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Dec 31, 2024
Beazer Homes Q1 2025 Earnings Report
Beazer Homes reported mixed results for Q1 2025 with increased revenue and orders offset by lower profitability.
Key Takeaways
Beazer Homes USA, Inc. announced its financial results for the three months ended December 31, 2024. The company saw an increase in net new orders and closings, supported by a higher community count. However, net income and adjusted EBITDA decreased compared to the previous year due to lower operating margins.
Net new orders increased by 13.2% year-over-year.
Homebuilding revenue increased by 20.9% due to a 22.1% increase in home closings.
Homebuilding gross margin decreased by 470 basis points to 15.2%.
Net income from continuing operations was $3.1 million, or $0.10 per diluted share, compared to $21.7 million, or $0.70 per diluted share, in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Despite near-term affordability challenges, Beazer Homes remains confident in its ability to generate a double-digit return on capital employed for the full fiscal year 2025.
Positive Outlook
- Expected to end fiscal year 2025 with approximately 180 active communities.
- Anticipate controlling the land necessary to reach 200 active communities by the end of fiscal year 2026.
- Net debt to net capitalization ratio should be in the mid-30% range at fiscal year-end.
- Approaching target of less than 30% net debt to net capitalization ratio by the end of fiscal year 2026.
- Expect 100% of home starts will be Zero Energy Ready by December 2025.
Challenges Ahead
- Challenging new home sales environment.
- Affordability challenges in the near-term environment.
- Potential impact of economic changes and elevated mortgage interest rates on consumer confidence and demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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