Beazer Homes USA (BZH) Q2 2025 earnings summary

Executive summary

• Net income for Q2 FY2025 was $12.8 million with diluted EPS of $0.42, surpassing profitability expectations despite challenging macroeconomic conditions and declining consumer sentiment.

• Revenue for Q2 FY2025 rose 4.4% year-over-year to $565.3 million, with homebuilding revenue up 3.2% and closings up 3.4%.

• Adjusted EBITDA was $38.8 million, down 34% year-over-year, as gross margins compressed due to increased incentives and a higher share of spec home closings.

• The company repurchased over $20 million of stock in Q2, totaling $42 million over three years, and authorized a new $100 million share repurchase program.

• Nearly all new home starts met Zero Energy Ready standards, reinforcing leadership in energy-efficient homebuilding.

Financial highlights

• Homebuilding revenue was $556.0 million, up 3.2% year-over-year, with 1,079 closings and ASP near $515,000.

• Adjusted EBITDA for Q2 FY2025 was $38.8 million, down from $58.8 million in Q2 FY2024.

• Homebuilding gross margin was 15.1%, down from 18.7% year-over-year; adjusted gross margin (excluding impairments/interest) was 18.3%.

• SG&A as a percentage of revenue increased to 12.0% in Q2 FY2025.

• Net debt to net capitalization was 44.8% at quarter-end, up from 43.4% a year ago.

Outlook and guidance

• Multi-year goals updated: target of 200+ active communities and net debt to net capitalization in the low 30% range by end of FY2027, with double-digit book value per share CAGR.

• Q3 FY25 guidance: new home orders up 5–10% year-over-year, closings 1,050–1,100, ASP ~$525,000, adjusted EBITDA ~$40 million, SG&A <12%.

• Full-year guidance: average community count up 12.5–15%, sales pace 2.25–2.5 per month, ASP ~$520,000, gross margin ~18.5%, SG&A ~11%.

• Board approved a new $100 million share repurchase program to be executed over multiple years.

• Management remains optimistic about long-term new home demand, citing demographic growth and a structural housing deficit.