Beazer Homes USA (BZH) Deutsche Bank 32nd Annual Leveraged Finance Conference summary

Business overview and strategic differentiation

• Operates in 16 markets across 13 states, focusing on high-growth areas and targeting millennials and baby boomers with value-oriented, entry-level homes.

• Strategic pillars include Surprising Performance (quality and energy efficiency), Choice Plans (customizable layouts at no extra cost), and Mortgage Choice (pre-vetted lenders competing for buyers, no captive mortgage subsidiary).

• Committed to delivering extraordinary value at affordable prices, with 50–60% of business from first-time buyers.

• Geographic revenue is overweight in the West, with significant operations in Texas, Las Vegas, California, Nashville, and Maryland.

Market environment and industry outlook

• U.S. housing market is underbuilt by millions of homes, supporting a bullish long-term outlook despite short-term inventory fluctuations.

• Affordability remains the biggest challenge, addressed through smaller homes, specification reductions, and mortgage rate buydowns.

• Industry capacity is limited by permitting, land, and trade constraints, reducing risk of overbuilding.

• Lending standards remain strong, with high-quality loans and low delinquency rates.

Multi-year goals and growth strategy

• Three primary goals by end of fiscal 2026: over 200 communities, net debt to cap below 30%, and 100% Zero Energy Ready home starts.

• Land position has grown since 2022, supporting community count growth through 2026; most land for 2025 and 2026 is already secured.

• Option percentage for land deals has increased to mid-50s%, balancing financial and operating leverage.

• Net debt to cap is on track to fall below 30% by 2026, with further deleveraging driven by business and profitability growth.