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Jun 30
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.
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
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.
- Potential negative impacts from macroeconomic uncertainty, including high inflation and elevated interest rates.
- Risks associated with supply chain challenges and shortages of raw materials.
- Factors affecting margins, such as increased sales incentives and mortgage rate buy-down programs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income