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Jun 30, 2025
Beazer Homes Q3 2025 Earnings Report
Beazer Homes reported a net loss in Q3 2025, primarily due to inventory impairment charges and a challenging sales environment, despite growth in community count and resilient gross margins.
Key Takeaways
Beazer Homes experienced a challenging third quarter in fiscal 2025, reporting a net loss of $0.3 million, or $0.01 per diluted share, largely impacted by $10.3 million in inventory impairment and abandonment charges. Homebuilding revenue decreased by 9.2% year-over-year to $535.4 million, driven by an 11.3% decrease in home closings, although partially offset by a 2.4% increase in average selling price. Net new orders were down 19.5%, and Adjusted EBITDA fell by 40.0% to $32.1 million. Despite these headwinds, the company increased its active community count by 14.4% and maintained a homebuilding gross margin of 13.5%.
Beazer Homes reported a net loss of $0.3 million, or $0.01 per diluted share, in Q3 2025, primarily due to $10.3 million in inventory impairment and abandonment charges.
Homebuilding revenue decreased by 9.2% to $535.4 million, with home closings down 11.3%, partially offset by a 2.4% increase in average selling price.
Net new orders declined by 19.5% to 861, and the sales pace decreased by 30.0% to 1.7 orders per community per month.
Adjusted EBITDA was $32.1 million, a 40.0% decrease year-over-year, while the active community count at period-end increased by 14.4% to 167.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Beazer Homes is focused on achieving its multi-year goals, including reaching 200 active communities by the end of fiscal 2027, attaining a net debt to net capitalization ratio in the low 30% range, and generating double-digit growth in book value per share. The company plans to direct more discretionary capital towards these financial objectives.
Positive Outlook
- Well-positioned to reach 200 active community count goal by end of fiscal 2027 with 167 communities and nearly 28,000 controlled lots.
- Expects to direct more discretionary capital towards achieving financial objectives.
- Aims to attain a net debt to net capitalization ratio in the low 30% range by fiscal 2027.
- Targets double-digit growth in book value per share by fiscal 2027.
- Remains confident in its differentiated market position as America's #1 Energy-Efficient Homebuilder.
Challenges Ahead
- Navigating a challenging sales environment.
- Experienced weaker-than-expected sales pace, particularly in Texas markets.
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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