Core Viewpoint - Beazer Homes (BZH) shares experienced a significant increase of 7.1% to $20.37, following a favorable policy outcome for the housing industry, particularly tariff exceptions for Canada and Mexico, which were deemed a major win for homebuilders [2][4]. Company Summary - Beazer Homes is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of 77%. Revenue projections stand at $545.2 million, indicating a slight increase of 0.7% compared to the same quarter last year [2]. - The consensus EPS estimate for Beazer has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4]. Industry Summary - Homebuilding stocks, including Beazer Homes, surged due to positive policy developments, with the National Association of Home Builders highlighting the tariff exceptions as beneficial for the industry [2]. - PulteGroup (PHM), another company in the same industry, saw its stock rise by 3.6% to $101.24, although it has experienced a -9.7% return over the past month. PulteGroup's consensus EPS estimate remains unchanged at $2.48, representing a 13.6% decline from the previous year [4][5].

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Core Viewpoint - Beazer Homes is experiencing significant challenges in the housing market in 2025, leading to a projected decline in earnings and a bearish outlook from analysts [1][7]. Financial Performance - Beazer Homes reported fiscal first quarter 2025 earnings of $0.10, missing the Zacks Consensus estimate by $0.21, which represents a 67.7% earnings miss [5]. - Revenue increased by 20.9% year-over-year to $460.4 million, driven by a 22.1% rise in home closings to 907 homes, despite a 1% decrease in average sales price to $507,600 [6]. - The adjusted gross margin fell to 18.2% from 22.9% the previous year, attributed to increased price concessions, closing cost incentives, and a higher share of lower-margin spec home closings [7]. Share Repurchase and Market Response - Beazer Homes announced an acceleration of its share repurchase program, with approximately $24.8 million remaining as of February 6, 2025, and has repurchased about $4.1 million of its shares at a weighted average price of $21.86 [2][3]. - The company's shares have declined by 27.6% over the last six months, reflecting market fears regarding the housing sector and tariff impacts [9]. Analyst Sentiment and Valuation - Analysts have become increasingly bearish on Beazer Homes, with the Zacks Consensus Estimate for the full year dropping from $4.44 to $3.49, a decline of 23% [8]. - Beazer Homes is currently considered undervalued, with a forward price-to-earnings (P/E) ratio of 6.2 and a PEG ratio of 0.3, indicating potential value and growth [11].

Financial Performance - Revenue for Q4 2024 was $468.95 million, up 21.2% YoY [1] - EPS was $0.10, compared to $0.70 in the year-ago quarter [1] - Revenue surpassed Zacks Consensus Estimate by 1.82% ($460.59 million) [1] - EPS missed consensus estimate by 67.74% ($0.31) [1] Key Metrics Analysis - Total home closings: 907 vs 890 estimated [4] - Average Closing Price: $507.60 vs $514.67 estimated [4] - New orders, net of cancellations: 932 vs 1,071 estimated [4] - Units in Backlog: 1,507 vs 1,663 estimated [4] - Average active community count: 161 vs 162 estimated [4] Revenue Breakdown - Homebuilding revenue: $460.42 million, up 20.9% YoY vs $458.08 million estimated [4] - Land sales and other revenue: $8.53 million, up 44.6% YoY vs $2.50 million estimated [4] Profit Analysis - Homebuilding gross profit: $69.98 million vs $72.52 million estimated [4] - Land sales and other gross profit: $2.10 million vs $1.03 million estimated [4] Stock Performance - Shares returned -1.9% over the past month vs Zacks S&P 500 composite's +1.2% change [3] - Current Zacks Rank: 3 (Hold) [3]

Beazer Homes USA, Inc. Q1 2025 Earnings Presentation 1 Disclaimers This presentation contains forward-looking statements about Beazer Homes USA, Inc. ("Beazer Homes") that only speak as of this date. Beazer Homes disclaims any obligation to update these statements. These forward-looking statements represent our good-faith estimates, expectations or beliefs concerning future events, and it is possible that the results described in this presentation will not be achieved. Forward-looking statements in this doc ...

Core Viewpoint - Beazer Homes reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.31 per share, and showing a significant decline from $0.70 per share a year ago, resulting in an earnings surprise of -67.74% [1] Financial Performance - Beazer posted revenues of $468.95 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.82%, and showing an increase from year-ago revenues of $386.82 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Beazer shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.96 on revenues of $627.46 million, and for the current fiscal year, it is $4.44 on revenues of $2.75 billion [7] Industry Context - The Building Products - Home Builders industry, to which Beazer belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - The total revenue for the quarter was $468.953 million, up from $386.818 million in the prior year, representing a growth of 21.2%[111]. - Net income for Q4 2024 was $3,130, a decrease of 85.6% from $21,728 in Q4 2023[113]. - Adjusted EBITDA for Q4 2024 was $23,044, down 39.4% from $38,018 in Q4 2023[113]. - Homebuilding revenue for Q4 2024 was $460,422, an increase of 20.9% from $380,919 in Q4 2023[122]. - Operating income decreased by $18.1 million to $2.1 million for the three months ended December 31, 2024, compared to $20.3 million in the prior year quarter[138]. Homebuilding Metrics - For the quarter ended December 31, 2024, the average active community count increased by 17.8% to 161 from 137 in the prior year quarter[107]. - Net new orders increased by 13.2% to 932 from 823 in the prior year quarter, despite a slight decline in sales pace to 1.9 orders per community per month[107]. - The backlog units decreased by 15.9% to 1,507 as of December 31, 2024, compared to 1,791 in 2023[121]. - The Average Selling Price (ASP) for homes closed was $507.6 thousand, down 1.0% from $512.7 thousand in the prior year quarter[107]. - Average Selling Price (ASP) in backlog increased by 4.0% to $541.5 thousand in 2024 from $520.8 thousand in 2023[121]. Cost and Margin Analysis - Homebuilding gross margin decreased to 15.2% from 19.9% in the prior year quarter, while gross margin excluding impairments was 18.2%, down from 22.9%[110]. - Homebuilding gross profit decreased by $6.0 million to $70.0 million for the three months ended December 31, 2024, compared to $75.9 million in the prior year quarter, with a gross margin decrease of 470 basis points to 15.2%[130]. - SG&A expenses as a percentage of total revenue improved to 14.0% from 14.3% in the prior year quarter, indicating better overhead cost management[110]. - SG&A expense increased by 19.3% compared to the prior year quarter, while SG&A as a percentage of total revenue improved by 30 basis points to 14.0%[138]. Investment and Development - The company invested $211.3 million in land acquisition and development, a 6.3% increase compared to $198.7 million in the same quarter last year[107]. - The company controlled 28,874 lots as of December 31, 2024, a 9.5% increase from 26,374 lots in the prior year[107]. - The company aims to reach more than 200 active communities by the end of fiscal 2026 and achieve 100% Zero Energy Ready home starts by the end of calendar year 2025[106]. Debt and Liquidity - Total debt increased to $1,071,290 as of December 31, 2024, up 9.9% from $974,644 in 2023[115]. - As of December 31, 2024, the liquidity position included $80.4 million in cash and cash equivalents and $255.0 million of remaining capacity under the Unsecured Facility[153]. - The company had $45.0 million in borrowings under the Unsecured Facility as of December 31, 2024, with a remaining borrowing capacity of $255.0 million[156]. - A one percent increase in interest rates on variable rate debt of approximately $76.9 million would increase interest expense by about $1.0 million over the next twelve months[171]. Segment Performance - The West segment saw a 24.5% increase in homebuilding revenue, driven by a 28.0% increase in closings[123]. - The East segment experienced a 51.3% increase in homebuilding revenue, attributed to a 47.8% increase in closings[124]. - The Southeast segment's homebuilding revenue decreased by 19.7%, primarily due to an 18.3% decrease in closings[125]. - The West segment's homebuilding gross profit increased by $2.5 million, while gross margin decreased to 18.3%, down from 21.7% in the prior year quarter[131]. - The East segment's homebuilding gross profit increased by $3.7 million, with gross margin decreasing to 15.1%, down from 17.7% in the prior year quarter[132]. - The Southeast segment's homebuilding gross profit decreased by $7.1 million, with gross margin decreasing to 16.1%, down from 22.4% in the prior year quarter[133]. Cash Flow - Net cash used in operating activities was $159.4 million for the three months ended December 31, 2024, primarily driven by an increase in inventory of $122.3 million[148]. - Net cash used in operating activities was $225.6 million for the three months ended December 31, 2023, primarily driven by an increase in inventory of $196.3 million[149]. - Net cash used in investing activities was $12.8 million for the three months ended December 31, 2023, mainly due to capital expenditures for model homes and information systems infrastructure[150]. - Net cash provided by financing activities was $41.9 million for the three months ended December 31, 2024, primarily from net borrowings[151]. Other Financial Information - Corporate and unallocated net expenses increased by $11.0 million from the prior year quarter, primarily due to higher G&A expenses and higher amortization of capitalized interest[142]. - Land sales and other revenue increased by $2.6 million to $8.5 million, with land sales and other gross profit increasing by $0.3 million to $2.1 million compared to the prior year quarter[135]. - Outstanding letters of credit and surety bonds totaled $37.1 million and $320.6 million, respectively, as of December 31, 2024[169]. - No share repurchases were made during the three months ended December 31, 2024, with $28.9 million remaining in the share repurchase program[162].

Financial Performance - Net income from continuing operations for Q1 2025 was $3.1 million, or $0.10 per diluted share, down from $21.7 million, or $0.70 per diluted share in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $23.0 million, a decrease of 39.4% compared to $38.0 million in Q1 2024[3] - Operating income for the quarter was $2.138 million, a significant decrease from $20.265 million in the same quarter of 2023[26] - Net income (GAAP) for Q4 2024 was $3,130,000, a decrease from $21,728,000 in Q4 2023[32] - Adjusted EBITDA (Non-GAAP) for the trailing 12 months ended December 31, 2024, was $228,444,000, down from $262,901,000 in the previous year[32] - EBIT (Non-GAAP) for Q4 2024 was $17,076,000, down from $34,099,000 in Q4 2023[32] - EBITDA (Non-GAAP) for Q4 2024 was $21,131,000, a decrease from $36,332,000 in Q4 2023[32] Revenue and Sales - Homebuilding revenue increased by 20.9% year-over-year to $460.4 million, driven by a 22.1% increase in home closings to 907 homes[6] - Total revenue for the three months ended December 31, 2024, was $468.953 million, an increase of 21.3% compared to $386.818 million in the same period of 2023[26] - Total closings increased to 907 units, a rise of 22.1% from 743 units in the same quarter of 2023[29] - New orders, net of cancellations, rose to 932 units, up 13.3% from 823 units year-over-year[29] - Homebuilding revenue for the West region was $291.863 million, up 24.5% from $234.409 million in the prior year[29] Backlog and Orders - Net new orders increased to 932, up 13.2% from 823 in the prior year quarter, with a cancellation rate of 16.5%, down from 19.0%[4] - The backlog dollar value as of December 31, 2024, was $816.0 million, down 12.5% from $932.8 million a year ago, with an average selling price (ASP) of $541.5 thousand, up 4.0%[5] - The aggregate dollar value of homes in backlog decreased to $816.0 million from $932.8 million, reflecting a decline of 12.5%[29] Assets and Liabilities - Total debt as of December 31, 2024, was $1.071 billion, an increase from $1.025 billion at the end of September 2024[28] - Cash and cash equivalents decreased significantly to $80.379 million from $203.907 million[28] - Total debt (GAAP) increased to $1,071,290,000 as of December 31, 2024, compared to $974,644,000 in 2023[34] - Net debt (Non-GAAP) rose to $990,911,000 in 2024, up from $870,418,000 in 2023[34] - Net debt to net capitalization ratio (Non-GAAP) was 44.5% as of December 31, 2024, compared to 43.7% in the previous year[34] Equity and Capitalization - Stockholders' equity (GAAP) increased to $1,234,048,000 in 2024 from $1,121,011,000 in 2023[34] - Total capitalization (GAAP) increased to $2,305,338,000 in 2024 from $2,095,655,000 in 2023[34] Community and Sustainability Initiatives - The active community count at the end of the quarter was 163, up 19.9% from 136 in the prior year[4] - The company aims to end fiscal year 2025 with approximately 180 active communities and control land for 200 active communities by the end of fiscal year 2026[2] - 98% of home starts in Q1 2025 were built to Zero Energy Ready standards, with a goal of 100% by December 2025[11] - The company aims for every home started by the end of 2025 to be Zero Energy Ready, as part of its sustainability initiatives[24] Land Acquisition and Development - Land acquisition and development spending was $211.3 million, an increase of 6.3% from $198.7 million in the prior year[9] - Controlled lots increased by 9.5% to 28,874 compared to 26,374 in the prior year[9] One-time Gains - The company recognized a one-time gain of $8.6 million from the sale of a minority interest in a technology company, which was excluded from Adjusted EBITDA[32]

Core Insights - Beazer Homes and Green Builder Media have partnered to showcase three show homes during IBS/KBIS 2025, emphasizing energy-efficient and market-rate home building [1][2] - The VISION House Las Vegas will highlight sustainable building practices, including net zero energy, electrification, and cost-effectiveness [2][3] Company Initiatives - Beazer Homes aims to have zero energy ready homes across its entire portfolio, demonstrating the feasibility of sustainable building at scale [2] - The VISION House Las Vegas will feature various models, including a baseline model, an upgrade model, and a deconstructed home to showcase behind-the-wall systems [3] Sustainability Features - The homes will comply with the ZERH program, requiring ENERGY STAR certification, Indoor airPLUS qualification, and renewable energy-ready designs [4] - Key features include energy-efficient roofing, insulation, appliances, solar arrays, smart thermostats, and low VOC materials [5] Industry Context - Green Builder Media is a leading company in North America focused on green building and sustainable living, providing a range of content and resources related to energy efficiency and smart home technologies [6]

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