Beazer Homes USA(US:BZH)2025-05-01 20:45Financial Performance - In Q2 fiscal 2025, the company reported revenue of $565.3 million, an increase from $541.5 million in Q2 fiscal 2024, representing a growth of 4.4%[106] - Net income for Q1 2025 was $12,778, down 32.6% from $39,171 in Q1 2024[108] - Adjusted EBITDA for Q1 2025 was $38,813, a decrease of 33.9% compared to $58,776 in Q1 2024[108] - Homebuilding revenue for the three months ended March 31, 2025, increased by 3.2% to $556.0 million compared to $538.6 million in 2024, driven by a 3.4% increase in closings[121] - For the six months ended March 31, 2025, total homebuilding revenue increased by 10.5% to $1,016.5 million compared to $919.6 million in 2024[121] Margins and Profitability - The homebuilding gross margin for Q2 fiscal 2025 was 15.1%, down from 18.7% in Q2 fiscal 2024, reflecting increased price concessions and changes in product mix[105] - The total homebuilding gross profit for the three months ended March 31, 2025, was $84.1 million, with a gross margin of 15.1%[130] - Homebuilding gross profit decreased by $16.6 million to $84.1 million for the three months ended March 31, 2025, compared to $100.8 million in the prior year quarter, with a gross margin decrease of 360 basis points to 15.1%[133] - For the six months ended March 31, 2025, homebuilding gross profit decreased by $22.6 million to $154.1 million from $176.7 million in the prior year period, with a gross margin decrease of 400 basis points to 15.2%[137] Orders and Sales - Orders per community per month decreased to 2.3 in Q2 fiscal 2025, down from 3.1 in the prior year quarter, reflecting weaker consumer sentiment[105] - Net new orders for Q1 2025 decreased to 1,098, down 15.5% from 1,299 in Q1 2024, driven by a 27.1% decrease in sales pace[111] - For the six months ended March 31, 2025, net new orders decreased to 2,030, down 4.3% from 2,122 in the same period of 2024[112] - The backlog average selling price for homes sold in Q2 fiscal 2025 was $544.9 thousand, an increase of 3.7% from $525.5 thousand in the prior year quarter[105] Share Repurchase and Capital Management - The company repurchased $20.6 million worth of shares in Q2 fiscal 2025, totaling $41.7 million in share repurchases over the past three years[100] - The company plans to repurchase up to $100 million of outstanding common stock over multiple years, as approved by the Board of Directors[101] - As of March 31, 2025, the remaining availability of the share repurchase program was $8.3 million, following the repurchase of shares under a previously authorized program of $50.0 million[188] - In April 2025, the Company's Board of Directors approved a new share repurchase program authorizing the repurchase of up to $100.0 million of its outstanding common stock, replacing the prior program[174] Debt and Liquidity - Total debt as of March 31, 2025, increased to $1,082,231 from $1,023,311 as of March 31, 2024, maintaining a total debt to total capitalization ratio of 46.8%[110] - As of March 31, 2025, the liquidity position included $85.1 million in cash and cash equivalents and $292.6 million of remaining capacity under the Unsecured Facility[165] - Net cash used in operating activities was $155.9 million for the six months ended March 31, 2025, primarily driven by an increase in inventory of $191.0 million[159] Operational Efficiency - The average active community count increased by 15.9% year-over-year to 163 communities as of March 31, 2025[103] - The company aims to achieve a double-digit compound annual growth in book value per share from the end of fiscal 2024 through fiscal 2027[103] - The company noted that the decrease in backlog units was primarily due to fewer backlog units at the beginning of the fiscal quarter and year-over-year growth in closings outpacing growth in net new orders[119] Segment Performance - The West segment reported a 5.9% increase in homebuilding revenue for the three months ended March 31, 2025, totaling $365.1 million, with a 6.0% increase in closings[122] - The East segment experienced a 7.9% increase in homebuilding revenue for the same period, reaching $120.4 million, supported by a 7.0% increase in closings[123] - The Southeast segment saw a 14.2% decrease in homebuilding revenue for the three months ended March 31, 2025, totaling $70.5 million, due to a 12.3% decrease in closings[124] Market Conditions and Outlook - The company believes that excluding one-time gains from Adjusted EBITDA provides a better reflection of its core operations[108] - Future land and lot sales will depend on local market conditions and individual community performance[143] - The company's credit rating was reaffirmed as B+ by S&P in February 2025, with a negative outlook[172]