Meritage Homes Corp

Latest Results (14.05.2026):

Meritage Homes Corp — first quarter 2026 results: Meritage Homes Corporation reported Q1 2026 results with home closing revenue of $1.108 billion on 2,967 closings, down vs. Q1 2025, driven by weaker demand, higher incentive use and geographic mix. Net earnings were $55.3 million (diluted EPS $0.82), a roughly 55% decline year‑over‑year, and home closing gross margin fell to 17.5% (down 450 basis points). Management cited a severe winter storm and geopolitical events that pressured consumer sentiment and mortgage rates, while the company preserved liquidity and continued share repurchases and dividends.

Revenue & closings

Homes closed: 2,967 (-13% YoY). Home closing revenue: $1,107.8M (-17%). Average sales price on closings: $373,000 (-5%), impacted by greater incentive use and geographic mix.

Profitability & margins

Home closing gross margin: 17.5% (vs. 22.0% prior year, -450 bps). Net earnings: $55.3M (-55% YoY). Diluted EPS: $0.82 (-51% YoY); adjusted diluted EPS per company reconciliation: $0.86 (vs. $1.71). Q1 included $2.4M of real estate impairments and $1.4M of terminated land deal charges.

Orders, absorption & backlog

Q1 orders: 3,664 homes (-5% YoY); order ASP: $382,000 (-5%). Absorption rate: 3.6 net sales per month. Ending backlog: 1,865 homes (-7% YoY) with value $711.5M (-12%). Management reported a backlog conversion rate of 254% (high intra‑quarter conversion).

Balance sheet & liquidity

Cash and cash equivalents: $766.6M at March 31, 2026 (no revolver draws). Net debt‑to‑capital: 17.4%; debt‑to‑capital: 26.6%. Lots owned or controlled: ~75,500 (vs. ~84,200 a year earlier). Land acquisition & development spend: $326M in Q1 2026 (deliberate pullback vs. $465M in Q1 2025).

Capital returns

Repurchases: $130M of stock (1,815,820 shares, ~2.7% of shares outstanding at start of quarter); $384M remaining repurchase capacity. Dividends paid: $32M ($0.48/share).

Operations & cost actions

Opened 40 new communities; ended the quarter with 345 active communities (company record). Management cited faster cycle times and direct cost savings that partially offset margin pressure from higher lot costs and increased incentive utilization. SG&A as a % of home closing revenue rose slightly to 11.8% due to lost leverage and higher tech costs.

Guidance & outlook

Updated full‑year 2026 guidance: home closing volume and revenue expected to be at or within 5% of full‑year 2025 results, reflecting current market uncertainty.