• Beazer Homes is a homebuilder, similar to how Ford builds and sells cars.
• Think of them as a 'Toyota for houses', specializing in constructing and selling new residential properties.

• Single-Family Homes: Construction and sale of detached residential houses to individual homebuyers.
• Townhomes: Construction and sale of attached residential units, typically sharing common walls, to individual homebuyers.
• Mortgage Services: Provision of financing options and loan origination for homebuyers through their subsidiary, Beazer Mortgage.

Beazer Homes USA (symbol: BZH) is a national homebuilder that primarily sells newly constructed homes directly to individual homebuyers, rather than to other companies. Therefore, its major customers are individuals within various demographic and lifestyle categories.

The company typically serves up to three main categories of individual customers:

• First-time Homebuyers: This segment includes individuals or young families making their initial home purchase. They often seek affordable homes, sometimes smaller in size, and may benefit from Beazer's options for financing or value-oriented designs.
• First-time Move-up Homebuyers: These customers are typically individuals or families who already own a home but are looking to purchase a larger home, a home with more features, or a home in a different community to accommodate changing needs such as a growing family, improved schools, or a desire for more space and amenities.
• Active Adult/Empty Nesters: This category consists of older buyers, often without children living at home, who are looking for homes that offer convenience, less maintenance, and often specific community amenities. These homes may be single-story, in age-restricted communities, or designed for a low-maintenance lifestyle.

Allan P. Merrill, Chairman, President and Chief Executive Officer

Mr. Merrill joined Beazer Homes in May 2007 as Executive Vice President and Chief Financial Officer. He was appointed President and Chief Executive Officer in June 2011 and elected Chairman in November 2019. Prior to joining Beazer Homes, Mr. Merrill had a significant career in both investment banking and online real estate marketing. From 1987 to 2000, he worked for the investment banking firm UBS (and its predecessor Dillon, Read & Co.), where he was a managing director and ultimately served as co-head of the Global Resources Group. In this role, he oversaw relationships with construction and building materials companies globally and advised Beazer Homes on its 1994 initial public offering and several major acquisitions. Immediately before joining Beazer, Mr. Merrill was with Move, Inc., where he served as Executive Vice President of Corporate Development and Strategy and was the first President of Homebuilder.com, a division of Move, Inc. He previously served on the Board of Directors of Freddie Mac and completed a four-year term as Chairman of Leading Builders of America.

David I. Goldberg, Senior Vice President, Chief Financial Officer and Treasurer

Mr. Goldberg has served as Senior Vice President, Chief Financial Officer, and Treasurer of Beazer Homes USA, Inc. since April 2015. Before his tenure as CFO, he held the position of Vice President, Treasurer, and Investor Relations at the company. Prior to joining Beazer Homes, Mr. Goldberg worked at UBS Investment Bank from August 2004 to April 2015, where he served as the Lead Equity Research Analyst for Building and Building Products. He is also noted as the founder of Macro DAO.

Michael A. Dunn, Senior Vice President, General Counsel, Corporate Secretary and Compliance Officer

Mr. Dunn serves as the Senior Vice President, General Counsel, Corporate Secretary, and Compliance Officer for Beazer Homes USA, Inc.

Key Risks to Beazer Homes USA (BZH)

1. Fluctuating Interest Rates and Housing Market Affordability

2. Margin Compression from Rising Costs and Sales Incentives

3. Leveraged Balance Sheet and Debt Management

Advanced Industrialized Homebuilding (Modular and Prefabrication): Companies specializing in highly automated, factory-based construction are increasingly demonstrating the ability to build homes or large structural modules significantly faster, more cost-effectively, and with greater consistency than traditional on-site stick-built methods. This approach reduces reliance on skilled on-site labor, minimizes weather delays, and can optimize material usage. If these advanced methods scale and gain wider market acceptance, they pose a clear emerging threat by potentially undercutting the speed, cost efficiency, and labor model of traditional homebuilders like Beazer Homes.

Scalable 3D Printed Home Construction: While still an early-stage technology for mass production, companies such as ICON and SQ4D are successfully developing and deploying large-scale 3D printing for homes. This technology promises drastically reduced construction times, lower labor costs, and efficient material use. As 3D printing technology matures, gains regulatory approvals, and scales production capabilities, it presents a disruptive emerging threat by offering an alternative construction method that could fundamentally alter the cost structure and speed of homebuilding, directly challenging traditional construction methodologies employed by Beazer Homes.

Beazer Homes USA (BZH) primarily operates in the residential construction sector, specializing in building single-family homes and multi-family homes (townhomes and condominiums) across various states in the U.S.. The company also provides mortgage and financial services to its homebuyers.

The addressable market for Beazer Homes USA's main products and services is the U.S. residential construction market, with a specific focus on single-family home construction.

• U.S. Single-Family Housing Construction Market: This market was valued at approximately $771.08 billion in 2024. It is projected to grow to $804.08 billion in 2025, and further to $1.02 trillion by 2029, with a compound annual growth rate (CAGR) of 6.2% during the forecast period.
• U.S. Residential Construction Market: The broader U.S. residential construction market size stands at an estimated USD 1.35 trillion in 2025. This market is expected to expand to USD 1.69 trillion by 2030, reflecting a CAGR of 4.59% over the forecast period. Additionally, privately-owned housing starts for single-family homes in the U.S. were at a seasonally adjusted annual rate of 890,000 units in August 2025.

Beazer Homes USA (BZH) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market positioning efforts. These include expanding its community footprint, emphasizing energy-efficient home construction, strategically acquiring and managing land, implementing stringent cost controls, and leveraging product differentiation and mix shifts.

1. Community Count Growth: Beazer Homes has a clear multi-year goal to significantly expand its active community count. The company ended fiscal year 2024 with 162 active communities and grew to 167 by the third quarter of fiscal 2025. Management is on a path to exceed 200 active communities by the end of fiscal 2027. This expansion in the number of communities directly contributes to increased sales activity and higher revenue potential.

2. Focus on Energy-Efficient and Zero Energy Ready Homes: A core component of Beazer Homes' strategy is its commitment to building energy-efficient homes. The company aims for 100% of its starts to be qualified as Zero Energy Ready by the end of calendar year 2025. This focus differentiates their product in the market, aligns with growing consumer demand for sustainable living, and offers potential tax benefits, which can positively impact net margins and attract homebuyers.

3. Strategic Land Investment and Management: To support its community growth objectives, Beazer Homes is actively engaged in strategic land acquisition and development. The company invested over $750 million in land and land development in fiscal year 2024. While land spend is being moderated in the near term, the long-term strategy involves maintaining a sufficient land pipeline to accelerate net sales expectations and building capacity, with a focus on utilizing option contracts to improve asset turns and boost returns.

4. Cost Control and Operational Efficiency: Beazer Homes is implementing actions to renegotiate contracts for land, labor, and materials to enhance profitability in fiscal year 2026. The company is also focused on tightly controlling selling, general, and administrative (SG&A) expenses as a percentage of revenue to improve overhead leverage. These cost reduction initiatives and efficiency gains are expected to boost margins, which can contribute to overall financial health and the ability to invest in revenue-generating activities or offer more competitive pricing.

5. Product Differentiation and Mix Shift: The company offers "Choice Plans" allowing buyers to personalize primary living areas at no additional cost, along with various design upgrades. This customization ability broadens customer appeal. Furthermore, management has noted that sequential increases in average selling price (ASP) are being driven by favorable product and community mix shifts. This strategic adjustment of product offerings and community locations can lead to higher revenue per home sold.

Share Repurchases

• In April 2025, the Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $100 million of its outstanding common stock, replacing a prior program.
• The Company repurchased $20.6 million of common stock during the quarter ended March 31, 2025.
• As of May 1, 2025, total share repurchases amounted to $42 million over the preceding three years.

Share Issuance

• The weighted average basic and diluted shares outstanding have remained relatively stable around 30 million shares, indicating no major dilution recently.
• The number of shares outstanding decreased by -2.11% in one year.

Capital Expenditures

• Land acquisition and land development spending for the quarter ended June 30, 2025, was $153.8 million, a decrease of 23.5% year-over-year.
• For the full year 2025, the Company reduced its expectations for land spending to a range of $750 million to $800 million to accommodate meaningful share repurchases.
• Capital expenditures include continuous investments in property, plant, and equipment, which were approximately $5 million per quarter in Q1 2025, primarily focused on supporting future growth and community count expansion.