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Mar 31, 2025
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%.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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