Beazer Homes USA (BZH) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 saw growth in active community count, progress on multi-year goals, and prudent balance sheet management amid a challenging new home sales environment, with improved sales pace and profitability in Q4, especially in Texas.

• Achieved a 14% year-over-year increase in average active community count to 164, with book value per share growing to $42.57, supported by profitability and share repurchases.

• Implemented operational enhancements, including $10,000 per home in cost savings from rebidding material and labor, and $12 million in annualized savings from headcount reductions.

• Positioned as a leader in energy-efficient homebuilding, with industry-leading HERS scores and significant homeowner savings.

• Strategic focus on affordability, operational efficiency, and differentiated value proposition, including energy-efficient homes and lower total cost of ownership.

Financial highlights

• FY25 total revenue rose 1.8% to $2.37 billion, with home closings flat at 4,427 units and average selling price up 0.9% to $520,100.

• FY25 adjusted EBITDA fell 35.2% to $157.7 million; Q4 adjusted EBITDA was $63.8 million.

• FY25 net income from continuing operations decreased 67.5% to $45.6 million; Q4 net income was $30.0 million.

• Homebuilding gross margin for FY25 was 17.7%, with Q4 margin at 17.2%; SG&A as a percentage of revenue was 11.9% for FY25.

• Total liquidity at year-end was nearly $540 million, including $215 million in unrestricted cash.

Outlook and guidance

• Q1 FY26 guidance: ~900 homes sold (up to 75% specs), ~800 closings, ASP ~$515,000, adjusted gross margin ~16%, net loss of ~$0.50 per diluted share.

• FY26 goals: 5–10% increase in closings, margin improvement by Q4, and adjusted EBITDA at least equal to FY25.

• Community count expected to reach 170 in Q1 and over 200 within two years; net leverage targeted to decrease to low 30% range by end of FY27.

• By FY27, book value per share targeted in the mid-$50s with double-digit CAGR.