BZH

BEAZER HOMES USA INC

NYSE · INDUSTRIALS · OPERATIVE BUILDERS

33.48

+0.03 +0.09%

USD · close Oct 19

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MKT CAP $893.2MP/E —DIV YIELD —FCF YIELD -17.17%REV TTM $2.1B −12.8%NET INCOME −$7.7M −111.4%NET DEBT $1.4B52W 18.03 – 34.07SEC XBRL · TTM TO Invalid Date

How BZH rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

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New in FY2025

Item 1A – Risk Factors of this Form 10-K for the fiscal year ended September 30, 2025.
Such factors may include: • macroeconomic uncertainty, including high levels of inflation, elevated interest rates and insurance costs, stock market volatility, the current U.S. government shutdown, and historic changes in U.S. trade policy, negatively impacting consumer sentiment and softening demand for the homes we sell; • elevated mortgage interest rates for prolonged periods, as well as further increases to, and reduced availability of, mortgage financing; • supply chain challenges (including as a result of U.S. trade policies and retaliatory responses from other countries) negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; • our ability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them; • inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; • factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive; • decreased revenues; • decreased land values underlying land option agreements; • increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our cycle times and production and overhead cost structures; • not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases; • the availability and cost of land and the risks associated with the future value of our inventory, including impairments and abandonment charges; • our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; • market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); • inefficient or ineffective allocation of capital, including with respect to planned share repurchases; • changes in tax laws, such as the recently passed One Big Beautiful Bill Act (OBBBA), or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as the IRS's guidance regarding heightened qualification requirements for federal credits for building energy-efficient homes; • increased competition or delays in reacting to changing consumer preferences in home design; • natural disasters, severe weather, or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; • shortages of or increased costs for labor used in housing production, including as a result of federal or state legislation, and/or enforcement, and the level of quality and craftsmanship provided by such labor; • terrorist acts, protests and civil unrest, political uncertainty, acts of war or other factors over which the Company has no control, such as the conflict between Russia and Ukraine, the instability and tension in Gaza, and other instabilities and tensions in the Middle East; • the potential recoverability of our deferred tax assets; • potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; • the results of litigation or government proceedings and fulfillment of any related obligations; • the impact of construction defect and home warranty claims; • the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; • the impact of information technology failures, cybersecurity issues or data security breaches, including cybersecurity incidents deploying evolving artificial intelligence tools and incidents impacting third-party service providers that we depend on to conduct our business; • the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters); and • the success of our sustainability initiatives, as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes.
Business Beazer Homes is a nationally recognized homebuilder committed to building homes and communities designed with the intention of inspiring sustainable and healthier living.
With personalized options and expert guidance, we empower homebuyers with competitive mortgage choices and energy saving features that make homeownership more attainable.
Operating across 13 states in the West, East, and Southeast geographic regions of the United States, Beazer Homes offers a diverse portfolio of products tailored to meet the evolving needs of homebuyers that value a well-constructed and energy efficient home .
We also provide information about our company, including active communities, online at www.beazer.com.
Strategy We continue to execute against our long-term balanced growth strategy, which is focused on growing profitability, improving balance sheet efficiency, and generating returns above our cost of capital, while minimizing operational risk and financial leverage.
In response to changing market conditions, we intend to balance decreasing leverage and returning capital to investors through stock repurchases, as we make investments to grow the business long-term .
Earlier this year, we updated our Multi-Year Goals, originally introduced in fiscal 2023, which reflected objectives aligned with our balanced growth strategy.
For fiscal 2026, we expect continued progress on these goals, which include: • reaching more than 200 active communities by the end of fiscal 2027, • reducing our net debt to net capitalization ratio to the low 30% range by the end of fiscal 2027, and • achieving a double-digit compound annual growth rate in book value per share from the end of fiscal 2024 through fiscal 2027.
Differentiating Beazer Homes Beazer crafts homes intended to inspire sustainable and healthier living.
We focus on four points of strategic differentiation that we believe deliver meaningful financial and lifestyle benefits to our buyers .
Our points of differentiation are as follows: Advanced Home Performance – Every Beazer home is built to deliver measurable, industry-leading advantages in efficiency, comfort, and durability.
Our construction standards support healthier, quieter and more comfortable living environments while reducing ongoing operating costs, particularly in regard to energy efficiency and utility bills.
Key performance elements include: • Energy Savings: This is one of several ways we are helping buyers address increasingly prevalent affordability concerns.
We have become a leading energy-efficient homebuilder, delivering proven efficiency and lowering monthly utility costs to our customers.
To quantify and convey the benefits of our construction, we provide buyers with an individual energy rating (HERS ® index score) for their home, completed by a qualified third-party rating company.
According to the Residential Energy Services Network, used homes typically have a HERS index score (a lower score on scale is better) of 130, while homes built to the same standard as the HERS Reference Home (equivalent to the 2006 International Energy Conservation Code) have a HERS index score of 100.
By comparison, new Beazer homes had an average HERS index score of 32 for the fiscal year ended September 30, 2025, demonstrating the significant outperformance resulting from our construction.
As part of our commitment to energy efficiency, substantially all of Beazer’s newly constructed homes meet the Department of Energy's Zero Energy Ready standard, meaning an appropriately sized renewable energy source (such as solar) can supply all of the home's energy needs, minimizing usage and expenses.
By ensuring all homes have the proper infrastructure for solar installation (solar-ready), we are enabling customers to pursue solar investments on their own timeframe, while still providing the significant benefits of highly efficient construction.
Further, we have begun introducing solar-included communities, in which every home will include a fully installed solar energy system. • Cleaner Air: Through our commitment to the U.S.
Environmental Protection Agency's (the EPA) Indoor AirPlus program, we are creating a healthier breathing environment for our homeowners with HVAC systems specifically designed to deliver improved indoor air quality. • Quieter Home: Our enhanced building practices include added insulation that not only minimizes temperature fluctuations and improve energy efficiency, but also reduces noise, creating a more peaceful and comfortable living environment.
Curated Choices – Beazer has long been known for offering choices, and we have expanded and reframed what choice means to better meet the evolving needs of our homebuyers. • Mortgage Choice: Most of our buyers either require or opt into financing to purchase a new home.
Unlike many of our major competitors, we have no ownership or other financial interest in a mortgage company nor do we provide mortgage origination services.
Instead, for every Beazer community, we identify Choice Lenders, who are selected for their ability to provide a comprehensive array of products and programs, ability to meet our high customer service standards, and their willingness to compete to earn our customer’s business.
This helps our customers get competitive interest rates, fees, and service levels.
We then provide an industry-leading online comparison tool that helps customers easily compare multiple mortgage offers from Choice Lenders and other lenders side by side.
This often results in cost savings versus other financing alternatives, further helping our buyers address affordability constraints.
Approximately 84% of our fiscal 2025 customers elected to finance a portion of their home purchase. • Choice Plans ® : We have designed flexible layouts that adapt to the different lifestyles of each targeted buyer segment.
At no additional cost, homebuyers can select variations to primary living spaces such as kitchens and bathrooms.
We also have options that can make homes safer and more accessible. • Style Choice: By streamlining design selections, we help buyers feel confident in the features they choose.
Style Choice reduces stress that can come with designing a home, while ensuring buyers receive high-quality and complementary finishes.
Through carefully curated design packages with a range of aesthetics and design studio consultations, buyers can better visualize their home’s interior finishes, leading to higher satisfaction and smoother closings.
Elevated Experiences – We understand that buying a home is an important milestone, so we have designed a process intended to deliver an elevated experience that begins well before move-in day and continues long after. • A Trusted Team: Every Beazer employee that homebuyers interact with is trained to provide support and guidance throughout the homebuying journey.
Through our GuildQuality and Trust Builder surveys, we focus on delivering an outstanding customer experience, from the moment a potential buyer enters our system to years after closing.
Among the nation's largest homebuilders, Beazer Homes has been ranked #1 in customer experience by Trust Builder for each of the past four years. • Easy Shopping: Clear, accessible tools allow our homebuyers to feel connected and involved during their purchasing process.
From an easy-to-navigate website and personalized interactions with our sales team, to consideration of how buyers prefer to tour our models, we strive to make the shopping experience feel as positive as the experience of living in one of our homes. • Continuing Care: Even after closing, our Customer Care and Customer Advocate teams work to ensure that our homeowners feel confident in their decision to own a Beazer home.
In addition, our comprehensive warranty program supports homeowners when concerns arise, as well as educate them on how to maintain their high-performance homes.
Community Impact – Beazer understands that homes exist within a broader social ecosystem.

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Gone since FY2024

Item 1A – Risk Factors of this Form 10-K for the fiscal year ended September 30, 2024.
Such factors may include: • the cyclical na ture of the homebuilding industry and deterioration in homebuilding industry conditions; • economic changes nationally and in local markets, including increases in the number of foreclosures and wage levels, both of which are outside our control and may impact consumer confidence and affect the affordability of, and demand for, the homes we sell; • elevated mortgage interest rates for prolonged periods, as well as further increases to, and reduced availability of, mortgage financing due to, among other factors, additional actions by the Federal Reserve to address inflation; • financial institution disruptions, such as the lingering effects of bank failures that spiked in 2023; • supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; • our ability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them; • inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; • factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive; • decreased revenues; • decreased land values underlying land option agreements; • increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our cycle times and production and overhead cost structures; • not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases; • the availability and cost of land and the risks associated with the future value of our inventory; • our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; • market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); • changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as the IRS's guidance regarding heightened qualification requirements for federal credits for building energy-efficient homes; • increased competition or delays in reacting to changing consumer preferences in home design; • natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; • shortages of or increased costs for labor used in housing production, including as a result of federal or state legislation, and the level of quality and craftsmanship provided by such labor; • terrorist acts, protests and civil unrest, political uncertainty (including as a result of the 2024 election cycle), acts of war or other factors over which the Company has no control, such as the conflict between Russia and Ukraine, the conflict in Gaza, and other conflicts in the Middle East; • potential negative impacts of public health emergencies and lingering impacts of past pandemics; • the potential recoverability of our deferred tax assets; • increases in corporate tax rates; • potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; • the results of litigation or government proceedings and fulfillment of any related obligations; • the impact of construction defect and home warranty claims; • the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; • the impact of information technology failures, cybersecurity issues or data security breaches, including cybersecurity incidents deploying evolving artificial intelligence tools and incidents impacting third-party service providers that we depend on to conduct our business; • the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters); and • the success of our ESG initiatives, including our ability to meet our goal that by the end of 2025 every home we start will be Zero Energy Ready, as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Zero Energy Ready future.
Business We are a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast.
Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction.
Our objective is to provide our customers with homes that incorporate extraordinary value and quality, at affordable prices, while seeking to maximize our investment returns over the course of a housing cycle.
We also provide information about our company, including active communities, through our Internet website located at www.beazer.com.
Long-Term Business Strategy We continue to execute against our long-term balanced growth strategy, which is characterized by growing profitability, improving balance sheet efficiency, and generating returns above our cost of capital .
This strategy provides us with the flexibility to reduce leverage through debt reduction, increase return of capital to investors through stock repurchases, or increase investment in land and other operating assets in response to changing market conditions.
We remain committed to this balanced growth strategy, which is designed to increase shareholder value b y improving our return on assets while reducing operational risk and financial leverage.
For fiscal 2025, we continue to focus on our three multi-year strategic goals as part of our balanced growth strategy: • reaching more than 200 active communities by the end of fiscal 2026, • reducing our net debt to net capitalization ratio to below 30% by the end of fiscal 2026, and • fulfilling our commitment that by the end of calendar year 2025, every home we start will be Zero Energy Ready, which is discussed further below.
Differentiating Beazer Homes We know that our buyers have many choices when purchasing a home.
Beazer Homes is a builder of choice for homebuyers who recognize the built-in value of a new home.
Through our three strategic differentiators discussed below, we deliver quality homes with energy efficiency for real savings, improved indoor air quality for healthier living, and superior comfort that homebuyers will appreciate long after they move in.
We take pride in offering customers unmatched value throughout the entire homebuilding experience.
Mortgage Choice – Most of our buyers need to arrange financing in order to purchase a new home.
Unlike many of our major competitors, we have no ownership or other interest in a mortgage company, which allows us to partner with our customers to help them get the most competitive interest rates, fees and service levels available.
For every Beazer community, we identify Choice Lenders, who are selected for their ability to provide a comprehensive array of products and programs, meet our high customer service standards, and willingness to compete to earn our customer’s business.
We then provide our customers with an industry-leading online comparison tool that helps them easily compare multiple mortgage offers from Choice Lenders and other lenders side-by-side.
Choice Plans ® – Every family lives in their home differently, which is why we created Choice Plans.
Choice Plans provide our buyers with more floor plan flexibility at no additional cost.
For example, buyers of to-be-built homes can typically choose between two different configurations in the kitchen and in the primary baths.
Offering these pre-designed floor plan alternatives allows us to offer fewer plans, which improves efficiency and reduces cost w hile creating living areas that match an individual buyer's lifestyle.
Surprising Performance – We place an emphasis on building high-quality homes and delivering outstanding customer experience.
Our team is hyper-focused on including premium materials and high-caliber construction processes designed to increase performance and efficiency.
All Beazer homes are designed and built to provide Surprising Performance, which means giving our homeowners more quality and more comfort from the moment they move in and saving them money every month.
We deliver these benefits through our people, materials, and process.
Some examples of these benefits are as follows: • We remain dedicated to continually enhancing the energy efficiency of our homes in support of our industry-first pledge that, by the end of calendar year 2025, every new home we start will be Zero Energy Ready, which means it will meet the requirements of the U.S.
Department of Energy 's (DOE) Zero Energy Ready Home TM program and have a HERS ® index score (before any benefit of renewable energy production) of 45 or less.
During fiscal 2024, we accelerated our transition to Zero Energy Ready homes with 91% of our fiscal fourth quarter new home starts being built to Zero Energy Ready standards.
Notably, Beazer Homes has now certified more Zero Energy Ready homes to the DOE's Single Family National Program requirements than any other home builder. • All of our homes are also built to the latest ENERGY STAR ® standards, and we provide buyers with an energy rating (HERS ® index score) for their home, completed by a qualified third-party rating company.
According to the Residential Energy Services Network (RESNET), the developer of the HERS ® index, used homes typically have a HERS ® index score (on a scale in which a lower score is better) of 130 and homes built to the same standard as the HERS ® Reference Home (equivalent to the 2006 International Energy Conservation Code) have a HERS ® index score of 100.
For the year ended September 30, 2024, new Beazer homes had an average HERS ® index score of 42, a seven point improvement from 49 for the year ended September 30, 2023 .
We also consistently report our average HERS Index Scores as “gross” scores, setting a more rigorous standard by excluding any benefit of renewable energy technologies. • We also build Indoor AirPlus qualified homes under the EPA Indoor AirPlus program, which include features to reduce contaminants that lead to poor indoor air quality such as mold, moisture, carbon monoxide, toxic chemicals and more.
Reportable Business Segments Our active homebuilding operations consist of the design, sale, and construction of single-family and multi-family homes in the following geographic regions, which represent our reportable segments: Segment/State Market(s) West: Arizona Phoenix California Riverside-San Bernardino, Sacramento, San Diego Nevada Las Vegas Texas Dallas/Ft.
Southeast: Florida Orlando Georgia Atlanta North Carolina Raleigh/Durham South Carolina Charleston, Myrtle Beach Markets and Product Description We evaluate a number of factors in determining which geographic markets to enter and remain in as well as which consumer segments to target with our homebuilding activities.
We compete in the above listed geog raphic markets across the United States in part to reduce our exposure to any particular regional economy.
Within these markets, we build homes in a variety of new home communities.
We continually review our markets based on aggregate demographic information, land prices and availability, competitive dynamics, and our own operating results.
We use the results of these reviews to re-allocate our investments generally to those markets where we believe we can maximize our profitability and return on capital.
We maintain the flexibility to alter our product mix within a given market, depending on market conditions.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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