Core Points - Beazer Homes USA, Inc. will release its financial results for the quarter ended September 30, 2025, on November 13, 2025, after market close [1] - A conference call will be held on the same day at 5:00 PM ET to discuss the results [1] - The public can access the conference call via the company's website and by telephone [2] Company Overview - Beazer Homes is one of the largest homebuilders in the United States, headquartered in Atlanta [3] - The company focuses on providing quality homes designed for performance and comfort, with options for personalization through its Choice Plans™ [3] - Beazer Homes operates in multiple states including Arizona, California, Florida, and Texas, among others [4]

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Core Insights - Berkshire Hathaway has agreed to acquire Occidental Petroleum's chemical business, OxyChem, for $9.7 billion in cash, marking a significant transaction as it may be Warren Buffett's last major acquisition before stepping down as CEO at the end of the year [1][2]. Group 1: Acquisition Details - This acquisition is Berkshire's largest since the $11.6 billion purchase of insurer Allegheny in 2022, but it does not significantly impact the company's cash reserves, which were approximately $340 billion as of June 30 [2]. - The deal is perceived as a potential bargain due to the current depressed earnings in the chemical sector, with expectations for earnings to improve in the future [4]. Group 2: Market Reactions - Following the announcement, Occidental Petroleum's shares fell by as much as 8.1% on the day, ultimately closing the week down 5.5% [4]. - Analysts have mixed views on the deal; while some see it as beneficial for Berkshire, others highlight the challenges it poses for Occidental, including a $1.7 billion tax hit that could have been avoided if Berkshire had used its preferred shares for the transaction [6][7]. Group 3: Strategic Implications - The acquisition allows Occidental to reduce its debt load, which is viewed positively by analysts, indicating a strategic move that benefits both companies [7]. - Berkshire Hathaway's Vice Chairman, Greg Abel, emphasized the importance of the deal for Occidental's long-term financial stability, although the announcement notably did not mention Buffett's name [8].

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]

PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Beazer Homes USA, Inc. for the periods ended June 30, 2025, and September 30, 2024 [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show total assets increased to **$2.71 billion** as of June 30, 2025, from **$2.59 billion**, driven by owned inventory | Metric | June 30, 2025 (in thousands) | September 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :-------------------------------- | | 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 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations show a net loss for Q3 fiscal 2025 due to decreased revenue, increased inventory impairments, and higher expenses | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine 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 | | Net (loss) income | $(324) | $27,210 | $15,584 | $88,109 | | Basic (loss) income per share | $(0.01) | $0.89 | $0.52 | $2.88 | - Inventory impairments and abandonments significantly increased to **$10.3 million** for the three months ended June 30, 2025, from **$0.2 million** in the prior year quarter, contributing to the operating loss[11](index=11&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to **$1.217 billion** as of June 30, 2025, from **$1.232 billion**, primarily due to share repurchases | Metric (in thousands) | Nine Months Ended June 30, 2025 | | :-------------------- | :------------------------------ | | Balance as of September 30, 2024 | $1,232,111 | | Net income | $15,584 | | Share repurchases | $(33,077) | | Balance as of June 30, 2025 | $1,217,031 | - The company repurchased **1.491 million shares** for **$33.076 million** during the nine months ended June 30, 2025[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased for the nine months ended June 30, 2025, primarily from operating and investing activities, partially offset by financing | Cash Flow Activity (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(218,196) | $(322,981) | | Net cash used in investing activities | $(12,656) | $(23,875) | | Net cash provided by financing activities | $78,664 | $69,003 | | Net decrease in cash, cash equivalents, and restricted cash | $(152,188) | $(277,853) | | Cash, cash equivalents, and restricted cash at end of period | $90,422 | $108,436 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the company's business, accounting policies, inventory, debt, leases, contingencies, and other financial information [(1) Description of Business](index=8&type=section&id=%281%29%20Description%20of%20Business) Beazer Homes USA, Inc. is a geographically diversified homebuilder operating in 13 states, focusing on value-driven homes and strategic differentiators - Beazer Homes operates in **13 states** across three geographic regions: West, East, and Southeast[18](index=18&type=chunk) - The company's strategic differentiators include Mortgage Choice, Choice Plans, and Surprising Performance, aiming to maximize investment returns[19](index=19&type=chunk) [(2) Basis of Presentation and Summary of Significant Accounting Policies](index=8&type=section&id=%282%29%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements are unaudited and prepared under GAAP, with revenue recognized upon home transfer, and new pronouncements are being evaluated - The company's fiscal year 2025 began on **October 1, 2024**, and ends on **September 30, 2025**[22](index=22&type=chunk) | Revenue Stream (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Homebuilding revenue | $535,390 | $589,643 | $1,551,844 | $1,509,198 | | Land sales and other revenue | $9,977 | $6,039 | $27,815 | $14,842 | | Total revenue | $545,367 | $595,682 | $1,579,659 | $1,524,040 | - New accounting pronouncements (ASU 2023-07, 2023-09, 2024-03) will impact segment reporting, income tax disclosures, and income statement expense disaggregation, with effective dates ranging from fiscal year **2025 to 2028**[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Share Repurchase Program](index=9&type=section&id=Share%20Repurchase%20Program) A new **$100.0 million** share repurchase program was approved in April 2025, with **$87.5 million** remaining capacity as of June 30, 2025 - A new share repurchase program for up to **$100.0 million** was approved in April 2025, replacing a prior **$50.0 million** program[24](index=24&type=chunk) | Period | Shares Repurchased (in thousands) | Value (in millions) | Average Price Per Share | | :----- | :-------------------------------- | :------------------ | :---------------------- | | 3 months ended June 30, 2025 | 586 | $12.5 | $21.38 | | 9 months ended June 30, 2025 | 1,500 | $33.1 | $22.20 | | 3 months ended June 30, 2024 | 455 | $12.9 | $28.41 | - As of June 30, 2025, **$87.5 million** remained available under the share repurchase program[25](index=25&type=chunk) [(3) Supplemental Cash Flow Information](index=11&type=section&id=%283%29%20Supplemental%20Cash%20Flow%20Information) Supplemental cash flow information details non-cash and cash activities, including interest payments of **$67.6 million** and income tax payments of **$9.9 million** | Metric (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | | Increase in operating lease right-of-use assets | $1,493 | $4,114 | | Increase in operating lease liabilities | $1,493 | $4,114 | | Interest payments | $67,645 | $60,715 | | Income tax payments | $9,930 | $10,321 | | Total cash, cash equivalents, and restricted cash at end of period | $90,422 | $108,436 | [(4) Owned Inventory](index=12&type=section&id=%284%29%20Owned%20Inventory) Owned inventory increased to **$2.29 billion** as of June 30, 2025, with **$10.9 million** in impairment and abandonment charges for the nine months | Inventory Component (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------------------------- | :------------ | :----------------- | | Homes under construction | $914,261 | $754,705 | | Land under development | $1,073,661 | $1,023,188 | | Capitalized interest | $137,759 | $124,182 | | Total owned inventory | $2,292,063 | $2,040,640 | - As of June 30, 2025, the company had **2,539 homes** under construction, including **1,376 speculative homes** totaling **$490.5 million**[34](index=34&type=chunk) | Impairment/Abandonment Charges (in thousands) | Three Months Ended June 30, 2025 | Nine Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Projects in Progress | $8,642 | $8,642 | $0 | $0 | | Land Held for Sale | $1,466 | $1,466 | $0 | $0 | | Abandonments | $231 | $759 | $200 | $200 | | Total | $10,339 | $10,867 | $200 | $200 | [(5) Interest](index=16&type=section&id=%285%29%20Interest) Capitalized interest in inventory increased to **$137.8 million** as of June 30, 2025, with **$64.2 million** in interest incurred for the nine months | Interest Metric (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :----------------------------- | :------------------------------ | :------------------------------ | | Capitalized interest in inventory, beginning of period | $124,182 | $112,580 | | Interest incurred | $64,219 | $58,510 | | Capitalized interest impaired | $(1,096) | $0 | | Capitalized interest in inventory, end of period | $137,759 | $126,562 | [(6) Borrowings](index=16&type=section&id=%286%29%20Borrowings) Total debt, net, increased to **$1.14 billion** as of June 30, 2025, primarily due to increased borrowings under the Senior Unsecured Revolving Credit Facility | Debt Type (in thousands) | June 30, 2025 | September 30, 2024 | | :----------------------- | :------------ | :----------------- | | Total Senior Notes, net | $950,219 | $948,945 | | Junior Subordinated Notes | $77,954 | $76,404 | | Senior Unsecured Revolving Credit Facility | $115,000 | $0 | | Total debt, net | $1,143,173 | $1,025,349 | - The available borrowing capacity under the Senior Unsecured Revolving Credit Facility was increased from **$300.0 million** to **$365.0 million** on January 28, 2025[56](index=56&type=chunk) - As of June 30, 2025, the company had **$115.0 million** in borrowings and **$40.6 million** in letters of credit outstanding under the Unsecured Facility, with a remaining capacity of **$209.4 million**[58](index=58&type=chunk) [(7) Operating Leases](index=18&type=section&id=%287%29%20Operating%20Leases) Operating lease expense for the nine months ended June 30, 2025, was **$3.5 million**, with a weighted-average remaining lease term of **6.2 years** | Lease Metric (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------- | :------------------------------ | :------------------------------ | | Operating lease expense | $3,481 | $3,207 | | Cash payments on lease liabilities | $3,435 | $3,393 | | Lease Term/Rate | June 30, 2025 | June 30, 2024 | | :---------------- | :------------ | :------------ | | Weighted-average remaining lease term | 6.2 years | 6.7 years | | Weighted-average discount rate | 6.43% | 6.26% | [(8) Contingencies](index=19&type=section&id=%288%29%20Contingencies) Warranty reserves decreased to **$10.9 million**, while litigation accruals increased to **$9.8 million**, with **$330.2 million** in surety bonds outstanding | Warranty Reserve (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------ | :------------------------------ | :------------------------------ | | Balance at beginning of period | $12,717 | $13,046 | | Warranty provision | $4,766 | $6,499 | | Warranty expenditures | $(6,570) | $(7,710) | | Balance at end of period | $10,913 | $11,835 | - Litigation accruals were **$9.8 million** as of June 30, 2025, up from **$9.3 million** as of September 30, 2024[77](index=77&type=chunk) - Outstanding letters of credit and surety bonds totaled **$41.0 million** and **$330.2 million**, respectively, as of June 30, 2025, primarily for obligations to local governments[78](index=78&type=chunk) [(9) Fair Value Measurements](index=21&type=section&id=%289%29%20Fair%20Value%20Measurements) The company measures assets and liabilities at fair value using a hierarchy, with deferred compensation at Level 1 and Senior Notes at Level 2 | Asset/Liability (in thousands) | Fair Value Hierarchy Level | June 30, 2025 Carrying Amount | June 30, 2025 Fair Value | | :----------------------------- | :------------------------- | :---------------------------- | :----------------------- | | Deferred compensation plan assets | Level 1 | $8,288 | $8,288 | | Senior Notes | Level 2 | $950,219 | $964,995 | | Junior Subordinated Notes | Level 3 | $77,954 | $77,954 | [(10) Income Taxes](index=22&type=section&id=%2810%29%20Income%20Taxes) The company recognized an income tax benefit of **$0.8 million** for the nine months ended June 30, 2025, driven by energy efficiency tax credits - Income tax benefit from continuing operations was **$0.8 million** for the nine months ended June 30, 2025, compared to an expense of **$10.4 million** in the prior year[83](index=83&type=chunk) - The benefit was driven by energy efficiency tax credits and stock-based compensation activity[83](index=83&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, repeals energy efficiency tax credits for homes closing after June 30, 2026, which the company is evaluating for future financial impact[106](index=106&type=chunk)[159](index=159&type=chunk) [(11) Stock-Based Compensation](index=23&type=section&id=%2811%29%20Stock-Based%20Compensation) Stock-based compensation expense was **$5.4 million** for the nine months ended June 30, 2025, with **$10.3 million** in unrecognized costs remaining | Stock-Based Compensation (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Stock-based compensation expense | $5,442 | $5,536 | | Restricted Stock Activity (shares) | Nine Months Ended June 30, 2025 | | :--------------------------------- | :------------------------------ | | Beginning of period | 719,499 | | Granted | 285,789 | | Vested | (295,928) | | Forfeited | (32,189) | | End of period | 677,171 | - Total unrecognized compensation costs related to unvested restricted stock awards were **$10.3 million** as of June 30, 2025, to be recognized over a weighted average period of **1.9 years**[88](index=88&type=chunk) [(12) Earnings Per Share](index=24&type=section&id=%2812%29%20Earnings%20Per%20Share) Basic and diluted loss per share from continuing operations was **$(0.01)** for the three months ended June 30, 2025, a significant decrease from **$0.89** | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Basic (loss) income per share (Continuing operations) | $(0.01) | $0.89 | $0.52 | $2.88 | | Diluted (loss) income per share (Continuing operations) | $(0.01) | $0.88 | $0.52 | $2.84 | - All common stock equivalents were excluded from diluted loss per share computation for the three months ended June 30, 2025, due to their anti-dilutive effect resulting from the reported net loss[90](index=90&type=chunk) [(13) Other Liabilities](index=25&type=section&id=%2813%29%20Other%20Liabilities) Total other liabilities remained stable at **$148.8 million** as of June 30, 2025, including accrued compensations, customer deposits, and warranty reserves | Other Liabilities (in thousands) | June 30, 2025 | September 30, 2024 | | :------------------------------- | :------------ | :----------------- | | Accrued compensations and benefits | $32,344 | $45,335 | | Customer deposits | $20,730 | $18,669 | | Accrued interest | $16,562 | $23,369 | | Warranty reserves | $10,913 | $12,717 | | Litigation accruals | $9,844 | $9,297 | | Other | $58,425 | $38,114 | | Total | $148,818 | $149,900 | [(14) Segment Information](index=25&type=section&id=%2814%29%20Segment%20Information) Total revenue decreased for the three months ended June 30, 2025, with operating income declining across all segments, and the Southeast reporting a loss | Revenue by Segment (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | West | $329,149 | $369,359 | $1,001,921 | $953,790 | | East | $149,160 | $123,565 | $379,898 | $310,186 | | Southeast | $67,058 | $102,758 | $197,840 | $260,064 | | Total revenue | $545,367 | $595,682 | $1,579,659 | $1,524,040 | | Operating (Loss) Income by Segment (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | West | $27,402 | $45,582 | $94,291 | $119,951 | | East | $14,473 | $9,158 | $28,702 | $27,796 | | Southeast | $(2,561) | $12,755 | $3,797 | $32,848 | | Corporate and unallocated | $(43,024) | $(38,971) | $(114,993) | $(95,815) | | Total operating (loss) income | $(3,710) | $28,524 | $11,797 | $84,780 | | Capital Expenditures by Segment (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------ | :------------------------------ | | West | $7,627 | $9,132 | | East | $2,274 | $1,829 | | Southeast | $3,753 | $756 | | Corporate and unallocated | $7,373 | $4,974 | | Total capital expenditures | $21,027 | $16,691 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an executive overview of market conditions, strategic responses, and a detailed analysis of the company's financial performance and liquidity [Executive Overview and Outlook](index=30&type=section&id=Executive%20Overview%20and%20Outlook) The sales environment remained challenging in Q3 fiscal 2025 due to high mortgage rates, with the company focusing on disciplined land spend and share repurchases - The sales environment in Q3 fiscal 2025 was challenging due to elevated mortgage rates, weak consumer sentiment, and macroeconomic uncertainties[101](index=101&type=chunk) - The company repurchased approximately **586,000 shares** for **$12.5 million** during Q3 fiscal 2025[101](index=101&type=chunk) - Multi-Year Goals (updated Q2 fiscal 2025) include reducing net debt to net capitalization to the **low 30% range** by end of fiscal 2027, achieving double-digit compound annual growth in book value per share from fiscal 2024 through fiscal 2027, and reaching over **200 active communities** by end of fiscal 2027[102](index=102&type=chunk) [Overview of Results for Our Fiscal Third Quarter](index=30&type=section&id=Overview%20of%20Results%20for%20Our%20Fiscal%20Third%20Quarter) Q3 fiscal 2025 saw a **14.9%** increase in active community count but a **19.5%** decrease in net new orders and a decline in homebuilding gross margin | Metric | Q3 Fiscal 2025 | Q3 Fiscal 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Average active community count | 167 | 146 | 14.9% | | Net new orders | 861 | 1,070 | (19.5)% | | Orders per community per month | 1.7 | 2.4 | (30.0)% | | ASP for homes closed (in thousands) | $517.3 | $505.3 | 2.4% | | Homebuilding gross margin | 13.5% | 17.3% | (380 bps) | | SG&A as % of total revenue | 13.2% | 11.9% | 130 bps | - Land acquisition and development investment decreased to **$153.8 million** in Q3 fiscal 2025 from **$201.1 million** in Q3 fiscal 2024[103](index=103&type=chunk) - Homebuilding gross margin, excluding impairments, abandonments, and interest, was **18.4%** in Q3 fiscal 2025, down from **20.3%** in Q3 fiscal 2024, primarily due to increased price concessions, closing cost incentives, and higher share of spec home closings[105](index=105&type=chunk) [Seasonal and Quarterly Variability](index=31&type=section&id=Seasonal%20and%20Quarterly%20Variability) Homebuilding operations typically show escalating new order activity in Q2 and Q3 and increased closings in Q3 and Q4, but market volatility can impact these patterns - Homebuilding operating cycle historically reflects escalating new order activity in Q2 and Q3, and increased closings in Q3 and Q4[104](index=104&type=chunk) - Seasonal patterns can be impacted by market volatility and changes in mortgage interest rates, affecting new orders and closings[104](index=104&type=chunk) [RESULTS OF CONTINUING OPERATIONS](index=32&type=section&id=RESULTS%20OF%20CONTINUING%20OPERATIONS) This section details financial performance from continuing operations, highlighting decreased total revenue, gross profit, and operating income for the three and nine months ended June 30, 2025 [Revenue, Gross Profit, Gross Margin](index=32&type=section&id=Revenue%2C%20Gross%20Profit%2C%20Gross%20Margin) Total revenue decreased by **8.4%** to **$545.4 million** for the three months ended June 30, 2025, with homebuilding gross margin falling to **13.5%** | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total revenue | $545,367 | $595,682 | $1,579,659 | $1,524,040 | | Total gross profit | $72,580 | $103,304 | $230,656 | $282,887 | | Homebuilding gross margin | 13.5% | 17.3% | 14.6% | 18.5% | | SG&A as % of total revenue | 13.2% | 11.9% | 13.0% | 12.4% | - Homebuilding gross margin, excluding impairments, abandonments, and interest, was **18.4%** for the three months ended June 30, 2025, down from **20.3%** in the prior year quarter[106](index=106&type=chunk) [Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Non-GAAP)](index=33&type=section&id=Reconciliation%20of%20Net%20%28Loss%29%20Income%20%28GAAP%29%20to%20Adjusted%20EBITDA%20%28Non-GAAP%29) Adjusted EBITDA decreased to **$32.1 million** for the three months ended June 30, 2025, from **$53.5 million**, reflecting lower net income and increased impairments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net (loss) income (GAAP) | $(324) | $27,210 | $15,584 | $88,109 | | Adjusted EBITDA (Non-GAAP) | $32,099 | $53,496 | $93,956 | $150,290 | - Adjusted EBITDA is used to understand core operating results by eliminating differences in capitalization, tax position, impairments, and non-recurring items[107](index=107&type=chunk) [Reconciliation of Total Debt to Total Capitalization Ratio (GAAP) to Net Debt to Net Capitalization Ratio (Non-GAAP)](index=34&type=section&id=Reconciliation%20of%20Total%20Debt%20to%20Total%20Capitalization%20Ratio%20%28GAAP%29%20to%20Net%20Debt%20to%20Net%20Capitalization%20Ratio%20%28Non-GAAP%29) The net debt to net capitalization ratio increased to **46.6%** as of June 30, 2025, from **45.8%** a year prior, indicating a slight increase in leverage | Metric (in thousands) | As of June 30, 2025 | As of June 30, 2024 | | :-------------------- | :------------------ | :------------------ | | Total debt (GAAP) | $1,143,173 | $1,069,408 | | Total capitalization (GAAP) | $2,360,204 | $2,247,723 | | Total debt to total capitalization ratio (GAAP) | 48.4% | 47.6% | | 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% | [Homebuilding Operations Data](index=35&type=section&id=Homebuilding%20Operations%20Data) Net new orders decreased by **19.5%** for the three months ended June 30, 2025, to **861**, driven by a **30.0%** decrease in sales pace | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net New Orders | 861 | 1,070 | (19.5)% | | Cancellation Rates | 19.8% | 18.6% | 1.2 ppt | | Backlog Units | 1,352 | 1,949 | (30.6)% | | Aggregate dollar value of homes in backlog (in millions) | $742.5 | $1,046.5 | (29.0)% | | ASP in backlog (in thousands) | $549.2 | $536.9 | 2.3% | - The decrease in net new orders was primarily due to a **30.0%** decrease in sales pace (from **2.4 to 1.7 orders** per community per month), partially offset by a **14.9%** increase in average active community count[111](index=111&type=chunk) - The West segment experienced the largest decline in net new orders (**32.6%**) and sales pace (**37.4%**) for the three months ended June 30, 2025[113](index=113&type=chunk) [Homebuilding Revenue, Average Selling Price, and Closings](index=37&type=section&id=Homebuilding%20Revenue%2C%20Average%20Selling%20Price%2C%20and%20Closings) Homebuilding revenue decreased by **9.2%** to **$535.4 million** for the three months ended June 30, 2025, due to an **11.3%** decrease in closings | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Homebuilding Revenue | $535,390 | $589,643 | $1,551,844 | $1,509,198 | | Average Selling Price | $517.3 | $505.3 | $513.7 | $510.9 | | Closings | 1,035 | 1,167 | 3,021 | 2,954 | - The East segment saw a **20.1%** increase in homebuilding revenue for the three months ended June 30, 2025, driven by a **12.6%** increase in ASP and **6.7%** increase in closings[122](index=122&type=chunk) - The Southeast segment experienced a **34.8%** decrease in homebuilding revenue for the three months ended June 30, 2025, due to a **33.7%** decrease in closings[123](index=123&type=chunk) [Homebuilding Gross Profit and Gross Margin](index=38&type=section&id=Homebuilding%20Gross%20Profit%20and%20Gross%20Margin) Homebuilding gross profit decreased by **$29.5 million** to **$72.5 million** for the three months ended June 30, 2025, with gross margin falling to **13.5%** | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Homebuilding Gross Profit (GAAP) | $72,474 | $101,983 | $226,581 | $278,700 | | Homebuilding Gross Margin (GAAP) | 13.5% | 17.3% | 14.6% | 18.5% | | Homebuilding Gross Profit excluding I&A and Interest (Non-GAAP) | $98,730 | $119,450 | $284,501 | $323,428 | | Homebuilding Gross Margin excluding I&A and Interest (Non-GAAP) | 18.4% | 20.3% | 18.3% | 21.4% | - The decrease in gross margin (excluding impairments and interest) for the three months ended June 30, 2025, was due to increased price concessions, closing cost incentives, higher spec home closings, and changes in product/community mix[132](index=132&type=chunk) - The East segment's homebuilding gross margin (excluding impairments) increased to **17.8%** from **16.3%** in the prior year quarter, driven by higher margin communities[134](index=134&type=chunk) [Land Sales and Other Revenue and Gross Profit](index=41&type=section&id=Land%20Sales%20and%20Other%20Revenue%20and%20Gross%20Profit) Land sales and other revenue increased to **$10.0 million** for the three months ended June 30, 2025, but gross profit decreased due to a **$1.5 million** impairment charge | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Land Sales and Other Revenue | $9,977 | $6,039 | $27,815 | $14,842 | | Land Sales and Other Gross Profit | $106 | $1,321 | $4,075 | $4,187 | - A **$1.5 million** land held for sale impairment charge was recognized during the three and nine months ended June 30, 2025, due to a strategic decision to sell a portion of lots in the Phoenix market[143](index=143&type=chunk) [Operating (Loss) Income](index=42&type=section&id=Operating%20%28Loss%29%20Income) Operating income resulted in a loss of **$3.7 million** for the three months ended June 30, 2025, primarily due to lower gross profit and increased impairments | Operating (Loss) Income (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | West | $27,402 | $45,582 | $94,291 | $119,951 | | East | $14,473 | $9,158 | $28,702 | $27,796 | | Southeast | $(2,561) | $12,755 | $3,797 | $32,848 | | Corporate and unallocated | $(43,024) | $(38,971) | $(114,993) | $(95,815) | | Total Operating (loss) income | $(3,710) | $28,524 | $11,797 | $84,780 | - The **$32.2 million** decrease in operating income for the three months ended June 30, 2025, was primarily due to decreased gross profit and **$10.3 million** in inventory impairments and abandonments[146](index=146&type=chunk) - Corporate and unallocated net expenses increased by **$4.1 million** for the three months and **$19.2 million** for the nine months, driven by higher G&A, depreciation, amortization, and impairment of capitalized interest/indirect costs[151](index=151&type=chunk)[155](index=155&type=chunk) [Income Taxes](index=43&type=section&id=Income%20Taxes) The company recorded an income tax benefit of **$2.2 million** for the three months and **$0.8 million** for the nine months ended June 30, 2025, primarily due to tax credits - Income tax benefit from continuing operations was **$2.2 million** for the three months and **$0.8 million** for the nine months ended June 30, 2025[158](index=158&type=chunk) - The benefit was primarily driven by energy efficiency tax credits and stock-based compensation activity[158](index=158&type=chunk) - The One Big Beautiful Bill Act (OBBBA) will repeal energy efficiency tax credits for homes closing after June 30, 2026, which may impact future tax provisions[159](index=159&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity sources include cash from operations, Senior Notes, and its Senior Unsecured Revolving Credit Facility, with **$82.9 million** in cash and **$209.4 million** remaining credit capacity [Net Changes in Cash Flows](index=44&type=section&id=Net%20Changes%20in%20Cash%20Flows) For the nine months ended June 30, 2025, the company experienced a net decrease in cash, cash equivalents, and restricted cash of **$152.2 million** | Cash Flow Activity (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(218,196) | $(322,981) | | Net cash used in investing activities | $(12,656) | $(23,875) | | Net cash provided by financing activities | $78,664 | $69,003 | | Net decrease in cash, cash equivalents, and restricted cash | $(152,188) | $(277,853) | [Operating Activities](index=44&type=section&id=Operating%20Activities) Net cash used in operating activities was **$218.2 million** for the nine months ended June 30, 2025, primarily due to a **$258.9 million** increase in inventory - Net cash used in operating activities was **$218.2 million** for the nine months ended June 30, 2025[162](index=162&type=chunk) - Primary drivers included a **$258.9 million** increase in inventory and a **$3.5 million** increase in non-inventory working capital balances[162](index=162&type=chunk) [Investing Activities](index=44&type=section&id=Investing%20Activities) Net cash used in investing activities was **$12.7 million** for the nine months ended June 30, 2025, mainly for capital expenditures and investment securities purchases - Net cash used in investing activities was **$12.7 million** for the nine months ended June 30, 2025[164](index=164&type=chunk) - This was primarily driven by capital expenditures and purchases of investment securities, offset by proceeds from maturities[164](index=164&type=chunk) [Financing Activities](index=44&type=section&id=Financing%20Activities) Net cash provided by financing activities was **$78.7 million** for the nine months ended June 30, 2025, primarily from net borrowings under the Unsecured Facility - Net cash provided by financing activities was **$78.7 million** for the nine months ended June 30, 2025[166](index=166&type=chunk) - This was primarily driven by net borrowings from the Unsecured Facility, partially offset by common stock repurchases (**$33.1 million**) and tax payments for stock-based compensation awards (**$3.1 million**)[166](index=166&type=chunk) [Financial Position](index=44&type=section&id=Financial%20Position) As of June 30, 2025, liquidity included **$82.9 million** in cash and **$209.4 million** remaining capacity under the Unsecured Facility - As of June 30, 2025, liquidity consisted of **$82.9 million** in cash and cash equivalents and **$209.4 million** remaining capacity under the Unsecured Facility[168](index=168&type=chunk) - The company may engage in capital markets, bank loans, or other financial transactions to support business needs[170](index=170&type=chunk) [Debt](index=45&type=section&id=Debt) The company's short-term cash needs are met by operations and available borrowings, with **$115.0 million** outstanding under the **$365.0 million** Unsecured Facility - The Unsecured Facility provides **$365.0 million** in working capital and letter of credit capacity[171](index=171&type=chunk) - As of June 30, 2025, **$115.0 million** was borrowed and **$40.6 million** in letters of credit were outstanding under the Unsecured Facility, with **$209.4 million** remaining capacity[171](index=171&type=chunk) [Supplemental Guarantor Information](index=45&type=section&id=Supplemental%20Guarantor%20Information) Substantially all subsidiaries provide full and unconditional guarantees for certain debt agreements, making them jointly and severally liable - Substantially all significant subsidiaries are full and unconditional guarantors of the company's debt obligations[174](index=174&type=chunk) [Credit Ratings](index=45&type=section&id=Credit%20Ratings) S&P reaffirmed the B+ corporate credit rating but revised the outlook to negative in February 2025, while Moody's reaffirmed B1 with a stable outlook - S&P reaffirmed **B+** corporate credit rating but revised outlook from stable to negative in February 2025[175](index=175&type=chunk) - Moody's reaffirmed **B1** issuer corporate family rating and stable outlook in October 2024[175](index=175&type=chunk) - Negative changes to credit ratings could result in more stringent covenants and higher interest rates on new debt[175](index=175&type=chunk) [Stock Repurchases and Dividends Paid](index=46&type=section&id=Stock%20Repurchases%20and%20Dividends%20Paid) A new **$100.0 million** share repurchase program was approved in April 2025, with no dividends paid during the three and nine months ended June 30, 2025 or 2024 - A new **$100.0 million** share repurchase program was approved in April 2025[176](index=176&type=chunk) - **586 thousand shares** were repurchased for **$12.5 million** during the three months ended June 30, 2025[176](index=176&type=chunk) - No dividends were paid during the three and nine months ended June 30, 2025 or 2024[177](index=177&type=chunk) [Off-Balance Sheet Arrangements and Aggregate Contractual Commitments](index=46&type=section&id=Off-Balance%20Sheet%20Arrangements%20and%20Aggregate%20Contractual%20Commitments) The company controls **27,794 lots** through option agreements, with **$322.6 million** in non-refundable deposits and **$1.65 billion** in remaining purchase price - As of June 30, 2025, the company controlled **27,794 lots**, with **16,195 (60.1% of active lots)** under option agreements[178](index=178&type=chunk) - Non-refundable deposits and pre-acquisition costs for lot options totaled **$322.6 million**, with a remaining purchase price of **$1.65 billion** as of June 30, 2025[179](index=179&type=chunk) - Outstanding letters of credit and surety bonds were **$41.0 million** and **$330.2 million**, respectively, as of June 30, 2025, mainly for local government development obligations[182](index=182&type=chunk) [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) Critical accounting policies include inventory valuation, warranty reserves, and income tax valuation allowances, with no significant changes during the nine months ended June 30, 2025 - Critical accounting policies include inventory valuation of projects in progress, warranty reserves, and income tax valuation allowances[183](index=183&type=chunk) - No significant changes to critical accounting policies and estimates occurred during the nine months ended June 30, 2025[183](index=183&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with **$78.0 million** in variable rate debt, where a **one percent** increase would raise interest expense by **$1.0 million** - Primary market risk exposure is to interest rate fluctuations[184](index=184&type=chunk) - As of June 30, 2025, variable rate debt totaled approximately **$78.0 million**[184](index=184&type=chunk) - A **one percent** increase in interest rates on variable debt would increase interest expense by approximately **$1.0 million** over the next twelve months[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[185](index=185&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[187](index=187&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the company [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, primarily related to construction defects, with timing and financial impact remaining uncertain - For a discussion of legal proceedings, refer to Note 8 of the condensed consolidated financial statements[188](index=188&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - No material changes to risk factors were disclosed compared to the Annual Report on Form 10-K for fiscal year ended September 30, 2024[189](index=189&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended June 30, 2025, the company repurchased **585,959 shares** for **$12.5 million** under its new **$100.0 million** share repurchase program | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | | :----------------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------------- | | April 1 - April 30, 2025 | — | $— | $100,000,000 | | May 1 - May 31, 2025 | 100,000 | $21.74 | $97,826,070 | | June 1 - June 30, 2025 | 485,959 | $21.31 | $87,472,259 | | Total | 585,959 | $21.38 | $87,472,259 | - A new share repurchase program authorizing up to **$100.0 million** was approved in April 2025, replacing the prior program[190](index=190&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans for company securities during the fiscal quarter ended June 30, 2025 - No Rule 10b5-1 trading plans were adopted or terminated by directors or executive officers during the quarter ended June 30, 2025[191](index=191&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, guarantor subsidiaries list, and Inline XBRL financial statements - Exhibits include certifications of CEO and CFO (31.1, 31.2, 32.1, 32.2), List of Guarantor Subsidiaries (22.1), and Inline XBRL financial statements (101, 104)[191](index=191&type=chunk) [SIGNATURES](index=48&type=section&id=SIGNATURES) The report is duly signed on behalf of Beazer Homes USA, Inc. by David I. Goldberg, Senior Vice President and Chief Financial Officer, on July 31, 2025 - The report was signed by David I. Goldberg, Senior Vice President and Chief Financial Officer, on July 31, 2025[195](index=195&type=chunk)[196](index=196&type=chunk)

[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]