Beazer Homes reported its first-quarter fiscal 2025 results, revealing a significant decline in net income from continuing operations to $3.1 million, or $0.10 per diluted share, compared to $21.7 million, or $0.70 per diluted share, in the same period last year. The company's adjusted EBITDA also fell by 39.4% year-over-year. Despite a 20.9% increase in homebuilding revenue to $460.4 million, driven by a 22.1% rise in home closings, the average selling price decreased by 1.0% to $507.6 thousand. The backlog dollar value dropped by 12.5% to $816.0 million, with a 15.9% decrease in backlog units, indicating potential challenges in future revenue streams.
CEO Allan P. Merrill expressed confidence in achieving a double-digit return on capital employed for the fiscal year, despite affordability challenges. The company remains focused on its sustainability goals, with 98% of its home starts built to Zero Energy Ready standards, and plans to increase its active community count to 180 by the end of fiscal year 2025. However, the decrease in backlog and net income suggests that the company may face headwinds in maintaining its growth trajectory.
Beazer Homes (BZH) shares closed at $27.70, up 2.82% from the previous close of $26.94 on January 29th. However, the stock fell 9.35% to $25.11 in after-hours trading, reflecting investor concerns over the company's declining profitability and backlog.