Beazer Homes Reports Softer Demand, Fewer Closings in Q1 2026

Beazer Homes USA (BZH) reported declining home closings and weakening buyer demand in fiscal Q1 2026, citing elevated mortgage rates and affordability pressures. The company warned of margin compression and revised guidance downward. Net new home orders fell 12% year-over-year to 897 units, while homes closed dropped 9% to 945. Average selling price rose 3% to $467,000, insufficient to offset volume declines. CEO Allan Merrill noted “traffic and conversion rates softened notably in December,” prompting cautious inventory management. The builder now expects full-year closings of 3,800–4,000 units, down from prior guidance of 4,100–4,300. Gross margins are forecast at 20.5%–21.5%, below earlier expectations of 22%. Shares fell 4.2% in after-hours trading on January 29, 2026.