NYSE:BZH
BEAZER HOMES USA INC
A Southern-focused homebuilder generating $2.37B in revenue with a recent net profit of $45.6M.
Key Metrics
Investment Thesis
Bull Case
Beazer offers exposure to the essential housing market in underserved Southern regions with a track record of revenue stability exceeding $2B annually. The company's strong cash flow from operations of $32.0M provides liquidity for continued growth and shareholder returns despite recent profit declines.
Bear Case
Investors should be cautious due to the sharp contraction in net income from $158.6M in 2023 to $45.6M in 2025, signaling deteriorating profitability trends. High debt obligations and large working capital changes suggest potential liquidity pressures if housing demand softens further.
About BEAZER HOMES USA INC
Beazer Homes USA Inc. is a leading homebuilder specializing in custom and townhome residences primarily across the Southern United States. The company operates in high-growth markets with a focus on delivering quality single-family homes to individual buyers and small groups. With revenue reaching $2.37B in 2025, Beazer maintains a strategic position in the residential construction sector through its localized expertise and product offerings.
Analysis
Management Discussion
While revenue grew slightly to $2.37B in 2025, net income declined significantly from $140.2M in 2024 to $45.6M, indicating margin compression despite stable top-line performance. The company utilized significant financing activity, including revolver proceeds and repayments, alongside share repurchases of $33.1M to manage capital structure.
Industry Overview
The U.S. homebuilding industry remains cyclical and heavily influenced by Federal Reserve interest rate policies and local zoning regulations. Companies like Beazer that focus on specific geographic clusters can navigate these macro headwinds better than national generalists by adapting quickly to regional inventory constraints.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.21B | $2.33B | $2.37B |
| Cost of Revenue | $1.76B | $1.91B | $2.03B |
| Gross Profit | $442.7M | $424.3M | $337.5M |
| Operating Expenses | $265.4M | $281.3M | $300.9M |
| Operating Income | $177.3M | $143.0M | $36.6M |
| G&A | $179.8M | $186.3M | $204.8M |
| Stock-Based Comp | $7.3M | $7.4M | $7.3M |
| D&A | — | — | $19.2M |
| Depreciation | $12.2M | $14.9M | — |
| Other OpEx | $85.6M | $94.9M | $96.1M |
| Non-Operating Income | $5.4M | $16.1M | $4.2M |
| Interest Expense | $0 | — | — |
| Pre-Tax Income | $182.6M | $159.1M | $40.9M |
| Income Tax | $24.0M | $18.9M | $-4.7M |
| Continuing Ops | $158.7M | $140.2M | $45.6M |
| Discontinued Ops | $-77.0K | $0 | $0 |
| Net Income | $158.6M | $140.2M | $45.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $158.6M | $140.2M | $45.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| PP&E (Net) | $31.1M | $38.6M | $47.9M |
| Goodwill | $11.4M | $11.4M | $11.4M |
| Operating Leases | $17.4M | $18.4M | $35.0M |
| Total Assets | $2.41B | $2.59B | $2.61B |
| Total Liabilities | $1.31B | $1.36B | $1.36B |
| Shareholders' Equity | $1.10B | $1.23B | $1.25B |
| Retained Earnings | $238.0M | $378.2M | $423.8M |
| Total L&E | $2.41B | $2.59B | $2.61B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $158.6M | $140.2M | $45.6M |
| Non-Cash Adjustments | $11.2M | $-568.5M | $-13.7M |
| Working Capital Changes | $8.2M | $290.8M | $44.0K |
| Cash from Operations | $178.1M | $-137.5M | $32.0M |
| Capital Expenditures | $20.3M | $22.4M | $28.5M |
| Cash from Investing | $-29.7M | $-30.0M | $-19.7M |
| Share Buybacks | $0 | $12.9M | $33.1M |
| Cash from Financing | $-13.9M | $23.9M | $-36.4M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $134.5M | $-143.7M | $-24.0M |
| Beginning Cash | $251.8M | $386.3M | $242.6M |
| Ending Cash | $386.3M | $242.6M | $218.6M |
Frequently Asked Questions
How does BEAZER HOMES USA INC make money?
Custom single-family homes for individual buyers, townhome communities for small groups, and land acquisition for development projects.
What are the main risks for BZH?
High sensitivity to interest rate fluctuations affecting mortgage affordability, potential supply chain volatility impacting construction costs, and exposure to regional economic downturns that could reduce homebuyer demand.
What is BZH's competitive advantage?
Deep market knowledge in Southern U.S. regions allowing for localized pricing strategies, efficient inventory turnover managed by significant cash flow from operations, and a balanced capital structure supported by revolver financing facilities.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.