Meritage Homes Corp

Latest Results (19.11.2025):

Meritage Homes Corp reported its third quarter 2025 financial results with notable changes compared to the prior year. The company closed 3,685 homes generating approximately $1.4 billion in home closing revenue, reflecting a 12% decline year-over-year. Nor were the impacts limited to volume; net earnings fell by 49% and diluted EPS declined by 48%, driven by reduced average sales prices, increased incentive usage, and higher SG&A expenses and taxes. Despite these challenges, the company expanded its community count by 20% to 334, improved cycle times, and maintained a strong liquidity position.

Operational Metrics

In Q3 2025, Meritage Homes Corp closed 3,685 units, down 7% from 2024, with a corresponding 12% drop in home closing revenue to $1.4 billion. Home orders increased by 4% year-over-year, aided by a 14% rise in average community count, although the overall backlog decreased both in units (26%) and value (28%).

Profitability & Margins

Home closing gross margins decreased markedly to 19.1% from 24.8% due to increased use of incentives, inventory impairments, walk-away charges, and elevated lot costs. As a result, adjusted diluted EPS including these charges were $1.39 compared to $2.67 in the prior year, while excluding these items, adjusted diluted EPS improved to $1.55 versus $2.69.

Capital & Liquidity

Meritage Homes maintained a strong liquidity position with $729 million in cash and cash equivalents as of September 30, 2025, and a net debt-to-capital ratio of 17.2%. The company also successfully redeployed excess cash by returning $85 million to shareholders through dividends and share repurchases, enhancing capital returns while strategically managing land acquisition spend.