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Mar 31
Beazer Homes Q2 2025 Earnings Report
Reported Second Quarter Fiscal 2025 Results
Key Takeaways
Beazer Homes reported a significant decrease in net income and EPS for Q2 2025 compared to the prior year, despite a modest increase in homebuilding revenue driven by higher closings. The decline in profitability was attributed to lower operating margins, primarily due to increased price concessions and incentives, and a higher percentage of spec home closings.
Net income from continuing operations decreased by 67.4% to $12.8 million.
Diluted EPS from continuing operations fell by 66.7% to $0.42.
Homebuilding revenue increased by 3.2% to $556.0 million, driven by a 3.4% rise in home closings.
Net new orders decreased by 15.5% to 1,098, and cancellation rate increased to 16.9%.
Beazer Homes
Beazer Homes
Beazer Homes Revenue by Segment
Beazer Homes Revenue by Geographic Location
Revenue by Segment
Homebuilding Revenue
CapyFin.comLand Sales and Other Revenue
CapyFin.comRevenue by Geographic Location
West Region Revenue
CapyFin.comEast Region Revenue
CapyFin.comSoutheast Region Revenue
CapyFin.com Forward Guidance
The company is adjusting its capital allocation strategy to prioritize larger share repurchases and updating its Multi-Year Goals, deferring the timeline for achieving greater than 200 community count and low 30% range deleveraging goals by one year to fiscal year end 2027. A new Multi-Year Goal is added to achieve a double-digit compound annual growth in book value per share through fiscal 2027. The company remains optimistic about future new home demand despite current challenging conditions.
Positive Outlook
- New $100 million share repurchase authorization approved.
- Plan to sustain annual community count growth.
- Plan to sustain leverage ratio reductions.
- New Multi-Year Goal to achieve double-digit compound annual growth in book value per share.
- Optimistic about the need for a growing number of new homes in the future.
Challenges Ahead
- Adjustment of timeline for achieving 'greater than 200' community count goal by one year.
- Adjustment of timeline for achieving 'low 30% range' deleveraging goal by one year.
- Sustaining capital for share repurchases if share price remains substantially below book value.
- Current market conditions are challenging, constrained by affordability and weak consumer sentiment.
- Potential negative impacts of macroeconomic uncertainty, including high inflation and elevated interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income