Beazer Homes Usa, Inc. · NYSE:BZH
Beazer Homes Usa — Q3 FY2025 Earnings Presentation
29 slides from Beazer Homes Usa's earnings presentation, 2025
Slide 1: Beazer Homes USA, Inc. Q3 2025 Earnings Presentation
Beazer Homes USA, Inc. Q3 2025 Earnings Presentation STONEWOOD ESTATES DURHAM, NC 1
Slide 2: Disclaimers
Disclaimers This presentation contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject t
Slide 3: Introduction
Introduction Allan P. Merrill David I. Goldberg Chairman & Chief Executive Officer Sr. Vice President & Chief Financial Officer 3
Slide 4: Q3 FY25 Highlights
Q3 FY25 Highlights Community Count Growth Book Value per Share Growth Gross Margin Increase Repurchased $12+ million of stock bringing total repurchases to $33 million this year 4
Slide 5: Current Operating Environment
Current Operating Environment Monthly Mortgage Payment as a % of Income New Housing Inventory Units (in thousands) 35% 700 600 30% 500 25% 400 300 20% 200 15% 100 10% - Historical Average Historical Average Monthly median new residential sales price of homes sold in United States published by the U.
Slide 6: Code-Built vs. Beazer-Built
Code-Built vs. Beazer-Built Building Features & Homeowner Benefits • Higher Quality – 2x6 construction – High performance building envelope – Energy Recovery Ventilator • More Comfort – Fewer temperature fluctuations – Consistent humidity • Better Indoor Air Quality – Enhanced filtration – Reduced i
Slide 7: Asset Alignment
Asset Alignment Asset Driving higher lot option % Ongoing portfolio structuring management to Selling excess lots enhance return on capital Community Adjusting product types positioning or features Changing pricing strategies Changing intention drove two modest impairments (Phoenix and Orlando) Revi
Slide 8: Multi-Year Goals (MYG)
Multi-Year Goals (“MYG”) > 200 Communities By FYE 2027 Low 30% Net Debt to Net Capitalization By FYE 2027 Double-Digit Book Value Per Share CAGR Through FYE 2027 8
Slide 9: MYG: Expanding Community Count
MYG: Expanding Community Count > 200 Active Communities 200 40 180 35 Active Community Count - Period-End ~175 Active Controlled Lots (in thousands) 160 162 30 140 25 134 123 120 20 117 100 15 21k 24k 26k 28k ~28k 80 10 FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 Active Controlled Lots Community Count
Slide 10: MYG: Deleveraging Balance Sheet
MYG: Deleveraging Balance Sheet 70% 60% 52.7% 50% 45.0% 40% 40.0% Accelerated de- leveraging in FY26 36.4% through profitability and lower required Low 30%’s Net land spend Debt / Net Cap 30% 20% FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 See “Non-GAAP Net Debt to Net Capitalization Reconciliation” i
Slide 11: MYG: Generating Double-Digit BV/Share CAGR
MYG: Generating Double-Digit BV/Share CAGR $60 Mid $50’s Book Value Per Share $50 (a) $40.05 $40 $35.53 $30.53 $30 $23.48 $20 $10 $- FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 Homebuilding Assets DTA Quarterly diluted weighted-average shares outstanding at period-end used for all per share calculatio
Slide 12: Q3 Results
Q4 Q3Results Results Balanced Growth Results Q3 FY25 YoY Change New Home Orders 861 (19.5%) Sales Pace 1.7 (30.0%) Active Community Count, Avg 167 14.9% Homebuilding Revenue ($mm) $535.4 (9.2%) Closings 1,035 (11.3%) Average Selling Price ($k) $517.3 2.4% HB Gross Margin %(a) 18.4% (190 bps) SG&A as
Slide 13: Q4 Expectations
Q4 Expectations Metric Expectations New Home Orders Flat YoY Active Community Count, Ending ~175 Closings 1,200 - 1,300 Average Selling Price ~$535k Adjusted HB Gross Margin %(a) ~18% SG&A as % of Total Revenue ~11.5% Adjusted EBITDA ~$50MM Interest Amort. as % of HB Revenue > 3% Net Tax Benefit Sev
Slide 14: Liquidity and Capitalization
Liquidity and Capitalization $ in millions $500 Net Debt / Net Cap(a) 46.6% Net Debt / LTM Adj. EBITDA 5.7x Total liquidity of ~$292 million $400 $300 $200 $209 $357 $350 $250 $100 $7 $83 $78 $- Unrestricted Cash Restricted Cash - LC/Escrow Undrawn Revolver Senior Unsecured Debt Junior Debt - Net of
Slide 15: Land Spend & Lot Position
Land Spend & Lot Position 75% 50 FY25 Land Spend $700MM - $750MM Ending Active Controlled Lots (in thousands) 60% 60% 40 Option % of Active Controlled Lots 55% 52% 52% 48% 45% 28 30 27 24 22 30% 19 30% 15 20 17 16 13 12 5 9 15% 10 12 12 11 12 11 10 0% - Q3 Q3 Q3 Q3 Q3 Q3 FY20 FY21 FY22 FY23 FY24 FY2
Slide 16: Closing Comments
Closing Comments Addressing the current environment... • Moderating land spending • Managing portfolio • Renegotiating land, labor and materials …while strengthening differentiation to drive shareholder returns • Delivering exceptional homes • Providing a best-in-class customer experience 16
Slide 17: Appendix
AK BEAZER Homes Appendix
Slide 18: MYG: Delivering Zero Energy Ready
MYG: Delivering Zero Energy Ready 100% ZER Starts 98% by CYE25 100% 92% 80% 67% 60% Beazer is the only public builder to commit 100% of starts to ZER 40% 20% 20% 3% 0% 1st Half 2nd Half 1st Half 2nd Half YTD CYE25 FY23 FY24 FY25 * 14 Starts Remaining Related to Prior Series as of 6/30/25 18
Slide 19: Q3 Results
Q3 Results $ in millions (except ASP) Q3 FY24 Q3 FY25 ∆(e) Profitability Total Revenue $ 595.7 $ 545.4 (8.4%) Adjusted EBITDA(a) $ 53.5 $ 32.1 ($21.4) Net Income - Cont. Ops.(b) $ 27.2 $ (0.3) ($27.5) Unit Activity New Home Orders 1,070 861 (19.5%) Closings 1,167 1,035 (11.3%) Average Selling Price
Slide 20: Backlog Detail
Backlog Detail Q3 FY24 Q3 FY25 Quarter Ending Backlog (units) 1,949 1,352 Quarter Ending Backlog ($ in millions) $ 1,046.5 $ 742.5 ASP in Backlog ($ in thousands) $ 536.9 $ 549.2 Quarter Beg. Backlog 2,046 1,526 Scheduled to Close in Future Qtrs. (972) (648) Backlog Scheduled to Close in the Qtr. 1,
Slide 21: SG&A Leverage
SG&A Leverage SG&A Per Closing SG&A Leverage LTM Homebuilding % of Total Revenue $ in thousands $70 14% $62.8 $59.9 $60.0 $60.8 12.0% 11.9% 11.7% $60 12% 11.4% 10.7% $50 10% $40 8% 13.2% $30 6% 11.8% 11.9% 11.1% 11.5% $20 4% $10 2% $- 0% Q4 Q1 Q2 Q3 Q3 Q3 Q3 Q3 Q3 FY24 FY25 FY21 FY22 FY23 FY24 FY25
Slide 22: Cancellation Rates
Cancellation Rates 25% 20% 20% 19% 17% 16% 15% 14% 12% 12% 11% 10% 6% 5% 4% 0% Q3 FY21 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY25 (a) Cancellation Rate Cancellation Rate (% of Backlog) (a) Cancellation Rate as a % of Backlog is calculated using the quarter's beginning backlog units 22
Slide 23: Specs per Community
Spec Homes 1,500 20 1,376 1,004 1,135 1,125 15 899 936 Specs per Community Spec Homes 881 750 720 10 592 8 8 8 437 6 375 397 5 372 4 236 128 40 55 - - Q3 FY21 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY25 Completed Under Construction Per Community Note: Spec count as of each quarter end includes Gatherings 23
Slide 24: Segment ASP & Margins
Segment ASP & Margins ($ in thousands) Q3 FY24 Q3 FY25 Change in Change in Q3 FY24 Q3 FY25 Change in ASP ASP ASP ($) ASP (%) Closings Closings Mix West $502.6 $499.1 ($3.5) (0.7%) 62.4% 62.5% 0.1% East $505.2 $568.7 $63.5 12.6% 20.6% 24.7% 4.1% Southeast $515.1 $506.6 ($8.5) (1.7%) 17.1% 12.8% (4.3%
Slide 25: Non-GAAP Homebuilding Gross Margin Reconciliation
Non-GAAP Homebuilding Gross Margin Reconciliation Three Months Ended June 30, 2025 HB Gross HB Gross HB Gross HB Gross Profit Margin Profit Margin excluding excluding HB Gross Impairments & excluding excluding Interest I&A and I&A and HB Gross Margin Abandonments I&A I&A Amortized to Interest (Non-
Slide 26: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Three Months Ended June 30, LTM Ended June 30, ($ in thousands) 2024 2025 25 vs 24 2024 2025 25 vs 24 Net income (loss) (GAAP) $ 27,210 $ (324) $ (27,534) $ 143,865 $ 67,650 $ (76,215) Expense (benefit) from income taxes 2,453 (2,182) (4,635) 18,843 7,781 (11,
Slide 27: Non-GAAP Net Debt to Net Capitalization Reconciliation
Non-GAAP Net Debt to Net Capitalization Reconciliation Three Months Ended June 30, 2024 2025 ($ in thousands) Total debt (GAAP) $ 1,069,408 $ 1,143,173 Stockholders' equity (GAAP) 1,178,315 1,217,031 Total capitalization (GAAP) $ 2,247,723 $ 2,360,204 Total debt to total capitalization ratio (GAAP)
Slide 28: Beazer Tax Benefits
Beazer Tax Benefits FY26 (a) FY27 – FY29 Energy Building industry-leading, energy efficient homes provides tax benefits of Efficiency predominantly $5K/SFD through No new energy efficiency tax credits Credits 6/30/26 GAAP Taxes < 15% >24% & < 28% • As We Utilize Credits, Cash Taxes < GAAP Taxes Cash
Slide 29: Deferred Tax Assets - Summary
Deferred Tax Assets - Summary ($ in millions) June 30, 2024 June 30, 2025 Deferred Tax Assets $ 167.8 $ 168.2 Valuation Allowance $ (30.4) $ (27.6) Deferred Tax Liabilities $ (5.4) $ (5.3) Net Deferred Tax Assets $ 132.0 $ 135.3 As of June 30, 2025, our conclusions on whether we are more likely than