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What were the key takeaways from Beazer Homes USA’s earnings call?

- **Community expansion and cost efficiency**: 14% community count growth, $10,000 per home cost savings, and $63M asset sales for reinvestment.
- **Financial resilience**: Q4 2025 EBITDA of $64M, 17.2% gross margin, and 2026 targets of 5-10% closings growth and 3-point margin improvement.
- **Energy-efficient homes strategy**: 48 new Zero Energy Ready communities, reducing mortgage and utility costs by $3,000/year for buyers.
- **Texas market recovery**: Q4 2025 sales pace improvement to 1.8, with cautious optimism for 2026 wage growth-driven affordability.
- **Shareholder value**: $1.5M shares repurchased in 2025, $100M+ land sales expected in 2026, and $84M energy tax credits protection via rights agreement.

**【CEO Summary Section】**
- Fiscal 2025 highlights: 14% increase in average active community count to 164, net debt to net cap below 40%, and book value per share growth to $43.
- Operational responses: $10,000 per home cost savings from rebidding, $12M annual workforce reduction, and $63M asset sales for capital reinvestment.
- Strategic focus: Energy-efficient homes (Zero Energy Ready) with 48 new communities launched since April, targeting 200+ communities by 2027.
- Texas market improvement: Sales pace in Texas rose to 1.8 in Q4, up from 1.3, with ongoing efforts to enhance affordability through lower mortgage rates and utility bills.

**【CFO Financial Commentary】**
- Q4 2025 results: 1,400 closings, 17.2% gross margin, $64M adjusted EBITDA, and $1.02 diluted EPS.
- Q1 2026 guidance: 900 orders, 800 closings, 16% gross margin, and net loss of $0.50 per share.
- Full year 2026 targets: 5-10% closings growth, 3-point margin improvement (via cost savings, mix shift, and new community contributions), and $100M+ land sales.
- Balance sheet: $540M liquidity, $215M unrestricted cash, and no maturities until 2027.
- Share buybacks: Repurchased 1.5M shares in 2025, expecting similar pace in 2026.

**【Q&A Highlights】**
- **Gross margin improvement timing**: CFO expects 3-point improvement by Q4 2026, driven by cost savings ($10,000 per home), mix shift away from lower-priced communities, and new community contributions (200+ basis points margin advantage).
- **Land costs impact**: CEO notes new communities launched since April have higher per lot costs but maintain margin through ASP growth and product differentiation.
- **Texas market outlook**: CEO cautious on 2026 recovery, with Q1 2026 closings expected to remain below 2.0 but monitoring wage growth and affordability trends.
- **Deferred tax assets (DTAs)**: $84M related to energy credits, expected to grow through 2026; rights agreement to protect $140M DTAs contingent on shareholder approval.
- **Spec homes strategy**: CFO anticipates 75% spec sales in Q1 2026, with gradual shift to to-be-built as market improves, targeting 60-40 mix long-term.


Beazer Homes USA, Inc. (BZH) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BZH

BZH fundamentals

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