Beazer Homes USA (BZH) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 saw strong growth in land investment, community count, and double-digit returns, with leadership in Zero Energy Ready home delivery and top industry ratings.

• Overcame a challenging sales environment with high mortgage rates and affordability issues, improving sales pace by year-end through targeted incentives and pricing adjustments.

• Progress continues toward multi-year goals: over 200 communities by FY26, net debt to net capitalization below 30% by FY26, and 100% Zero Energy Ready starts by CYE25.

• Achieved top customer experience ratings and maintained strong employee engagement.

• October sales grew over 30% year-over-year, attributed to higher community count and improved sales pace.

Financial highlights

• FY24 revenue reached $2,293.0M, with net income from continuing operations of $140.2M and diluted EPS of $4.53.

• Adjusted EBITDA for FY24 was $243.4M; Q4 FY24 Adjusted EBITDA was $93.1M.

• Homebuilding gross margin for FY24 was 21.1% (excluding impairments and interest), with SG&A at 11.4% of revenue.

• Invested over $750 million in land and development, a 36% increase year-over-year.

• Book value per share grew to $40.05 at FY24, a 19% CAGR since FY20.

Outlook and guidance

• FY25 guidance anticipates average community count up 12.5–15%, sales pace of 2.5–3.0, gross margin of 19.5–20.5%, and ASP above $530K.

• Q1 FY25 expectations: community count up 10–20%, new home orders up 30%, adjusted gross margin ~19%, SG&A ~13%, adjusted EBITDA ~$30M, and diluted EPS ~$0.30.

• More than 925 homes expected to close in Q1 2025 at an average ASP of $515,000.

• Net debt-to-net capitalization ratio targeted below 30% by end of fiscal 2026.

• EBITDA projected to deliver another year of double-digit return on capital employed.