[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]

Core Viewpoint - Wall Street anticipates a year-over-year decline in Beazer Homes' earnings due to lower revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - Beazer Homes is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decrease of 52.3% [3]. - Projected revenues for the quarter are $554.33 million, down 6.9% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.36% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. - The Most Accurate Estimate for Beazer is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.76%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [10]. - Beazer currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Beazer exceeded the expected earnings of $0.26 per share, achieving $0.42, which resulted in a surprise of +61.54% [13]. - Over the past four quarters, Beazer has beaten consensus EPS estimates three times [14]. Conclusion - While Beazer does not appear to be a compelling earnings-beat candidate, investors should consider other factors before making investment decisions [17].

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

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

Market Performance - U.S. stocks closed higher on Friday, with the S&P 500 achieving its longest winning streak since November 2004, marking nine consecutive days of gains [1] - The S&P 500 increased by 2.9% for the week, while the Dow gained 3% and the Nasdaq rose by 3.4% [1] Analyst Insights - Wall Street analysts frequently update stock picks, but their track records can vary significantly, leading to confusion among investors [2] - Benzinga's Analyst Ratings API compiles high-quality stock ratings from major sell-side banks, providing insights that can serve as effective trading indicators [3] Top Analyst Picks - Benzinga offers access to the latest analyst ratings, allowing traders to sort by analyst accuracy [4] - Notable analysts and their recent ratings include: - Zachary Fadem from Wedbush with an 86% accuracy, maintaining an Outperform rating on Beazer Homes USA, Inc. with a price target cut from $45 to $41, indicating a 93% upside [5] - An analyst from JP Morgan with 85% accuracy, maintaining an Overweight rating on Amazon.com, Inc. and raising the price target from $220 to $225, suggesting a 20% surge potential [5] - An analyst from UBS with 85% accuracy, maintaining a Buy rating on Meta Platforms, Inc. and increasing the price target from $650 to $683, indicating a 16% upside [5] - An analyst from Cantor Fitzgerald with 84% accuracy, maintaining an Overweight rating on Udemy, Inc. and lowering the price target from $11 to $9, suggesting a 40% upside [5] - An analyst from Wells Fargo with 84% accuracy, maintaining an Overweight rating on Wingstop Inc. and raising the price target from $270 to $300, indicating an 11% upside [6]

Core Insights - Beazer Homes reported revenue of $565.34 million for the quarter ended March 2025, reflecting a 4.4% increase year-over-year and a surprise of +4.20% over the Zacks Consensus Estimate of $542.55 million [1] - The company's EPS was $0.42, significantly lower than $1.26 in the same quarter last year, but exceeded the consensus estimate of $0.26 with a surprise of +61.54% [1] Financial Performance Metrics - Total home closings were 1,079, surpassing the two-analyst average estimate of 1,050 [4] - The average closing price from continuing operations was $515.30, slightly above the estimated $515.06 [4] - New orders, net of cancellations, totaled 1,098, lower than the average estimate of 1,414 [4] - Units in backlog were 1,526, compared to the average estimate of 1,872 [4] - The average active community count was 163, slightly below the average estimate of 165 [4] - Revenue from land sales and other was $9.31 million, significantly higher than the average estimate of $2 million, representing a year-over-year change of +220.5% [4] - Homebuilding revenue was $556.03 million, exceeding the average estimate of $540.53 million with a year-over-year change of +3.2% [4] - Gross profit from homebuilding was $84.13 million, above the average estimate of $81.64 million [4] - Gross profit from land sales and other was $1.87 million, compared to the estimated $0.80 million [4] Stock Performance - Beazer's shares have returned -6.3% over the past month, underperforming the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Core Viewpoint - Beazer Homes reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $1.26 per share a year ago, indicating a significant earnings surprise of 61.54% [1] Financial Performance - The company achieved revenues of $565.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.20% and showing an increase from $541.54 million year-over-year [2] - Over the last four quarters, Beazer has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - Beazer shares have declined approximately 28.8% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions - The trend for estimate revisions ahead of the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $666.8 million, and for the current fiscal year, it is $3.32 on revenues of $2.55 billion [7] Industry Context - The Building Products - Home Builders industry is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Another company in the same industry, Toll Brothers, is expected to report a quarterly earnings decline of 15.4% year-over-year, with revenues anticipated to drop 11.8% from the previous year [9]

Beazer Homes USA, Inc. Q2 2025 Earnings Presentation NORTHBROOK MURRELLS INLET, SC 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- ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $38.8 million and earnings per diluted share of $0.42 for the second quarter [5] - The company repurchased over $20 million of stock, totaling $42 million in repurchases over the past three years [5][6] - The company expects diluted earnings per share to be above $0.40 for the third quarter [18] Business Line Data and Key Metrics Changes - The community count increased to 162, up nearly 12% year-over-year, with expectations to end the year in the 170s [13] - The average selling price (ASP) for homes is projected to be around $525,000 for the third quarter, driven by product and community mix shifts [17] - Adjusted gross margin for the full year is expected to be around 18.5% [19] Market Data and Key Metrics Changes - The company anticipates a sales pace of 2.25 to 2.5 homes per month for the full year, below historical norms [19] - The company expects to close between 1,050 and 1,100 homes in the third quarter [17] Company Strategy and Development Direction - The company is shifting its capital allocation priorities to balance growth, deleveraging, and share repurchases due to a weaker demand environment and reduced share price [6][9] - The company aims for a double-digit compound annual growth rate in book value per share through fiscal 2027 [14] - The company plans to slow the rate of growth in community count while continuing to reduce leverage [9][12] Management Comments on Operating Environment and Future Outlook - Management noted ongoing challenges with affordability, weakening consumer sentiment, and increased economic uncertainty impacting the housing market [5][6] - The company remains optimistic about the fundamentals for new homes and believes that pulling back too sharply on growth would be shortsighted [10][12] Other Important Information - The company has received board authorization to repurchase up to $100 million of its stock, representing nearly 20% of its current market cap [9] - The company expects to end the year with approximately 30,000 lots, up about 5% from the prior year [20] Q&A Session Summary Question: How does the affordability challenge impact updated multiyear goals? - Management acknowledged the constrained affordability environment and indicated that the longer timeline for community count provides more choices and discretion over capital deployment [30][31] Question: What drives the new goal regarding book value per share? - Management stated that the new goal reflects earnings growth and anticipated benefits from share repurchases, with a historical growth rate of 17% over the last five years [34][35] Question: What is the expected cadence of share repurchases? - Management indicated that share repurchases will be balanced with land market opportunities and growth prospects, without providing a specific number [37][38] Question: What is the outlook for sales pace in April and the second half of the year? - Management expects a seasonal ramp in sales pace, with a larger community count contributing to improved year-over-year comparisons [44][45] Question: How will adjustments to growth plans affect overhead and interest expense leverage? - Management expressed confidence in achieving overhead leverage despite slower growth, as community count growth is still expected [66][67] Question: Will the company renegotiate land deals in light of market conditions? - Management indicated that there are opportunities to renegotiate terms on some land deals, given the current market dynamics [68][69] Question: Can the company maintain pricing power for energy-efficient homes? - Management believes they can maintain a premium for their zero energy ready homes, as margins have been better compared to non-energy ready homes [70][71]