Beazer reported a solid 4Q:F25, with stronger-than-anticipated closings that lifted results above expectations and further aligned the portfolio with its differentiation strategy and F2027 multiyear goals. In an affordability-challenged operating environment, BZH outlined steps already taken and still to come actions in F2026 to enhance profitability and continue to advance balance sheet efficiency. Long-term fundamentals for new residential construction remain strong, in our view, and BZH's F2026 outlook contemplates the market remaining incentive driven and highly competitive in the near term. In October, BZH introduced its new marketing campaign, Enjoy The Great Indoors, aimed at increasing brand awareness and conveying the value proposition of a Beazer home. We lower our F2026 and F2027 EPS estimates by 13% and 14%, respectively, reflecting lower gross margin assumptions as BZH leans into a higher mix of spec homes. Beazer reduced its balance sheet leverage in F2025 and expects further deleveraging in F2026, even as it expects to repurchase shares. We view the solid balance sheet as supportive of our moderate risk rating. Our lower profit outlook takes our price target to $25 (from $29), based on a steady 7x our revised F2027 EPS estimate of $3.50 (from $4.09).