Beazer Homes Reports First Quarter Fiscal 2026 Results

ATLANTA--( BUSINESS WIRE)--Beazer Homes USA, Inc. (NYSE: BZH) ( www.beazer.com) today announced its financial results for the three months ended December 31, 2025.

"Results for our first fiscal quarter of 2026 reflected persistent demand challenges and elevated incentives in the market," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. "However, with national builders slowing starts last year and lower mortgage rates, we are cautiously optimistic for the spring selling season."

"As we navigate an uncertain environment, we remain focused on driving sequential margin improvements through the remainder of fiscal 2026 through construction cost reductions, favorable mix impacts, and strong performance from our newest communities. We will also realign our land portfolio through selective asset sales and use a portion of the proceeds to accelerate highly accretive share repurchases."

Speaking to Beazer’s Multi-Year Goals, Mr. Merrill said, "During the year we expect to make further progress toward our 2027 goals for community count, deleveraging, and book value per share growth. We are confident in our differentiated product strategy, the value of our assets, and our ability to generate improving returns over time, which positions the Company well to create long-term shareholder value.”

Beazer Homes Fiscal First Quarter 2026 Highlights and Comparison to Fiscal First Quarter 2025

The following provides additional details on the Company's performance during the fiscal first quarter 2026:

Profitability. Net loss was $32.6 million, generating diluted loss per share of $1.13. This included a litigation-related charge recognized during the first fiscal quarter which reduced diluted earnings per share by $0.23. First quarter Adjusted EBITDA was a loss of $11.2 million compared to Adjusted EBITDA of $23.0 million a year ago. The decrease in Adjusted EBITDA was primarily due to lower closings and lower gross margin as well as the impact of the litigation-related charge.

Orders. Net new orders for the first quarter decreased to 763, down 18.1% from 932 in the prior year quarter, driven by a 21.1% decrease in sales pace to 1.5 orders per community per month from 1.9 in the prior year quarter, partially offset by a 3.7% increase in average community count to 167 from 161 a year ago. The cancellation rate for the quarter was 18.3%, up from 16.5% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of December 31, 2025 was $573.3 million, representing 1,008 homes, compared to $816.0 million, representing 1,507 homes, at the same time last year. The ASP of homes in backlog was $568.7 thousand, up 5.0% versus the prior year quarter. The increase in backlog ASP was primarily due to changes in product and community mix.

Homebuilding Revenue. First quarter homebuilding revenue was $359.7 million, down 21.9% year-over-year. The decrease in homebuilding revenue was driven by a 22.8% decrease in home closings to 700 homes, partially offset by a 1.2% increase in ASP to $513.9 thousand. The decrease in closings was primarily due to the lower beginning backlog.

Homebuilding Gross Margin. Homebuilding gross margin was 10.4%, down 480 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 14.0% for the first quarter, down from 18.2% in the prior year quarter primarily due to an increase in price concessions and closing cost incentives, changes in product and community mix, and a litigation-related charge recognized during the quarter ended December 31, 2025. The litigation-related charge reduced homebuilding gross margin by 1.8%.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 17.9% for the quarter, up 390 basis points year-over-year primarily due to lower homebuilding revenue.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $180.7 million, down 14.5% year-over-year. Controlled lots decreased 14.0% to 24,832, compared to 28,874 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 23,498, down 16.6% year-over-year. As of December 31, 2025, the Company controlled 61.0% of its total active lots through option agreements compared to 58.9% as of December 31, 2024.

Liquidity. At the close of the first quarter, the Company had $342.7 million of available liquidity, including $120.8 million of unrestricted cash and $221.9 million of remaining capacity under the unsecured revolving credit facility, compared to total available liquidity of $335.4 million a year ago.

Share Repurchases. During the quarter, the Company repurchased $15.1 million of its outstanding common stock through open market transactions at an average price per share of $21.72.

Conference Call

The Company will hold a conference call on January 29, 2026 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the pass code "8571348." A replay of the conference call will be available, until 11:59 PM ET on February 12, 2026 at 800-391-9853 (for international callers, dial 203-369-3269) with pass code "3740."

Summary results for the three months ended December 31, 2025 and 2024 are as follows:

Three Months Ended December 31,

2025

2024

Change*

New home orders, net of cancellations

763

932

(18.1

Cancellation rates

18.3

16.5

180 bps

Orders per community per month

1.5

1.9

(21.1

Average active community count

167

161

3.7

Active community count at quarter-end

168

163

3.1

Land acquisition and land development spending (in millions)

180.7

211.3

(14.5

Total home closings

700

907

(22.8

ASP from closings (in thousands)

513.9

507.6

1.2

Homebuilding revenue (in millions)

359.7

460.4

(21.9

Homebuilding gross margin

10.4

15.2

(480) bps

Homebuilding gross margin, excluding impairments and abandonments (I&A) (Non-GAAP)

10.8

15.2

(440) bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales (Non-GAAP)

14.0

18.2

(420) bps

SG&A expenses as a percentage of total revenue

17.9

14.0

390 bps

(Loss) income before income taxes (in millions)

(31.1

)

3.2

n/m (a)

Expense from income taxes (in millions)

1.5

—

n/m (a)

Net (loss) income (in millions)

(32.6

)

3.1

n/m (a)

Basic (loss) income per share

(1.13

)

0.10

n/m (a)

Diluted (loss) income per share

(1.13

)

0.10

n/m (a)

Adjusted EBITDA (in millions) (Non-GAAP)

(11.2

)

23.0

n/m (a)

LTM (b) Adjusted EBITDA (in millions) (Non-GAAP)

123.4

228.4

(46.0

Total debt to total capitalization ratio

48.4

46.5

190 bps

Net debt to net capitalization ratio (Non-GAAP)

45.6

44.5

110 bps

* Change and totals are calculated using unrounded numbers.

(a) n/m - indicates the percentage is "not meaningful."

(b)LTM indicates amounts for the trailing 12 months.

As of December 31,

2025

2024

Change

Backlog units

1,008

1,507

(33.1

Dollar value of backlog (in millions)

573.3

816.0

(29.7

ASP in backlog (in thousands)

568.7

541.5

5.0

Land and lots controlled

24,832

28,874

(14.0

About Beazer Homes

Beazer Homes (NYSE: BZH), headquartered in Atlanta, Georgia, is a leading national homebuilder in energy-efficient construction. Building on a legacy spanning nine generations, Beazer crafts homes that deliver savings and lasting value. Our trusted team of experts guide homebuyers through the building and purchasing process to deliver an industry-leading customer experience. With curated design options, buyers can personalize their homes with confidence. Beazer's exclusive Mortgage Choice program provides access to competitive loan offers from multiple lenders, helping homebuyers choose the best financing for their individual needs. Beazer builds in 13 states nationwide. Learn more at beazer.com or follow us @BeazerHomes.

This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things:

Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all such factors.

-Tables Follow-

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

December 31,

in thousands (except per share data)

2025

2024

Total revenue

363,491

468,953

Home construction and land sales expenses

323,917

396,875

Inventory impairments and abandonments

2,370

—

Gross profit

37,204

72,078

Commissions

12,016

16,113

General and administrative expenses

52,989

49,772

Depreciation and amortization

4,042

4,055

Operating (loss) income

(31,843

)

2,138

Other income, net

778

1,028

(Loss) income before income taxes

(31,065

)

3,166

Expense from income taxes

1,532

Net (loss) income

(32,597

)

3,130

Weighted-average number of shares:

Basic

28,928

30,426

Diluted

28,928

30,800

(Loss) income per share:

Basic

(1.13

)

0.10

Diluted

(1.13

)

0.10

Three Months Ended

December 31,

Capitalized Interest in Inventory

2025

2024

Capitalized interest in inventory, beginning of period

131,845

124,182

Interest incurred

19,756

20,161

Capitalized interest impaired

(66

)

—

Capitalized interest amortized to home construction and land sales expenses

(11,857

)

(13,910

)

Capitalized interest in inventory, end of period

139,678

130,433

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

in thousands (except share and per share data)

December 31, 2025

September 30, 2025

ASSETS

Cash and cash equivalents

120,757

214,705

Restricted cash

3,592

3,866

Accounts receivable (net of allowance of $266 and $266, respectively)

92,759

78,145

Inventory

2,140,766

2,029,433

Deferred tax assets, net

141,953

142,647

Property and equipment, net

49,461

47,945

Operating lease right-of-use assets

33,100

34,987

Goodwill

11,376

Other assets

45,949

46,604

Total assets

2,639,713

2,609,708

LIABILITIES AND STOCKHOLDERS’ EQUITY

Trade accounts payable

120,149

143,481

Operating lease liabilities

27,093

27,762

Other liabilities

167,168

160,445

Total debt (net of debt issuance costs of $6,187 and $6,611, respectively)

1,125,055

1,029,114

Total liabilities

1,439,465

1,360,802

Stockholders’ equity:

Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)

—

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 29,507,049 issued and outstanding and 29,762,293 issued and outstanding, respectively)

Paid-in capital

809,042

825,103

Retained earnings

391,176

423,773

Total stockholders’ equity

1,200,248

1,248,906

Total liabilities and stockholders’ equity

2,639,713

2,609,708

Inventory Breakdown

Homes under construction

701,010

692,327

Land under development

1,090,862

1,065,702

Land held for future development

19,489

Land held for sale

73,218

47,368

Capitalized interest

139,678

131,845

Model homes

82,467

72,702

Land not owned under option agreements

34,042

—

Total inventory

2,140,766

2,029,433

BEAZER HOMES USA, INC.

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Three Months Ended December 31,

SELECTED OPERATING DATA

2025

2024

Closings:

West region

436

581

East region

177

201

Southeast region

125

Total closings

700

907

New orders, net of cancellations:

West region

458

589

East region

176

227

Southeast region

129

116

Total new orders, net

763

932

As of December 31,

Backlog units:

2025

2024

West region

547

973

East region

227

341

Southeast region

234

193

Total backlog units

1,008

1,507

Aggregate dollar value of homes in backlog (in millions)

573.3

816.0

ASP in backlog (in thousands)

568.7

541.5

in thousands

Three Months Ended December 31,

SUPPLEMENTAL FINANCIAL DATA

2025

2024

Homebuilding revenue:

West region

220,209

291,863

East region

93,126

108,564

Southeast region

46,407

59,995

Total homebuilding revenue

359,742

460,422

Revenue:

Homebuilding

359,742

460,422

Land sales and other

3,749

8,531

Total revenue

363,491

468,953

Gross profit:

Homebuilding

37,416

69,975

Land sales and other

(212

)

2,103

Total gross profit

37,204

72,078

Reconciliation of homebuilding gross profit and homebuilding gross margin (GAAP measures) to homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales (non-GAAP measures) is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt. These non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Three Months Ended December 31,

in thousands

2025

2024

Homebuilding gross profit/margin (GAAP)

37,416

10.4

69,975

15.2

Inventory impairments and abandonments (I&A)

1,325

—

Homebuilding gross profit/margin excluding I&A (Non-GAAP)

38,741

10.8

69,975

15.2

Interest amortized to cost of sales

11,754

13,910

Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales (Non-GAAP)

50,495

14.0

83,885

18.2

Reconciliation of Net (Loss) Income (GAAP measure) to Adjusted EBITDA (Non-GAAP measure) is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing core operating results and underlying business trends by eliminating many of the differences in companies' respective capitalization, tax position, level of impairments, and other non-recurring items. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Three Months Ended December 31,

LTM Ended December 31, (a)

in thousands

2025

2024

2025

2024

Net (loss) income (GAAP)

(32,597

)

3,130

9,861

121,577

Expense from income taxes

1,532

(3,242

)

17,765

Interest amortized to home construction and land sales expenses and capitalized interest impaired

11,923

13,910

76,879

70,953

EBIT (Non-GAAP)

(19,142

)

17,076

83,498

210,295

Depreciation and amortization

4,042

4,055

19,155

16,689

EBITDA (Non-GAAP)

(15,100

)

21,131

102,653

226,984

Stock-based compensation expense

1,554

1,913

6,979

7,631

Loss on extinguishment of debt

—

424

Inventory impairments and abandonments (b)

2,304

—

13,801

1,996

Gain on sale of investment (c)

—

(8,591

)

Adjusted EBITDA (Non-GAAP)

(11,242

)

23,044

123,433

228,444

(a)

"LTM" indicates amounts for the trailing 12 months.

(b)

In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled "Interest amortized to home construction and land sales expenses and capitalized interest impaired."

(c)

We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold during the quarter ended March 31, 2024. In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other assets in our condensed consolidated balance sheets. The resulting gain of $8.6 million from this transaction was recognized in other income, net on our condensed consolidated statement of operations. The Company believes excluding this one-time gain from Adjusted EBITDA provides a better reflection of the Company's performance as this item is not representative of our core operations.

Reconciliation of total debt to total capitalization ratio (GAAP measure) to net debt to net capitalization ratio (non-GAAP measure) is provided for each period below. Management believes that net debt to net capitalization ratio is useful in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

in thousands

As of December 31,

2025

As of December 31,

2024

Total debt (GAAP)

1,125,055

1,071,290

Stockholders' equity (GAAP)

1,200,248

1,234,048

Total capitalization (GAAP)

2,325,303

2,305,338

Total debt to total capitalization ratio (GAAP)

48.4

46.5

Total debt (GAAP)

1,125,055

1,071,290

Less: cash and cash equivalents (GAAP)

120,757

80,379

Net debt (Non-GAAP)

1,004,298

990,911

Stockholders' equity (GAAP)

1,200,248

1,234,048

Net capitalization (Non-GAAP)

2,204,546

2,224,959

Net debt to net capitalization ratio (Non-GAAP)

45.6

44.5