ATLANTA--( BUSINESS WIRE )--Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three months ended December 31, 2024.

“Despite a challenging new home sales environment, we had a productive first quarter and made progress toward our full year and Multi-Year Goals,” said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. “Net new orders and closings increased year-over-year, supported by a 20% higher community count. We also grew our total lot position by about 10% versus the prior year, primarily through options, positioning us for further community count growth in the years ahead.”

Looking to the full fiscal year, Mr. Merrill said, “Despite the affordability challenges of the near-term environment, we remain confident in our ability to generate a double-digit return on capital employed this year – even as we position the Company for substantial growth in the years ahead.”

Speaking to the Company’s three Multi-Year Goals and longer-term outlook, Mr. Merrill said, “Our community count growth, deleveraging and Zero Energy Ready goals are all within sight. We expect to end fiscal year 2025 with approximately 180 active communities, with control of the land necessary to reach 200 active communities by the end of fiscal year 2026. Our net debt to net capitalization ratio should be in the mid-30% range at fiscal year-end, approaching our target of less than 30% by the end of fiscal year 2026. Finally, with 98% of our home starts in the first quarter being built to Zero Energy Ready standards and only four communities remaining with legacy product, we expect 100% of our starts will be Zero Energy Ready by December 2025. With our experienced operating team, growing lot position, healthy balance sheet, and industry-leading energy efficient homes, we are well-positioned to drive sustainable value for our shareholders in the years ahead.”

Beazer Homes Fiscal First Quarter 2025 Highlights and Comparison to Fiscal First Quarter 2024

• Net income from continuing operations was $3.1 million, or $0.10 per diluted share, compared to net income from continuing operations of $21.7 million, or $0.70 per diluted share, in fiscal first quarter 2024
• Adjusted EBITDA was $23.0 million, down 39.4%
• Homebuilding revenue was $460.4 million, up 20.9% on a 22.1% increase in home closings to 907, partially offset by a 1.0% decrease in average selling price (ASP) to $507.6 thousand
• Homebuilding gross margin was 15.2%, down 470 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 18.2%, down 470 basis points
• SG&A as a percentage of total revenue was 14.0%, down 30 basis points
• Net new orders were 932, up 13.2% on a 17.8% increase in average community count to 161, partially offset by a 3.8% decrease in orders per community per month to 1.9
• Active community count at period-end of 163, up 19.9%
• Backlog dollar value was $816.0 million, down 12.5% on a 15.9% decrease in backlog units to 1,507, partially offset by a 4.0% increase in ASP of homes in backlog to $541.5 thousand
• Land acquisition and land development spending was $211.3 million, up 6.3% from $198.7 million
• Controlled lots of 28,874, up 9.5% from 26,374
• Unrestricted cash at quarter end was $80.4 million; total liquidity was $335.4 million
• Total debt to total capitalization ratio remained flat at 46.5% year-over-year. Net debt to net capitalization ratio was 44.5% at quarter end compared to 43.7% a year ago

The following provides additional details on the Company's performance during the fiscal first quarter 2025:

Profitability. Net income from continuing operations was $3.1 million, generating diluted earnings per share of $0.10. First quarter adjusted EBITDA of $23.0 million was down $15.0 million, or 39.4%, primarily due to lower operating margin, partially offset by higher revenue on higher closings.

Orders. Net new orders for the first quarter increased to 932, up 13.2% from 823 in the prior year quarter, primarily driven by a 17.8% increase in average community count to 161 from 137 a year ago, partially offset by a 3.8% decrease in sales pace to 1.9 orders per community per month, down from 2.0 in the prior year quarter. The cancellation rate for the quarter was 16.5%, down from 19.0% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of December 31, 2024 was $816.0 million, representing 1,507 homes, compared to $932.8 million, representing 1,791 homes, at the same time last year. The ASP of homes in backlog was $541.5 thousand, up 4.0% versus the prior year quarter. The increase in backlog ASP was primarily due to changes in product and community mix and price appreciation in certain communities.

Homebuilding Revenue. First quarter homebuilding revenue was $460.4 million, up 20.9% year-over-year. The increase in homebuilding revenue was driven by a 22.1% increase in home closings to 907 homes, partially offset by a 1.0% decrease in ASP to $507.6 thousand. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times.

Homebuilding Gross Margin. Homebuilding gross margin was 15.2%, down 470 basis points compared to a year ago. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 18.2% for the first quarter, down from 22.9% in the prior year quarter primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 14.0% for the quarter, down 30 basis points year-over-year due to total revenue growth outpacing SG&A expense growth.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $211.3 million, up 6.3% year-over-year. Controlled lots increased 9.5% to 28,874, compared to 26,374 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 28,178, up 9.6% year-over-year. As of December 31, 2024, the Company controlled 58.9% of its total active lots through option agreements compared to 53.1% as of December 31, 2023.

Liquidity. At the close of the first quarter, the Company had $335.4 million of available liquidity, including $80.4 million of unrestricted cash and $255.0 million of remaining capacity under the unsecured revolving credit facility, compared to total available liquidity of $404.2 million a year ago.

Senior Unsecured Revolving Credit Facility. During January 2025, the Company increased the available borrowing capacity under the senior unsecured revolving credit facility from $300.0 million to $365.0 million.

Commitment to Sustainability

The Company remains dedicated to continually enhancing the energy efficiency of its homes in support of its industry-first pledge that, by the end of calendar 2025, every new home the Company starts will be Zero Energy Ready, which means it will meet the requirements of the U.S. Department of Energy's (DOE) Zero Energy Ready Home program.

In November, the Company introduced Charity Home Insurance Agency, which provides consumers with the opportunity to purchase homeowner’s insurance coverage based on their home specifications and personal needs. Charity Home Insurance Agency is dedicated to distributing 100% of profits to the Beazer Charity Foundation, the Company’s philanthropic arm, which supports nonprofits working in our communities.

Summary results for the three months ended December 31, 2024 are as follows: