Beazer Homes USA, Inc.

Good afternoon and welcome to the Beezer Homes Earnings Conference call for the fourth fiscal quarter and full year ended September 30, 2025. Today's call is being recorded and a replay will be available on the company's website later today. In addition, PowerPoint slides intended to accompany this call are available in the investor relations section of the company's website at www.beezer.com. At this point, I will now turn the call over to David Goldberg, Senior Vice President and Chief Financial Officer.

Thank you. Good afternoon and welcome to the Beezer Homes conference call discussing our results for the fourth quarter of fiscal 2025. Before we begin, you should be aware that during this call, we will be making forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors described in our SEC filings, which may cause actual results to differ materially from our projections. Any forward-looking statement speaks only as of the date the statement is made. We do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. New factors emerge from time to time, and it is simply not possible to predict all such factors. Joining me today is Alan Merrill, our Chairman and Chief Executive Officer. On our call today, Alan will discuss highlights from the full year, the current operating environment, including a discussion of both our operational response and our strategic positioning, and the progress we're making towards our multi-year goals. I will then provide some highlights from our fourth quarter results, guidance for our first fiscal quarter fiscal 26 results, and some commentary on how we're thinking about full-year fiscal 26 expectations. Updates on our balance sheet and liquidity, including our outlook for capital allocation and land spend, and finish with a discussion about our shareholder rights agreement. Alan will conclude with a wrap-up, after which we will take any questions in the remaining time. I will now turn the call over to Alan. Thank you, Dave, and thank you for joining us on our call this afternoon.

Fiscal 25 was a productive but challenging year, highlighted by both community account growth and prudent balance sheet management as we operated in a very difficult new home sales environment. In the fourth quarter, we were able to improve our sales base, including in Texas, and exceed our expectations for home closings and profitability. For the full year, we were able to make continued progress on our multi-year goals. Specifically, we finished fiscal 25 with an average active community count of 164, up 14% from last year. We reduced our net debt to net cap below 40%, and we grew book value per share to nearly $43 from a combination of profitability and the impact of share repurchases. It is certainly the case that fiscal 25 didn't go exactly like we expected at this time last year, but I'm very proud of the resilience our team demonstrated. We effectively responded to the environment, allowing us to remain on track to achieve our multi-year goals for community account growth, deleveraging, and book value per share accretion by the end of fiscal 27. By this time in the quarterly reporting cycle, you've already heard from our peers that the macro environment remains quite challenging, as consumers grapple with both confidence and affordability, and builders work through excess inventory. For now, conversion and sales spaces remain well below historical norms, and aggressive incentives and move-in ready specs are still required to sell homes. However, we are encouraged by the recent decrease in month supply of new homes and the improvement in affordability arising from wage growth and lower mortgage rates. If these trends persist, we should see better selling conditions over the next year. But rather than waiting for the environment to improve, we are taking actions to enhance returns and capitalize on our differentiated strategy. Over the course of fiscal 25, we took steps to improve both profitability and balance sheet efficiency. Relative to profitability, we rebid our material and labor costs, which has resulted in savings of about $10,000 per home so far. These savings should be fully realized in our closings by the fourth quarter, and we continue to pursue additional opportunities. In the fourth quarter, we completed a reduction in force. a painful but necessary reflection of the current environment, which resulted in run rate savings of about $12 million per year. And we made product and sales leadership changes in several divisions, including Houston and San Antonio. Our Texas pace improved to 1.8 in the quarter, up from 1.3 last quarter. To enhance balance sheet efficiency, we re-underwrote our portfolio to identify assets that were not a strong fit with our strategy. This led to asset sales of $63 million and a profit contribution of about $7 million. This portfolio realignment will continue in fiscal 26, with non-strategic asset sales likely to generate more than $100 million in capital for reinvestment and likely to occur at or above book value in the aggregate. We increased the share of our lot position controlled by options from 58% to 62%, And we completed a sale-leaseback of about 80 of our model homes to free up cash for higher return uses. Our entire industry seems to use some version of the same affordability playbook. Higher purchase incentives, smaller square footage, and fewer features all help buyers attain home ownership. But they don't excite home buyers, and they don't address all of the costs that are straining affordability. At Beezer, we are focused on the total cost of home ownership by offering lower mortgage rates through competition and elimination of the middleman, lower utility bills from dramatically more efficient homes, and lower insurance premiums through competition and advanced building practices. On the slide, we've shown these savings for a recent closing here in Atlanta. This example demonstrates savings of about $3,000 per year versus comparable new homes. That represents nearly $50,000 in buying power or additional value for our buyers. And this is demonstrative of what we can do for every home buyer. We think that's an incredibly compelling value proposition in a housing market hampered by affordability constraints. The next step in our journey, and likely the most important one for our shareholders, is to ensure that home buyers and realtors in our market know what we have created. Last month, we introduced Enjoy the Great Indoors, our campaign to increase brand awareness and help our sales team explain the many benefits of owning a Beezer home. Strategically, we believe we are uniquely well positioned to offer homebuyers solutions that address affordability concerns. Both our operational responses and our differentiated strategy are designed to help us achieve our multi-year goals for growth, deleveraging, and book value per share accretion. With 169 active communities at year end and nearly 25,000 active lots under control, we are confident we can reach our greater than 200 community count goal over the next two years. In fiscal 25, we were able to deleverage to just under 40%, an important milestone on our progression. We anticipate decreasing net leverage by several points in fiscal 26, and our goal remains to reach a net debt to net capitalization ratio in the low 30% range by the end of fiscal 27. Finally, we grew book value per share to nearly $43, extending our track record for strong book value growth. Our goal is to generate a double-digit CAGR in book value per share through the end of fiscal 27 through both profitability and share repurchases, which would equate to a book value in the mid-50s. With that, I'll turn the call over to Dave.