Beazer Homes Usa, Inc. · NYSE:BZH
Beazer Homes Usa — Q2 2025 Earnings Presentation
32 slides from Beazer Homes Usa's earnings presentation, May 2, 2025
Slide 1: Beazer Homes USA, Inc. Q2 2025 Earnings Presentation
Beazer Homes USA, Inc. Q2 2025 Earnings Presentation NORTHBROOK MURRELLS INLET, SC 1
Slide 2: Disclaimers
Disclaimers This presentation contains forward-looking statements about Beazer Homes USA, Inc. (“Beazer Homes”) that only speak as of this date. Beazer Homes disclaims any obligation to update these statements. These forward-looking statements represent our good-faith estimates, expectations or beli
Slide 3: Introduction
Introduction Allan P. Merrill David I. Goldberg Chairman & Chief Executive Officer Sr. Vice President & Chief Financial Officer 3
Slide 4: Q2 FY25 Highlights
Q2 FY25 Highlights Community Count Growth Construction Cycle Time Improvement Gross Margin Increase Overhead Discipline Profitability Above Expectations Repurchased $20MM of stock bringing total repurchases to $42MM over the past three years 4
Slide 5: Current Operating Environment
Current Operating Environment Affordability & Consumer Sentiment Homebuilder Share Prices Monthly Mortgage Payment as a % of Income 20% 35% 30% 10% 25% Historical 20% Average 0% 15% 10% (10%) (20%) Consumer Sentiment Index 110 100 (30%) 90 80 (40%) 70 60 (50%) 50 40 BZH Peer Group Monthly median new
Slide 6: Capital Allocation History
Capital Allocation History FY20 FY25 Deleveraging Growth Posture • Reduced enterprise risk through • Prioritized profitable growth deleveraging • Repaid ~$700MM of debt • Introduced Multi-Year Goals • Brought debt level down to ~$1B • Grew lot position ~60% • Reduced net debt to net capitalization a
Slide 7: Updating Capital Allocation Priorities
Updating Capital Allocation Priorities Current Macro Share Repurchase Current Share Price Environment Authorization New Capital Allocation Priorities • Committed to Growth • Optimistic about the longer-term fundamentals for housing and our differentiated product • Committed to Deleveraging • De-leve
Slide 8: Updated Multi-Year Goals ("MYG")
Updated Multi-Year Goals (“MYG”) > 200 Communities By FYE 2027 Updated from FYE 2026 Low 30% Net Debt to Net Capitalization By FYE 2027 Updated from FYE 2026 Double-Digit Book Value Per Share CAGR Through FYE 2027 Replaces Zero Energy Ready Goal (effectively achieved, see appendix) 8
Slide 9: MYG: Expanding Community Count
MYG: Expanding Community Count > 200 Active Communities 200 40 180 35 170–180 Total Lots Controlled (thousands) Active Community Count - Period-End 160 162 30 140 25 134 123 120 20 117 100 15 21k 24k 26k 28k ~30k 80 10 FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 Active Lots Controlled Community Count
Slide 10: MYG: Deleveraging Balance Sheet
MYG: Deleveraging Balance Sheet 70% 60% 52.7% 50% 45.0% 40% 40.0% High 30%’s 36.4% Low 30%’s Net Debt / Net Cap 30% De-lever through profitability, cash generation, & balance sheet management 20% FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 Shifting Target Date See “Non-GAAP Net Debt to Net Capitalizat
Slide 11: MYG: Double-Digit BV/Share CAGR
MYG: Double-Digit BV/Share CAGR $60 Mid $50s Book Value Per Share $50 $40.05 $40 $35.53 $30.53 $30 $23.48 $20 $10 $- FYE21 FYE22 FYE23 FYE24 FYE25 FYE26 FYE27 Homebuilding Assets DTA Quarterly diluted weighted-average shares outstanding at period-end used for all per share calculations Balances as o
Slide 12: Q2 Results
Q3 Q2Results Results Balanced Growth Results Q2 FY25 YoY Change New Home Orders 1,098 (15.5%) Sales Pace 2.3 (27.1%) Community Count, Avg 163 15.9% Homebuilding Revenue ($mm) $556.0 3.2% Closings 1,079 3.4% Average Selling Price ($k) $515.3 (0.1)% HB Gross Margin %(a) 18.3% (340 bps) SG&A as % of To
Slide 13: 3rd Quarter Expectations
3rd Quarter Expectations Metric Expectations New Home Orders(a) Up 5% - 10% Active Community Count, Avg(a) Up ~10% Active Community Count, Ending ~160 Closings 1,050 - 1,100 Average Selling Price ~$525k Adjusted HB Gross Margin %(b) Up Slightly SG&A as % of Total Revenue < 12% Adjusted EBITDA ~$40MM
Slide 14: Updated Outlook for Fiscal Year 2025
Updated Outlook for Fiscal Year 2025 Community Count Growth Macro Assessment Ranges Low High Average Community Count +12.5% +15.0% Sales Pace ~2.25 ~2.50 Estimates ASP ~$520k Gross Margin ~18.5% SG&A ~11% 14
Slide 15: Land Spending & Lot Position
Land Spending & Lot Position 900 50 800 $788 $742 Ending Active Lot Balance (in thousands) 40 700 Land Spend - Last Twelve Monts (in millions) $652 600 $538 27.5 30 500 26.2 22.7 23.1 400 $379 18.2 13.5 16.3 20 300 11.6 12.5 8.4 200 10 100 11.2 12.6 11.2 9.8 10.6 0 - Q2 Q2 Q2 Q2 Q2 FY21 FY22 FY23 FY
Slide 16: Liquidity and Capitalization
Liquidity and Capitalization $ in millions Net Debt / Net Cap(a) 44.8% $700 Net Debt / LTM Adj. EBITDA 4.8x $600 Total liquidity of ~$378 million $500 $400 $300 $293 $200 $357 $350 $250 $100 $23 $85 $77 $- Unrestricted Cash Restricted Cash - LC/Escrow Undrawn Revolver Senior Unsecured Debt Junior De
Slide 17: Capital Allocation Framework
Capital Allocation Framework Growth – Continued Community Count Expansion • Asset efficiency through increasing lots controlled by option Deleveraging – Into the Low 30%’s • Principally through retained earnings Share Repurchases - $100MM Authorization • Compelling when share price well below book v
Slide 18: Wrap-Up
Wrap-Up Profitable quarter in challenging environment • Community count growth • Cycle time improvement • Gross margin increase • Overhead discipline • Share repurchase Updated Capital Allocation Priorities & Multi-Year Goals • Community Count Growth • Deleveraging • Book Value Per Share Growth Long
Slide 19: Appendix
AK BEAZER tomes Appendix
Slide 20: Zero Energy Ready Homes
Zero Energy Ready Homes A DOE Zero Energy Ready Home® is a high-performance home that is so energy efficient that a renewable energy system could offset most or all the home's annual energy use. Each DOE Zero Energy Ready Home meets rigorous efficiency and performance criteria. • Homeowner Benefits
Slide 21: 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 1st Half CYE25 FY23 FY24 FY25 * 30 Starts Remaining Related to Prior Series as of 3/31/25 21
Slide 22: Q2 Results
Q2 Results $ in millions (except ASP) Q2 FY24 Q2 FY25 ∆(d) Profitability Total Revenue $ 541.5 $ 565.3 4.4% Adjusted EBITDA(a) $ 58.8 $ 38.8 $ (20.0) Net Income - Cont. Ops. $ 39.2 $ 12.8 $ (26.4) Unit Activity New Home Orders 1,299 1,098 (15.5%) Closings 1,044 1,079 3.4% Average Selling Price ($k)
Slide 23: Backlog Detail
Backlog Detail Q2 FY24 Q2 FY25 Quarter Ending Backlog (units) 2,046 1,526 Quarter Ending Backlog ($ in millions) $ 1,075.1 $ 831.5 ASP in Backlog ($ in thousands) $ 525.5 $ 544.9 Quarter Beg. Backlog 1,791 1,507 Scheduled to Close in Future Qtrs. (824) (646) Backlog Scheduled to Close in the Qtr. 96
Slide 24: SG&A Leverage
SG&A Leverage SG&A Per Closing SG&A Leverage LTM Homebuilding % of Total Revenue $ in thousands 14% $70 $62.1 $60.8 11.9% $59.9 $60.0 11.5% 11.5% 11.6% $60 12% 10.7% $50 10% $40 8% $30 6% 12.2% 12.0% 11.0% 11.2% 11.5% $20 4% $10 2% $- 0% Q3 Q4 Q1 Q2 Q2 Q2 Q2 Q2 Q2 FY24 FY25 FY21 FY22 FY23 FY24 FY25
Slide 25: Cancellation Rates
Cancellation Rates 25% 20% 19% 17% 16% 15% 15% 12% 12% 10% 10% 10% 7% 6% 5% 0% Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY25 Cancellation Rate Cancellation Rate (% of Backlog)(a) (a) Cancellation Rate as a % of Backlog is calculated using the quarter's beginning backlog units 25
Slide 26: Specs per Community
Spec Homes 1,500 20 1,306 1,019 1,125 1,084 15 903 Specs per Community Spec Homes 775 787 750 629 10 725 8 7 455 7 7 375 368 5 3 287 158 181 87 50 - - Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY25 Completed Under Construction Per Community Note: Spec count as of each quarter end includes Gatherings 26
Slide 27: Segment ASP & Margins
Segment ASP & Margins ($ in thousands) Q2 FY24 Q2 FY25 Change in Change in Q2 FY24 Q2 FY25 Change in ASP ASP ASP ($) ASP (%) Closings Closings Mix West $517.0 $516.5 ($0.5) (0.1%) 63.9% 65.5% 1.6% East $519.2 $523.6 $4.4 0.8% 20.6% 21.3% 0.7% Southeast $507.0 $496.3 ($10.7) (2.1%) 15.5% 13.2% (2.3%)
Slide 28: Non-GAAP Homebuilding Gross Margin Reconciliation
Non-GAAP Homebuilding Gross Margin Reconciliation Three Months Ended March 31, 2025 HB Gross HB Gross HB Gross HB Gross Profit Margin Profit Margin excluding excluding HB Gross Impairments & excluding excluding Interest I&A and I&A and HB Gross Margin Abandonments I&A I&A Amortized to Interest (Non-
Slide 29: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Three Months Ended March 31, LTM Ended March 31, ($ in thousands) 2024 2025 25 vs 24 2024 2025 25 vs 24 Net income (GAAP) $ 39,171 $ 12,778 $ (26,393) $ 160,472 $ 95,184 $ (65,288) Expense from income taxes 6,739 1,390 (5,349) 22,631 12,416 (10,215) Interest a
Slide 30: Non-GAAP Net Debt to Net Capitalization Reconciliation
Non-GAAP Net Debt to Net Capitalization Reconciliation Three Months Ended March 31, 2024 2025 ($ in thousands) Total debt (GAAP) $ 1,023,311 $ 1,082,231 Stockholders' equity (GAAP) 1,161,577 1,228,067 Total capitalization (GAAP) $ 2,184,888 $ 2,310,298 Total debt to total capitalization ratio (GAAP)
Slide 31: Beazer Tax Benefits
Beazer Tax Benefits FY25 - FY26 FY27 - FY33(a) Building industry-leading, energy efficient homes provides tax benefits: Energy Prior tax code – $2K Home Efficiency Current tax code (Energy Star) – $2.5K SFD Credits Current tax code (DOE Zero Energy Ready) – $5K SFD > 7% & < 14% ~ 17% GAAP Taxes (Cur
Slide 32: Deferred Tax Assets - Summary
Deferred Tax Assets - Summary ($ in millions) March 31, 2024 March 31, 2025 Deferred Tax Assets $ 168.4 $ 165.3 Valuation Allowance $ (30.4) $ (27.5) Deferred Tax Liabilities $ (5.4) $ (5.3) Net Deferred Tax Assets $ 132.6 $ 132.5 As of March 31, 2025, our conclusions on whether we are more likely t