Beazer Homes Reports 15.6% Q2 Gross Margin on $397.7M Revenue
Beazer Homes reported Q2 homebuilding revenue of $397.7M with 757 closings at an average $525K price and a 15.6% gross margin. Liquidity rose to ~$400M after upsizing its revolver to $525M, sales pace reached 2.1 per community monthly, and full-year EBITDA guidance was withheld due to higher rates and costs.
1. Q2 Financial Performance
Beazer Homes generated $397.7 million in homebuilding revenue during Q2, closing 757 homes at an average price of $525,000. The company reported a 15.6% homebuilding gross margin, SG&A expenses of $64 million, and adjusted EBITDA of $2.6 million.
2. Strengthened Liquidity and Capital Allocation
Total liquidity increased to approximately $400 million with $116 million of unrestricted cash and $285 million of revolver availability after upsizing the revolver to $525 million and extending its maturity to March 2030. Management also repurchased over one million shares at roughly 60% of book value.
3. Sales Trends and Cautious Outlook
Sales pace improved to 2.1 homes per community per month, while spec homes comprised 57% of sales mix down from 61%. Management withheld full-year EBITDA guidance due to higher mortgage rates and rising energy costs, and aims to steadily increase to-be-built sales toward a majority share.