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Average Active Community Count: 164, up 14% from last year.

Net Debt to Net Capitalization: Reduced below 40%.

Book Value Per Share: Grew to nearly $43.

Home Closings in Q4: 1,400 homes.

Gross Margin in Q4: 17.2%.

SG&A as Percentage of Revenue in Q4: 9.6%.

Adjusted EBITDA in Q4: Approximately $64 million.

Diluted Earnings Per Share in Q4: $1.02.

Land Sale Revenue Expectation for Q1 Fiscal '26: About $10 million.

Net Tax Benefit Expectation for Q1 Fiscal '26: Approximately $2 million.

Net Loss Expectation for Q1 Fiscal '26: About $0.50 per diluted share.

Total Liquidity at End of Q4: Nearly $540 million.

Unrestricted Cash at End of Q4: $215 million.

Land Acquisition and Development Spend in Fiscal '25: $684 million.

Land Sale Proceeds in Fiscal '25: $63 million.

Active Controlled Lot Position at Year End: Nearly 25,000 lots.

Deferred Tax Assets at End of September: More than $140 million.

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Release Date: November 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Beazer Homes USA Inc (NYSE:BZH) increased its average active community count by 14% to 164, demonstrating growth in its community portfolio.

The company successfully reduced its net debt to net capitalization ratio below 40%, showcasing effective deleveraging efforts.

Book value per share grew to nearly $43, driven by profitability and share repurchases, indicating strong financial performance.

Beazer Homes USA Inc (NYSE:BZH) achieved significant cost savings, reducing material and labor costs by approximately $10,000 per home.

The company completed a sale-leaseback of 80 model homes, freeing up cash for higher return uses and improving balance sheet efficiency.

The macro environment remains challenging, with consumers facing confidence and affordability issues, impacting sales pace.

Aggressive incentives and move-in ready specs are still required to sell homes, affecting profit margins.

Gross margins were below expectations due to a higher percentage of specs and larger incentives, resulting in a 17.2% gross margin.

The company anticipates a net loss of about $0.50 per diluted share in the first quarter of fiscal '26, reflecting ongoing market challenges.

Backlog is down 36% year-over-year, indicating potential difficulties in maintaining sales momentum.

Q: Can you explain the expected timing for the realization of cost savings from rebidding material and labor costs? A: Allan Merrill, CEO, explained that the cost savings from rebidding, which amount to about $10,000 per home, are expected to contribute nearly two points of margin improvement by the end of the year. These savings will be realized progressively, with the full impact expected by the fourth quarter.

Q: How do you plan to achieve 5% to 10% growth in closings next year despite a lower starting backlog? A: David Goldberg, CFO, stated that the growth will be driven by community count growth and improved sales pace, particularly in the third quarter. The focus will be on units under production and their turnover, rather than backlog, to achieve the targeted growth.

Q: What is your strategy regarding land sales, and how do you expect it to impact your financials? A: David Goldberg, CFO, mentioned that the strategy involves selling non-strategic assets and product lines that do not align with their long-term goals. They expect to generate over $100 million from these sales, which will be reinvested in higher-return opportunities, likely resulting in gains above book value.

Q: Can you provide more details on the direct cost savings of $10,000 per home? A: Allan Merrill, CEO, noted that the savings are a combination of labor and material cost reductions, with a significant portion related to efficiencies in delivering Zero Energy Ready homes. The savings are not strictly categorized into labor or materials due to the nature of turnkey contracts.

Q: What are your thoughts on the potential impact of forward rate commitments on the housing market? A: Allan Merrill, CEO, expressed that transparency and consumer choice are crucial. Beazer Homes allows customers to use incentive dollars flexibly, whether for rate buy-downs or other purposes, ensuring that buyers have options and clarity in their financial decisions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.