Beazer Homes Reports Decline in Q3 Fiscal 2025 Revenue and Net Income

Beazer Homes USA, Inc. reported a decline in financial performance for the third quarter of fiscal 2025, with total revenue of $545.4 million, down 8.4% from $595.7 million in the same period last year. The company experienced a net loss of $324,000, compared to a net income of $27.2 million in the prior year. For the nine months ended June 30, 2025, total revenue increased slightly to $1.58 billion from $1.52 billion, while net income fell to $15.6 million from $88.1 million. The decrease in profitability was attributed to a significant drop in gross profit, which fell to $72.6 million from $103.3 million year-over-year, largely due to inventory impairments and increased costs.

In terms of operational metrics, Beazer Homes reported a 14.9% increase in average active community count, reaching 167 communities. However, net new orders decreased by 19.5% to 861, reflecting a decline in sales pace from 2.4 orders per community per month to 1.7. The company’s average selling price for homes closed during the quarter was $517,300, a 2.4% increase from the previous year, indicating a shift in product and community mix. The company also reported a gross margin of 13.3%, down from 17.3% in the prior year, impacted by inventory impairments totaling $10.3 million.

Strategically, Beazer Homes is focusing on capital-efficient growth opportunities, including the expanded use of lot option agreements, which allow for flexibility in land acquisition. As of June 30, 2025, the company controlled 27,794 lots, with 60.1% of active lots under option agreements. The company has also initiated a new share repurchase program, authorizing up to $100 million in stock buybacks, and repurchased approximately 586,000 shares for $12.5 million during the quarter.

Looking ahead, Beazer Homes aims to navigate the challenging market conditions characterized by elevated mortgage rates and weak consumer sentiment. The company plans to slow land spending and renegotiate acquisition terms to enhance flexibility. Management has set multi-year goals, including reducing the net debt to net capitalization ratio to the low 30% range by the end of fiscal 2027 and achieving a double-digit compound annual growth in book value per share. The company remains committed to its strategic differentiators, including its Mortgage Choice platform and energy-efficient home designs, as it positions itself for long-term growth amidst ongoing market uncertainties.