Beazer Homes USA, Inc.

What they do

Beazer Homes designs, builds and sells single-family homes across the West, East and Southeast regions of the United States, operating in 13 states as of the fiscal 2025 Form 10-K. It markets personalized options, energy-efficient construction and competitive mortgage choices, and provides buyers a third-party HERS index score for each home. The company's new homes averaged a HERS index score of 32 for the fiscal year ended September 30, 2025, versus 130 typical for used homes.

Revenue drivers

• Homebuilding revenue — The core business is home closings; fiscal third quarter 2026 homebuilding revenue was $490.9 million on 896 closings at a $547.8 thousand average selling price.
• Energy-efficient and solar-ready construction — Substantially all newly built Beazer homes meet the Department of Energy's Zero Energy Ready standard, and the company has begun introducing solar-included communities.
• Backlog and order flow — Backlog dollar value was $758.5 million (1,303 homes) at June 30, 2026, with backlog ASP of $582.1 thousand, up 6.0% year-over-year.
• Land and lot pipeline — The company controlled 23,083 active lots at quarter end, 60.0% through option agreements, supporting future community openings.

Recent performance

For the fiscal third quarter ended June 30, 2026, Beazer reported a net loss of $4.2 million, or $0.16 per diluted share, versus a $0.3 million net loss a year earlier. Adjusted EBITDA fell to $15.6 million from $32.1 million. Homebuilding revenue declined 8.3% to $490.9 million as closings dropped 13.4% to 896, partly offset by a 5.9% rise in ASP to $547.8 thousand. Homebuilding gross margin was 13.6%, up 10 basis points, but excluding impairments, abandonments and amortized interest it fell 150 basis points to 16.9%. Net new orders rose 4.5% to 900 and the cancellation rate improved to 15.9% from 19.8%.

Strategy

Beazer describes a long-term balanced growth strategy focused on growing profitability, improving balance sheet efficiency, and generating returns above cost of capital while limiting leverage. Its multi-year goals, updated in fiscal 2025, target more than 200 active communities by the end of fiscal 2027, a net debt to net capitalization ratio in the low 30% range by fiscal 2027, and double-digit compound annual growth in book value per share from fiscal 2024 through fiscal 2027. Capital allocation balances debt reduction and stock repurchases; the company repurchased 1.0 million shares for $21.0 million in the fiscal third quarter of 2026. However, on August 7, 2026 the company announced a definitive agreement to be acquired by Dream Finders Homes for $33.50 per share in cash, withdrew its financial outlook and cancelled its earnings call.

Risks

• Pending merger completion — The Dream Finders Homes acquisition is subject to stockholder approval, regulatory approval and other customary closing conditions, and there is no assurance it will be completed.
• Elevated mortgage rates and affordability — The fiscal 2025 Form 10-K states demand softened during fiscal 2025 as buyers faced an elevated interest rate environment, pressuring consumer confidence and the company's highly demand-dependent business.
• Margin compression — Homebuilding gross margin excluding impairments, abandonments and amortized interest fell 150 basis points year-over-year to 16.9% in the fiscal third quarter of 2026.
• Leverage increase — Total debt to total capitalization rose to 55.1% at June 30, 2026 from 48.4% a year earlier, and net debt to net capitalization was 52.8% versus 46.6%, well above the low 30% target.

Outlook

Beazer withdrew its previously issued financial outlook on August 7, 2026 because of the pending merger with Dream Finders Homes, and it cancelled its scheduled August 10, 2026 earnings conference call and webcast. The merger values the company at approximately $2.2 billion and pays $33.50 per share in cash. Completion depends on stockholder and regulatory approvals and other customary closing conditions.