Meritage Homes Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw a 14% revenue decline and 33% lower EPS year-over-year amid softer demand and affordability pressures, but operational discipline led to improved cycle times and a 9% increase in community count. Guidance for 2026 was reaffirmed, with a strategic shift toward first move-up buyers underway.
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Q1 2026 saw lower sales and revenue due to macro headwinds, but record community count and disciplined capital allocation supported strong backlog conversion and shareholder returns. Margins declined but are expected to stabilize, with cautious optimism for the remainder of 2026.
Fiscal Year 2025
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Q4 2025 saw lower revenue and margins due to affordability challenges and higher incentives, but strong capital returns and cost controls supported results. 2026 guidance is flat, with focus on share buybacks, community growth, and margin recovery as market conditions stabilize.
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Q3 2025 saw lower revenue and margins amid soft demand and high incentives, but strong backlog conversion, community count growth, and disciplined capital returns. Guidance for Q4 anticipates stable closings and continued margin pressure, with long-term margin recovery tied to improved market conditions.
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Q2 2025 saw resilient sales and record community count growth despite market headwinds, with revenue and margins pressured by incentives and higher costs. Capital was reallocated from land to shareholder returns, and double-digit community growth is expected through 2026.
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Q1 2025 saw strong operational execution with 3,416 deliveries and $1.3B in revenue, despite an 8% year-over-year decline. Guidance for 2025 is maintained, supported by double-digit community growth and a resilient business model focused on move-in ready homes.
Fiscal Year 2024
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Record 2024 results included 15,611 closings and $6.3B revenue, with strong margins and shareholder returns. 2025 guidance targets up to 6,750 closings and $6.9B revenue, supported by expanded land holdings and a focus on affordable, move-in ready homes.
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Q3 2024 delivered strong absorption and backlog conversion, with 3,942 home deliveries and $1.6B in revenue, despite a 2% year-over-year revenue decline due to lower ASPs and higher incentives. The Elliott Homes acquisition expands Gulf Coast presence, and 2025 guidance implies double-digit growth.
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Q2 2024 saw record sales orders, strong home closings, and improved margins, driven by a shift to move-in-ready inventory. Full-year guidance was raised, with robust demand and strategic investments supporting growth, while margin guidance remains conservative due to seasonality and market uncertainties.
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A new strategy centers on a 60-day closing guarantee, move-in-ready homes, and stronger Realtor partnerships to boost market share and growth. Financial targets include 22.5%-23.5% gross margins, 9.5% SG&A, and 20,000 annual closings in 3-4 years, with disciplined land and capital management.