CORRECTED-Beazer Homes Q4 net income falls 42.4% on lower margins

Overview

• Beazer Homes fiscal 2025 homebuilding revenue rose 0.4%

• Net income for fiscal Q4 2025 fell 42.4% year-over-year

• Company repurchased $33.1 mln of common stock in fiscal 2025

Outlook

• Beazer Homes expects to reach over 200 active communities by fiscal 2027

Result Drivers

• CLOSINGS AND ASP - Homebuilding revenue slightly increased due to a 1.9% rise in ASP, despite a 6.0% decrease in home closings

• GROSS MARGIN PRESSURE - Gross margin declined due to increased price concessions, incentives, and a higher share of spec home closings

• BALANCE SHEET FOCUS - Co emphasizes balance sheet efficiency and strategic asset alignment amid competitive market

Key Details

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 $29.00, about 24.9% above its November 12 closing price of $21.78

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwbzDZXLa

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