BEAZER HOMES USA INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
BZH$33.48+0.1%Stored close · as of Oct 19, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-01-30.
0000915840-25-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000915840-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 129 current paragraphs.
55 unchanged; 41 reworded; 29 added; 8 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
During the second quarter of fiscal 2025, the housing market was slower than expected as the macroeconomic environment became increasingly uncertain, which negatively impacted consumer sentiment, intensified persistent affordability challenges, and weakened demand. Despite this challenging operating environment, we believe longer-term housing market conditions remain favorable as shortfalls in production over the past decade have contributed to an undersupply of housing.
Current report
During fiscal 2023, we established three Multi-Year Goals centered on growth, deleveraging, and product differentiation, which have since guided our capital allocation strategy. We remain dedicated to these objectives in support of our business:
Current report
•Growth: reaching more than 200 active communities by the end of fiscal 2026. Our March 31, 2025 active community count was 162 communities, up 11.7% from March 31, 2024 and 33.9% from March 31, 2023.
Current report
•Deleveraging: reducing our net debt to net capitalization ratio to below 30% by the end of fiscal 2026. As of March 31, 2025, our net debt to net capitalization ratio was up moderately from March 31, 2024 and March 31, 2023 due to higher land investment. However, the cumulative profitability and cash flow we anticipate over the remainder of the year will allow us to make strides in reducing this ratio.
Current report
•Product differentiation: fulfilling our commitment that by the end of the calendar year 2025 every home we start will be Zero Energy Ready. Nearly 99% of the Company's fiscal second quarter new home starts are being built to Zero Energy Ready standards, up from 43% at March 31, 2024 and 4% at March 31, 2023.
Current report
In February 2025, we announced an acceleration of the pace of our share repurchases given the opportunity to purchase our stock at a significant discount to book value. In tandem, we modified our multi-year deleveraging goal to reduce our net debt to net capitalization ratio to the“low 30% range” by the end of fiscal 2026. By the end of the second quarter, we had repurchased $20.6 million, or approximately 905,000 shares, of our common stock, bringing our total repurchases to $41.7 million over the past three years.
Current report
With challenging housing market conditions and our shares trading at a significant discount to book value, we have decided to slow our community count growth and deleveraging efforts to accommodate more share repurchases. To that end, in April 2025, our Board of Directors approved a new share repurchase program to repurchase up to $100.0 million of our outstanding common stock, which we expect to execute over multiple years.
Current report
Reflecting our revised capital allocation priorities, we are updating our Multi-Year Goals as follows:
Current report
•Deleveraging: reducing our net debt to net capitalization ratio to the low 30% range by the end of fiscal 2027, and
Current report
•Book value per share: achieving a double-digit compound annual growth in book value per share from the end of fiscal 2024 through fiscal 2027.
Current report
•During the quarter ended March 31, 2025, orders per community per month were 2.3 compared to 3.1 in the prior year quarter, and our net new orders were 1,098, down 15.5% from 1,299 in the prior year quarter. The decrease in sales pace compared to the prior year quarter reflected weaker consumer sentiment driven by affordability challenges and uncertainties in the macroeconomic environment.
Current report
Net new orders for the quarter ended March 31, 2025 decreased to 1,098, down 15.5% from the quarter ended March 31, 2024. The decrease in net new orders compared to the prior year quarter was driven by a 27.1% decrease in sales pace from 3.1 orders per community per month in the prior year quarter to 2.3, partially offset by a 15.9% increase in average active community count from 140 in the prior year quarter to 163. The decrease in sales pace compared to the prior year quarter reflected weaker consumer sentiment driven by affordability challenges and uncertainties in the macroeconomic environment.
Current report
Net new orders for the six months ended March 31, 2025 decreased to 2,030, down 4.3% from the six months ended March 31, 2024. The decrease in net new orders compared to the prior year period was driven by an 18.1% decrease in sales pace from 2.6 orders per community per month in the prior year period to 2.1, partially offset by a 16.8% increase in average active community count from 139 in the prior year period to 162.
Current report
West Segment: Net new orders for the quarter ended March 31, 2025 decreased to 665, down 22.7% from the quarter ended March 31, 2024. The decrease in net new orders compared to the prior year quarter was driven by a 31.3% decrease in sales pace from 3.2 orders per community per month in the prior year quarter to 2.2, partially offset by a 12.6% increase in average active community count from 90 in the prior year quarter to 101.
Current report
East Segment: Net new orders for the quarter ended March 31, 2025 decreased to 257, down 2.3% from the quarter ended March 31, 2024. The decrease in net new orders compared to the prior year quarter was driven by a 21.5% decrease in sales pace from 3.1 orders per community per month in the prior year quarter to 2.4, partially offset by a 24.4% increase in average active community count from 29 in the prior year quarter to 36.
Current report
Southeast Segment: Net new orders for the quarter ended March 31, 2025 remained flat year-over-year at 176 compared to the quarter ended March 31, 2024, driven by a 15.4% decrease in sales pace from 2.7 orders per community per month in the prior year quarter to 2.3, offset by an 18.2% increase inaverage active community count from 22 in the prior year quarter to 26.
Current report
West Segment: Net new orders for the six months ended March 31, 2025 decreased to 1,254, down 10.0% from the six months ended March 31, 2024. The decrease in net new orders was driven by a 21.6% decrease in sales pace from 2.6 orders per community per month to 2.1, partially offset by a 14.9% increase in average active community count from 89 to 102.
Current report
East Segment: Net new orders for the six months ended March 31, 2025 increased to 484, up 11.3% from the six months ended March 31, 2024. The increase in net new orders was driven by a 29.9% increase in average active community count from 27 to 36, partially offset by a 14.3% decrease in sales pace from 2.7 orders per community per month to 2.3.
Current report
Southeast Segment: Net new orders for the six months ended March 31, 2025 decreased to 292, down 0.7% from the six months ended March 31, 2024. The decrease in net new orders was driven by an 8.7% decrease in sales pace from 2.1 orders per community per month to 2.0, partially offset by an 8.8% increase in average active community count from 23 to 25.
Current report
West Segment: Homebuilding revenue increased by 13.4% for the six months ended March 31, 2025 compared to the six months ended March 31, 2024 due to a 14.9% increase in closings, partially offset by a 1.3% decrease in ASP. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current year period and improved construction cycle times compared to prior year period.
Current report
East Segment: Homebuilding revenue increased by 24.9% for the six months ended March 31, 2025 compared to the six months ended March 31, 2024 due to a 22.8% increase in closings as well as a 1.7% increase in ASP. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current year period and improved construction cycle times compared to prior year period.
Current report
East Segment: Compared to the prior year quarter, homebuilding gross profit decreased by $4.1 million due to lower gross margin, partially offset by an increase in homebuilding revenue. Homebu ilding gross margin, excluding impairments and abandonments, decreased to 14.7%, down from 19.5% in the prior year quarter, primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current report
Our homebuilding gross profit decreased by $22.6 million to $154.1 million for the six months ended March 31, 2025, from $176.7 million in the prior year period. The decrease in homebuilding gross profit was primarily due to a decrease in gross margin of 400 basis points to 15.2%, partially offset by an increase in homebuilding revenue of $96.9 million. Similar to the three-month period discussed above, the comparability of our gross profit and gross margin for the six-month period was slightly impacted by impairment and abandonment charges, which increased by $0.5 million, and interest amortized to homebuilding cost of sales, which increased by $3.9 million year-over-year (refer to Note 4 and Note 5 of the notes to the condensed consolidated financial statements in this Form 10-Q for additional details). When excluding the impact of impairment and abandonment charges and interest amortized to homebuilding cost of sales, homebuilding gross profit decreased by $18.2 million compared to the prior year period, while homebuilding gross margin decreased by 390 basis points to 18.3%. The decrease in gross margin for the six months ended March 31, 2025 compared to the prior year period was primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current report
West Segment: Compared to the prior year period, homebuilding gross profit decreased by $2.6 million due to lower gross margin, partially offset by an increase in homebuilding revenue. Homebuilding gross margin, excluding impairments and abandonments, decreased to 18.7%, down from 21.6% in the prior year period, primarily due to an increase in closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current report
East Segment: Compared to the prior year period, homebuilding gross profit decreased by $0.4 million due to lower gross margin, partially offset by an increase in homebuilding revenue. Homebuilding gross margin, excluding impairments and abandonments, decreased to 14.9%, down from 18.8% in the prior year period, primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current report
(a) Corporate and unallocated includes capitalized interest and capitalized indirect costs expensed to land cost of sale related to land and lots sold, as well as capitalized interest and capitalized indirect costs impaired in order to reflect land held for sale assets at net realizable value.
Current report
Our operating income decreased by $40.7 million to $15.5 million for the six months ended March 31, 2025, compared to operating income of $56.3 million for the six months ended March 31, 2024. This decrease compared to the prior year period was primarily due to the previously discussed decrease in gross profit and gross margin. SG&A expense increased by 13.9% compared to prior year in proportion to active community count growth. SG&A as a percentage of total revenue increased by 20 basis points compared to the prior year period, from 12.7% to 12.9%, primarily due to higher other G&A expenses and higher sales and marketing costs as we continue to grow and activate new communities.
Current report
West Segment: The $6.6 million decrease in operating income compared to the prior year quarter was primarily due to lower gross profit previously discussed, and higher sales and marketing costs and other G&A expenses driven by community count growth.
Current report
East Segment: The $4.4 million decrease in operating income compared to the prior year period was primarily due to the decrease in gross profit previously discussed as well as higher commission expenses on higher homebuilding revenue and higher sales and marketing expenses.
Removed paragraphs (8)
Previous report
The first fiscal quarter presented a challenging sales environment, with demand constrained by affordability concerns. Elevated mortgage rates and the uncertainty surrounding the post-election political environment contributed to weaker consumer sentiment. As mortgage rates rose to the low seven percent range and sales activity moderated, we offered discounts and incentives, including interest rate buydowns, to stimulate sales and prevent inventory buildup, which led to lower homebuilding gross margins.
Previous report
While these headwinds persist, we are encouraged by the volume of prospective buyer traffic and lead generation metrics. Foot traffic and online inquiries indicate sustained interest in homeownership, but buyer urgency to convert interest into new home orders has lessened in the current environment.
Previous report
Although we expect fluidity in near-term demand trends, we are optimistic in the long-term outlook of the housing market, anchored by supply and demand factors at a macroeconomic level. The shortfalls in new home production over the past decade have contributed to an underproduction of housing in the country, and demand for housing remains resilient characterized by low unemployment and wage growth, although still limited by affordability and mortgage rate volatility.
Previous report
•During the quarter ended December 31, 2024, sales per community per month was 1.9 compared to 2.0 in the prior year quarter, and our net new orders were 932, up 13.2% from 823 in the prior year quarter. The expanded average active community count allowed us to deliver higher net new orders year-over-year despite a slight decline in sales pace to 1.9 orders per community per month during the quarter ended December 31, 2024. The sales pace of 1.9 orders per community per month reflected the challenging sales environment as well as typical seasonality as our fiscal first quarter historically tends to experience the slowest sales pace.
Previous report
Net new orders for the quarter ended December 31, 2024 increased to 932, up 13.2% from the quarter ended December 31, 2023. The increase in net new orders compared to the prior year quarter was driven by a 17.8% increase in average active community count from 137 in the prior year quarter to 161, partially offset by a 3.8% decrease in sales pace from 2.0 orders per community per month in the prior year quarter to 1.9. The sales pace of 1.9 orders per community per month reflected the challenging sales environment as well as typical seasonality as our fiscal first quarter historically tends to experience the slowest sales pace.
Previous report
West Segment: Net new orders for the quarter ended December 31, 2024 was 589, up 10.5% from the quarter ended December 31, 2023. The increase in net new orders compared to the prior year quarter was driven by a 17.2% increase in average active community count from 87 in the prior year quarter to 102, partially offset by a 5.7% decrease in sales pace from 2.0 orders per community per month in the prior year quarter to 1.9. During the current year quarter, the sales environment was particularly challenging in our Texas and Florida submarkets due to higher inventory levels and increased competition.
Previous report
East Segment: Net new orders for the quarter ended December 31, 2024 was 227, up 32.0% from the quarter ended December 31, 2023. The increase in net new orders compared to the prior year quarter was driven by a 35.9% increase in average active community count from 26 in the prior year quarter to 35, partially offset by a 2.9% decrease in sales pace from 2.2 orders per community per month in the prior year quarter to 2.1.
Previous report
Southeast Segment: Net new orders for the quarter ended December 31, 2024 decreased to 116, down 1.7% from the quarter ended December 31, 2023. The slight decrease in new orders compared to the prior year quarter was driven by a 1.7% decrease in sales pace from 1.7 orders per community per month in the prior year quarter to 1.6, while average active community count remained flat at 24 year-over-year.
Reworded paragraphs (41)
Previous wording
For the remainder of fiscal 2025, we will continue to focus on positioning our business for durable long-term growth. Our multi-year strategic goals, established during fiscal 2023, include reaching more than 200 active communities by the end of fiscal 2026, reducing our net debt to net capitalization ratio below 30% by the end of fiscal 2026, and reaching our target of 100% of home starts as Zero Energy Ready by the end of calendar year 2025. With a strong balance sheet, ample liquidity, and a focused sales strategy, we believe we are well-equipped to navigate the evolving market dynamics as we continue to pursue our multi-year strategic goals.
Current wording
•Growth: reaching more than 200 active communities by the end of fiscal 2027,
Previous wording
Overview of Results for Our Fiscal First Quarter
Current wording
Overview of Results for Our Fiscal Second Quarter
Previous wording
•During the quarter ended December 31, 2024, our average active community count of 161 was up 17.8% from 137 in the prior year quarter. As of December 31, 2024, our ending active community count was 163, up 19.9% from 136 in the prior year quarter as we work towards our goal of reaching more than 200 active communities by the end of fiscal 2026. We invested $211.3 million in land acquisition and land development during the quarter ended December 31, 2024, representing anincrease of 6.3% compared to$198.7 million in land spend during the quarter ended December 31, 2023.
Current wording
•During the quarter ended March 31, 2025, our average active community count of 163 was up 15.9% from 140 in the prior year quarter. As of March 31, 2025, our ending active community count was 162, up 11.7% from 145 in the prior year quarter. We invested $197.0 million in land acquisition and land development during the quarter ended March 31, 2025, which was relatively flat compared to$197.8 million in land spend during the quarter ended March 31, 2024.
Previous wording
•As of December 31, 2024, our land position included 28,874 controlled lots, up 9.5% from 26,374 as of December 31, 2023. Excluding land held for future development and land held for sale lots, we controlled 28,178 active lots, up 9.6% from a year ago. The majority of the growth in controlled lots was through the usage of lot option agreements, which allow us to position for future growth while providing the flexibility to respond to market conditions. As of December 31, 2024, we had 16,609 lots, or 58.9% of our total active lots, under option agreements as compared to 13,648 lots, or 53.1% of our total active lots, under option agreements as of December 31, 2023.
Current wording
•As of March 31, 2025, our land position included 28,290 controlled lots, up 5.2% from 26,887 as of March 31, 2024. Excluding land held for future development and land held for sale lots, we controlled 27,514 active lots, up 4.9% from a year ago. This growth was achieved through expanded usage of lot option agreements, which allow us to position for future growth while providing the flexibility to respond to market conditions. As of March 31, 2025, we had 16,322 lots, or 59.3% of our total active lots, under option agreements as compared to 13,527 lots, or 51.6% of our total active lots, under option agreements as of March 31, 2024.
Previous wording
•Our Average Selling Price (ASP) for homes closed during the quarter ended December 31, 2024 was $507.6 thousand, down 1.0% from $512.7 thousand in the prior year quarter. Our closing ASP was down from the prior year quarter primarily due to an increase in price concession on spec homes that were sold and closed within the current year quarter, an increased share of spec home closings, as well as changes in product and community mix. Our backlog ASP of$541.5 thousand as of December 31, 2024 wasup from$520.8 thousand compared to prior year quarter. The increase in backlog ASP compared to prior year quarterwas primarily due to changes in product and community mix and price appreciation in certain communities.
Current wording
•Our backlog Average Selling Price (ASP) for homes sold during the quarter ended March 31, 2025 was$544.9 thousand, up 3.7% from$525.5 thousandin the prior year quarter. The increase in backlog ASP compared to prior year quarterwas due to changes in product and community mix as well as price appreciation in certain communities.
Previous wording
•Homebuilding gross margin for the quarter ended December 31, 2024 was 15.2%, down from 19.9% compared to the prior year quarter. Homebu ilding gross margin, excluding impairments, abandonments, and interest for the quarter ended December 31, 2024, was 18.2%, down from 22.9% in the prior year quarter. The decrease in homebuilding gross margin compared to the prior year quarter wasprimarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current wording
•Homebuilding gross margin for the quarter ended March 31, 2025 was 15.1%, down from 18.7% compared to the prior year quarter. Homebu ilding gross margin, excluding impairments, abandonments, and interest for the quarter ended March 31, 2025, was 18.3%, down from 21.7% in the prior year quarter. The decrease in homebuilding gross margin compared to the prior year quarter was largely due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Previous wording
•SG&A for the quarter ended December 31, 2024 was 14.0% of total revenue, down from 14.3% in the prior year quarter. The improvement in SG&A as a percentage of total revenue compared to the prior year quarter was due to total revenue growth outpacing SG&A expense growth. We remain focused on prudently managing overhead costs.
Current wording
•SG&A for the quarter ended March 31, 2025 was 12.0% of total revenue, up from 11.5% in the prior year quarter. The increase in SG&A as a percentage of total revenue compared to the prior year quarter was largely due to higher sales and marketing costs and other G&A expenses as we continue to grow and activate new communities. We remain focused on prudently managing overhead costs.
Previous wording
Our homebuilding operating cycle historically has reflected escalating new order activity in the second and third fiscal quarters and increased closings in the third and fourth fiscal quarters. However, these seasonal patterns may be impacted by a variety of factors, including periods of market volatility and changes in mortgage interest rates, which may result in increased or decreased new orders and/or revenues and closings that are outside of the normal ranges typically realized on account of seasonality. Accordingly, our financial results for the three months ended December 31, 2024 may not be indicative of our full year results.
Current wording
Our homebuilding operating cycle historically has reflected escalating new order activity in the second and third fiscal quarters and increased closings in the third and fourth fiscal quarters. However, these seasonal patterns may be impacted by a variety of factors, including periods of market volatility and changes in mortgage interest rates, which may result in increased or decreased new orders and/or revenues and closings that are outside of the normal ranges typically realized on account of seasonality. Accordingly, our financial results for the three and six months ended March 31, 2025 may not be indicative of our full year results.
Previous wording
(a)Excluding impairments, abandonments, and interest amortized to cost of sales, homebuilding gross margin was 18.2% and 22.9% for the three months ended December 31, 2024 and 2023, respectively. Please see the "Homebuilding Gross Profit and Gross Margin" section below for a reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized tocost of sales (non-GAAP measures) to homebuilding gross profit and gross margin, the most directly comparable GAAP measure.
Current wording
(a)Excluding impairments, abandonments, and interest amortized to cost of sales, homebuilding gross margin was 18.3% and 21.7% for the three months ended March 31, 2025 and 2024, respectively, and 18.3% and 22.2% for the six months ended March 31, 2025 and 2024, respectively. Please see the "Homebuilding Gross Profit and Gross Margin" section below for a reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized tocost of sales (non-GAAP measures) to homebuilding gross profit and gross margin, the most directly comparable GAAP measure.
Previous wording
Backlog reflects the number of homes for which the Company has entered into a sales contract with a customer but has not yet delivered the home. The aggregate dollar value of homes in backlog as of December 31, 2024 decreased 12.5% compared to December 31, 2023 due to a 15.9% decrease in backlog units, partially offset by a 4.0% increase in the ASP of homes in backlog. The decrease in backlog units was primarily due to beginning the fiscal quarter with fewer backlog units and year-over-year growth in closings outpacing growth in net new orders for the quarter ended December 31, 2024. The increase in backlog ASP compared to prior year quarterwas primarily due to changes in product and community mix and price appreciation in certain communities.
Current wording
Backlog reflects the number of homes for which the Company has entered into a sales contract with a customer but has not yet delivered the home. The decrease in backlog units was primarily due to beginning the fiscal quarter with fewer backlog units and year-over-year growth in closings outpacing growth in net new orders for the quarter ended March 31, 2025. The aggregate dollar value of homes in backlog as of March 31, 2025 decreased 22.7% compared to March 31, 2024 due to a 25.4% decrease in backlog units, partially offset by a 3.7% increase in the ASP of homes in backlog. The increase in backlog ASP compared to prior year quarter was due to changes in product and community mix as well as price appreciation in certain communities.
Previous wording
West Segment: Homebuilding revenue increased by 24.5% for the three months ended December 31, 2024 compared to the prior year quarter due to a 28.0% increase in closings, partially offset by a 2.7% decrease in ASP. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times compared to prior year quarter.
Current wording
West Segment: Homebuilding revenue increased by 5.9% for the three months ended March 31, 2025 compared to the prior year quarter due to a 6.0% increase in closings, partially offset by a 0.1% decrease in ASP. The increase in closings was primarily due to the higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times compared to prior year quarter.
Previous wording
East Segment: Homebuilding revenue increased by 51.3% for the three months ended December 31, 2024 compared to the prior year quarter due to an 47.8% increase in closings and a 2.4% increase in ASP. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times compared to prior year quarter.
Current wording
East Segment: Homebuilding revenue increased by 7.9% for the three months ended March 31, 2025 compared to the prior year quarter due to a 7.0% increase in closings and a 0.8% increase in ASP. The increase in closings was primarily due to higher volume of spec homes that sold and closed within the current fiscal quarter and improved construction cycle times compared to prior year quarter.
Previous wording
Southeast Segment: Homebuilding revenue decreased by 19.7% for the three months ended December 31, 2024 compared to the prior year quarter due to an 18.3% decrease in closings and a 1.8% decrease in ASP. The decrease in closings was primarily due to lower beginning backlog, partially offset by improved construction cycle times compared to prior year quarter.
Current wording
Southeast Segment: Homebuilding revenue decreased by 14.2% for the three months ended March 31, 2025 compared to the prior year quarter due to a 12.3% decrease in closings and a 2.1% decrease in ASP. The decrease in closings was primarily due to lower beginning backlog, partially offset by improved construction cycle times compared to prior year quarter.
Previous wording
Our homebuilding gross profit decreased by $6.0 million to $70.0 million for the three months ended December 31, 2024, compared to $75.9 million in the prior year quarter. The decrease in homebuilding gross profit compared to the prior year quarter was primarily due to a decrease in gross margin of 470 basis points to 15.2%, partially offset by an increase in homebuilding revenue of $79.5 million. As shown in the tables above, the comparability of our gross profit was slightly impacted by interest amortized to homebuilding cost of sales, which increased by $2.7 million compared to the prior year quarter (refer to Note 5 of the notes to the condensed consolidated financial statements in this Form 10-Q for additional details). When excluding the impact of interest amortized to homebuilding cost of sales, homebuilding gross profit decreased by $3.2 million compared to the prior year quarter, while homebuilding gross margin decreased by 470 basis points to 18.2%. The decrease in gross margin for the three months ended December 31, 2024 compared to the prior year quarter was primarily due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current wording
Our homebuilding gross profit decreased by $16.6 million to $84.1 million for the three months ended March 31, 2025, compared to $100.8 million in the prior year quarter. The decrease in homebuilding gross profit compared to the prior year quarter was primarily due to a decrease in gross margin of 360 basis points to 15.1%, partially offset by an increase in homebuilding revenue of $17.4 million. As shown in the tables above, the comparability of our gross profit and gross margin was slightly impacted by impairment and abandonment charges, which increased by $0.5 million, and interest amortized to homebuilding cost of sales, which increased by $1.2 million compared to the prior year quarter (refer to Note 5 of the notes to the condensed consolidated financial statements in this Form 10-Q for additional details). When excluding the impact of impairment and abandonment charges and interest amortized to homebuilding cost of sales, homebuilding gross profit decreased by $15.0 million compared to the prior year quarter, while homebuilding gross margin decreased by 340 basis points to 18.3%. The decrease in gross margin for the three months ended March 31, 2025 compared to the prior year quarter was due to an increase in price concessions and closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Previous wording
West Segment: Compared to the prior year quarter, homebuilding gross profit increased by $2.5 million due to an increase in homebuilding revenue, partially offset by lower gross margin. Homebuilding gross margin, excluding impairments and abandonments, decreased to 18.3%, down from 21.7% in the prior year quarter, primarily due to an increase in closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current wording
West Segment: Compared to the prior year quarter, homebuilding gross profit decreased by $5.1 million due to lower gross margin, partially offset by an increase in homebuilding revenue. Homebuilding gross margin, excluding impairments and abandonments, decreased to 19.1%, down from 21.5% in the prior year quarter, primarily due to an increase in closing cost incentives, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Previous wording
Southeast Segment: Compared to the prior year quarter, homebuilding gross profit decreased by $7.1 million due to a lower gross margin and a decrease in homebuilding revenue. Homebuilding gross margin, excluding impairments and abandonments, decreased to 16.1%, down from 22.4% in the prior year quarter, primarily due to an increase in price concessions, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current wording
Southeast Segment: Compared to the prior year quarter, homebuilding gross profit decreased by $7.1 million due to lower gross margin and a decrease in homebuilding revenue. Homebuilding gross margin, excluding impairments and abandonments, decreased to 16.3%, down from 22.6% in the prior year quarter, primarily due to an increase in price concessions, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Previous wording
East Segment: Compared to the prior year quarter, homebuilding gross profit increased by $3.7 million due to an increase in homebuilding revenue, partially offset by lower gross margin. Homebuilding gross margin, excluding impairments and abandonments, decreased to 15.1%, down from 17.7% in the prior year quarter, primarily due to an increase in price concessions, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Current wording
Southeast Segment: Compared to the prior year period, homebuilding gross profit decreased by $14.2 million due to a decrease in homeb uilding revenue and lower gross margin. Homebuilding gross margin, excluding impairments and abandonments, decreased to 16.2%, down from 22.5% in the prior year period, primarily due to an increase in price concessions, an increased share of spec home closings which generally have lower margins than "to be built" homes, and changes in product and community mix.
Previous wording
For the three months ended December 31, 2024, land sales and other revenue increased by $2.6 million to $8.5 million, and land sales and other gross profit increased by $0.3 million to $2.1 million compared to the prior year quarter. Period-over-period fluctuations on land sales and other revenue are primarily driven by the timing and volume of land and lot sales closings. Land sales and other gross profit are primarily impacted by the profitability of individual land and lot sale transactions as well as the volume of our title examinations operations. Future land and lot sales will depend on a variety of factors, including local market conditions, individual community performance, and changing strategic plans.
Current wording
For the three months ended March 31, 2025, land sales and other revenue increased by $6.4 million to $9.3 million, and land sales and other gross profit increased by $0.8 million to $1.9 million compared to the prior year quarter. For the six months ended March 31, 2025, land sales and other revenue increased by $9.0 million to $17.8 million, and land sales and other gross profit increased by $1.1 million to $4.0 million compared to the prior year period. Period-over-period fluctuations on land sales and other revenue are primarily driven by the timing and volume of land and lot sales closings. Land sales and other gross profit are primarily impacted by the profitability of individual land and lot sale transactions as well as the volume of our title examinations operations. Future land and lot sales will depend on a variety of factors, including local market conditions, individual community performance, and changing strategic plans.
Previous wording
Our operating income decreased by $18.1 million to $2.1 million for the three months ended December 31, 2024, compared to operating income of $20.3 million for the three months ended December 31, 2023. This decrease compared to the prior year quarter was primarily due to the previously discussed decrease in gross profit and gross margin. SG&A expense increased by 19.3% compared to prior year quarter in prop ortion to active community count growth. SG&A as a percentage of total revenue improved by 30 basis points compared to the prior year quarter, from 14.3% to 14.0%, due to total revenue growth outpacing SG&A expense growth.
Current wording
Our operating income decreased by $22.6 million to $13.4 million for the three months ended March 31, 2025, compared to operating income of $36.0 million for the three months ended March 31, 2024. This decrease compared to the prior year quarter was primarily due to the previously discussed decrease in gross profit and gross margin. SG&A expense increased by 9.1% compared to prior year quarter in proportion to active community count growth. SG&A as a percentage of total revenue increased by 50 basis points compared to the prior year quarter, from 11.5% to 12.0%, primarily due to higher sales and marketing costs and other G&A expenses as we continue to grow and activate new communities.
Previous wording
East Segment: The $0.3 million increase in operating income compared to the prior year quarter was primarily due to the higher gross profit previously discussed, partially offset by higher commissions expense on higher homebuilding revenue and higher sales and marketing costs driven by community count growth.
Current wording
East Segment: The $4.7 million decrease in operating income compared to the prior year quarter was primarily due to the lower gross profit previously discussed, and higher sales and marketing costs driven by community count growth.
Previous wording
Southeast Segment: The $6.5 million decrease in operating income compared to the prior year quarter was primarily due to the lower gross profit previously discussed, partially offset by lower commissions expense on lower homebuilding revenue in the segment.
Current wording
Southeast Segment: The $7.2 million decrease in operating income compared to the prior year quarter was primarily due to the lower gross profit previously discussed, partially offset by lower commissions expense on lower homebuilding revenue.
Previous wording
Corporate and Unallocated: Our corporate and unallocated results include amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, expenses for various shared services functions that benefit all segments but are not allocated, including information technology, treasury, corporate finance, legal, branding and national marketing, and certain other amounts that are not allocated to our operating segments. For the three months ended December 31, 2024, corporate and unallocated net expenses increased by $11.0 million from the prior year quarter primarily due to higher G&A expenses as well as higher amortization of capitalized interest and capitalized indirect costs to cost of sales on higher closings and homebuilding revenue.
Current wording
Corporate and Unallocated: Our corporate and unallocated results include amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, expenses for various shared services functions that benefit all segments but are not allocated, including information technology, treasury, corporate finance, legal, branding and national marketing, and certain other amounts that are not allocated to our operating segments. For the three months ended March 31, 2025, corporate and unallocated net expenses increased by $4.1 million from the prior year quarter primarily due to higher G&A expensesas well as higher amortization of capitalized interest to cost of sales on higher closings and homebuilding revenue.
Previous wording
West Segment: The $0.9 million decrease in operating income compared to the prior year quarter was primarily due to higher commissions expense on higher homebuilding revenue and higher sales and marketing costs driven by community count growth, partially offset by higher gross profit in the segment.
Current wording
West Segment: The $7.5 million decrease in operating income compared to the prior year period was primarily due to thedecrease in gross profit previously discussed as well as higher commissions expense on higher homebuilding revenue and higher sales and marketing expenses.
Previous wording
Below operating income, we experienced a year-over-year decrease within other income, net primarily due to lower interest income driven by lower interest rates on lower operating cash balances.
Current wording
Below operating income, we had three noteworthy fluctuations for the three and six months ended March 31, 2025 compared to the prior year periods. Specifically, (1) within other income, net, we recognized a gain on sale of investment of $8.6 million during the three and six months ended March 31, 2024 compared to no such transaction in the current period (See the "EBITDA: Reconciliation of Net Income to Adjusted EBITDA" section above for further discussion on this transaction), (2) within other income, net, we experienced lower interest income driven by lower interest rates on lower operating cash balances, and (3) we recorded a loss on extinguishment of debt of $0.4 million during the three and six months ended March 31, 2024 compared to no such loss in the current period. See Note 6 of the notes to our condensed consolidated financial statements in this Form 10-Q for a further discussion of debt.
Previous wording
We recognized income tax expense from continuing operations of $36 thousand for the three months ended December 31, 2024, compared to $1.2 million for the three months ended December 31, 2023. Income tax expense for the three months ended December 31, 2024 was primarily driven by income tax expense on earnings from continuing operations and permanent differences, partially offset by energy efficiency tax credits generated from expected closings during the current fiscal year, and stock-based compensation activity in the period. Income tax expense for the three months ended December 31, 2023 was primarily driven income tax expense on earnings from continuing operations and permanent differences, partially offset by both energy efficiency tax credits generated from expected closings during fiscal 2023 and the discrete tax benefits related to the generation of additional energy efficiency tax credits from homes closed in prior periods, as well as stock-based compensation activity in the period. Refer to Note 10 of the notes to the condensed consolidated financial statements included in this Form 10-Q for further discussion of our income taxes.
Current wording
We recognized income tax expense from continuing operations of $1.4 million and $1.4 million for the three and six months ended March 31, 2025, respectively, compared to $6.7 million and $7.9 million for the three and six months ended March 31, 2024, respectively. Income tax expense for the six months ended March 31, 2025 was primarily driven byincome tax expense on earnings from continuing operations and permanent differences, partially offset by energy efficiency tax credits generated from expected closings during the current fiscal year, and stock-based compensation activity in the period. Income tax expense for the six months ended March 31, 2024 was primarily driven byincome tax expense on earnings from continuing operations and permanent differences, partially offset by both energy efficiency tax credits generated from expected closings during fiscal 2024 and the discrete tax benefits related to the generation of additional energy efficiency tax credits from homes closed in prior periods, as well as stock-based compensation activity in the period. Refer to Note 10 of the notes to the condensed consolidated financial statements included in this Form 10-Q for further discussion of our income taxes.
Previous wording
Net cash used in operating activities was $159.4 million for the three months ended December 31, 2024. The primary drivers of operating cash flows are typically cash earnings and changes in inventory levels, including land acquisition and development spending. Net cash used in operating activities during the period was primarily driven by an increase in inventory of $122.3 million resulting from land acquisition, land development and house construction spending to support continued growth, and a net increase in non-inventory working capital balances of $46.1 million. This was partially offset by cash inflows from income before income taxes of $3.2 million, which included $5.9 million of non-cash charges.
Current wording
Net cash used in operating activities was $155.9 million for the six months ended March 31, 2025. The primary drivers of operating cash flows are typically cash earnings and changes in inventory levels, including land acquisition and development spending. Net cash used in operating activities during the period was primarily driven by an increase in inventory of $191.0 million resulting from land acquisition, land development and house construction spending to support growth. This was partially offset by cash inflows from income before income taxes of $17.3 million, which included $12.7 million of non-cash charges, and a net decrease in non-inventory working capital balances of $5.1 million.
Previous wording
Net cash used in operating activities was $225.6 million for the three months ended December 31, 2023. Net cash used in operating activities during the period was primarily driven by an increase in inventory of $196.3 million resulting from land acquisition, land development and house construction spending to support continued growth, and a net increase in non-inventory working capital balances of $56.0 million. This was partially offset by cash inflows from income before income taxes of $22.9 million, which included $3.8 million of non-cash charges.
Current wording
Net cash used in operating activities was $239.6 million for the six months ended March 31, 2024. Net cash used in operating activities during the period was primarily driven by an increase in inventory of $299.1 million resulting from land acquisition, land development and house construction spending, and a net increase in non-inventory working capital balances of $9.8 million. This was partially offset by cash inflows from income before income taxes of $68.8 million, which included $0.5 million of non-cash charges.
Previous wording
Net cash used in investing activities was $12.8 million for the three months ended December 31, 2023, primarily driven by capital expenditures for model homes and information systems infrastructure, and purchases of investment securities.
Current wording
Net cash used in investing activities was $9.4 million for the six months ended March 31, 2025, primarily driven by capital expenditures for model homes and information systems infrastructure, partially offset by proceeds from maturities in investment securities.
Previous wording
Net cash used in investing activities was $5.7 million for the three months ended December 31, 2024, primarily driven by capital expenditures for model homes and information systems infrastructure, and purchases of investment securities.
Current wording
Net cash used in investing activities was $18.8 million for the six months ended March 31, 2024, primarily driven by capital expenditures for model homes and information systems infrastructure, and purchases of investment securities.
Previous wording
Net cash provided by financing activities was $41.9 million for the three months ended December 31, 2024, primarily driven by net borrowings from our Unsecured Facility (see Note 6 of the notes to the condensed consolidated financial statements included in this Form 10-Q for further discussion), partially offset by tax payments for stock-based compensation awards vesting.
Current wording
Net cash provided by financing activities was $31.2 million for the six months ended March 31, 2025, primarily driven by net borrowings from our Unsecured Facility (see Note 6 of the notes to the condensed consolidated financial statements included in this Form 10-Q for further discussion), partially offset by common stock repurchases under our share repurchase program and tax payments for stock-based compensation awards vesting.
Previous wording
Net cash used in financing activities was $9.6 million for the three months ended December 31, 2023, primarily driven by the repurchase of a portion of our 2025 Notes, debt issuance costs related to expanding the borrowing capacity of our Unsecured Facility, and tax payments for stock-based compensation awards vesting.
Current wording
Net cash provided by financing activities was $37.4 million for the six months ended March 31, 2024, primarily driven by inflows from the issuance of the 2031 Notes, partially offset by outflows from redemption of our 2025 Notes, debt issuance costs related to the 2031 Notes and extension of the term of our Unsecured Facility (see Note 6), and tax payments for stock-based compensation awards vesting.
Previous wording
As of December 31, 2024, our liquidity position consisted of $80.4 million in cash and cash equivalents and $255.0 million of remaining capacity under the Unsecured Facility, compared to $104.2 million in cash and cash equivalents and $300.0 million of remaining capacity under the Unsecured Facility as of December 31, 2023. Meanwhile, we invested $211.3 million and $198.7 million in land acquisition and land development during quarters ended December 31, 2024 and December 31, 2023, respectively.
Current wording
As of March 31, 2025, our liquidity position consisted of $85.1 million in cash and cash equi valents and $292.6 million of remaining capacity under the Unsecured Facility, compared to $132.9 million in cash and cash equivalents and $300.0 million of remaining capacity under the Unsecured Facility as of March 31, 2024. Meanwhile, we invested $197.0 million and $197.8 million in land acquisition and land development during quarters ended March 31, 2025 and March 31, 2024, respectively.
Previous wording
We generally fulfill our short-term cash requirements with cash generated from our operations and available borrowings. Additionally, our Unsecured Facility provides working capital and letter of credit capacity of $300.0 million, which includes a letter of credit capacity of $100.0 million. As of December 31, 2024, we had$45.0 million in borrow ings and no letters of credit were outstanding under the Unsecured Facility, resulting in a remaining borrowing capacity of $255.0 million. Subsequently in January 2025, we increased our available borrowing capacity under the$300.0 million to $365.0 million. See Note 6 and Note 15 of the notes to the condensed consolidated financial statements included in this Form 10-Q for further discussion.
Current wording
We generally fulfill our short-term cash requirements with cash generated from our operations and available borrowings. Additionally, our Unsecured Facility provides working capital and letter of credit capacity of $365.0 million, which includes a letter of credit capacity of $100.0 million. As of March 31, 2025, we had $55.0 million in borrowings and $17.4 million in letters of credit were outstanding under the Unsecured Facility, resulting in a remaining borrowing capacity of $292.6 million.
Previous wording
We have also entered into a number of stand-alone letter of credit agreements with banks, secured with cash or certificates of deposit. These combined facilities provide for letter of credit needs collateralized by either cash or assets of the Company. We currently have $37.1 million of outstanding letters of credit under these facilities.
Current wording
We have also entered into a number of stand-alone letter of credit agreements with banks, secured with cash or certificates of deposit. These combined facilities provide for letter of credit needs collateralized by either cash or assets of the Company. We currently have $21.9 million of outstanding letters of credit under these facilities.
Previous wording
Our credit ratings are periodically reviewed by rating agencies. In June 2024, S&P reaffirmed the Company’s corporate credit rating of B+ and reaffirmed the Company's outlook of stable. In October 2024, Moody's reaffirmed the Company's issuer corporate family rating of B1 and reaffirmed the Company's outlook of stable. In addition, our Senior Notes have a rating of B+ and B1 per S&P and Moody's, respectively. These ratings and our current credit condition affect, among other things, our ability to access new capital. These ratings are not recommendations to buy, sell or hold debt securities. Negative changes to these ratings may result in more stringent covenants and higher interest rates under the terms of any new debt. Our credit ratings could be lowered, or rating agencies could issue adverse commentaries in the future, which could have a material adverse effect on our business, financial condition, results of operations, and liquidity. In particular, a weakening of our financial condition, including any further increase in our leverage or decrease in our profitability or cash flows, could adversely affect our ability to obtain necessary funds, could result in a credit rating downgrade or change in outlook, or could otherwise increase our cost of borrowing.
Current wording
Our credit ratings are periodically reviewed by rating agencies. In February 2025, S&P reaffirmed the Company’s corporate credit rating of B+ and revised the Company's outlook from stable to negative. In October 2024, Moody's reaffirmed the Company's issuer corporate family rating of B1 and reaffirmed the Company's outlook of stable. In addition, our Senior Notes have a rating of B+ and B1 per S&P and Moody's, respectively. These ratings and our current credit condition affect, among other things, our ability to access new capital. These ratings are not recommendations to buy, sell or hold debt securities. Negative changes to these ratings may result in more stringent covenants and higher interest rates under the terms of any new debt. Our credit ratings could be lowered, or rating agencies could issue adverse commentaries in the future, which could have a material adverse effect on our business, financial condition, results of operations, and liquidity. In particular, a weakening of our financial condition, including any further increase in our leverage or decrease in our profitability or cash flows, could adversely affect our ability to obtain necessary funds, could result in a credit rating downgrade or change in outlook, or could otherwise increase our cost of borrowing.
Previous wording
In May 2022, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. The repurchase program has no expiration date. No share repurchases were made during the three months ended December 31, 2024 and 2023. As of December 31, 2024, the remaining availability of the share repurchase program was$28.9 million. Previously repurchased shares under the program have been retired.
Current wording
In May 2022, the Company's Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $50.0 million of its outstanding common stock. The repurchase program had no expiration date. The Company repurchased 905 thousand shares of its common stock for$20.6 million at an average price per share of$22.73 during the three and six months ended March 31, 2025 through open market transactions. No share repurchases were made during the three and six months ended March 31, 2024. All shares have been retired upon repurchase. The aggregate reduction to stockholders' equity related to share repurchases during the three and six months ended March 31, 2025 was $20.6 million. As of March 31, 2025, the remaining availability of the share repurchase program was $8.3 million.
Previous wording
The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on the payment of dividends. There were no dividends paid during the three months ended December 31, 2024 or 2023.
Current wording
The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on the payment of dividends. There were no dividends paid during the three and six months ended March 31, 2025 or 2024.
Previous wording
In addition to purchasing land directly, we control a portion of our land supply through lot option agreements with land developers and land bankers, which generally require the payment of cash or issuance of an irrevocable letter of credit or surety bond for the right to acquire lots during a specified period of time at a specified price. In recent years, we have focused on increasing our lot option agreement usage to minimize risk as we grow our land position. As of December 31, 2024, we controlled 28,874 lots, which includes 272 lots of land held for future development and 424 lots of land held for sale. Of the 28,178 active lots, we controlled 16,609 of these lots, or 58.9%, through option agreements, as compared to 13,648 active lots controlled, or 53.1% of our total active lots, through option agreements as of December 31, 2023. Lot option agreements allow us to position for future growth while providing the flexibility to respond to market conditions by renegotiating the terms of the options prior to exercise or terminating the agreement.
Current wording
In addition to purchasing land directly, we control a portion of our land supply through lot option agreements with land developers and land bankers, which generally require the payment of cash or issuance of an irrevocable letter of credit or surety bond for the right to acquire lots during a specified period of time at a specified price. In recent years, we have focused on increasing our lot option agreement usage to minimize risk as we grow our land position. As of March 31, 2025, we controlled 28,290 lots, which includes 251 lots of land held for future development and 525 lots of land held for sale. Of the 27,514 active lots, we controlled 16,322 of these lots, or 59.3%, through option agreements, as compared to 13,527 active lots controlled, or 51.6% of our total active lots, through option agreements as of March 31, 2024. Lot option agreements allow us to position for future growth while providing the flexibility to respond to market conditions by renegotiating the terms of the options prior to exercise or terminating the agreement.
Previous wording
Under option agreements, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers, and our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred, which totaled $297.8 million as of December 31, 2024. The total remaining purchase price, net of cash deposits, committed under all options was $1.60 billion as of December 31, 2024. Subject to market conditions and our liquidity, we may further expand our use of option agreements to supp lement our owned inventory supply.
Current wording
Under option agreements, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers, and our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred, which totaled$313.5 million as of March 31, 2025. The total remaining purchase price, net of cash deposits, committed under all options was$1.57 billion as of March 31, 2025. Subject to market conditions and our liquidity, we may further expand our use of option agreements to supp lement our owned inventory supply.
Previous wording
In connection with the development of our communities, we are frequently required to provide performance, maintenance, and other bonds and letters of credit in support of our related obligations with respect to such developments. The amount of such obligations outstanding at any time varies in accordance with our pending development activities. In the event any such bonds or letters of credit are drawn upon, we would be obligated to reimburse the issuer of such bonds or letters of credit. We had outstanding letters of credit and surety bonds of$37.1 million and$320.6 million, respectively, as of December 31, 2024, primarily related to our obligations to local governments to construct roads and other improvements in various developments.
Current wording
In connection with the development of our communities, we are frequently required to provide performance, maintenance, and other bonds and letters of credit in support of our related obligations with respect to such developments. The amount of such obligations outstanding at any time varies in accordance with our pending development activities. In the event any such bonds or letters of credit are drawn upon, we would be obligated to reimburse the issuer of such bonds or letters of credit. We had outstanding letters of credit and surety bonds of $39.3 million and $324.0 million, respectively, as of March 31, 2025, primarily related to our obligations to local governments to construct roads and other improvements in various developments.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Southeast Segment: Homebuilding revenue decreased by 16.8% six months ended March 31, 2025 compared to the six months ended March 31, 2024 due to a 15.2% decrease in closings and a 1.9% decrease in ASP. The decrease in closings was primarily due to lower beginning backlog, partially offset by improved construction cycle times compared to prior year period.
Current report — wording carried from elsewhere
Southeast Segment: The $13.7 million decrease in operating income compared to the prior year period was primarily due to the decrease in gross profit previously discussed, partially offset by lower commissions expense on lower homebuilding revenue.
Current report — wording carried from elsewhere
Corporate and Unallocated: For the six months ended March 31, 2025, corporate and unallocated net expenses increased by$15.1 million over the prior year period. This increase was primarilydue to higher G&A expenses as well as higher amortization of capitalized interest to cost of sales on higher closings and homebuilding revenue.
Current report — wording carried from elsewhere
In April 2025, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $100.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program. Refer to Note 15 of the notes to the condensed consolidated financial statements in this Form 10-Q for additional details.