Beazer Homes USA, Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance and operations for the quarter ended December 31, 2024. The company operates as a homebuilder in the United States, designing, constructing, and selling single-family and multi-family homes under various brand names. It sells its homes through commissioned new home sales counselors and independent brokers in several states across the country.
In its Management’s Discussion and Analysis of Financial Condition and Results of Operations, Beazer Homes USA, Inc. acknowledged the challenging sales environment in the first fiscal quarter, with demand constrained by affordability concerns and elevated mortgage rates. The company offered discounts and incentives to stimulate sales and prevent inventory buildup, leading to lower homebuilding gross margins. However, it remains optimistic about the long-term outlook of the housing market and is focused on positioning its business for durable long-term growth.
During the quarter ended December 31, 2024, Beazer Homes USA, Inc. reported an average active community count of 161, representing a 17.8% increase from the prior year quarter. The company invested $211.3 million in land acquisition and land development during the quarter, reflecting a 6.3% increase compared to the same period in 2023. As of December 31, 2024, the company's land position included 28,874 controlled lots, up 9.5% from the previous year. Net new orders for the quarter were 932, up 13.2% from 823 in the prior year quarter.
The company's Average Selling Price (ASP) for homes closed during the quarter ended December 31, 2024, was $507.6 thousand, representing a 1.0% decrease from the prior year quarter. The homebuilding gross margin for the quarter was 15.2%, down from 19.9% compared to the prior year quarter.
Beazer Homes USA, Inc. reported total revenue of $468.95 million for the quarter ended December 31, 2024, compared to $386.82 million in the same period in 2023. The gross profit for homebuilding was $69.98 million, down from $75.94 million in the prior year quarter. The company's operating income as a percentage of total revenue was 0.5% for the quarter, significantly lower than the 5.2% reported in the prior year quarter.
The company also provided a reconciliation of net income (GAAP) to Adjusted EBITDA (Non-GAAP) and a reconciliation of total debt to total capitalization ratio (GAAP) to net debt to net capitalization ratio (Non-GAAP) for the period, offering further insights into its financial performance.
Beazer Homes USA, Inc. remains focused on its multi-year strategic goals, including reaching more than 200 active communities by the end of fiscal 2026, reducing its net debt to net capitalization ratio below 30% by the end of fiscal 2026, and reaching its target of 100% of home starts as Zero Energy Ready by the end of calendar year 2025. Despite the challenging sales environment, the company believes it is well-equipped to navigate the evolving market dynamics as it continues to pursue its strategic goals. Today the company's shares have moved 2.8% to a price of $27.7. If you want to know more, read the company's complete 10-Q report here.
