Beazer Homes Reports Fourth Quarter and Full Fiscal 2025 Results

ATLANTA–(BUSINESS WIRE)–Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2025.

“Fiscal 2025 was both productive and challenging. We finished the year on a positive note, with solid fourth quarter results and continued progress toward each of our Multi-Year Goals,” said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. “In the fourth quarter, we exceeded 1,400 closings, driving profitability ahead of our expectations, and sales pace rebounded sequentially.”

“While we are optimistic for more balanced supply and demand dynamics as 2026 unfolds, we believe the market will remain incentive-driven and highly competitive in the near-term. In this environment, we will focus on balance sheet efficiency and continued alignment of our assets with our differentiated strategy. As America’s #1 energy efficient homebuilder, we are uniquely positioned to offer a compelling, multi-faceted approach to lowering the total cost of home ownership and addressing affordability concerns.”

Speaking to Beazer’s Multi-Year Goals, Mr. Merrill said, “By the end of fiscal 2027, we expect to reach more than 200 active communities, deleverage to the low-30% range and grow book value per share into the mid-$50s. We are confident achieving these goals will create substantial value for our shareholders.”

Beazer Homes Fiscal 2025 Highlights and Comparison to Fiscal 2024

• Net income from continuing operations of $45.6 million, or $1.52 per diluted share, compared to net income from continuing operations of $140.2 million, or $4.53 per diluted share, in fiscal 2024
• Adjusted EBITDA of $157.7 million, down 35.2%
• Homebuilding revenue of $2.30 billion, up 0.4% on a 0.9% increase in average selling price (ASP) to $520.1 thousand, partially offset by a 0.5% decrease in home closings to 4,427
• Homebuilding gross margin was 14.3%, down 370 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 18.0%, down 310 basis points
• SG&A as a percentage of total revenue was 11.9%, up 50 basis points
• Net new orders of 3,890, down 7.8% on a 19.3% decrease in orders per community per month to 2.0, partially offset by a 14.2% increase in average community count to 164
• Land acquisition and land development spending was $684.0 million, a decrease of 11.9% from $776.5 million
• Repurchased $33.1 million of the Company’s outstanding common stock through open market transactions during fiscal 2025, compared to $12.9 million in fiscal 2024

Beazer Homes Fiscal Fourth Quarter 2025 Highlights and Comparison to Fiscal Fourth Quarter 2024

• Net income from continuing operations of $30.0 million, or $1.02 per diluted share, compared to net income from continuing operations of $52.1 million, or $1.69 per diluted share, in fiscal fourth quarter 2024
• Adjusted EBITDA of $63.8 million, down 31.5%
• Homebuilding revenue of $750.8 million, down 4.2% on a 6.0% decrease in home closings to 1,406, partially offset by a 1.9% increase in ASP to $534.0 thousand
• Homebuilding gross margin was 13.7%, down 350 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 17.2%, down 320 basis points
• SG&A as a percentage of total revenue was 9.6%, an improvement of 10 basis points
• Net new orders of 999, down 2.9% on a 10.7% decrease in orders per community per month to 2.0, partially offset by an 8.7% increase in average active community count to 166
• Active community count at period-end of 169, up 4.3%
• Backlog dollar value of $516.5 million, down 35.2% on a 36.2% decrease in backlog units to 945, partially offset by a 1.6% increase in ASP of homes in backlog to $546.5 thousand
• Land acquisition and land development spending was $121.7 million, a decrease of 32.0% from $179.0 million
• Controlled lots of 25,660, down 10.1% from 28,538
• Unrestricted cash at quarter end was $214.7 million; total liquidity was $538.3 million
• Total debt to total capitalization ratio of 45.2% at fiscal year end compared to 45.4% a year ago. Net debt to net capitalization ratio of 39.5% at fiscal year end compared to 40.0% a year ago

The following provides additional details on the Company’s performance during the fiscal fourth quarter 2025:

Profitability. Net income from continuing operations was $30.0 million, generating diluted earnings per share of $1.02. Fourth quarter Adjusted EBITDA of $63.8 million was down $29.4 million, or 31.5%, primarily due to lower operating margin.

Orders. Net new orders for the fourth quarter decreased to 999, down 2.9% from the prior year quarter, primarily driven by a 10.7% decrease in sales pace to 2.0 orders per community per month, down from 2.2 in the previous year quarter, partially offset by an 8.7% increase in average active community count to 166 from 153 a year ago. The cancellation rate for the quarter was 17.9%, down from 21.9% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of September 30, 2025 was $516.5 million, representing 945 homes, compared to $797.2 million, representing 1,482 homes, at the same time last year. The average selling price of homes in backlog was $546.5 thousand, up 1.6% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $750.8 million, down 4.2% year-over-year. The decrease in homebuilding revenue was driven by a 6.0% decrease in home closings to 1,406 homes, partially offset by a 1.9% increase in ASP to $534.0 thousand. The decrease in closings was primarily due to lower beginning backlog, partially offset by higher volume of spec homes that sold and closed within the quarter and improved construction cycle times.

Homebuilding Gross Margin. Fourth quarter homebuilding gross margin was 13.7%, down 350 basis points year-over-year. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 17.2% for the fourth quarter, down 320 basis points year-over-year as a result of an increase in price concessions and incentives, such as mortgage rate buydowns, an increased share of spec home closings which generally have lower margins than “to be built” homes, and changes in product and community mix.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 9.6% for the quarter, an improvement of 10 basis points year-over-year primarily due to lower commissions on lower homebuilding revenue, partially offset by higher sales and marketing expenses and other G&A expenses to support community count growth.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $121.7 million, a decrease of 32.0% year-over-year. Controlled lots decreased 10.1% to 25,660, compared to 28,538 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots were 24,758, down 11.3% year-over-year. As of September 30, 2025, the Company controlled 62.1% of its total active lots through option agreements compared to 57.8% as of September 30, 2024.

Liquidity. At the close of the fourth quarter, the Company had $538.3 million of available liquidity, including $214.7 million of unrestricted cash and $323.6 million of remaining capacity under the senior unsecured revolving credit facility, compared to total available liquidity of $503.9 million a year ago.

Total Debt to Total Capitalization Ratio. Total debt to total capitalization ratio was 45.2% at fiscal year end compared to 45.4% a year ago. Net debt to net capitalization ratio was 39.5% at fiscal year end, down 50 basis points from 40.0% a year ago reflecting the Company’s capital allocation and strategic asset alignment decisions to moderate land spend and increase land sales.

Protecting the Company’s Deferred Tax Assets

The Company currently possesses meaningful deferred tax assets, the majority of which were earned through the Company’s substantial investment in and commitment to energy-efficient building practices (Energy-Efficiency Tax Credits). The Company believes the deferred tax assets, inclusive of the Energy-Efficiency Tax Credits, provide substantial value to the Company and its stockholders and reflect the investment and commitment to its energy-efficient homebuilding strategy.

As of September 30, 2025 and 2024, the Company had net deferred tax assets of $142.6 million and $128.5 million, respectively, representing an 11.0% increase. Approximately $84.1 million of the net deferred tax assets are Energy-Efficiency Tax Credits. The Company expects these Energy-Efficiency Tax Credits to continue to increase through June 30, 2026, which is the final date the Company can generate these credits due to recent legislative changes.

In order to protect these assets, the Company has historically entered into a stockholder rights agreement and included certain transfer restrictions in the Company’s charter, both of which are designed to prevent an “ownership change” under Internal Revenue Code rules that would limit the Company’s ability to utilize these tax assets. The protective provisions in the Company’s charter expired on November 12, 2025, and the current rights agreement will expire on November 14, 2025. Accordingly, to continue to protect these valuable assets, the Company, with the unanimous approval of its Board of Directors, entered into a new Rights Agreement for the protection of net operating loss carryforwards and Energy-Efficiency Tax Credits (the New Rights Agreement). The New Rights Agreement will be submitted to a vote of the Company’s stockholders for ratification at the 2026 Annual Meeting of Stockholders (the 2026 Annual Meeting). The New Rights Agreement will automatically expire if the stockholders fail to ratify it at the 2026 Annual Meeting; however, if ratified by the stockholders, the New Rights Agreement will expire upon the earlier of (i) the first day of the Company’s taxable year when the Board of Directors determines that no Energy-Efficiency Tax Credits carry-forwards are available or (ii) any other event triggering expiration under its terms, but in no event later than November 14, 2028. Additionally, the Company intends to seek stockholder approval of a new charter amendment at the 2026 Annual Meeting.

Additional details regarding the New Rights Agreement are included in the Company’s Form 10-K and Form 8-K filed today, November 13, 2025, and additional information regarding the stockholder ratification of the New Rights Agreement and charter amendment, respectively, will be included in the Company’s upcoming proxy statement.

Commitment to Sustainability

In October 2025, Beazer Homes launched a new marketing campaign, Enjoy the Great Indoors™ , as part of a total brand refresh, which includes a new website, enhanced advertising, and a creative new look and feel. This initiative is designed to highlight the Company’s advanced home performance features, such as energy efficiency, cleaner air quality, and exceptional comfort. A component of these advanced home features is solar-ready capability, allowing homeowners to install a solar renewable energy system with no additional infrastructure or retrofits needed.

Charity Title Agency and Charity Home Insurance Agency are wholly-owned by Beazer Homes and donate 100% of their net profits, after normal business expenses, taxes, reserves, and mission-related costs, to the Beazer Charity Foundation (the Foundation), the Company’s philanthropic arm. During the fiscal year ended September 30, 2025, contributions to the Foundation totaled $2.2 million. The Foundation is a nonprofit entity that provides donations to vetted national and local non-profits. Partnering with charitable organizations at local level aligns the Foundation’s financial contributions with opportunities for Beazer’s employees to have a positive impact on the communities the Company serves. In March 2025, the Company held its inaugural Day of Service, a day devoted to making a collective impact in the community. In just one day, our employees contributed more than 4,000 volunteer hours to both national and local charitable organizations.

In September, the Company published its 2024 Sustainability Update, which highlights its leadership in building energy-efficient homes and significant progress in advancing sustainability.

Summary results for the fiscal year ended September 30, 2025 and 2024 are as follows:

Summary results for the three months ended September 30, 2025 and 2024 are as follows:

Conference Call

The Company will hold a conference call on November 13, 2025 at 5:00 p.m. ET to discuss these results. The public may listen to the conference call and view the Company’s slide presentation on the “Investor Relations” page of the Company’s website at www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the passcode “8571348.” A replay of the conference call will be available, until 11:59 PM ET on November 27, 2025 at 866-388-5329 (for international callers, dial 203-369-0410) with pass code “3740.”

About Beazer Homes

Beazer Homes (NYSE: BZH), headquartered in Atlanta, Georgia, is a leading national homebuilder in energy-efficient construction. Building on a legacy spanning nine generations, Beazer crafts homes that deliver savings and lasting value. Our trusted team of experts guide homebuyers through the building and purchasing process to deliver an industry-leading customer experience. With curated design options, buyers can personalize their homes with confidence. Beazer’s exclusive Mortgage Choice program provides access to competitive loan offers from multiple lenders, helping homebuyers choose the best financing for their individual needs. Beazer builds in 13 states nationwide. Learn more at beazer.com or follow us @BeazerHomes.

America’s #1 Energy-Efficient Homebuilder:​

Homes built by Beazer Homes had an average Home Energy Rating System (HERS) score of 32 in fiscal 2025. A lower HERS score indicates a more energy-efficient home. Beazer Home’s position as America’s #1 Energy-Efficient Homebuilder is based on the fact that Beazer Homes has the lowest HERS score of any national homebuilder based on publicly reported average HERS scores in fiscal 2025 for each of the top 30 homebuilders in the U.S. (based on 2024 sales according to Builder Magazine). Historically, we have reported our average HERS Index Score as a “gross” score that excludes the benefit of renewable energy technologies (i.e. solar-photovoltaic system). Our fiscal 2025 gross HERS score was 38. We are transitioning to reporting scores reflecting the benefits of renewable energy technologies to more closely align with how our industry peers report HERS scores.​

This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things:

• macroeconomic uncertainty, including high levels of inflation, elevated interest rates and insurance costs, stock market volatility, the current U.S. government shutdown, and historic changes in U.S. trade policy, negatively impacting consumer sentiment and softening demand for the homes we sell;
• elevated mortgage interest rates for prolonged periods, as well as further increases to, and reduced availability of, mortgage financing;
• supply chain challenges (including as a result of U.S. trade policies and retaliatory responses from other countries) negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances;
• our ability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them;
• inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled;
• factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive;
• decreased revenues;
• decreased land values underlying land option agreements;
• increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our cycle times and production and overhead cost structures;
• not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases;
• the availability and cost of land and the risks associated with the future value of our inventory, including impairments and abandonment charges;
• our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an accel

Contacts

David I. Goldberg

Sr. Vice President & Chief Financial Officer

770-829-3700

[email protected]

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