Beazer Homes USA, Inc. Q2 FY2026 earnings call

Allan P. Merrill organized comments around three topics: second quarter results highlights, responses to challenging demand environment, and progress toward multiyear goals. Second quarter had community count, sales pace, ASP, and gross margin in line with expectations. To-be-built sales at 43% (highest since 2024) and new communities at 34% of gross sales. Macro headwinds led to adjusted sales pace and margin expansion expectations. Focus on quality and value competition over short-term spec spikes. Long-term goals include over 200 active communities by end of fiscal 2027, deleveraging to low-30% range by 2027, and book value per share accretion

Second quarter saw 1,048 homes sold with a sales pace of 2.1 per community per month. Spec sales mix was 57%, down from 61% in Q1 and mid-to-high 70% in 2025. Homebuilding revenue was $397.7 million with 757 homes closed at an average price of $525,000. Homebuilding gross margin was 15.6%. SG&A was $64 million. Taxes provided nearly an $18 million benefit. Diluted loss per share was $0.03 and adjusted EBITDA was $2.6 million

Q3 expected to sell over 1,000 homes, ~170 active communities, close ~900 homes with ASP $535,000 - $540,000. Adjusted homebuilding gross margins up over 50 bps sequentially. SG&A flat y-o-y. Land sales revenue ~$30 million in Q3, $150 million full year. Q3 adjusted EBITDA $5M - $10M. Full year energy efficiency tax credits expected to drive net tax benefit over $10M. Book value per share expected to grow further in Q3

Risks include higher mortgage rates and surging energy costs which have impacted consumer sentiment and may affect sales pace and margin expansion

Q: Natalie Kulasekere asks about targeted share of to-be-built sales in the long run and if 43% will climb higher, past four quarters' share, and margins in backlog and Q4 margin expansion guidance.

A: Allan P. Merrill answers long-term goal is majority to-be-built, up from thirties a year ago to 43% now, margins in backlog supportive of guidance.

Q: Tyler Anton Batory asks about March and April sales vs normal seasonality, EBITDA guide and full-year EBITDA, and sales process and consumer adoption.

A: Allan P. Merrill says March and April were not seeing normal seasonal lift in traffic and leads. David I. Goldberg talks about EBITDA guide and no full-year EBITDA guide. Allan P. Merrill discusses energy efficiency resonating with consumers.

Q: Julio Alberto Romero asks about margin levers if demand worsens and 2027 to-be-built sales mix.

A: Allan P. Merrill says will evaluate tools varying by market, hopeful for year-over-year improvements in to-be-built sales mix.

Q: Alexander Rygiel asks about incentives and cancellation rate trends.

A: David I. Goldberg says incentives down sequentially, mix-driven. Allan P. Merrill mentions higher rates affecting buy downs. David I. Goldberg says cancellation rate not a big factor