Beazer Homes Reports Fourth Quarter and Full Fiscal 2025 Results

Core Insights - Beazer Homes reported its financial results for the fourth quarter and full fiscal year 2025, highlighting both challenges and achievements in a competitive housing market [2][3]. Financial Performance - Net income from continuing operations for Q4 2025 was $30.0 million, or $1.02 per diluted share, down from $52.1 million, or $1.69 per diluted share in Q4 2024 [3][4]. - Adjusted EBITDA for Q4 2025 was $63.8 million, a decrease of 31.5% compared to the previous year [3][4]. - Homebuilding revenue for Q4 2025 was $750.8 million, down 4.2% year-over-year, driven by a 6.0% decrease in home closings to 1,406 homes, partially offset by a 1.9% increase in average selling price (ASP) to $534.0 thousand [3][7][22]. Operational Metrics - Total home closings in fiscal 2025 were 4,427, a slight decrease of 0.5% from the previous year [3][19]. - Net new orders for Q4 2025 decreased to 999, down 2.9% from the prior year, with a cancellation rate of 17.9%, improved from 21.9% in the previous year [5][19][22]. - The backlog dollar value as of September 30, 2025, was $516.5 million, down 35.2% year-over-year, with backlog units decreasing by 36.2% to 945 homes [6][24]. Cost and Margin Analysis - Homebuilding gross margin for Q4 2025 was 13.7%, down 350 basis points year-over-year, primarily due to increased price concessions and a higher share of spec home closings [8][20]. - Selling, general and administrative (SG&A) expenses as a percentage of total revenue improved to 9.6%, a decrease of 10 basis points from the previous year [9][22]. Land Acquisition and Development - Land acquisition and land development spending for Q4 2025 was $121.7 million, a decrease of 32.0% from $179.0 million in the previous year [10][22]. - The company controlled 25,660 lots, down 10.1% from the prior year, with a significant portion controlled through option agreements [10][24]. Liquidity and Capital Structure - As of the end of Q4 2025, Beazer Homes had $538.3 million in available liquidity, including $214.7 million in unrestricted cash [11][13]. - The total debt to total capitalization ratio was 45.2%, slightly improved from 45.4% a year ago, reflecting strategic asset alignment decisions [12][13]. Strategic Goals - The company aims to achieve more than 200 active communities and grow book value per share into the mid-$50s by the end of fiscal 2027 [2][3]. - Beazer Homes emphasizes its position as America's 1 energy-efficient homebuilder, focusing on sustainability and affordability in home ownership [2][28].