Beazer Homes USA (BZH) Q2 2026 earnings summary

Executive summary

• Second quarter results were in line with expectations for community count, sales pace, ASP, and gross margin, despite macroeconomic and geopolitical challenges that led to higher mortgage rates and dampened consumer sentiment.

• Revenue for Q2 FY26 was $409.8M, down 27.5% year-over-year, with a net loss of $0.9M versus net income of $12.8M in Q2 FY25.

• Margin improvement is expected in the second half due to construction cost reductions, favorable mix shifts, and contributions from new communities.

• Share repurchases accelerated, with $30M spent in Q2 and nearly 20% of shares repurchased since early FY25.

• Focus remains on fiscal 2027 goals: community count growth, deleveraging, and book value per share expansion.

Financial highlights

• Q2 FY26 homebuilding revenue was $397.7M, with 757 homes closed at an average price of $525.4K, down 29.8% in closings but up 2.0% in ASP year-over-year.

• Homebuilding gross margin was 12.0%, down 310 bps; excluding impairments and interest, margin was 15.6%, down 270 bps year-over-year.

• Adjusted EBITDA was $2.6M, down from $38.8M in Q2 FY25.

• SG&A as a percentage of revenue rose to 15.5%, up 350 bps year-over-year, though absolute SG&A expense declined.

• Unrestricted cash at quarter end was $116.4M; total liquidity was $401.1M, with $284.7M of remaining borrowing capacity.

Outlook and guidance

• Q3 FY26 expectations: new home orders over 1,000, sales pace around 2.1, closings about 900, ASP $535K–$540K.

• Adjusted homebuilding gross margin expected to rise over 50 bps sequentially.

• Land sale revenue forecasted at $30M for Q3 and $150M for the full year; management expects continued buyback activity funded by land sale proceeds.

• Multi-year goals include reaching over 200 active communities and reducing net debt to net capitalization to the low-30% range by fiscal 2027.

• Management is cautious on near-term demand due to macroeconomic headwinds and affordability challenges but expects margin improvement in the second half.