Beazer Homes USA (BZH) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with soft demand, declines in new home orders, closings, and revenue, but management remains focused on differentiation, cost reduction, and margin catalysts to achieve multi-year EBITDA and book value per share growth.

• Strategic focus includes energy-efficient and solar-included homes, new branding, and enhanced customer experiences, with new communities and product mix expected to drive higher margins.

• Share repurchases were prioritized, with $15.1 million completed in Q1 and $72 million remaining authorized, funded by land sale proceeds.

• Optimism for the spring selling season is supported by improved buyer engagement, lower mortgage rates, and slowed starts by national builders.

• Land investment was reduced to support deleveraging and book value growth goals.

Financial highlights

• Q1 homebuilding revenue was $359.7 million, down 21.9% year-over-year, with 700 homes closed at an average selling price of $513,900.

• Net loss was $32.6 million, or $1.13 per diluted share, including a $6.4 million litigation-related charge that reduced EPS by $0.23.

• Homebuilding gross margin was 14%, but excluding the litigation charge and other adjustments, adjusted gross margin was 15.8%; reported gross margin was 10.4%.

• Adjusted EBITDA for Q1 was negative $11.2 million.

• SG&A as a percentage of revenue rose to 17.9%, with expenses at $65 million.

Outlook and guidance

• Q2 expectations: ~1,100 homes sold, ~800 homes closed, ASP of $520,000–$525,000, and adjusted EBITDA of ~$5 million (including land sale gains).

• Full-year targets include EBITDA growth (excluding litigation charge), $150 million in profitable land sales, and execution of $72 million share repurchase authorization.

• Net leverage targeted at or below 40% by year-end, with a path to 5%-10% book value per share growth.

• ASP in the second half needs to reach $565,000, with three points of margin expansion by Q4.