"At the start of Beazer's Q1 2026 earnings call held on Thursday evening, Chairman, President and CEO Allan Merrill acknowledged the realities of the current homebuilding market, calling it a stubbornly soft demand environment. There could, however, be reasons to be cautiously optimistic about where demand is headed. According to Merrill, an uptick in traffic and buyer engagement kicked in around mid-December. January's sales pace was also in line with the prior year after eight quarters of year-over-year pace compression, and built-to-order sales marginally improved in last month's post-quarterly timeframe."
"In addition to a net loss of more than $30 million, adjusted EBITDA was a loss of $11.2 million, compared with adjusted EBITDA of $23 million a year prior. Compared with a year ago, homebuilding revenue declined 21.9%, net new orders fell 18.0% and backlog dollar value was down 30%. Beazer's gross profit margin was 14.0%, down from 18.2% a year ago. However, excluding a one-time litigation-related charge, the quarterly gross profit margin would have been 15.8%, in line with expectations."
Beazer reported a Q1 net loss of $32.6 million and an adjusted EBITDA loss of $11.2 million, reversing prior-year profitability. Homebuilding revenue declined 21.9%, net new orders fell 18.0%, and backlog dollar value dropped 30% year over year. Gross profit margin compressed to 14.0% from 18.2%, though excluding a one-time litigation charge margin would have been 15.8%. Sales pace has been historically compressed, but traffic and buyer engagement picked up around mid-December, January sales pace matched the prior year, and built-to-order sales showed marginal post-quarter improvement. Management is shifting toward a higher-margin product mix to restore profitability.
Read at www.housingwire.com
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