Meritage Homes Corp

Latest Results (03.04.2026):

Meritage Homes Corp — fourth quarter of 2025: the company reported Q4 home closing revenue of $1.406 billion (down 12% year‑over‑year) on 3,755 homes closed (down 7%), a reported home closing gross margin of 16.5% (19.3% adjusted excluding non‑recurring charges), and net earnings of $84.0 million ($1.20 diluted EPS, down 51% YoY; adjusted diluted EPS $1.67). Meritage finished the quarter with $775 million in cash, continued buybacks ($150 million in Q4), and a net debt‑to‑capital ratio of 16.9%.

Top-line and volume

Q4 2025 home closing revenue: $1.406B (-12% YoY). Homes closed: 3,755 (-7% YoY). Average sales price on closings: $375,000 (-5% YoY). Orders for the quarter were 3,224 (-2% YoY) with ASP on orders $374,000 (-6% YoY).

Margins and one‑time items

Reported home closing gross margin was 16.5% in Q4 2025 (down 670 bps YoY). Adjusted gross margin, excluding $38.9M of non‑recurring charges (terminated land deal walk‑aways, real estate impairments and severance), was 19.3%.

Earnings per share

Net earnings for Q4 2025 were $84.0M, or $1.20 diluted EPS (‑51% YoY). Adjusted diluted EPS excluding non‑recurring charges was $1.67 for the quarter (company‑provided non‑GAAP measure).

Orders, backlog and absorption

Q4 orders: 3,224 homes (‑2% YoY). Ending backlog: 1,168 homes (‑24% YoY) with backlog value $440.6M (‑30% YoY). Management noted lower absorption pace offset by a 18% increase in average communities opened in the quarter.

Liquidity, leverage and balance sheet

Cash and cash equivalents at Dec 31, 2025: $775M. No borrowings under the revolving credit facility. Debt‑to‑capital: 26.0%; net debt‑to‑capital: 16.9% (as reported). Senior notes issuance provided ~$492M net proceeds earlier in 2025.

Capital allocation

Q4 2025 share repurchases: $150M (2,238,534 shares, ~3.2% of shares outstanding at start of quarter). Q4 dividends: $0.43 per share ($29M). Full‑year 2025 repurchases totaled $295M; $514M remained available under the repurchase program at year‑end. Management reiterated an anticipated $400M of repurchases in 2026 (subject to market conditions).

Land, lots and operational actions

Land acquisition & development spend (Q4): $416M. Lots owned/controlled at Dec 31, 2025: ~77,600 (down vs ~85,600 a year earlier). Management terminated ~3,400 lots in Q4 (nearly 7,200 for full year) as part of a portfolio reprioritization.

Other operating metrics and guidance

Ending community count: 336 (up 15% YoY). Management expects full‑year 2026 home closing volume and revenue to be consistent with full‑year 2025, assuming no material deterioration in market conditions.