Beazer Homes USA, Inc. (NYSE: BZH) has announced an acceleration in the pace of its share repurchases, with approximately $24.8 million remaining available under its previously authorized share repurchase program. Since reporting earnings for the first quarter of 2025, the company has repurchased approximately $4.1 million of its shares at a weighted average price of $21.86. This move is in response to recent share price dislocation, with the company planning to increase the pace of its repurchases in light of current market conditions.
The company also provided an update on its net debt to net capitalization ratio expectations. It now projects that this ratio will be in the low 30% range by the end of fiscal 2026, and in the mid-to-high 30% range by the end of fiscal 2025. Despite this near-term moderation in leverage reduction, Beazer Homes reaffirmed its long-term goal of reducing its net debt to net capitalization ratio below 30%.
In addition to these updates, the company restated its outlook for its two other multi-year goals. It aims to reach 200 active communities by the end of fiscal 2026 and have 100% of its homes qualified as zero energy ready by the end of calendar 2025.
Allan P. Merrill, Chairman and Chief Executive Officer of Beazer Homes, highlighted the company's capital allocation perspective, stating that slowing deleveraging efforts to repurchase a significant amount of stock at a significant discount to book value aligns with their balanced growth strategy.
Beazer Homes USA, Inc. is one of the country’s largest homebuilders, operating in several states across the U.S. As a result of these announcements, the company's shares have moved 3.0% on the market, and are now trading at a price of $22.56. For more information, read the company's full 8-K submission here.
