Fiscal Third Quarter 2026
Filed Aug 7, 2026Beazer 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.