Beazer Homes USA 2025 Q3 Earnings Misses Targets as Net Income Drops 101.2%

Beazer Homes USA Inc. (BZH) reported its fiscal 2025 Q3 earnings on July 31, 2025, revealing a substantial decline in financial performance compared to the previous year. The company missed analyst expectations, posting a net loss of $0.3 million, or $0.01 per share, significantly below the anticipated earnings per share. Despite facing a challenging sales environment, Beazer Homes remains committed to its strategic objectives, including expanding its community count and enhancing shareholder value through share repurchases.

Revenue
Beazer Homes USA experienced an 8.4% decrease in total revenue, bringing in $545.37 million for Q3 2025 compared to $595.68 million in Q3 2024. The homebuilding segment contributed $535.39 million, while land sales and other revenue added $9.98 million to the overall figure.

Earnings/Net Income
The company experienced a swing from a profit to a loss, reporting a net loss of $0.01 per share in Q3 2025, compared to a profit of $0.89 per share in Q3 2024. The net loss was $324,000, marking a significant decline from the $27.21 million net income in the previous year. The EPS performance was notably poor, reflecting a challenging quarter.

Price Action
The stock price of Beazer Homes USA edged up 0.43% during the latest trading day, dropped 3.17% over the past full trading week, and climbed 5.05% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Beazer Homes USA stock when earnings exceed expectations and holding for 30 days delivered moderate returns but did not outperform the benchmark. The strategy achieved a 73.95% return compared to the benchmark's 85.57% return. While the strategy's Sharpe ratio was 0.23, indicating a reasonable risk-adjusted return, it also demonstrated a maximum drawdown of 0.00%, suggesting that it avoided significant losses during market downturns. Despite its moderate success, the strategy's performance fell short of the benchmark, highlighting the challenges faced in achieving superior returns.

CEO Commentary
"During the third quarter, we continued to take actions aligned with achieving our Multi-Year Goals as we navigated a challenging sales environment," said Allan P. Merrill, Chairman and Chief Executive Officer. He highlighted double-digit growth in community count and resilient gross margins, which helped mitigate a weaker-than-expected sales pace, particularly in Texas. The company increased book value per share to over $41 through share repurchases. Merrill emphasized that with 167 communities and nearly 28,000 controlled lots, Beazer is positioned to reach its 200 active community count goal by fiscal 2027 while focusing on reducing net debt to net capitalization ratio and generating double-digit growth in book value per share.

Guidance
Merrill indicated that the company expects to direct more discretionary capital toward achieving its fiscal 2027 objectives, which include maintaining a net debt to net capitalization ratio in the low 30% range and generating double-digit growth in book value per share. He expressed confidence in Beazer's differentiated market position and growth opportunities as America’s #1 Energy-Efficient Homebuilder, stating, "We remain optimistic about the growth opportunities ahead."

Additional News
In recent developments, Beazer Homes USA has accelerated its share repurchase program in response to recent share price dislocation, repurchasing approximately $4.1 million of shares at an average price of $21.86. Furthermore, the company announced a new exclusive three-year agreement with James Hardie Building Products Inc., ensuring Hardie® siding and trim products as the standard for all new Beazer communities nationwide. Additionally, Beazer Homes organized a nationwide National Day of Service on March 14, engaging over 1,000 employees across 17 cities to support 50 local nonprofits, raising more than $3 million for the Fisher House Foundation.