Beazer Homes USA, Inc. (BZH): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Beazer Homes USA, Inc.'s strategy after their latest fiscal year, trying to see past the headlines to where the real value is built. Honestly, looking at their FY25 numbers-$2.30 billion in revenue against a tight 14.3% gross margin-tells a story of careful execution in a tough market. Their core play isn't just building houses; it's about owning a massive land pipeline of nearly 25,000 lots and pushing their edge as America's #1 Energy-Efficient Homebuilder to lower the buyer's total cost. So, if you want to see exactly how they balance aggressive land acquisition (over $684 million spent in FY25) with a current focus on deleveraging, the full Business Model Canvas breakdown is right here for you to dissect.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Beazer Homes USA, Inc. relies on to keep building and selling homes efficiently, especially given the margin pressures we saw through fiscal year 2025. These aren't just vendors; they are strategic enablers for their volume and their industry-leading energy goals.

Local subcontractors for construction labor and services

Beazer Homes USA, Inc. depends heavily on a network of specialized trade partners to execute the physical construction of every home. While Beazer Homes USA, Inc. specific cost allocation to subcontractors isn't public, the industry standard for large single-family home builders shows a massive reliance on this segment. On average, builders in the industry subcontract out about 84 percent of their construction costs in a typical home they build. Furthermore, the average home build involves approximately 24 different subcontractors across all trades. This reliance means subcontractor availability and pricing directly impact Beazer Homes USA, Inc.'s construction cycle times and gross margin, which stood at 14.3 percent for the full fiscal year 2025. This is a key area where local relationships and scale matter for consistent execution.

National material suppliers for scale and cost leverage

Securing materials at competitive prices is crucial when homebuilding gross margins are tight, as they were in fiscal 2025. Partnerships with national suppliers help Beazer Homes USA, Inc. gain volume discounts across their 13 states of operation. For instance, Beazer Homes USA, Inc. recently extended its relationship with James Hardie Building Products Inc. via a new exclusive agreement announced in October 2025. This type of deep relationship is designed to lock in supply and pricing for key components like siding, which helps manage the cost side of the margin equation.

Financial institutions for the Mortgage Choice program

The Mortgage Choice program is a direct partnership strategy to address buyer affordability and streamline the financing process. Beazer Homes USA, Inc. empowers buyers by making them shop for a loan with at least two competing lenders from their approved panel. A critical element of this partnership structure is that Beazer Homes USA, Inc. takes no marketing fees, promotion fees, or slotting fees from the lenders to participate. This structure is designed to ensure unbiased competition. As of mid-2025 discussions, the program included almost 60 lenders, offering a wide variety of loan products, including rate buydowns and forward rate commitments to manage interest rate risk for buyers.

Here's a quick look at some of the key metrics surrounding these partnerships as of late 2025:

Partnership Category	Key Metric / Data Point	Value / Amount
Financial Institutions	Number of Lenders in Mortgage Choice Program (approx.)	60
Land Development	Active Controlled Lots (as of September 30, 2025)	24,758
Land Development	Percentage of Active Lots Under Option Agreements (as of September 30, 2025)	62.1 percent
Utility/Energy Partners	Net Deferred Tax Assets from Energy-Efficiency Tax Credits (as of September 30, 2025)	$84.1 million
Construction Labor (Industry Avg.)	Average Share of Construction Costs Subcontracted	84 percent

Land sellers and developers for controlled lot pipeline

Controlling the right amount of land, at the right time, is the lifeblood of a homebuilder. Beazer Homes USA, Inc. ended fiscal year 2025 with an active controlled lot position of nearly 25,000 lots. They are strategically using option agreements to manage capital outlay; as of September 30, 2025, 62.1 percent of their total active lots were controlled via these agreements. For the full fiscal year 2025, land acquisition and development spending totaled $684 million, resulting in a net land spend just above $600 million after land sale proceeds were accounted for. The goal is to end fiscal year 2025 with approximately 180 active communities, with land control in place to reach 200 active communities by the end of fiscal year 2026.

Utility providers for energy-efficient home certifications

This partnership category is central to Beazer Homes USA, Inc.'s brand differentiation and future tax asset protection. The company has an industry-first pledge that by the end of calendar 2025, 100 percent of new home starts will meet the U.S. Department of Energy's (DOE) Zero Energy Ready Home (ZERH) program requirements. In the first quarter of fiscal 2025, 98 percent of home starts already met this standard. This focus has resulted in significant financial value; as of September 30, 2025, the company held net deferred tax assets of $142.6 million, with about $84.1 million of that directly related to Energy-Efficiency Tax Credits. The average HERS Index Score for their homes in 2023 was 49, with a commitment to reach a gross HERS Index Score of 45 or less by the end of 2025.

• All homes since 2011 are built to ENERGY STAR standards.
• Since 2010, 100 percent of homes have installed EPA-certified WaterSense fixtures.
• Since 2022, all homes have been Indoor airPLUS certified.
• The DOE estimates ZERH homes are 40 percent to 50 percent more efficient than a typical new home.

Finance: review land spend vs. option percentage targets for Q1 FY2026 by end of January.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Key Activities

You're looking at the core actions Beazer Homes USA, Inc. (BZH) must execute well to make this business model work, especially given the current market. These aren't just things they do; these are the things they spend significant capital and management focus on right now.

Land Acquisition and Development

This is foundational-securing the ground to build on. Beazer Homes USA, Inc. (BZH) has been disciplined here, especially as they manage toward their community count goals. For the full fiscal year 2025, the total spending on land acquisition and development reached $684 million. They offset some of this with $63 million in land sale proceeds for the same full year. This left their net land spend just above $600 million for fiscal 2025. At year-end fiscal 2025, their active controlled lot position was nearly 25,000 lots, with 62% of those lots held under option contracts, which is a key way they manage capital deployment.

Construction of Move-in Ready Spec Homes

Shifting inventory strategy is a major activity. Beazer Homes USA, Inc. (BZH) is leaning into move-in ready homes, or spec homes, to meet immediate buyer demand. For the first quarter of fiscal 2026 guidance, management expects to sell about 900 homes, with specs projected to represent up to 75% of those sales. This contrasts with the fourth quarter of fiscal 2025, where the combination of a higher percentage of specs and larger incentives resulted in a 17.2% gross margin.

Here's a look at the recent and near-term sales mix focus:

• FY2025 Q3 Sales Pace: 1.7 orders per community per month.
• FY2026 Q1 Expected Sales Pace: Not explicitly stated, but orders expected to be about 900 homes.
• FY2026 Q1 Expected Spec Share: Up to 75% of sales.
• FY2025 Q4 Closings: 1,400 homes.

Managing the Mortgage Choice Program

Facilitating buyer financing through competition is a core differentiator. Beazer Homes USA, Inc. (BZH) manages the Mortgage Choice program to empower buyers to shop and compare loan offers. Every Beazer Homes USA, Inc. (BZH) buyer must shop for a loan with at least two Mortgage Choice lenders. The program connects buyers with a curated selection of Choice Lenders who boast a 90+% customer satisfaction rate. This activity is designed to help save buyers thousands over the life of their loan by fostering competition among lenders.

Design and Engineering for Zero Energy Ready Home Standards

This activity is about embedding superior construction standards directly into the product design. Beazer Homes USA, Inc. (BZH) is committed to building 100% of its homes to the U.S. Department of Energy's Zero Energy Ready Home (ZERH) standards by the end of 2025. As of Q1 2025, 98% of their home starts already met ZERH requirements. This focus is projected to improve the average HERS score to 45 by the end of 2025, up from an average of 49 in 2023. These homes are designed to be 40%-50% more energy efficient than a typical new home.

The commitment to high-performance building is long-standing:

Standard/Certification	Year Implemented/Target	Efficiency Metric
EPA-certified WaterSense fixtures	Since 2010	Water conservation
ENERGY STAR standards	Since 2011	Energy efficiency
Indoor airPLUS qualified	Since 2022	Indoor air quality
DOE Zero Energy Ready Home (ZERH)	100% by end of 2025	~40-50% greater efficiency than typical new home

Capital Allocation Focused on Deleveraging and Share Repurchases

How Beazer Homes USA, Inc. (BZH) deploys its cash is a critical ongoing activity. They balance long-term balance sheet strength with returning value to shareholders. In April 2025, the Board approved a new share repurchase program authorizing up to $100.0 million of stock buybacks. During the third quarter of fiscal 2025, the company actually repurchased $12.5 million of its common stock. For the full fiscal 2025, they repurchased about 1.5 million shares, which was about 5% of the company.

This activity is balanced against deleveraging targets. The Net Debt to Net Capitalization ratio was below 40% at the end of Q3 2025, with a projection to be in the mid-to-high 30% range by the end of fiscal 2025. The long-term goal remains reducing this ratio below 30%. S&P Global Ratings' base-case scenario incorporates expected share repurchases over the next 12 months of $15 million-$25 million, suggesting a slight moderation in the pace of deleveraging to take advantage of stock valuation.

Capital allocation priorities for fiscal 2025/2026:

• Fund organic growth and community count expansion.
• Repurchase shares at a perceived discount to book value.
• Target Net Debt to Net Capitalization ratio in the low 30% range by the end of fiscal 2026.
• Generate double-digit growth in book value per share.

The total liquidity position at the end of Q4 2025 was nearly $540 million, with $215 million in unrestricted cash.

Finance: draft 13-week cash view by Friday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Key Resources

You're looking at the core assets Beazer Homes USA, Inc. has built up to support its business, especially as they navigate a competitive 2026 ahead. These aren't just line items; they are the foundation for hitting those Multi-Year Goals they set for fiscal 2027.

The land position is critical for any homebuilder. Beazer Homes USA, Inc. finished fiscal 2025 with a controlled land position of nearly 25,000 active lots. This inventory is managed with discipline; at the end of the fiscal year, 62% of these active lots were secured through option contracts, which helps manage capital outlay. This strategy is key to maintaining flexibility.

Community count directly translates to sales potential. For the full fiscal year 2025, the average active community count was 164. By the fourth quarter of fiscal 2025, this count had grown to 169 active communities, showing forward momentum toward their goal of exceeding 200 active communities by the end of fiscal 2027.

A significant financial asset supporting the balance sheet is the deferred tax assets. As of September 30, 2025, Beazer Homes USA, Inc. reported net deferred tax assets of $142.6 million. A substantial portion of this, approximately $84.1 million, is specifically tied to Energy-Efficiency Tax Credits. The company is taking steps, like a new rights agreement authorized by the Board, to protect these assets, which they expect to continue increasing through June 30, 2026.

The focus on proprietary home designs is a major differentiator. Beazer Homes USA, Inc. brands itself as America's #1 Energy-Efficient Homebuilder. This is supported by designs that deliver lower utility bills and improved indoor air quality, which directly addresses total cost of homeownership concerns for buyers. They are committed to 100% Zero Energy Ready (ZER) starts by Calendar Year-end 2025.

The human capital is just as important as the dirt and the balance sheet. You have experienced land acquisition teams that manage the $684 million spent on land acquisition and development in fiscal 2025, netting out at just above $600 million after $63 million in land sale proceeds. Construction management teams are focused on improving cycle times and driving operational savings, like the reported $10,000 per-home rebid savings.

Here's a quick look at how the land/community base and key financial health indicators stacked up at the close of fiscal 2025:

Key Resource Metric	Value as of FY25 End (Sept 30, 2025)
Average Active Community Count (FY25)	164
Active Controlled Lots (Year-End)	Nearly 25,000
Percentage of Active Lots Under Option	62%
Net Deferred Tax Assets	$142.6 million
Energy-Efficiency Tax Credits Component	Approximately $84.1 million

Also, look at the balance sheet strength, which underpins the ability to acquire and manage these resources. The company finished the year with a net debt to net capitalization ratio below 40%, moving toward their low-30% target for fiscal 2027. Liquidity is ample, standing at nearly $540 million at the end of the fourth quarter, which includes $215 million in unrestricted cash with nothing drawn on the revolving credit facility.

The value generated by these resources is reflected in the book value per share, which grew to nearly $43 by the end of fiscal 2025. This growth comes from profitability and capital allocation actions, like repurchasing about 1.5 million shares in fiscal 2025.

You can see the key operational and financial metrics supporting the resource base here:

• Total Liquidity (Q4 FY25 End): Nearly $540 million
• Unrestricted Cash (Q4 FY25 End): $215 million
• Net Debt to Net Capitalization (FY25 End): Below 40%
• Book Value Per Share (FY25 End): Nearly $43
• FY25 Land Acquisition & Development Spending: $684 million
• FY25 Net Land Spend: Just above $600 million

These resources-the land, the community footprint, the tax assets, the design focus, and the experienced people-are what Beazer Homes USA, Inc. uses to deliver its value proposition.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a customer chooses Beazer Homes USA, Inc. over the competition. It's not just about the bricks and mortar; it's about the total cost of owning that home over time.

Lower total cost of homeownership, not just the sale price

Beazer Homes USA, Inc. focuses its value proposition on reducing the long-term financial burden. This means looking beyond the initial closing costs and sale price to what it costs to live in the house month-to-month. This strategy is central to addressing housing affordability for your buyers.

• The company aims to lower the cost to power, insure, and finance a home.
• Monthly operating cost reductions of $150 or $200 are considered real affordability.
• The present value of these monthly savings over the life of the loan could exceed $30,000.

Energy-efficient construction (America's #1 Energy-Efficient Homebuilder)

Beazer Homes USA, Inc. claims the title of America's #1 Energy-Efficient Homebuilder. This isn't just marketing fluff; it's backed by a commitment to building homes that significantly outperform standard codes. Every Beazer home is designed and built to meet the U.S. Department of Energy's (DOE) Zero Energy Ready Home (ZERH) requirements. They were the first national builder to commit to building 100% of new home starts to this standard by the end of fiscal 2025.

The DOE estimates that homes built to the ZERH standard are 40 percent to 50 percent more efficient than a typical new home. This commitment is verified through performance metrics.

Potential savings of about $3,000 per year versus comparable new homes

The energy efficiency translates directly into tangible annual savings for the homeowner, primarily through lower utility bills. For example, a recent closing in Atlanta demonstrated savings of about $3,000 per year compared to comparable new homes. This is a key differentiator that directly impacts the buyer's monthly budget.

Here's a quick look at the key performance and savings metrics Beazer Homes USA, Inc. is using to define this value proposition as of fiscal 2025:

Metric	Value/Amount	Context/Year
Annual Estimated Utility Savings	$3,000	Compared to comparable new homes
Average Gross HERS Score	32	Fiscal 2025
DOE ZERH Efficiency Improvement	40 percent to 50 percent more efficient	Versus typical new home
Homes Certified to ZERH Standard (Cumulative)	More than 3,200	As of December 2024
Projected ZERH Certification Rate	100%	Targeted by end of 2025

Mortgage Choice program for competitive financing options

Beazer Homes USA, Inc. explicitly states it is not a mortgage lender, choosing instead to expose customers to competition. The Mortgage Choice program connects buyers with a curated group of lenders who compete for their business. This is designed to save customers thousands over the life of their loan by securing the best offer. Every Beazer Homes buyer is required to shop for a loan with at least two Mortgage Choice lenders.

• The program features approximately 60 participating lenders.
• Choice Lenders maintain a 90+% customer satisfaction rating.
• The structure ensures Beazer Homes USA, Inc. takes no marketing fees from lenders, promoting unbiased competition.

Move-in ready homes (specs) for faster closing times

While the preference is for to-be-built homes, Beazer Homes USA, Inc. relies on move-in ready inventory, or specs, to maintain an acceptable sales pace in the current market. In the fourth quarter of fiscal 2025, approximately 75% of sales were driven by these spec homes. This inventory allows for faster closing times compared to custom orders, which is a value proposition for buyers needing to move quickly. For instance, the Embrace Forward Commitment program allows Beazer Homes USA, Inc. to secure rates for these move-in-ready homes, enabling closings in as little as 30 days.

Finance: draft 13-week cash view by Friday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Customer Relationships

You're navigating a housing market that management described as remaining incentive-driven and highly competitive in the near-term of late 2025. Beazer Homes USA, Inc. focuses its customer relationships on guiding buyers through this environment with personalized service and financial empowerment tools.

Direct, personalized sales through on-site community agents

The initial, personalized touchpoint is the New Home Counselor (NHC), who serves as the face of Beazer Homes USA, Inc. and a brand ambassador. These agents are tasked with building meaningful connections from the first model home visit through to closing, aiming to instill confidence and enthusiasm. Collaboration with external real estate agents is also key; Beazer Homes USA, Inc. offers commissions to agents representing buyers under their cooperation policy requirements. The scale of this direct sales presence is reflected in the company's footprint, ending fiscal year 2025 with an average active community count of 164 communities. Sales performance in the fourth quarter of fiscal 2025 showed a rebound, with the company exceeding 1,400 closings in that single quarter. This direct interaction is crucial for driving volume in the current environment.

Facilitation of financing via the Mortgage Choice program

Beazer Homes USA, Inc. empowers customers by allowing them to shop and compare loan options, a differentiator from builders with in-house lenders. The Mortgage Choice program provides resources to easily compare multiple loan offers, helping buyers secure the best lender and loan for their needs. This program features almost 60 lenders competing on terms like down payments, interest rates, and cash to close. The goal is to directly affect the attainment and affordability of a home by fostering competition among lenders. Pre-qualification through this system is encouraged so buyers can act fast when the right home appears.

Post-sale warranty and customer service for new homes

Customer support doesn't end at the closing table. Beazer Homes USA, Inc. maintains an in-house Customer Care team and a National Warranty Call Center at 1-888-623-2937 to handle post-sale needs. The warranty structure is tiered for homeowner peace of mind:

• 1-Year Warranty: Covers most construction items for the first year.
• 2-Year Warranty: Covers certain systems like plumbing, electrical, and HVAC for the first two years.
• 10-Year Warranty: Provides coverage for major structural components.

The company states it is #1 in customer experience based on real homeowner surveys using TrustBuilder®.

Incentive-driven sales to drive volume in a tough market

The market reality in late 2025 necessitated a focus on incentives to secure sales volume. This focus on incentives directly impacted profitability metrics. For the first quarter of fiscal 2025, homebuilding gross margin, when excluding impairments, abandonments, and amortized interest, was 18.2%, down from 22.9% a year prior, primarily due to an increase in price concessions and closing cost incentives. By the fourth quarter of fiscal 2025, the reported homebuilding gross margin stood at 17.2%. Management acknowledged the market will remain competitive, emphasizing control over what they can control, such as finding efficiencies that contribute to cost savings, with several thousand dollars in savings per home cited as a goal.

Digital tools for customization and transparency

Beazer Homes USA, Inc. integrates digital tools to enhance the customer experience through personalization and transparency. The Choice Plans™ allow customers to personalize primary living areas at no additional cost. Homeowners report that the construction process itself was well-organized and transparent, which built confidence throughout the build. The company's commitment to energy efficiency, which has generated net deferred tax assets of $142.6 million as of September 30, 2025, is also a key value proposition communicated to customers as a way to lower the total cost of home ownership.

Here's a quick look at some relevant 2025 operational and financial data points related to customer engagement and sales environment:

Metric	Fiscal Year 2025 Data Point
Average Active Community Count (FYE Sept 30, 2025)	164
Home Closings (Q4 FY2025)	Exceeded 1,400 homes
Homebuilding Gross Margin (Q4 FY2025)	17.2%
Lenders in Mortgage Choice Program	Almost 60
Net Deferred Tax Assets (FYE Sept 30, 2025)	$142.6 million

The company is pushing out its goal to reach more than 200 active communities from fiscal year 2026 to fiscal year 2027 to free up capital for share buybacks, which totaled about 5% of the company (1.5 million shares) in fiscal 2025.

Finance: draft 13-week cash view by Friday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Channels

You're looking at how Beazer Homes USA, Inc. gets its homes in front of buyers and closes the deal. This is all about the physical and digital pathways they use to connect their product-new homes-with the customer base. It's a mix of boots-on-the-ground presence and digital outreach, plus a service layer to streamline the final steps.

The core of the physical channel is the network of model homes and sales centers. These are the physical touchpoints where a potential buyer experiences the Beazer Homes product firsthand. The company has been actively growing this footprint, which is key to driving sales volume.

Metric	FY2024 Year End (Approx.)	FY2025 Year End (September 30, 2025)	Q1 FY2026 Outlook (Expected)
Average Active Community Count	150 (Implied from 162 end of Q4 2024 vs 164 avg FY25)	164	170 (Expected end of quarter)
Active Lots Under Control	~28,000 (Implied from Q3 FY25)	Nearly 25,000	N/A
Home Closings (Q4)	1,496 (Q4 FY2024)	1,406 (Q4 FY2025)	Approx. 800 (Q1 FY2026)

The company website, Beazer.com, serves as a primary digital funnel. It's where leads start their journey, even if they aren't ready to buy immediately. Honestly, most folks browsing aren't ready to commit right away.

• Website address is www.beazer.com.
• Industry data suggests 90.7% of marketers generate leads through websites.
• Industry data indicates 96% of online shoppers visiting a website are not ready to purchase yet.
• The company is focused on its 'Enjoy the Great Indoors' campaign to boost brand awareness, which drives traffic to these digital channels.

Beazer Homes USA, Inc. relies on the established real estate broker network to bring in qualified buyers, which is a standard practice in the industry. While specific referral percentages aren't public, this channel is critical for reaching customers who are already working with an agent.

The wholly-owned title insurance agency, Charity Title Agency, LLC, is integrated to capture ancillary revenue and provide a streamlined closing experience. This captive service is structured to support the company's philanthropic goals, which is a unique angle for a channel partner.

• Charity Title Agency, LLC donates 100% of its net profits to the Beazer Charity Foundation.
• In fiscal 2024, the agency contributed charitable donations totaling $2.1 million.
• The Foundation's revenue grew from $250,000 in FY21 to over $2.1 million in FY24.
• The agency is licensed in the states where Beazer Homes USA, Inc. transacts insurance.

Finance: draft the Q1 FY2026 cash flow projection incorporating expected closings and land spend by Monday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Customer Segments

You're looking at the core buyers Beazer Homes USA, Inc. targets, which is crucial because their entire operational tempo, from land buying to construction, is set to meet these specific demands. Honestly, in the current environment, it's all about affordability and speed.

First-time and move-up homebuyers sensitive to monthly payments

Beazer Homes USA, Inc.'s market strategy explicitly centers on building quality homes for the entry-level and first-time move-up homebuyers. These buyers are acutely sensitive to the monthly payment, which means Beazer Homes USA, Inc. must focus on keeping the initial purchase price and, critically, the total cost of homeownership low. The company emphasizes offering lower mortgage rates through its Mortgage Choice program, which helps buyers compare loan options and potentially save thousands over the life of the loan. This focus is a direct response to the ongoing housing affordability challenges noted throughout 2025. The average selling price (ASP) for homes closed in the fourth quarter of fiscal 2025 was $534.0 thousand, while the full fiscal year 2025 ASP was $520.1 thousand.

Buyers focused on long-term utility cost savings and efficiency

A significant segment is drawn to the long-term utility savings Beazer Homes USA, Inc. promotes. The company positions itself as America's #1 energy efficient homebuilder. This isn't just marketing fluff; it's backed by financial incentives. As of September 30, 2025, the company held approximately $84.1 million in net deferred tax assets specifically from Energy-Efficiency Tax Credits. The company has a clear goal to appeal to this segment by targeting 100% Zero Energy Ready Starts by Calendar Year-end 2025. This focus on efficiency directly lowers the total cost of homeownership, which is a key value proposition when initial affordability is strained. The company is actively working to ensure its homes meet and exceed ENERGY STAR® requirements.

Consumers in the 13 states where Beazer Homes operates

The customer base is geographically constrained by where Beazer Homes USA, Inc. chooses to build, which helps manage operational complexity. The company maintains a geographically diversified footprint. You should know exactly where they are active to understand their market exposure. For fiscal year 2025, the company ended with an average active community count of 164, aiming to exceed 200 communities by the end of fiscal year 2027.

Here is a breakdown of the key operational areas as of late 2025:

Geographic Segment	States of Operation	Q2 FY2025 Revenue
West	Arizona, California, Nevada	$329.1 million
East/Mid-Atlantic	Delaware, Maryland, New Jersey, Virginia	$149.2 million
Southeast	Florida, Georgia, North Carolina, South Carolina, Tennessee	$67.1 million
Central	Texas	(Included in segments, but a key market)

The company's operations are spread across 13 states, with no single state representing over 20% of total closings. The West segment was the largest contributor to revenue in the second quarter of fiscal 2025.

Buyers seeking quick closings (spec home purchasers)

A major operational characteristic in 2025 is the high volume of speculative homes, which caters directly to buyers needing a quick closing. This segment is less concerned with full customization and more focused on immediate availability. The spec-heavy mix is a defining feature of the current sales strategy. For instance, in the second quarter of fiscal 2025, spec sales mirrored an exceptionally elevated 70% of the mix. Looking forward into the first quarter of fiscal 2026, management guided that specs could represent up to 75% of sales. The full fiscal year 2025 saw 4,427 home closings, with a portion of the fourth quarter closings being driven by spec homes selling and closing quickly. This preference for speed is a necessary adaptation given the challenging sales pace, which was approximately 2.0 orders per community per month for the full fiscal year 2025.

You can see the shift in focus on quick delivery:

• Spec sales mix in Q2 FY2025: 70%.
• Projected spec sales mix for Q1 FY2026: Up to 75%.
• Total FY2025 Closings: 4,427 homes.
• Sales pace in FY2025: Approximately 2.0 sales per community per month.

Finance: draft 13-week cash view by Friday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Cost Structure

The cost structure for Beazer Homes USA, Inc. is heavily weighted toward the direct costs of construction and securing future inventory. You see this pressure reflected clearly in the full-year profitability metrics.

Cost of homebuilding (COGS) is the largest component, and for the full fiscal year 2025, this compressed the reported homebuilding gross margin to 14.3%. This figure is the GAAP result, which includes certain non-operating charges.

To better understand the underlying operational costs, you have to look past the GAAP number. For instance, the fourth quarter showed a homebuilding gross margin of 13.7%, but when you exclude impairments, abandonments, and amortized interest, the adjusted homebuilding gross margin was 17.2% in Q4 FY25. This difference highlights the direct impact of external factors on the reported margin.

Land acquisition and development costs represent a significant upfront capital outlay. For the full fiscal year 2025, the gross spend on land acquisition and development was $684 million. This is a critical investment that ties up capital and carries risk until homes are built and sold.

The table below breaks down key cost components where data is available for the most recent periods:

Cost Component	Period	Amount/Percentage
Homebuilding Gross Margin (Reported)	FY25	14.3%
Homebuilding Gross Margin (Adjusted)	Q4 FY25	17.2%
SG&A as a Percentage of Total Revenue	Q4 FY25	9.6%
Land Acquisition and Development Spend (Gross)	FY25	$684 million
Land Acquisition and Development Spend	Q4 FY25	$121.7 million
Land Acquisition and Development Spend	Q3 FY25	$153.8 million
Interest Amortized as % of Homebuilding Revenue (Q1 Guidance)	Q1 FY26 Guidance	About 3%

Selling, General, and Administrative (SG&A) expenses are managed as a percentage of revenue, showing operational leverage improvements even when margins are tight. For the fourth quarter of fiscal 2025, SG&A expenses were 9.6% of total revenue. This was an improvement of 10 basis points year-over-year, driven by lower commissions, though partially offset by higher sales and marketing costs to support community count growth.

Interest expense on debt used to finance land and construction is a non-COGS operating cost that directly impacts net income. While a full-year figure for total interest expense is not explicitly stated here, the company provided guidance for the subsequent quarter, suggesting interest amortized as a percentage of homebuilding revenue should be about 3%.

Incentives and concessions are definitely a major cost, especially in a competitive environment. You see this directly reflected in the margin compression. These costs are necessary to move inventory, particularly homes that are already built or nearly complete (specs).

• Incentives like mortgage rate buydowns are cited as a key driver for the decline in gross margin.
• The higher share of spec home closings in Q4 FY25, which generally carry lower margins than to-be-built homes, contributed to the margin pressure.
• The difference between the reported 13.7% Q4 gross margin and the 17.2% adjusted margin is largely attributable to these concessions and mix shifts.
• The company is actively managing its land position to mitigate future carrying costs.

Finance: draft 13-week cash view by Friday.

Beazer Homes USA, Inc. (BZH) - Canvas Business Model: Revenue Streams

You're looking at how Beazer Homes USA, Inc. brings in its money, which is pretty straightforward for a homebuilder, but the details matter for valuation. The core of the business is selling houses, but there are other smaller pieces that add up.

The Primary revenue from new home sales is the overwhelming source of income. For the full fiscal year 2025, Beazer Homes USA, Inc. reported homebuilding revenue of $2.30 billion. This is the top-line number that drives everything else.

The Average selling price (ASP) of homes closed in fiscal year 2025 was $520.1 thousand. This figure shows the price point the company is hitting in the market, which is a key indicator of their product mix and market positioning. For context, the company completed 4,427 home closings in FY 2025.

When you look at the total reported revenue for the full fiscal year 2025, it was slightly higher at $2.37 billion, or $2,371.6 million. This difference between total revenue and homebuilding revenue points to the secondary streams.

Here is a breakdown of the revenue components based on the reported figures for fiscal year 2025:

Revenue Stream Category	FY 2025 Amount (Approximate)	Notes
Primary Revenue: New Home Sales	$2.30 billion	Confirmed Homebuilding Revenue.
Secondary Revenue: Land Sales and Other Non-Homebuilding Activities	~$71.6 million	Calculated as Total Revenue ($2,371.6M) minus Homebuilding Revenue ($2,300.0M).
Fees from Mortgage Choice program and Title Services	Included in Other Revenue	Specific amounts not separately itemized in primary reports.
Total Reported Revenue	$2.37 billion	Total revenue for the full fiscal year 2025.

The secondary revenue streams, which include land sales and other non-homebuilding activities, are captured in the difference between the total revenue and the homebuilding revenue. While the exact split between land sales versus fees from services like the Mortgage Choice program and title services isn't explicitly broken out in the headline numbers, you know these ancillary services exist as part of the model.

You can see the revenue generation points clearly:

• New home closings generated the bulk of the revenue.
• The average selling price was $520.1 thousand for the year.
• Ancillary services contribute to the remaining revenue component.

The company is focused on its energy-efficient positioning, which is intended to make its offering more compelling and support that ASP in a competitive environment. That's a key part of why they can command that price point.