Beazer Homes Q3 revenue drops on weak sales pace, especially in Texas

Beazer Homes USA

31/07/2025 21:52

Overview

Beazer Homes fiscal Q3 net loss from continuing operations, adjusted EBITDA missed estimates

Homebuilding revenue down 9.2% yr/yr, driven by decline in home closings

Co repurchased $12.5 mln of outstanding common stock, reflecting strategic capital allocation

Outlook

Beazer Homes aims for 200 active communities by fiscal 2027

Company targets net debt to net capitalization ratio in low 30% range by 2027

Beazer Homes expects double-digit growth in book value per share by 2027

Company remains optimistic about growth opportunities in energy-efficient homes

Result Drivers

COMMUNITY GROWTH - Double-digit growth in community count helped offset weaker sales pace, particularly in Texas

GROSS MARGINS - Resilient gross margins supported results despite inventory impairment and abandonment charges

SALES PACE - Weaker-than-expected sales pace impacted revenue, especially in Texas markets

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Homebuilding Revenue
$535.40 mln
Q3 Adjusted EBITDA
Miss
$32.10 mln
$38.10 mln (5 Analysts)
Q3 Homebuilding Gross Margin
13.5%
Q3 Homebuilding Adj. Gross Margin
15.2%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "hold."

Wall Street's median 12-month price target for Beazer Homes USA Inc is $32.00, about 26.8% above its July 30 closing price of $23.42

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw9BvzsFa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)