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1. Company Snapshot

1.a. Company Description

Beazer Homes USA, Inc.operates as a homebuilder in the United States.It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names.


The company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Maryland, Indiana, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina.Beazer Homes USA, Inc.was founded in 1985 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on BZH

Beazer Homes USA faces significant near-term challenges, including declining revenue, profits, and cash flow, as reported in Q3 2025. The company's fundamentals have weakened due to a slowing housing market, with rising cancellation rates and a shrinking backlog. A recent rating downgrade from 'strong buy' to 'buy' reflects these challenges. Additionally, Q3 earnings missed estimates, with a quarterly earnings per share of $0.26, compared to $0.42 expected. Revenue also declined 8% year-over-year. Management aims to expand to over 200 active communities by 2027.

1.c. Company Highlights

2. Beazer Homes' Q3 2025 Earnings: Navigating a Challenging Market

Beazer Homes reported a weaker-than-expected sales environment in Q3 2025, particularly in Texas, where sales pace fell below recent historical averages. Despite this, the company achieved a 15% growth in average community count to 167 and grew book value per share to over $41. Adjusted gross margin remained at 18.4%, slightly up from Q2, driven by margin improvements on newer homes. Earnings per share (EPS) came in at $0.26, below estimates of $0.42.

Publication Date: Sep -04

📋 Highlights
  • Weak Q3 Texas Sales Environment: Despite sales pace below historical averages in Texas, community count grew 15% to 167.
  • Margin Stability: Adjusted gross margin held at 18.4%, driven by newer homes, with Q4 guidance of ~18%.
  • Land Spend Reduction: Full-year land spending cut to $700-750M (vs. prior guidance), with over 60% optionality in lot positions.
  • Shareholder Returns: Book value per share rose above $41, and $12.5M in stock repurchases executed.
  • Spec Home Mix: 65-70% of builds are speculative, up from historical 50-50, reflecting market demand shifts.

Financial Performance

The company's revenue was impacted by the weaker sales environment, but the growth in community count and book value per share are positive indicators. The adjusted gross margin expansion is a notable achievement, given the challenging market conditions. With a current P/E Ratio of 10.8 and P/B Ratio of 0.6, the market appears to be pricing in a moderate level of growth and valuation.

Operational Highlights

Beazer is taking several actions to address the challenging market conditions, including renegotiating land contracts and construction agreements, evaluating lot positions to maximize returns, and actively managing its land portfolio. As a result, they expect to slow land spending to $700-750 million for the full year. The company is also focused on its differentiated product strategy, emphasizing energy efficiency and customer service.

Guidance and Outlook

Looking ahead to Q4 2025, Beazer expects sales to remain relatively flat year-over-year, with a community count of around 175. They project adjusted gross margin around 18%, SG&A expense at 11.5% of revenue, and diluted earnings per share of just above $0.80. The company expects flat year-over-year orders for the full year, implying a significant sequential increase in the fourth quarter.

Market Trends and Speculative Homes

The company's current build-to-order mix is around 65% to 70% speculative homes, higher than their historical average of closer to 50-50. This shift reflects market preference for speculative homes, a trend they anticipate continuing into the fourth quarter. Beazer is also working to improve its build times, aiming to return to pre-COVID build times by 2026.

Valuation and Profitability

With a Return on Equity (ROE) of 5.51% and Return on Invested Capital (ROIC) of 2.58%, Beazer Homes' profitability metrics indicate a moderate level of return. The company's Net Debt / EBITDA ratio is 11.84, suggesting a relatively high level of debt. The current valuation multiples, including a P/S Ratio of 0.31 and EV/EBITDA of 20.0, provide a basis for assessing the company's valuation relative to its peers.

3. NewsRoom

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Unveiling Beazer (BZH) Q4 Outlook: Wall Street Estimates for Key Metrics

Nov -10

Source: zacks.com

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69,209 Shares in Beazer Homes USA, Inc. $BZH Bought by Teacher Retirement System of Texas

Nov -05

Source: defenseworld.net

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Beazer Homes Encourages Homebuyers to Enjoy the Great Indoors™

Oct -22

Source: businesswire.com

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Janney Montgomery Scott LLC Sells 7,775 Shares of Beazer Homes USA, Inc. $BZH

Oct -18

Source: defenseworld.net

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Beazer Homes USA, Inc. to Webcast Its Fourth Quarter and Full Year Fiscal 2025 Financial Results Conference Call on November 13, 2025

Oct -16

Source: businesswire.com

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Beazer Homes USA: The Picture Has Worsened (Rating Downgrade)

Oct -04

Source: seekingalpha.com

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Beazer Homes (BZH) Q3 Revenue Falls 8%

Aug -02

Source: fool.com

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Compared to Estimates, Beazer (BZH) Q3 Earnings: A Look at Key Metrics

Aug -01

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Homebuilding

Expected Growth: 13%

Beazer Homes USA, Inc.'s 13% growth in homebuilding is driven by increasing demand for new homes, particularly in the affordable and entry-level segments. Strong job markets, low interest rates, and a shortage of existing homes for sale are also contributing factors. Additionally, Beazer's focus on cost savings initiatives and strategic land investments have improved operational efficiency and driven growth.

Land and Other

Expected Growth: 13%

Beazer Homes USA, Inc.'s 13% growth in Land and Other segment is driven by strategic land acquisitions, increasing lot inventory, and rising land values. Additionally, the company's focus on community development and expansion into new markets has contributed to the growth. Furthermore, the segment's profitability has been enhanced by effective cost management and optimization of land use.

7. Detailed Products

Single-Family Homes

Beazer Homes USA, Inc. builds and sells single-family homes in various communities across the United States.

Townhomes

The company also builds and sells townhomes, which are multi-level homes that offer a more affordable option for homebuyers.

Condominiums

Beazer Homes USA, Inc. develops and sells condominiums, which are multi-unit dwellings that offer shared common areas and amenities.

Active Adult Communities

The company builds and sells homes in active adult communities, which are designed for residents aged 55 and older.

Land Development

Beazer Homes USA, Inc. also engages in land development, acquiring and developing land for future homebuilding projects.

8. Beazer Homes USA, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Beazer Homes USA, Inc. is medium due to the presence of alternative housing options such as apartments and rentals.

Bargaining Power Of Customers

The bargaining power of customers for Beazer Homes USA, Inc. is low due to the lack of negotiating power of individual homebuyers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Beazer Homes USA, Inc. is medium due to the presence of multiple suppliers of building materials and labor.

Threat Of New Entrants

The threat of new entrants for Beazer Homes USA, Inc. is low due to the high barriers to entry in the homebuilding industry.

Intensity Of Rivalry

The intensity of rivalry for Beazer Homes USA, Inc. is high due to the presence of several established homebuilders in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.58%
Debt Cost 7.91%
Equity Weight 52.42%
Equity Cost 15.20%
WACC 11.73%
Leverage 90.78%

11. Quality Control: Beazer Homes USA, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Monarch Casino & Resort

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Value: 3.6

Growth: 7.0

Quality: 8.6

Yield: 3.0

Momentum: 8.5

Volatility: 7.3

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Legacy Housing

A-Score: 5.3/10

Value: 6.0

Growth: 5.9

Quality: 7.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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Hovnanian

A-Score: 3.8/10

Value: 8.6

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Beazer Homes USA

A-Score: 3.7/10

Value: 7.8

Growth: 3.9

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

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LGI Homes

A-Score: 3.4/10

Value: 8.1

Growth: 3.7

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

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United Homes

A-Score: 2.5/10

Value: 6.8

Growth: 2.7

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.86$

Current Price

21.86$

Potential

-0.00%

Expected Cash-Flows