Beazer Homes USA, Inc. reported a difficult start to fiscal 2026, as first-quarter results reflected ongoing demand pressure across the housing market. The company posted a net loss of $32.6 million, or $1.13 per diluted share, compared with net income of $3.1 million a year earlier, with results weighed down by lower home closings, margin compression, and a litigation-related charge. Homebuilding revenue fell 21.9% year over year to $359.7 million, driven primarily by a 22.8% decline in closings to 700 homes, partially offset by a modest increase in average selling price to $513,900.
Operationally, the quarter showed broad-based softness despite a slightly higher community count. Net new orders declined 18.1% to 763, as sales pace slowed to 1.5 orders per community per month, and backlog shrank sharply to $573.3 million, down nearly 30% from the prior year. Gross margins came under significant pressure due to elevated incentives, unfavorable mix, and the litigation charge, with reported homebuilding gross margin falling to 10.4% from 15.2% a year ago. Adjusted EBITDA swung to a loss of $11.2 million versus positive $23.0 million last year, underscoring the earnings impact of lower volumes and weaker margins.
Despite near-term headwinds, management struck a cautiously optimistic tone looking ahead. Beazer plans to focus on sequential margin improvement through cost reductions, mix optimization, and performance from newer communities, while also realigning its land portfolio through selective asset sales. Liquidity remained solid at $342.7 million, and the company continued returning capital to shareholders with $15.1 million in share repurchases during the quarter. With national builders slowing starts and mortgage rates easing, Beazer believes it is positioned to make progress toward its multi-year goals and capitalize on a potentially stronger spring selling season.