Beazer Homes USA Inc delivered a robust Q4 2025 with a pronounced sequential rebound in top-line performance and a material swing from a modest Q3 profitability to a solid quarterly net income. Revenue reached $791.9 million, up 45.2% quarter-over-quarter, while gross profit rose to $106.9 million for a gross margin of 13.49%. Operating income was $24.8 million and net income $30.0 million, translating to EPS of $1.02. The quarter marks a meaningful improvement in operating leverage vs. the prior quarter, supported by higher volumes and favorable mix, even as year-over-year profitability declined.
On a year-over-year basis, revenue declined 1.8% and gross profit fell 24.4%, with operating income down 57.4% and net income down 42.4%. The QoQ turnaround is notable, but the year-over-year trajectory highlights the cyclicality of the residential construction cycle Beazer operates in and implies ongoing sensitivity to demand and pricing dynamics. Beazer ends the period with strong liquidity and minimal leverage: current ratio 16.19, cash ratio 1.50, and cash per share of $7.39, with debt metrics effectively showing no long-term debt. The stock trades at attractive relative multiples (P/E ~5.9; EV/EBITDA ~20.7; P/B ~0.57; P/S ~0.90), offering a margin of safety given the cash-rich balance sheet, though the business remains exposed to housing demand cycles and working capital intensity in inventory.