Beazer Homes shares surge 9% as Q4 profit exceeds expectations
ATLANTA - Beazer Homes USA, Inc. (NYSE:BZH) reported better-than-expected fourth-quarter results on Thursday, sending shares soaring 9.4% as the homebuilder’s earnings and revenue surpassed analyst estimates despite challenging market conditions.
The company posted net income of $30 million, or $1.02 per diluted share, for the quarter ended September 30, significantly beating the analyst consensus of $0.80 per share. Revenue totaled $791.9 million, well above the $676.67 million analysts had expected.
However, these results still represented a decline from the $52.1 million, or $1.69 per share, earned in the same quarter last year.
Home closings decreased 6% to 1,406 homes compared to the prior-year quarter, while the average selling price increased 1.9% to $534,000. Homebuilding gross margin was 13.7%, down 350 basis points year-over-year, reflecting increased price concessions and incentives, including mortgage rate buydowns.
"We finished the year on a positive note, with solid fourth quarter results and continued progress toward each of our Multi-Year Goals," said Allan P. Merrill, Chairman and CEO. "In the fourth quarter, we exceeded 1,400 closings, driving profitability ahead of our expectations, and sales pace rebounded sequentially."
The company ended the quarter with a backlog of 945 homes valued at $516.5 million, down 36.2% and 35.2% respectively from the previous year. Active community count increased 4.3% to 169 communities.
Looking ahead, Merrill noted, "While we are optimistic for more balanced supply and demand dynamics as 2026 unfolds, we believe the market will remain incentive-driven and highly competitive in the near-term."
Beazer Homes, which positions itself as "America’s #1 energy efficient homebuilder," maintained a strong liquidity position with $538.3 million available, including $214.7 million in unrestricted cash at quarter end.
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