Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three months ended December 31, 2025.

"Results for our first fiscal quarter of 2026 reflected persistent demand challenges and elevated incentives in the market," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. "However, with national builders slowing starts last year and lower mortgage rates, we are cautiously optimistic for the spring selling season."

"As we navigate an uncertain environment, we remain focused on driving sequential margin improvements through the remainder of fiscal 2026 through construction cost reductions, favorable mix impacts, and strong performance from our newest communities. We will also realign our land portfolio through selective asset sales and use a portion of the proceeds to accelerate highly accretive share repurchases."

Speaking to Beazer’s Multi-Year Goals, Mr. Merrill said, "During the year we expect to make further progress toward our 2027 goals for community count, deleveraging, and book value per share growth. We are confident in our differentiated product strategy, the value of our assets, and our ability to generate improving returns over time, which positions the Company well to create long-term shareholder value.”

Beazer Homes Fiscal First Quarter 2026 Highlights and Comparison to Fiscal First Quarter 2025

• Net loss was $32.6 million, or net loss of $1.13 per diluted share. This included a litigation-related charge recognized during the first fiscal quarter which reduced diluted earnings per share by $0.23. During the fiscal first quarter 2025, net income was $3.1 million, or $0.10 per diluted share

• Adjusted EBITDA was a loss of $11.2 million, compared to Adjusted EBITDA of $23.0 million a year ago

• Homebuilding revenue was $359.7 million, down 21.9% on a 22.8% decrease in home closings to 700, partially offset by a 1.2% increase in average selling price (ASP) to $513.9 thousand

• Homebuilding gross margin was 10.4%, down 480 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 14.0%, down 420 basis points

• SG&A as a percentage of total revenue was 17.9%, up 390 basis points

• Net new orders were 763, down 18.1% on a 21.1% decrease in orders per community per month to 1.5, partially offset by a 3.7% increase in average active community count to 167

• Active community count at period-end of 168, up 3.1%

• Backlog dollar value was $573.3 million, down 29.7% on a 33.1% decrease in backlog units to 1,008, partially offset by a 5.0% increase in ASP of homes in backlog to $568.7 thousand

• Land acquisition and land development spending was $180.7 million, down 14.5% from $211.3 million

• Repurchased $15.1 million of the Company's outstanding common stock through open market transactions

• Controlled lots of 24,832, down 14.0% from 28,874

• Unrestricted cash at quarter end was $120.8 million; total liquidity was $342.7 million

• Total debt to total capitalization ratio of 48.4% at quarter end compared to 46.5% a year ago. Net debt to net capitalization ratio was 45.6% at quarter end compared to 44.5% a year ago

The following provides additional details on the Company's performance during the fiscal first quarter 2026:

Profitability. Net loss was $32.6 million, generating diluted loss per share of $1.13. This included a litigation-related charge recognized during the first fiscal quarter which reduced diluted earnings per share by $0.23. First quarter Adjusted EBITDA was a loss of $11.2 million compared to Adjusted EBITDA of $23.0 million a year ago. The decrease in Adjusted EBITDA was primarily due to lower closings and lower gross margin as well as the impact of the litigation-related charge.

Orders. Net new orders for the first quarter decreased to 763, down 18.1% from 932 in the prior year quarter, driven by a 21.1% decrease in sales pace to 1.5 orders per community per month from 1.9 in the prior year quarter, partially offset by a 3.7% increase in average community count to 167 from 161 a year ago. The cancellation rate for the quarter was 18.3%, up from 16.5% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of December 31, 2025 was $573.3 million, representing 1,008 homes, compared to $816.0 million, representing 1,507 homes, at the same time last year. The ASP of homes in backlog was $568.7 thousand, up 5.0% versus the prior year quarter. The increase in backlog ASP was primarily due to changes in product and community mix.

Homebuilding Revenue. First quarter homebuilding revenue was $359.7 million, down 21.9% year-over-year. The decrease in homebuilding revenue was driven by a 22.8% decrease in home closings to 700 homes, partially offset by a 1.2% increase in ASP to $513.9 thousand. The decrease in closings was primarily due to the lower beginning backlog.

Homebuilding Gross Margin. Homebuilding gross margin was 10.4%, down 480 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 14.0% for the first quarter, down from 18.2% in the prior year quarter primarily due to an increase in price concessions and closing cost incentives, changes in product and community mix, and a litigation-related charge recognized during the quarter ended December 31, 2025. The litigation-related charge reduced homebuilding gross margin by 1.8%.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 17.9% for the quarter, up 390 basis points year-over-year primarily due to lower homebuilding revenue.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $180.7 million, down 14.5% year-over-year. Controlled lots decreased 14.0% to 24,832, compared to 28,874 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 23,498, down 16.6% year-over-year. As of December 31, 2025, the Company controlled 61.0% of its total active lots through option agreements compared to 58.9% as of December 31, 2024.

Liquidity. At the close of the first quarter, the Company had $342.7 million of available liquidity, including $120.8 million of unrestricted cash and $221.9 million of remaining capacity under the unsecured revolving credit facility, compared to total available liquidity of $335.4 million a year ago.

Share Repurchases. During the quarter, the Company repurchased $15.1 million of its outstanding common stock through open market transactions at an average price per share of $21.72.

Conference Call

The Company will hold a conference call on January 29, 2026 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the pass code "8571348." A replay of the conference call will be available, until 11:59 PM ET on February 12, 2026 at 800-391-9853 (for international callers, dial 203-369-3269) with pass code "3740."

Summary results for the three months ended December 31, 2025 and 2024 are as follows: