Beazer Homes USA (BZH) Q2 2025 earnings summary

Executive summary

• Net income for Q2 FY2025 was $12.8 million with diluted EPS of $0.42, surpassing profitability expectations despite challenging macroeconomic conditions and declining consumer sentiment.

• Adjusted EBITDA was $38.8 million, down 34% year-over-year, with homebuilding revenue up 3.2% to $556.0 million on higher closings.

• The company repurchased $20.6 million of stock in Q2, totaling $42 million over three years, and authorized a new $100 million share repurchase program, shifting capital allocation priorities to share buybacks and book value growth.

• Homebuilding gross margin declined to 15.1% from 18.7% year-over-year, reflecting increased price concessions, incentives, and a higher share of spec home closings.

• Nearly 99% of new home starts met Zero Energy Ready standards, reinforcing leadership in energy-efficient homebuilding.

Financial highlights

• Q2 FY2025 homebuilding revenue was $556.0 million, up 3.2% year-over-year; closings increased 3.4% to 1,079 units; ASP nearly flat at $515.3K.

• Net income from continuing operations was $12.8 million, down 67.4% year-over-year; diluted EPS was $0.42, down from $1.26.

• Adjusted EBITDA for Q2 FY2025 was $38.8 million, down from $58.8 million in Q2 FY2024.

• Homebuilding gross margin was 15.1%, down 360 bps; adjusted margin (excluding impairments and interest) was 18.3%, down 340 bps.

• SG&A as a percentage of revenue increased 50 bps to 12.0%.

Outlook and guidance

• Multi-year goals updated: target of 200+ active communities and net debt to net capitalization in the low 30% range by end of FY2027, with double-digit CAGR in book value per share.

• Q3 FY25 guidance: new home orders up 5–10% year-over-year, average community count ~160, closings 1,050–1,100, ASP ~$525k, adjusted homebuilding gross margin up slightly, SG&A <12%, adjusted EBITDA ~$40 million, diluted EPS >$0.40.

• FY25 guidance: average community count up 12.5–15%, sales pace 2.25–2.50, ASP ~$520k, gross margin ~18.5%, SG&A ~11%.

• Land spend for the year reduced to $750–$800 million; year-end lot count to reach ~30,000, up 5% year-over-year.

• Liquidity exceeds $375 million; no debt maturities until October 2027.