BEAZER HOMES USA INC (BZH): Results of Operations and Financial Condition
BEAZER HOMES USA INC (BZH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 PRESS RELEASE Beazer Homes Reports Third Quarter Fiscal 2026 Results Cancelling previously scheduled earnings conference call and webcast due to pending transaction with Dream Finders Homes, Inc. announced separately today ATLANTA, August 7, 2026 - Beazer Homes USA,
How this was made
The 30-second read
Why it matters
Traders should focus on merger certainty, deal conditions (stockholder and regulatory approvals), and the immediate removal of company-provided outlook, which can shift valuation from fundamentals to deal mechanics.
Market read
A definitive all-cash acquisition at $33.50 per share plus cancellation of the earnings call and withdrawal of outlook makes this a deal-mechanics event as much as an earnings event.
What to watch
Debt refinancing details (new 2032 notes, retirement of 2027 notes) and higher land spend could affect perceived balance-sheet risk during the merger approval window.
Beazer Homes Reports Third Quarter Fiscal 2026 Results
Net loss widened to $4.2 million, Adjusted EBITDA declined 51.3%, and homebuilding revenue fell 8.3%, while net new orders increased 4.5%, gross margin improved sequentially, and backlog dollar value increased 2.2%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Homebuilding revenueGAAP | $490.9 million | – | (8.3)% |
| Total home closingsother | 896 | – | (13.4)% |
| ASP from closingsother | $547.8 thousand | – | 5.9% |
| Homebuilding gross marginGAAP | 13.6% | 160 basis points | 10 bps |
| Homebuilding gross margin, excluding impairments and abandonmentsnon-GAAP | 13.6% | – | (160) bps |
| Homebuilding gross margin, excluding impairments and abandonments and interest amortized to cost of salesnon-GAAP | 16.9% | 130 basis points | (150) bps |
| SG&A expensesGAAP | $72.5 million | – | (1.1)% |
| SG&A expenses as a percentage of total revenueGAAP | 14.1% | – | 90 bps |
| Loss before income taxesGAAP | $(10.5) million | – | 319.0% |
| Benefit from income taxesGAAP | $(6.3) million | – | 187.5% |
| Net lossGAAP | $(4.2) million | – | 1,204.6% |
| Basic loss per shareGAAP | $(0.16) | – | 1,500.0% |
| Diluted loss per shareGAAP | $(0.16) | – | 1,500.0% |
| Loss on debt extinguishment, netGAAP | $(0.7) million | – | n/m |
| Inventory impairments and abandonmentsGAAP | $(2.3) million | – | (77.3)% |
| Loss excluding loss on debt extinguishment and inventory impairments and abandonments before income taxesnon-GAAP | $(7.5) million | – | n/m |
| Loss excluding loss on debt extinguishment and inventory impairments and abandonments after income taxesnon-GAAP | $(4.8) million | – | n/m |
| Adjusted EBITDAnon-GAAP | $15.6 million | – | (51.3)% |
| LTM Adjusted EBITDAnon-GAAP | $70.7 million | – | (62.2)% |
| New home orders, net of cancellationsother | 900 | – | 4.5% |
| Cancellation ratesother | 15.9% | – | (390) bps |
| Orders per community per monthother | 1.8 | – | 3.7% |
| Average active community countother | 169 | – | 0.8% |
| Active community count at quarter-endother | 170 | – | 1.8% |
| Land acquisition and land development spendingother | $199.6 million | – | 29.7% |
| Total debt to total capitalization ratioother | 55.1% | – | 670 bps |
| Net debt to net capitalization rationon-GAAP | 52.8% | – | 620 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| HomebuildingThe decrease in homebuilding revenue was driven by a 13.4% decrease in home closings to 896 homes, partially offset by a 5.9% increase in ASP to $547.8 thousand. | $490.9 million | – | (8.3)% |
Capital returns
- Repurchased 1.0 million shares of its outstanding common stock for an aggregate $21.0 million at an average price per share of $21.01.
- Year-to-date repurchase activity was $66.2 million for 2.9 million shares at an average price of $23.04 per share.
- Year-to-date repurchases equated to repurchasing 9.7% of the Company’s shares that were outstanding at the beginning of the fiscal year.
What drove it
- Net new orders increased to 900, driven by a 3.7% increase in sales pace to 1.8 orders per community per month and a 0.8% increase in average community count to 169.
- Backlog dollar value increased to $758.5 million as a 6.0% increase in ASP of homes in backlog to $582.1 thousand was partially offset by a 3.6% decrease in backlog units to 1,303.
- Homebuilding gross margin excluding impairments, abandonments, and interest amortized to cost of sales improved sequentially primarily due to reductions in direct construction costs and a larger share of closings from newer, higher-margin communities.
- The Company is managing land spend and lot position to improve capital efficiency and support future community count growth.
Concerns
- Homebuilding revenue declined 8.3% year-over-year and home closings declined 13.4% to 896.
- Adjusted EBITDA declined 51.3% to $15.6 million, primarily due to lower operating margin.
- Homebuilding gross margin excluding impairments, abandonments, and interest amortized to cost of sales declined to 16.9% from 18.4%, primarily due to an increase in price concessions and closing cost incentives and changes in existing product and community mix.
- SG&A expenses as a percentage of total revenue increased 90 basis points to 14.1%, primarily due to lower homebuilding revenue.
- Total debt to total capitalization ratio increased to 55.1% from 48.4%, while net debt to net capitalization ratio increased to 52.8% from 46.6%.
- The effective tax rate for the current fiscal quarter was impacted by a change in the approach used to calculate the interim income tax provision, reducing comparability with the prior year quarter.
What to watch
- Stockholder approval, regulatory approval and other customary closing conditions for the proposed acquisition by Dream Finders Homes, Inc.
- The Company withdrew its previously issued financial outlook and cancelled its scheduled earnings conference call and webcast due to the pending transaction.
- Backlog conversion from $758.5 million of backlog value and 1,303 homes in backlog.
- The trajectory of price concessions, closing cost incentives, direct construction costs, and mix from newer, higher-margin communities.
Balance sheet and cash flow
- Unrestricted cash at quarter end was $124.6 million.
- Total liquidity was $263.8 million, including $139.2 million of remaining capacity under the unsecured revolving credit facility, compared to total available liquidity of $292.3 million a year ago.
- During the third quarter, the Company issued $400.0 million of 8.000% Senior Unsecured Notes due in January 2032 and retired the $357.0 million of 5.875% Senior Unsecured Notes, which were set to mature in October 2027.
- The Company’s nearest maturity is now the $350.0 million tranche of Senior Unsecured Notes due in October 2029.
- Controlled lots decreased 11.9% to 24,489, compared to 27,794 from the prior year quarter.
- Active lots controlled were 23,083, down 14.3% from 26,944.
- The Company controlled 60.0% of its total active lots through option agreements compared to 60.1% as of June 30, 2025.
Analysis
Beazer reported a fiscal third-quarter net loss of $4.2 million, compared with a net loss of $0.3 million a year ago. Diluted loss per share was $0.16, versus $0.01. Adjusted EBITDA declined to $15.6 million from $32.1 million, with the Company attributing the decrease primarily to lower operating margin. The quarter included inventory impairment and abandonment charges and loss on debt extinguishment of $3.0 million or $0.07 per share.
Homebuilding revenue was $490.9 million, down 8.3%, as home closings fell 13.4% to 896. A 5.9% increase in ASP to $547.8 thousand partially offset the closing decline. Management cited lower beginning backlog as the primary cause of lower closings, partially offset by improved construction cycle times. Demand indicators were more favorable: net new orders rose 4.5% to 900, sales pace increased to 1.8 orders per community per month, and the cancellation rate declined to 15.9% from 19.8%.
Margin performance was mixed. Reported homebuilding gross margin was 13.6%, up 10 basis points year-over-year and up 160 basis points from 12.0% sequentially. However, gross margin excluding impairments, abandonments, and interest amortized to cost of sales was 16.9%, down from 18.4% a year ago, reflecting increased price concessions and closing cost incentives as well as product and community mix. SG&A expense was $72.5 million, but SG&A as a percentage of total revenue increased to 14.1% from 13.2% because of lower homebuilding revenue.
Backlog value rose 2.2% to $758.5 million despite a 3.6% decline in backlog units to 1,303, supported by a 6.0% increase in backlog ASP to $582.1 thousand. Land acquisition and land development spending increased 29.7% to $199.6 million, while active lots controlled declined 14.3% to 23,083. Liquidity was $263.8 million, including $124.6 million of unrestricted cash. During the quarter, Beazer issued $400.0 million of 8.000% Senior Unsecured Notes due in January 2032 and retired $357.0 million of 5.875% Senior Unsecured Notes.
Capital returns included $21.0 million of third-quarter common-stock repurchases, while leverage ratios increased year-over-year. The Company has entered into a definitive agreement to be acquired by Dream Finders Homes, Inc. for $33.50 per share in an all-cash transaction that values the Company at approximately $2.2 billion. In connection with the pending transaction, Beazer withdrew its previously issued financial outlook and will not host its scheduled earnings conference call and webcast.
Not in the filing
stated, not guessed- Total revenue
- Operating income or loss
- Operating margin
- Cash flow from operations
- Free cash flow
- Total debt balance
- Nine-month financial results and metrics
- Forward financial guidance figures
- Prior outlook for comparison
- Named executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Beazer filed an 8-K with Q3 fiscal 2026 results and disclosed a definitive merger agreement to be acquired by Dream Finders Homes.
Ticker impact
Beazer reports Q3 results and withdraws its outlook because it entered a definitive $33.50-per-share all-cash merger with Dream Finders Homes.
Elevated volatility around merger terms, with downside risk if deal conditions or approvals appear less certain.
The filing discloses a definitive acquisition price, all-cash structure, and that Beazer is canceling its scheduled earnings call and withdrawing outlook due to the pending transaction.
Market effects
Homebuilder M&A risk premium may rise as deal certainty becomes a key driver of near-term sentiment.
No specific regional demand signal is provided beyond company-level backlog and orders.
Limited, as the transaction is domestic and not tied to global macro variables in the text.
Counterpoint
The quarter’s gross margin improvement and higher backlog ASP could support the stock even if outlook is withdrawn, with the deal price acting as a floor.
Key entities
- public_companyBeazer Homes USA, Inc.
Subject of the 8-K, reporting Q3 results and announcing withdrawal of outlook due to a pending all-cash merger.
- public_companyDream Finders Homes, Inc.
Acquirer in the definitive merger agreement at $33.50 per share, subject to approvals and closing conditions.
