falling short of the consensus estimate of $559.0 million, representing a 9.2% decline year-over-year [1][2] - The company faced challenges including lower home sales, weaker orders, particularly in Texas, and ongoing affordability issues, leading to a $10.3 million inventory impairment charge [1][5] Financial Performance - Diluted EPS (GAAP) decreased by 101.1% from $0.88 in Q3 2024 to $(0.01) in Q3 2025 [2] - Revenue fell by 8.4% from $595.7 million in Q3 2024 to $545.4 million in Q3 2025 [2] - Homebuilding gross margin decreased to 13.5% from 17.3% in the previous year [2][6] - Adjusted EBITDA dropped 40.0% year-over-year to $32.1 million [2][5] Market Trends - Net new orders decreased by 19.5% to 861 units, with a cancellation rate rising to 19.8% [2][7] - Backlog of sold-but-not-yet-closed homes declined by 30.6% [7] - The company increased its active community count by 14.4% to 167, but the sales pace per community declined [7] Cost Structure - Selling, general, and administrative expenses rose by 130 basis points to 13.2% of revenue [8] - The company reported higher inventory charges of $10.3 million, indicating unprofitable land and housing investments [8] Strategic Focus - Beazer Homes emphasizes energy efficiency, with nearly 99% of new home starts built to Zero Energy Ready standards [9] - The company aims to expand its community count while maintaining energy efficiency standards and improving financial strength by lowering its net debt to net capitalization ratio [4][11] - Management has set a long-term goal to expand active communities to over 200 by the end of fiscal 2027 and to grow book value per share at a double-digit compound annual rate [11] Future Outlook - Management's previous forecasts for fiscal 2025 included community count growth of up to 15% and adjusted gross margins around 18.5%, but current trends challenge these targets [10] - Land spending guidance has been cut to $750 million to $800 million, reflecting a cautious approach to future development [10] - A new $100 million share repurchase program has been authorized, signaling confidence despite ongoing order softness [11]

Core Viewpoint - Beazer Homes reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.42 per share, and showing a significant decline from $0.88 per share a year ago, indicating a -38.10% earnings surprise [1] Financial Performance - The company posted revenues of $545.37 million for the quarter ended June 2025, which was 1.62% below the Zacks Consensus Estimate and down from $595.68 million year-over-year [2] - Over the last four quarters, Beazer has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Beazer shares have declined approximately 14.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Beazer is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $633.5 million, and for the current fiscal year, it is $1.80 on revenues of $2.22 billion [7] - The estimate revisions trend for Beazer was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Building Products - Home Builders industry is currently in the bottom 14% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - The company reported an adjusted homebuilding gross margin of 18.4%, slightly up from Q2, despite challenges in the sales environment [5][21] - Book value per share increased to over $41, supported by a stock repurchase of $12.5 million [4][5] - Total liquidity at the end of Q3 exceeded $290 million, with expectations to maintain similar liquidity levels by the end of the fiscal year [24][25] Business Line Data and Key Metrics Changes - The average community count grew by 15% to 167, with 19 new communities activated [4][5] - Sales pace in Texas was disappointing at 1.3 sales per community per month, significantly below previous absorption rates [6][33] - Other markets performed in line with expectations, with notable strength in Virginia and Southern California [36][37] Market Data and Key Metrics Changes - The company noted a structural housing shortage supporting demand for new homes, despite rising inventories impacting sales [5][6] - The competitive landscape showed builders reducing home sizes and features to offer lower prices, affecting sales dynamics [7][8] Company Strategy and Development Direction - The company is committed to a differentiated product and customer experience strategy, focusing on energy efficiency and customer service [8][9] - Efforts to improve capital efficiency include increasing the option lot percentage to 60% and actively managing land portfolios [13][14] - The company aims to exceed 200 communities by the end of fiscal 2027, targeting a double-digit compound annual growth rate in community count [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging sales environment but expressed optimism about long-term demand due to structural housing shortages [5][6] - The company plans to slow land spending to allocate more capital towards profitability and shareholder returns [19][25] - Management expects sales to remain flat year-over-year in Q4, with a higher community count offsetting slower sales pace [22][23] Other Important Information - The company has repurchased approximately 1.5 million shares, representing about 5% of the company, with plans for continued buybacks [25][20] - Impairments were noted in two communities due to changing market conditions, but no material risk of further impairments was identified [15][17] Q&A Session Summary Question: Can you elaborate on the sales pace and pricing balance? - Management noted that demand is relatively inelastic, and confidence cannot be fixed with price adjustments. They expressed disappointment with Texas sales but expect improvements moving forward [32][33] Question: What are the current trends in labor and material costs? - Management indicated progress in reducing direct costs and improving labor availability, which should benefit profitability in 2026 [40][41] Question: What percentage of orders or closings were spec homes this quarter? - The spec count was around the high sixties percentage, with expectations for it to remain elevated in Q4 [43][44] Question: Can you discuss the drivers behind the gross margin resilience? - The resilience in gross margin was attributed to newer homes and efforts to reduce costs, despite a higher mix of spec homes [49][50] Question: What is the current average build time and potential for improvement? - Management indicated that build times have improved from COVID peaks, with further opportunities to reduce cycle times as labor availability increases [94][96]

Financial Performance & Projections - Beazer Homes' Q3 FY25 new home orders decreased by 195% year-over-year, with 861 orders[34, 47] - Homebuilding revenue for Q3 FY25 was $5354 million, a decrease of 92% compared to the previous year[34] - The average selling price increased by 24% to $5173 thousand in Q3 FY25[34, 47] - Adjusted EBITDA for Q3 FY25 was $321 million, a 400% decrease year-over-year[34, 47] - The company expects approximately $50 million in Adjusted EBITDA for Q4[35] - Beazer Homes projects to have over 200 communities by the end of fiscal year 2027[23, 26] - The company aims for a low 30% net debt to net capitalization by the end of fiscal year 2027[24, 28] Balance Sheet & Liquidity - Total liquidity is approximately $292 million, including unrestricted cash, restricted cash, and undrawn revolver[37] - Net debt to net capitalization ratio is 466%[37, 60] - The company plans land spending between $700 million and $750 million for FY25[39] Operational Metrics - The average active community count increased by 149% to 167 in Q3 FY25[34, 47] - Closings decreased by 113% to 1,035 in Q3 FY25[34, 47] - The cancellation rate increased by 120 basis points to 198%[47] - The company is targeting 100% Zero Energy Ready (ZER) home starts by the calendar year end of 2025[46]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-12822 ________________________ ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Beazer Homes faced a challenging Q3 FY2025 with a net loss and revenue decline, yet made progress on multi-year goals, increasing community count and book value per share [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Allan P. Merrill highlighted progress on multi-year goals and a differentiated market position despite a challenging Q3 FY2025 sales environment - Company continued to take actions aligned with achieving Multi-Year Goals amidst a challenging sales environment[2](index=2&type=chunk) - Increased **book value per share to over $41** through share repurchases[2](index=2&type=chunk) - Well-positioned to reach **200 active community count goal by end of fiscal 2027**, with plans to direct discretionary capital towards achieving a **net debt to net capitalization ratio in the low 30% range** and **double-digit book value per share growth**[2](index=2&type=chunk) - Maintains confidence in its differentiated market position as America's 1 Energy-Efficient Homebuilder, offering utility cost savings, comfort, and healthy indoor air[2](index=2&type=chunk) [Fiscal Third Quarter 2025 Highlights](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Highlights) Q3 FY2025 saw a net loss of $0.3 million due to impairments, a 40.0% Adjusted EBITDA decrease, and a 9.2% decline in homebuilding revenue Fiscal Third Quarter 2025 Key Financial and Operational Highlights (YoY Change) | Metric | Q3 FY2025 Value | Q3 FY2024 Value | Change (%) / bps | | :------------------------------------------------ | :---------------- | :---------------- | :--------------- | | Net loss from continuing operations | $0.3 million | $27.2 million (income) | -101.2% | | Diluted loss per share | $0.01 | $0.88 (income) | -101.1% | | Inventory impairment and abandonment charges | $10.3 million | - | - | | Adjusted EBITDA | $32.1 million | $53.5 million | -40.0% | | Homebuilding revenue | $535.4 million | $589.6 million | -9.2% | | Home closings | 1,035 | 1,167 | -11.3% | | Average selling price (ASP) from closings | $517.3 thousand | $505.3 thousand | +2.4% | | Homebuilding gross margin (GAAP) | 13.5% | 17.3% | -380 bps | | Homebuilding gross margin (excl. I&A and interest) | 18.4% | 20.3% | -190 bps | | SG&A as a percentage of total revenue | 13.2% | 11.9% | +130 bps | | Net new orders | 861 | 1,070 | -19.5% | | Orders per community per month | 1.7 | 2.4 | -30.0% | | Average active community count | 167 | 146 | +14.9% | | Active community count at period-end | 167 | 146 | +14.4% | | Backlog dollar value | $742.5 million | $1,046.5 million | -29.0% | | Backlog units | 1,352 | 1,949 | -30.6% | | Land acquisition and development spending | $153.8 million | $201.1 million | -23.5% | | Controlled lots | 27,794 | 28,365 | -2.0% | | Unrestricted cash | $82.9 million | - | - | | Total liquidity | $292.3 million | $328.2 million | -11.0% | | Total debt to total capitalization ratio | 48.4% | 47.6% | +80 bps | | Net debt to net capitalization ratio | 46.6% | 45.8% | +80 bps | [Third Quarter Fiscal 2025 Financial and Operational Review](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20and%20Operational%20Review) Q3 FY2025 review reveals a net loss, declining homebuilding revenue and orders, reduced land spending, and stable liquidity [Profitability Overview](index=1&type=section&id=Profitability%20Overview) Q3 FY2025 saw a net loss of $0.3 million, a significant decline from prior year income, primarily due to $10.3 million in inventory impairment charges Q3 FY2025 Profitability Metrics (YoY Comparison) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :------------------------------------------------ | :-------- | :-------- | :--------- | | Net loss from continuing operations (in millions) | $(0.3) | $27.2 | (101.2)% | | Diluted loss per share from continuing operations | $(0.01) | $0.88 | (101.1)% | | Adjusted EBITDA (in millions) | $32.1 | $53.5 | (40.0)% | | Inventory impairments and abandonments (in millions) | $10.3 | $0.2 | 5,069.5% | [Homebuilding Operations](index=2&type=section&id=Homebuilding%20Operations) Q3 FY2025 homebuilding operations faced headwinds with decreased net new orders and closings, leading to revenue decline and pressured gross margins [Net New Orders](index=2&type=section&id=Net%20New%20Orders) Net new orders decreased by 19.5% year-over-year due to a 30.0% lower sales pace, despite a 14.9% increase in average community count Q3 FY2025 Net New Orders Metrics (YoY Comparison) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) / bps | | :-------------------------- | :-------- | :-------- | :--------------- | | Net new orders | 861 | 1,070 | (19.5)% | | Orders per community per month | 1.7 | 2.4 | (30.0)% | | Average active community count | 167 | 146 | 14.9% | | Cancellation rates | 19.8% | 18.6% | 120 bps | [Backlog](index=2&type=section&id=Backlog) Backlog dollar value decreased by 29.0% to $742.5 million, with units down 30.6%, while average selling price increased by 2.3% due to mix changes Backlog Metrics (As of June 30, YoY Comparison) | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | | Backlog units | 1,352 | 1,949 | (30.6)% | | Dollar value of backlog (in millions) | $742.5 | $1,046.5 | (29.0)% | | ASP in backlog (in thousands) | $549.2 | $536.9 | 2.3% | [Homebuilding Revenue](index=2&type=section&id=Homebuilding%20Revenue) Q3 homebuilding revenue decreased by 9.2% to $535.4 million, driven by an 11.3% decline in closings, partially offset by a 2.4% ASP increase Q3 FY2025 Homebuilding Revenue Metrics (YoY Comparison) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Homebuilding revenue (in millions) | $535.4 | $589.6 | (9.2)% | | Total home closings | 1,035 | 1,167 | (11.3)% | | ASP from closings (in thousands) | $517.3 | $505.3 | 2.4% | - Decrease in closings was primarily due to lower beginning backlog, partially offset by higher volume of spec homes sold and closed within the quarter and improved construction cycle times[7](index=7&type=chunk) [Homebuilding Gross Margin](index=2&type=section&id=Homebuilding%20Gross%20Margin) Q3 FY2025 GAAP homebuilding gross margin was 13.5%, down 380 bps, primarily due to increased price concessions and a higher share of lower-margin spec home closings Q3 FY2025 Homebuilding Gross Margin (YoY Comparison) | Metric | Q3 FY2025 | Q3 FY2024 | Change (bps) | | :---------------------------------------------------------------- | :-------- | :-------- | :----------- | | Homebuilding gross margin (GAAP) | 13.5% | 17.3% | (380) bps | | Homebuilding gross margin, excluding I&A (Non-GAAP) | 15.2% | 17.3% | (210) bps | | Homebuilding gross margin, excluding I&A and interest (Non-GAAP) | 18.4% | 20.3% | (190) bps | - Gross margin decline primarily due to increased price concessions and closing cost incentives, increased share of spec home closings (generally lower margins), and changes in product and community mix[8](index=8&type=chunk) [SG&A Expenses](index=2&type=section&id=SG%26A%20Expenses) SG&A expenses as a percentage of total revenue increased by 130 basis points to 13.2% due to lower homebuilding revenue Q3 FY2025 SG&A Expenses (YoY Comparison) | Metric | Q3 FY2025 | Q3 FY2024 | Change (bps) | | :------------------------------------ | :-------- | :-------- | :----------- | | SG&A expenses as a percent of total revenue | 13.2% | 11.9% | 130 bps | [Land Position and Capital Allocation](index=2&type=section&id=Land%20Position%20and%20Capital%20Allocation) Q3 FY2025 saw a 23.5% decrease in land spending, a slight decline in controlled lots, and an increased reliance on option agreements [Land Position](index=2&type=section&id=Land%20Position) Total controlled lots decreased by 2.0% to 27,794, with 60.1% of active lots now controlled via option agreements, up from 55.5% Land Position Metrics (As of June 30, YoY Comparison) | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :------------------------ | :------------ | :------------ | :--------- | | Controlled lots | 27,794 | 28,365 | (2.0)% | | Active lots controlled | 26,944 | 27,830 | (3.2)% | | % of active lots via option | 60.1% | 55.5% | +4.6 pp | [Land Acquisition and Development Spending](index=2&type=section&id=Land%20Acquisition%20and%20Development%20Spending) Land acquisition and development spending for Q3 FY2025 decreased by 23.5% year-over-year to $153.8 million Q3 FY2025 Land Spending (YoY Comparison) | Metric | Q3 FY2025 (in millions) | Q3 FY2024 (in millions) | Change (%) | | :---------------------------------------- | :---------------------- | :---------------------- | :--------- | | Land acquisition and land development spending | $153.8 | $201.1 | (23.5)% | [Liquidity and Capital Structure](index=2&type=section&id=Liquidity%20and%20Capital%20Structure) Q3 FY2025 ended with $292.3 million in total liquidity, a decrease from prior year, alongside share repurchases and slightly increased debt ratios [Liquidity](index=2&type=section&id=Liquidity) Total available liquidity at Q3 end was $292.3 million, a decrease from the prior year, comprising cash and revolving credit capacity Liquidity Metrics (As of June 30, YoY Comparison) | Metric | June 30, 2025 (in millions) | June 30, 2024 (in millions) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Unrestricted cash | $82.9 | - | - | | Remaining revolving credit capacity | $209.4 | - | - | | Total available liquidity | $292.3 | $328.2 | (11.0)% | [Share Repurchases](index=2&type=section&id=Share%20Repurchases) A new $100.0 million share repurchase program was approved, with $12.5 million of common stock repurchased during the quarter - New share repurchase program authorized for up to **$100.0 million** of outstanding common stock[12](index=12&type=chunk) Q3 FY2025 Share Repurchase Activity | Metric | Value | | :-------------------------------- | :------ | | Amount repurchased (in millions) | $12.5 | | Average price per share | $21.38 | [Debt Ratios](index=2&type=section&id=Debt%20Ratios) Both total debt to total capitalization and net debt to net capitalization ratios increased by 80 basis points year-over-year Debt Ratios (As of June 30, YoY Comparison) | Metric | June 30, 2025 | June 30, 2024 | Change (bps) | | :-------------------------------- | :------------ | :------------ | :----------- | | Total debt to total capitalization ratio | 48.4% | 47.6% | 80 bps | | Net debt to net capitalization ratio | 46.6% | 45.8% | 80 bps | [Nine Months Ended June 30, 2025 Financial and Operational Review](index=4&type=section&id=Nine%20Months%20Ended%20June%2030%2C%202025%20Financial%20and%20Operational%20Review) For the nine months ended June 30, 2025, net income significantly declined due to impairments, despite increased closings and revenue, while net new orders decreased [Key Financial and Operational Metrics](index=4&type=section&id=Key%20Financial%20and%20Operational%20Metrics) Nine-month income from continuing operations decreased by 82.3% to $15.6 million due to impairments, despite revenue growth, while net new orders declined by 9.4% Nine Months Ended June 30, 2025 Key Financial and Operational Metrics (YoY Comparison) | Metric | 9 Months FY2025 | 9 Months FY2024 | Change (%) / bps | | :------------------------------------------------ | :-------------- | :-------------- | :--------------- | | Net new orders, net of cancellations | 2,891 | 3,192 | (9.4)% | | Cancellation rates | 17.7% | 16.2% | 150 bps | | LTM orders per community per month | 2.0 | 2.5 | (19.8)% | | Land acquisition and land development spending (in millions) | $562.2 | $597.5 | (5.9)% | | Total home closings | 3,021 | 2,954 | 2.3% | | ASP from closings (in thousands) | $513.7 | $510.9 | 0.5% | | Homebuilding revenue (in millions) | $1,551.8 | $1,509.2 | 2.8% | | Homebuilding gross margin (GAAP) | 14.6% | 18.5% | (390) bps | | Homebuilding gross margin, excluding I&A (Non-GAAP) | 15.2% | 18.5% | (330) bps | | Homebuilding gross margin, excluding I&A and interest (Non-GAAP) | 18.3% | 21.4% | (310) bps | | SG&A expenses as a percent of total revenue | 13.0% | 12.4% | 60 bps | | Income from continuing operations before income taxes (in millions) | $14.8 | $98.5 | (84.9)% | | Income from continuing operations, net of tax (in millions) | $15.6 | $88.1 | (82.3)% | | Diluted income per share from continuing operations | $0.52 | $2.84 | (81.7)% | | Inventory impairments and abandonments (in millions) | $10.9 | $0.2 | 5,333.5% | | Adjusted EBITDA (in millions) | $94.0 | $150.3 | (37.5)% | [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed financial statements reveal a Q3 net loss and nine-month income decline, increased assets and debt, and varied regional operating performance [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 FY2025 saw a net loss of $0.3 million, while nine-month net income decreased significantly to $15.6 million, primarily due to increased inventory impairments Condensed Consolidated Statements of Operations (Selected Items) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenue | $545,367 | $595,682 | $1,579,659 | $1,524,040 | | Gross profit | $72,580 | $103,304 | $230,656 | $282,887 | | Operating (loss) income | $(3,710) | $28,524 | $11,797 | $84,780 | | (Loss) income from continuing operations before income taxes | $(2,506) | $29,660 | $14,828 | $98,479 | | Net (loss) income | $(324) | $27,210 | $15,584 | $88,109 | | Diluted (loss) income per share | $(0.01) | $0.88 | $0.52 | $2.84 | | Capitalized interest in inventory, end of period | $137,759 | $126,562 | $137,759 | $126,562 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $2.71 billion, driven by inventory, while total debt rose to $1.14 billion and equity slightly decreased Condensed Consolidated Balance Sheets (Selected Items) | Metric (in thousands) | June 30, 2025 | September 30, 2024 | | :-------------------------------- | :------------ | :----------------- | | Cash and cash equivalents | $82,932 | $203,907 | | Owned inventory | $2,292,063 | $2,040,640 | | Total assets | $2,712,324 | $2,591,527 | | Total debt | $1,143,173 | $1,025,349 | | Total liabilities | $1,495,293 | $1,359,416 | | Total stockholders' equity | $1,217,031 | $1,232,111 | | Inventory Breakdown: Homes under construction | $914,261 | $754,705 | | Inventory Breakdown: Land under development | $1,073,661 | $1,023,188 | [Supplemental Operating and Financial Data](index=9&type=section&id=Supplemental%20Operating%20and%20Financial%20Data) Supplemental data shows varied regional performance in Q3 FY2025, with the West declining in closings and orders, East increasing, and Southeast decreasing across most metrics Q3 FY2025 Regional Operating Data (YoY Comparison) | Metric | Region | Q3 FY2025 | Q3 FY2024 | | :------------------------ | :------- | :-------- | :-------- | | Total closings | West | 647 | 728 | | | East | 256 | 240 | | | Southeast | 132 | 199 | | New orders, net of cancellations | West | 482 | 715 | | | East | 224 | 250 | | | Southeast | 155 | 105 | | Homebuilding revenue (in millions) | West | $322.9 | $365.9 | | | East | $145.6 | $121.2 | | | Southeast | $66.9 | $102.5 | | Total gross profit (in millions) | Homebuilding | $72.5 | $102.0 | | | Land sales and other | $0.1 | $1.3 | 9 Months FY2025 Regional Operating Data (YoY Comparison) | Metric | Region | 9 Months FY2025 | 9 Months FY2024 | | :------------------------ | :------- | :-------------- | :-------------- | | Total closings | West | 1,935 | 1,849 | | | East | 687 | 591 | | | Southeast | 399 | 514 | | New orders, net of cancellations | West | 1,736 | 2,108 | | | East | 708 | 685 | | | Southeast | 447 | 399 | | Homebuilding revenue (in millions) | West | $979.9 | $945.2 | | | East | $374.6 | $304.6 | | | Southeast | $197.3 | $259.4 | [Non-GAAP Financial Measures Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides reconciliations for non-GAAP measures, including homebuilding gross profit/margin, Adjusted EBITDA, and net debt to net capitalization ratio [Homebuilding Gross Profit/Margin Reconciliation](index=10&type=section&id=Homebuilding%20Gross%20Profit%2FMargin%20Reconciliation) Non-GAAP homebuilding gross profit and margin are reconciled by excluding inventory impairments and amortized interest to provide a clearer view of core operating characteristics Homebuilding Gross Profit/Margin Reconciliation (Q3 FY2025 vs Q3 FY2024) | Metric (in thousands) | Q3 FY2025 | Q3 FY2025 % | Q3 FY2024 | Q3 FY2024 % | | :---------------------------------------------------------------- | :-------- | :---------- | :-------- | :---------- | | Homebuilding gross profit/margin (GAAP) | $72,474 | 13.5% | $101,983 | 17.3% | | Inventory impairments and abandonments (I&A) | $8,873 | | $200 | | | Homebuilding gross profit/margin excluding I&A (Non-GAAP) | $81,347 | 15.2% | $102,183 | 17.3% | | Interest amortized to cost of sales | $17,383 | | $17,267 | | | Homebuilding gross profit/margin excluding I&A and interest (Non-GAAP) | $98,730 | 18.4% | $119,450 | 20.3% | - Non-GAAP measures assist investors in comparing operating characteristics by eliminating differences in inventory impairments and debt levels[31](index=31&type=chunk) [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is a non-GAAP measure reconciling net (loss) income by adding back various non-cash and non-operating items to show core operating results Adjusted EBITDA Reconciliation (Q3 FY2025 vs Q3 FY2024 and LTM) | Metric (in thousands) | Q3 FY2025 | Q3 FY2024 | 9 Months FY2025 | 9 Months FY2024 | LTM FY2025 | LTM FY2024 | | :------------------------------------------------ | :-------- | :-------- | :-------------- | :-------------- | :--------- | :--------- | | Net (loss) income (GAAP) | $(324) | $27,210 | $15,584 | $88,109 | $67,650 | $143,865 | | (Benefit) expense from income taxes | $(2,182) | $2,453 | $(756) | $10,373 | $7,781 | $18,843 | | Interest amortized to home construction and land sales expenses and capitalized interest impaired | $18,974 | $17,267 | $50,642 | $44,528 | $74,347 | $64,447 | | EBIT (Non-GAAP) | $16,468 | $46,930 | $65,470 | $143,010 | $149,778 | $227,155 | | Depreciation and amortization | $4,571 | $3,892 | $13,273 | $9,698 | $18,442 | $13,456 | | EBITDA (Non-GAAP) | $21,039 | $50,822 | $78,743 | $152,708 | $168,220 | $240,611 | | Stock-based compensation expense | $1,817 | $2,474 | $5,442 | $5,536 | $7,297 | $7,564 | | Inventory impairments and abandonments | $9,243 | $200 | $9,771 | $200 | $11,567 | $225 | | Adjusted EBITDA (Non-GAAP) | $32,099 | $53,496 | $93,956 | $150,290 | $187,084 | $240,259 | - Adjusted EBITDA helps investors understand core operating results and underlying business trends by eliminating differences in capitalization, tax position, impairments, and non-recurring items[33](index=33&type=chunk) [Net Debt to Net Capitalization Ratio Reconciliation](index=12&type=section&id=Net%20Debt%20to%20Net%20Capitalization%20Ratio%20Reconciliation) The net debt to net capitalization ratio is a non-GAAP measure assessing leverage and financing ability by adjusting total debt for cash and cash equivalents Net Debt to Net Capitalization Ratio Reconciliation (As of June 30, YoY Comparison) | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total debt (GAAP) | $1,143,173 | $1,069,408 | | Stockholders' equity (GAAP) | $1,217,031 | $1,178,315 | | Total capitalization (GAAP) | $2,360,204 | $2,247,723 | | Total debt to total capitalization ratio (GAAP) | 48.4% | 47.6% | | Less: cash and cash equivalents (GAAP) | $82,932 | $73,212 | | Net debt (Non-GAAP) | $1,060,241 | $996,196 | | Net capitalization (Non-GAAP) | $2,277,272 | $2,174,511 | | Net debt to net capitalization ratio (Non-GAAP) | 46.6% | 45.8% | - Net debt to net capitalization ratio is useful for understanding leverage and financing ability, by adjusting for cash and cash equivalents[35](index=35&type=chunk) [Company Information and Outlook](index=5&type=section&id=Company%20Information%20and%20Outlook) This section provides an overview of Beazer Homes, details for its Q3 FY2025 conference call, and outlines key forward-looking statements and associated risk factors [About Beazer Homes](index=5&type=section&id=About%20Beazer%20Homes) Beazer Homes, a large U.S. homebuilder, differentiates itself through energy-efficient homes, 'Choice Plans' for personalization, and a 'Mortgage Choice' program - Beazer Homes is one of the country's largest homebuilders, headquartered in Atlanta, operating in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia[20](index=20&type=chunk)[21](index=21&type=chunk) - Differentiates through 'Surprising Performance' homes, offering **energy efficiency** (America's 1 Energy-Efficient Homebuilder with an average HERS score of **42 in 2024**), 'Choice Plans' for personalization, and 'Mortgage Choice' program for comparing loan options[20](index=20&type=chunk)[22](index=22&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Beazer Homes will host a conference call on July 31, 2025, at 5:00 p.m. ET to discuss Q3 FY2025 results, accessible via webcast or telephone - Conference call to discuss results on **July 31, 2025, at 5:00 p.m. ET**[19](index=19&type=chunk) - Access via 'Investor Relations' page on www.beazer.com or by telephone (**800-475-0542**, pass code '**8571348**')[19](index=19&type=chunk) - Replay available until **August 14, 2025** (**866-491-2908**, pass code '**3740**')[19](index=19&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) Forward-looking statements are subject to risks including macroeconomic uncertainty, elevated mortgage rates, supply chain challenges, and factors affecting margins and land costs - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially[23](index=23&type=chunk) - Key risks include **macroeconomic uncertainty** (inflation, elevated interest rates, insurance costs), **elevated mortgage interest rates**, **supply chain challenges**, and the ability to meet sustainability goals[23](index=23&type=chunk)[25](index=25&type=chunk) - Other risks include inaccurate backlog estimates, factors affecting margins (pricing adjustments, incentives), decreased revenues and land values, increased land development costs, availability and cost of land, capital raising ability, changes in tax laws, increased competition, natural disasters, labor shortages, cybersecurity issues, and governmental regulations[23](index=23&type=chunk)[25](index=25&type=chunk)

Core Insights - James Hardie Building Products Inc. has announced a new three-year exclusive agreement with Beazer Homes to continue providing Hardie® siding and trim products as the standard for new homes built by Beazer across the nation until 2028 [1][2][4] - This partnership emphasizes the commitment of both companies to quality, durability, and energy efficiency in home construction, reinforcing James Hardie's position as a leader in the fiber cement siding market [2][3] Company Overview - James Hardie is recognized as the 1 brand of siding in North America, known for its fiber cement siding and trim products that are engineered for strength, durability, and lasting quality [3][7] - The company employs over 3,700 individuals in North America and operates with a commitment to Zero Harm and an inclusive company culture [7] Partnership Details - The collaboration between James Hardie and Beazer Homes has been ongoing since 2010, focusing on delivering high-performance home exteriors that combine quality and durability with standout design [2][4] - Beazer Homes is noted for its energy-efficient building practices, with a gross HERS score of 42 as of December 2024, the lowest among the top 30 national homebuilders [5] Product Features - Hardie® siding products are noncombustible, resistant to moisture and pests, and designed to withstand extreme weather conditions, making them suitable for various climates and home styles [3][6] - The extended relationship aims to provide homeowners with beautiful, resilient homes that offer trusted protection and design flexibility [4]

Wall Street expects a year-over-year decline in earnings on lower revenues when Beazer Homes (BZH) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. O ...

Group 1 - The company Beazer Homes USA (NYSE: BZH) has been viewed positively, with a bullish outlook on its performance [1] - The focus of the investment service is on cash flow generation and identifying companies with growth potential in the oil and natural gas sector [1] - The service offers subscribers access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]