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• A homebuilder, similar to D.R. Horton.
• Think of it as a residential construction company, much like PulteGroup.

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• Single-family homes: Standalone residential properties designed for occupancy by one family.
• Multi-family homes: Residential properties designed to house multiple families, such as townhouses or condominiums.

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Beazer Homes USA (BZH) primarily sells homes directly to individual consumers rather than to other companies. Based on the nature of their business as a homebuilder, their major customer categories typically include:

1. First-Time Homebuyers: Individuals or young families purchasing their first home, often seeking more affordable options, efficient layouts, and good community value.
2. Move-Up Homebuyers: Individuals or families who are looking to purchase a larger home, a home with more features, or a home in a more desirable location, having already owned and sold a previous home.
3. Active Adult/Empty Nesters: This category includes buyers typically aged 55 and older who are looking for low-maintenance homes, often in communities with specific lifestyle amenities, and potentially looking to downsize or move to a more amenity-rich or age-restricted community. Beazer's "Gatherings" brand specifically caters to this demographic.

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Allan P. Merrill

Chairman, President & Chief Executive Officer

Mr. Merrill joined Beazer Homes in May 2007 as Executive Vice President and Chief Financial Officer. He was named President and Chief Executive Officer in June 2011 and elected Chairman in November 2019. Prior to Beazer Homes, Mr. Merrill worked in investment banking for UBS and its predecessor firm Dillon, Read & Co. from 1987 to 2000, where he served as co-head of the Global Resources Group and advised Beazer Homes on its 1994 initial public offering and several major acquisitions. He also held roles as Executive Vice President of Corporate Development and Strategy and the first President of Homebuilder.com at Move, Inc. Mr. Merrill has served on the Board of Directors of Freddie Mac and was appointed to the Board of Directors of Ally Financial, Inc. in October 2025.

David I. Goldberg

Senior Vice President, Chief Financial Officer and Treasurer

Mr. Goldberg has been the Chief Financial Officer at Beazer Homes since April 2015. He joined the company as Vice President and Treasurer in April 2015. Before joining Beazer Homes, Mr. Goldberg was the Lead Research Analyst for Building and Building Products at UBS from August 2004 to April 2015. He also previously worked for Convergent Wealth Advisors, a wealth management firm. Mr. Goldberg holds an MBA from Columbia Business School and a Bachelor of Science degree in Business Administration from American University.

Michael A. Dunn

Senior Vice President, General Counsel, Corporate Secretary and Compliance Officer

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

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Here are the key risks to Beazer Homes USA (BZH):

1. Macroeconomic Headwinds: Beazer Homes USA faces significant risks from adverse macroeconomic conditions, particularly elevated mortgage rates and affordability issues, which are dampening demand for new homes. This has led to a decrease in net new orders and sales in the homebuilding sector generally and for Beazer Homes specifically. Inflation and rising costs for building materials and labor further pressure profitability.
2. Weak Housing Market and Declining Demand: The company is vulnerable to a weak housing market characterized by declining demand, decreasing net new orders, and a shrinking backlog of homes. Beazer Homes' aggressive expansion strategy into a softening market has exacerbated these issues, leading to operational challenges and concerns about future profitability.
3. Financial Risk and High Leverage: Beazer Homes USA carries elevated debt levels and has a comparatively weaker balance sheet than some of its peers. This financial leverage makes the company more exposed to prolonged downturns in the housing market and macroeconomic pressures, with its debt-to-EBITDA ratio remaining higher than previously forecasted.

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Clear Emerging Threats for Beazer Homes USA (BZH)

• 3D Printed Homes: Advancements in 3D printing technology for residential construction represent a clear emerging threat. If these methods scale efficiently, they could significantly reduce construction time, labor costs, and material waste compared to traditional stick-built homes. This disruptive technology could allow competitors or new entrants to produce homes at a much lower cost and faster pace, potentially undermining the traditional homebuilding business model and making Beazer's construction methods less competitive in the long run.

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The addressable markets for Beazer Homes USA's main products and services, single-family and multi-family homes, are significant within the United States.

Single-Family Homes

For single-family homes, the market can be assessed by new home sales and housing starts in the U.S.

• New single-family home sales in the United States reached a seasonally-adjusted annual rate of 745,000 units in December 2025. An estimated 679,000 new homes were sold throughout 2025.
• Single-family housing starts in the U.S. were approximately 940,000 units in 2025.
• The median sales price for new houses in the U.S. was $414,400 in December 2025.

Multi-Family Homes

The multi-family housing market in the U.S. represents a substantial addressable market:

• The United States multi-family market size was valued at USD 265 billion in 2022 and is projected to reach USD 466 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.31% from 2023 to 2030.
• The multi-family housing construction market in the U.S. was valued at $918.51 billion in 2025 and is anticipated to grow to $1,002.55 billion in 2026, with a CAGR of 9.2%.
• Multi-family housing starts in the U.S. rose to 415,000 units in 2025. During 2025, 297,000 new multi-family units were added to the market.
• Apartment investment volume in the U.S. totaled $165.5 billion in 2025.

Overall U.S. Housing Market

• The total value of America's homes reached a record $55.1 trillion as of September 2025.

The market sizes provided are for the U.S. national region.

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Expected Drivers of Future Revenue Growth for Beazer Homes USA (BZH)

Over the next 2-3 years, Beazer Homes USA (BZH) is expected to drive future revenue growth through several key strategic initiatives:

1. Expanded Community Count: Beazer Homes USA is actively pursuing an expansion strategy focused on significantly increasing its active community count. The company aims to surpass 200 active communities by the close of fiscal year 2027, up from 163 communities in Q1 2025 and an anticipated 180 by the end of fiscal year 2025. This growth in community footprint is a primary driver for increased sales volume.
2. Differentiation through Zero Energy Ready Homes and Energy Efficiency: The company is leveraging its position as a leader in energy-efficient homebuilding, with a pledge to have all new home starts be Zero Energy Ready by the end of 2025. This focus on sustainability and reduced utility costs for homebuyers enhances the appeal of their products, attracts environmentally conscious buyers, and provides a competitive advantage.
3. Improved Operational Efficiency and Cost Management: Beazer Homes USA is concentrating on reducing direct construction costs, with reported savings of over $10,000 per home through rebidding labor and material costs. These cost efficiencies are anticipated to improve gross margins, enabling more competitive pricing strategies or higher profitability per unit, ultimately supporting revenue growth.
4. Innovative Financing Options and Customer-Centric Solutions: To address affordability challenges in a fluctuating interest rate environment, Beazer Homes USA is implementing innovative financing options, such as long-term rate locks with buydowns. These programs are designed to protect buyers from rising interest rates and stimulate sales by making homeownership more accessible and attractive.

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Share Repurchases

• Beazer Homes USA announced a new $100 million share repurchase program in Q2 FY2025 and repurchased $20.6 million of common stock during that quarter.
• For the fiscal year ended September 30, 2025, the company repurchased $33.1 million of stock.
• As of February 6, 2025, approximately $24.8 million remained available under a previously authorized share repurchase program, with $4.1 million repurchased since January 30, 2025.

Capital Expenditures

• Beazer Homes USA invested $5.6 million in capital expenditures in Q1 2026.
• Land acquisition and land development spending was $121.7 million for the fiscal quarter ended September 30, 2025.
• The company forecasts capital expenditures of $22.1 million for the next fiscal year, with an expected average of $25.168 million over the next five fiscal years, primarily focused on land and other operating assets and achieving a goal of starting 100% Zero Energy Ready homes by the end of calendar 2025.