Meritage Homes reports third quarter 2025 results
Meritage Homes (NYSE: MTH) reported third-quarter 2025 results for the period ended September 30, 2025. The company closed 3,685 homes with home closing revenue of $1.399B, down 12% year‑over‑year, and diluted EPS of $1.39, down 48% from prior year. Home closing gross margin declined to 19.1% (down 570 bps), or 20.1% on an adjusted basis after $14.5M of inventory impairments and terminated land charges. Orders rose 4% to 3,636 homes. Balance sheet highlights include $729M cash, net debt‑to‑capital of 17.2%, and ~80,800 lots controlled. The board returned capital via $55M share repurchases and $30M dividends in Q3 and approved an additional $500M repurchase authorization.
Guidance: Q4 2025 closing volume 3,800–4,000 units, revenue $1.46–1.54B, gross margin 19–20%, diluted EPS $1.51–1.70.
Meritage Homes (NYSE: MTH) ha riportato i risultati del terzo trimestre 2025 per il periodo terminato il 30 settembre 2025. L'azienda ha chiuso 3.685 case con entrate da chiusura di $1.399B, in diminuzione del 12% anno su anno, ed EPS diluito di $1,39, in calo del 48% rispetto al precedente anno. Il margine lordo sulle chiusure è diminuito al 19,1% (in calo di 570 punti base), o 20,1% su base rettificata dopo $14,5M di impairment di inventario e oneri legati a terreni cessati. Le ordinazioni sono aumentate del 4% a 3.636 case. Sugli elementi dello stato patrimoniale: $729M di liquidità, rapporto debito netto-capitalizzazione del 17,2%, e circa 80.800 lotti controllati. Il consiglio ha restituito capitale tramite riacquisti azionari per $55M e dividendi per $30M nel Q3 e ha approvato un'ulteriore autorizzazione a riacquisto per $500M.
Guidance: Q4 2025 chiusura volume 3.800–4.000 unità, ricavi $1,46–1,54B, margine lordo 19–20%, EPS diluito $1,51–1,70.
Meritage Homes (NYSE: MTH) reportó resultados del tercer trimestre de 2025 para el periodo que terminó el 30 de septiembre de 2025. la empresa cerró 3.685 viviendas con ingresos por cierre de $1.399B, en descenso del 12% interanual, y un BPA diluido de $1,39, con una caída del 48% frente al año anterior. El margen bruto de cierre cayó a 19,1% (bajada de 570 pb), o 20,1% en base ajustada tras $14,5M de deterioro de inventario y cargos por tierras terminadas. Los pedidos subieron un 4% a 3.636 viviendas. Aspectos del balance incluyen $729M en efectivo, relación deuda neta-capital de 17,2%, y ~80.800 lotes controlados. La junta devolvió capital mediante recompras de acciones por $55M y dividendos por $30M en el Q3 y aprobó una autorización adicional de recompra de $500M.
Guía: volumen de cierre del Q4 2025 entre 3.800 y 4.000 unidades, ingresos entre $1,46–1,54B, margen bruto del 19–20%, BPA diluido entre $1,51–1,70.
Meritage Homes (NYSE: MTH)는 2025년 9월 30일 종료된 기간에 대한 2025년 제3분기 실적을 발표했습니다. 회사는 3,685채의 주택을 매각했고 매출은 주택 판매 수익으로 $1.399B를 기록했으며 전년 대비 12% 감소, 희석 주당순이익은 $1.39로, 전년 대비 48% 감소했습니다. 주택 매출 총 마진은 19.1%로 하락했고(570bp 하락), 조정 기준으로는 20.1%이며 재고손실 $14.5M 및 토지 비용 종결의 영향으로 나타났습니다. 주문은 4% 증가하여 3,636채를 기록했습니다. 재무상태표 주요 수치는 $729M 현금, 순부채-자본비율 17.2%, 및 약 80,800필지의 토지를 보유하고 있습니다. 이사회는 3분기에 $55M의 자사주매입과 $30M의 배당으로 자본을 환원했고, 추가로 $500M의 자사주매입 승인을 승인했습니다.
가이던스: 2025년 4분기 마감 물량 3,800–4,000 유닛, 매출 $1.46–1.54B, 총마진 19–20%, 희석 EPS $1.51–1.70.
Meritage Homes (NYSE: MTH) a publié les résultats du troisième trimestre 2025 pour la période se terminant le 30 septembre 2025. La société a clôturé 3 685 maisons avec un chiffre d'affaires de fermeture de $1,399 Md, en baisse de 12% en glissement annuel, et un bénéfice par action dilué de $1,39, en baisse de 48% par rapport à l'année précédente. La marge brute de clôture est tombée à 19,1% (en baisse de 570 points de base), ou 20,1% sur une base ajustée après $14,5M de dépréciation d'inventaire et charges foncières résiliées. Les commandes ont augmenté de 4% pour atteindre 3 636 maisons. Points forts du bilan: $729M cash, ratio dette nette sur capital de 17,2%, et environ 80 800 terrains maîtrisés. Le conseil a restitué du capital via des rachats d’actions pour $55M et des dividendes pour $30M au T3 et a approuvé une autorisation de rachat supplémentaire de $500M.
Guidance : Q4 2025 volume de clôture entre 3 800 et 4 000 unités, chiffre d'affaires entre $1,46–1,54 Md, marge brute de 19–20%, BPA dilué entre $1,51–1,70.
Meritage Homes (NYSE: MTH) meldete die Ergebnisse des dritten Quartals 2025 für den Zeitraum bis zum 30. September 2025. Das Unternehmen schloss 3.685 Häuser ab mit einem Abschlussumsatz aus Hausabschlüssen von $1.399B, gegenüber dem Vorjahr um 12% rückläufig, und einem dilutierten GAAP-EPS von $1,39, rückläufig um 48% gegenüber dem Vorjahr. Die Bruttomarge der Abschlüsse sank auf 19,1% (Rückgang um 570 Basispunkte), bzw. 20,1% auf bereinigter Basis nach $14,5M Inventarabschreibungen und Landkosten. Aufträge stiegen um 4% auf 3.636 Häuser. Bilanzhighlights: $729M Barbestand, Nettoschulden-zu-Kapital-Verhältnis von 17,2%, und ca. 80.800 Parzellen kontrolliert. Der Vorstand hat Kapital durch Aktienrückkäufe von $55M und Dividenden von $30M im Q3 an die Aktionäre zurückgeführt und eine zusätzliche Rückkaufsermächtigung von $500M genehmigt.
Guidance: Q4 2025 Abschlussvolumen 3.800–4.000 Einheiten, Umsatz $1,46–1,54B, Bruttomarge 19–20%, dilutiertes EPS $1,51–1,70.
Meritage Homes (NYSE: MTH) أعلنت عن نتائج الربع الثالث من عام 2025 للفترة المنتهية في 30 سبتمبر 2025. الشركة أغلقت 3,685 منزلًا بإيرادات إغلاق من $1.399B، بانخفاض قدره 12% على أساس سنوي، وEPS مُخَفّف قدره $1.39، بانخفاض 48% مقارنة بالعام السابق. هامش الربح الإجمالي للإغلاق انخفض إلى 19.1% (انخفاض 570 نقطة أساس)، أو 20.1% على أساس معدل معدّل بعد $14.5M من انخفاض قيمة المخزون وتكاليف الأراضي الملغاة. الطلبات ارتفعت بنسبة 4% إلى 3,636 منزلًا. أبرز نقاط الميزانية تشمل $729M نقدًا، ونسبة الدين الصافي إلى رأس المال 17.2%، وحوالي 80,800 قطعة أرض مُسيطَر عليها. المجلس أعاد رأس المال عبر إعادة شراء أسهم بمقدار $55M و توزيع أرباح بمقدار $30M في الربع الثالث، ووافق على تفويض إضافي لإعادة الشراء بقيمة $500M.
التوجيه: حجم إغلاق الربع الرابع من 2025 بين 3,800 و4,000 وحدة، الإيرادات بين $1.46–1.54B، الهامش الإجمالي 19–20%، EPS المخفف بين $1.51–1.70.
Meritage Homes (NYSE: MTH) 公布了截至 2025 年 9 月 30 日的 2025 年第 3 季度业绩。公司完成 3,685 套住宅，结案收入为 $1.399B，同比下降 12%，摊薄每股收益（EPS）为 $1.39，较上年下降 48%。结案毛利率降至 19.1%（下降 570 个基点），在调整后基础上为 20.1%，这是在 $14.5M 的存货减值和土地费用终止的影响下。订单增长 4% 至 3,636 套。资产负债表亮点包括 $729M 现金、净负债对资本比率 17.2%，以及约 80,800 宗地受控。董事会在第 3 季度通过 $55M 的回购和 $30M 的分红回报资本，并批准额外 $500M 的回购授权。
展望： 2025 年第 4 季度结束量 3,800–4,000 单位，收入 $1.46–1.54B，毛利率 19–20%，摊薄后 EPS $1.51–1.70。
- Orders +4% in Q3 2025 to 3,636 homes
- Cash balance of $729 million at Sept 30, 2025
- Added ~2,000 net new lots in Q3 2025 (≈16 future communities)
- Returned $85 million to shareholders in Q3 2025 (dividends + buybacks)
- Board approved additional $500 million to share repurchase program
- Home closing revenue down 12% YoY to $1.399 billion in Q3 2025
- Home closing gross margin contracted 570 bps YoY to 19.1% in Q3 2025
- Diluted EPS declined 48% YoY to $1.39 in Q3 2025
- Ending backlog value down 28% YoY to $670.0 million at Sept 30, 2025
Insights
Results show weaker revenue and margins but stronger orders, community growth, cash and shareholder returns.
Third quarter results combine a decline in home closing revenue to
Offsetting items include a
Key dependencies and near‑term monitors: how much of margin recovery comes from lower inventory charges versus demand improvement; pace of community absorption versus cancellations; and execution of land strategy given
SCOTTSDALE, Ariz., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported third quarter results for the period ended September 30, 2025.
| Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2025 | 2024 | % Chg | 2025 | 2024 | % Chg | |||||||||||||||||
| Homes closed (units) | 3,685 | 3,942 | (7)% | 11,271 | 11,567 | (3)% | ||||||||||||||||
| Home closing revenue | $ | 1,399,335 | $ | 1,585,784 | (12)% | $ | 4,357,148 | $ | 4,745,618 | (8)% | ||||||||||||
| Average sales price — closings | $ | 380 | $ | 402 | (5)% | $ | 387 | $ | 410 | (6)% | ||||||||||||
| Home orders (units) | 3,636 | 3,512 | 4 | % | 11,426 | 11,302 | ||||||||||||||||
| Home order value | $ | 1,415,089 | $ | 1,425,610 | (1)% | $ | 4,520,704 | $ | 4,630,261 | (2)% | ||||||||||||
| Average sales price — orders | $ | 389 | $ | 406 | (4)% | $ | 396 | $ | 410 | (3)% | ||||||||||||
| Ending backlog (units) | 1,699 | 2,284 | (26)% | |||||||||||||||||||
| Ending backlog value | $ | 670,007 | $ | 931,656 | (28)% | |||||||||||||||||
| Average sales price — backlog | $ | 394 | $ | 408 | (3)% | |||||||||||||||||
| Home closing gross margin | (570) bps | (480) bps | ||||||||||||||||||||
| Earnings before income taxes | $ | 128,248 | $ | 249,932 | (49)% | $ | 481,467 | $ | 781,308 | (38)% | ||||||||||||
| Net earnings | $ | 99,297 | $ | 195,966 | (49)% | $ | 368,982 | $ | 613,537 | (40)% | ||||||||||||
| Diluted EPS | $ | 1.39 | $ | 2.67 | (48)% | $ | 5.13 | $ | 8.36 | (39)% | ||||||||||||
MANAGEMENT COMMENTS
"Meritage successfully navigated a challenging third quarter, exceeding 2024 sales volumes and ending the quarter with our highest ever community count of 334, which was a
"Our strategy and persistent improvement in our cycle times resulted in 3,685 closings this quarter, with nearly
"We pared back our spend on land acquisition and development this quarter to
THIRD QUARTER RESULTS
- Orders of 3,636 homes for the third quarter of 2025 increased
4% year-over-year mainly as a result of a14% increase in average community count and a7% decrease in average absorption pace. Third quarter 2025 average sales price ("ASP") on orders of$389,000 was down4% from the third quarter of 2024 primarily due to increased utilization of incentives this year.
- The
12% year-over-year decrease in home closing revenue in the third quarter of 2025 to$1.4 billion was the result of7% lower home closing volume of 3,685 homes combined with a5% decrease in ASP on closings to$380,000. ASP on closings was primarily impacted by increased utilization of incentives this year.
- Home closing gross margin of
19.1% decreased 570 bps in the third quarter of 2025 from24.8% in the prior year due to increased utilization of incentives, inventory-related impairment and walk-away charges, higher lot costs and reduced leverage of fixed costs on lower home closing revenue, all of which were partially offset by savings in direct costs and faster cycle times. Third quarter 2025 home closing gross margin included$8.7 million of real estate inventory impairments and$5.8 million in terminated land deal walk-away charges, compared to no impairments and$2.0 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted home closing gross margin was20.1% and24.9% for third quarters of 2025 and 2024, respectively.
- Selling, general and administrative expenses ("SG&A") as a percentage of third quarter 2025 home closing revenue were
10.8% compared to9.9% in the third quarter of 2024, primarily as a result of higher commission rates and technology costs, as well as lost leverage on lower home closing revenue, which was partially offset by lower compensation costs. - The third quarter effective income tax rate was
22.6% in 2025 compared to21.6% in 2024. The higher tax rate in 2025 reflects fewer homes qualifying for energy tax credits under the Inflation Reduction Act, given the new higher construction thresholds required to earn the tax credits this year.
- Net earnings were
$99 million ($1.39 per diluted share) for the third quarter 2025, a49% decrease from$196 million ($2.67 per diluted share) for the third quarter of 2024, mainly resulting from lower home closing revenue and gross profit as well as higher SG&A and tax rates. Third quarter 2025 diluted EPS included$8.7 million of real estate inventory impairments and$5.8 million in terminated land deal walk-away charges, compared to no impairments and$2.0 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted diluted EPS was$1.55 and$2.69 for third quarters of 2025 and 2024, respectively.
YEAR TO DATE RESULTS
- Total sales orders for the first nine months of 2025 increased
1% year-over-year, reflecting an11% increase in average communities and a9% decrease in average absorption pace compared to the first nine months of 2024. The3% lower ASP on orders for the first nine months of 2025 was primarily impacted by increased utilization of incentives this year.
- Home closing revenue decreased
8% in the first nine months of 2025 to$4.4 billion , driven by a6% decrease in ASP on closings and a3% decline in home closing volume. ASP on closings for the first nine months of 2025 reflected increased utilization of incentives compared to prior year.
- Home closing gross margin of
20.7% decreased 480 bps in the first nine months of 2025 from25.5% in the prior year due to increased utilization of incentives, higher lot costs, reduced leverage of fixed costs on lower home closing revenue, as well as inventory-related impairment and walk-away charges, all of which were partially offset by savings in direct costs and faster cycle times. Year to date 2025 home closing gross margin included$8.7 million of real estate inventory impairments and$11.4 million in terminated land deal walk-away charges, compared to no impairments and$3.9 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted home closing gross margin was21.2% and25.6% for the first nine months of 2025 and 2024, respectively.
- SG&A as a percentage of home closing revenue was
10.7% in the first nine months of 2025 compared to9.8% in the prior year, primarily as a result of higher commission rates and technology costs, as well as lost leverage on lower home closing revenue, which was partially offset by lower performance-based compensation costs.
- The effective income tax rate in the first nine months of 2025 was
23.4% compared to21.5% in 2024. The higher tax rate in 2025 reflects fewer homes qualifying for energy tax credits.
- Net earnings were
$369 million ($5.13 per diluted share) for the first nine months of 2025, a40% decrease from$614 million ($8.36 per diluted share) for the first nine months of 2024, primarily reflecting lower home closing revenue and gross margins, as well as higher SG&A and tax rates. Year to date 2025 diluted EPS included$8.7 million of real estate inventory impairments and$11.4 million in terminated land deal walk-away charges, compared to no impairments and$3.9 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted diluted EPS was$5.35 and$8.40 for the first nine months of 2025 and 2024, respectively.
BALANCE SHEET & LIQUIDITY
- Cash and cash equivalents at September 30, 2025 totaled
$729 million , reflecting$492 million of net proceeds from the issuance of senior notes in the first quarter of 2025. This compared to cash and cash equivalents of$652 million at December 31, 2024. - Land acquisition and development spend, net of land development reimbursements, totaled
$528 million for the third quarter of 2025, reflecting intentionally reduced spend based on market conditions. This compared to$617 million of land acquisition and development spend, net of land development reimbursements, in the third quarter of 2024. - Approximately 80,800 lots were owned or controlled as of September 30, 2025, compared to approximately 74,800 total lots as of September 30, 2024. Nearly 2,000 net new lots were added in the third quarter of 2025, representing an estimated 16 future communities. During the quarter, we terminated approximately 400 lots. For the first nine months of 2025, we terminated approximately 3,700 lots.
- Third quarter 2025 ending community count of 334 was up
20% compared to prior year and up7% compared to the second quarter of 2025. - Debt-to-capital and net debt-to-capital ratios were
25.7% and17.2% , respectively, at September 30, 2025, which compared to20.6% and11.7% , respectively, at December 31, 2024. - The Company declared and paid quarterly cash dividends of
$0.43 per share totaling$30 million in the third quarter of 2025. This compared to$0.37 5 per share totaling$27 million in the third quarter of 2024. Year-to-date dividends paid were$92 million and$82 million in 2025 and 2024, respectively. - During the third quarter of 2025, the Company repurchased 772,010 shares of stock, or
1.1% of shares outstanding at the beginning of the quarter, for$55 million . For the first nine months of 2025, the Company repurchased 2,051,450 shares of stock, or2.9% of shares outstanding at the beginning of the year, for$145 million . During the third quarter of 2025, the Board approved an additional$500 million to the authorized share repurchase program, and as of September 30, 2025,$664 million remained available to repurchase. - During the third quarter of 2025, the Company refinanced the revolving credit facility to extend its maturity from 2029 to 2030.
- On January 2, 2025, we completed a two-for-one stock split (the "Stock Split") of Meritage's common stock in the form of a stock dividend. All share and per share amounts in this press release have been retroactively restated to reflect the Stock Split for the third quarter of 2024 and the first nine months of 2024.
GUIDANCE
The Company is providing the following guidance for the fourth quarter of 2025, based on year to date results and current market conditions:
| Fourth Quarter 2025 | ||
| Home closing volume | 3,800-4,000 units | |
| Home closing revenue | ||
| Home closing gross margin | 19 | |
| Effective tax rate | Approximately | |
| Diluted EPS | ||
CONFERENCE CALL
Management will host a conference call to discuss its third quarter 2025 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Wednesday, October 29, 2025. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-877-407-6951 US toll free or 1-412-902-0046. A replay will be available on the Investor Relations page.
| Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | Change $ | Change % | ||||||||||||
| Homebuilding: | |||||||||||||||
| Home closing revenue | $ | 1,399,335 | $ | 1,585,784 | $ | (186,449 | ) | (12)% | |||||||
| Land closing revenue | 16,068 | 2,665 | 13,403 | 503 | % | ||||||||||
| Total closing revenue | 1,415,403 | 1,588,449 | (173,046 | ) | (11)% | ||||||||||
| Cost of home closings | (1,132,378 | ) | (1,193,219 | ) | (60,841 | ) | (5)% | ||||||||
| Cost of land closings | (15,876 | ) | (1,985 | ) | 13,891 | 700 | % | ||||||||
| Total cost of closings | (1,148,254 | ) | (1,195,204 | ) | (46,950 | ) | (4)% | ||||||||
| Home closing gross profit | 266,957 | 392,565 | (125,608 | ) | (32)% | ||||||||||
| Land closing gross profit | 192 | 680 | (488 | ) | (72)% | ||||||||||
| Total closing gross profit | 267,149 | 393,245 | (126,096 | ) | (32)% | ||||||||||
| Financial Services: | |||||||||||||||
| Revenue | 8,460 | 8,070 | 390 | 5 | % | ||||||||||
| Expense | (4,311 | ) | (3,706 | ) | 605 | 16 | % | ||||||||
| Earnings/(loss) from financial services unconsolidated entities and other, net | 331 | (1,263 | ) | 1,594 | (126)% | ||||||||||
| Financial services profit | 4,480 | 3,101 | 1,379 | 44 | % | ||||||||||
| Commissions and other sales costs | (99,722 | ) | (97,898 | ) | 1,824 | 2 | % | ||||||||
| General and administrative expenses | (51,787 | ) | (59,198 | ) | (7,411 | ) | (13)% | ||||||||
| Interest expense | — | — | — | — | % | ||||||||||
| Other income, net | 8,128 | 10,682 | (2,554 | ) | (24)% | ||||||||||
| Earnings before income taxes | 128,248 | 249,932 | (121,684 | ) | (49)% | ||||||||||
| Provision for income taxes | (28,951 | ) | (53,966 | ) | (25,015 | ) | (46)% | ||||||||
| Net earnings | $ | 99,297 | $ | 195,966 | $ | (96,669 | ) | (49)% | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | Change $ or shares | Change % | |||||||||||||
| Earnings per common share | $ | 1.40 | $ | 2.70 | $ | (1.30 | ) | (48)% | |||||||
| Weighted average shares outstanding | 70,680 | 72,452 | (1,772 | ) | (2)% | ||||||||||
| Diluted | |||||||||||||||
| Earnings per common share | $ | 1.39 | $ | 2.67 | $ | (1.28 | ) | (48)% | |||||||
| Weighted average shares outstanding | 71,188 | 73,338 | (2,150 | ) | (3)% | ||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||
| 2025 | 2024 | Change $ | Change % | ||||||||||||
| Homebuilding: | |||||||||||||||
| Home closing revenue | $ | 4,357,148 | $ | 4,745,618 | $ | (388,470 | ) | (8)% | |||||||
| Land closing revenue | 39,766 | 4,970 | 34,796 | 700 | % | ||||||||||
| Total closing revenue | 4,396,914 | 4,750,588 | (353,674 | ) | (7)% | ||||||||||
| Cost of home closings | (3,453,213 | ) | (3,535,589 | ) | (82,376 | ) | (2)% | ||||||||
| Cost of land closings | (37,128 | ) | (4,283 | ) | 32,845 | 767 | % | ||||||||
| Total cost of closings | (3,490,341 | ) | (3,539,872 | ) | (49,531 | ) | (1)% | ||||||||
| Home closing gross profit | 903,935 | 1,210,029 | (306,094 | ) | (25)% | ||||||||||
| Land closing gross profit | 2,638 | 687 | 1,951 | 284 | % | ||||||||||
| Total closing gross profit | 906,573 | 1,210,716 | (304,143 | ) | (25)% | ||||||||||
| Financial Services: | |||||||||||||||
| Revenue | 24,967 | 22,734 | 2,233 | 10 | % | ||||||||||
| Expense | (13,159 | ) | (10,633 | ) | 2,526 | 24 | % | ||||||||
| Earnings/(loss) from financial services unconsolidated entities and other, net | 1,846 | (4,853 | ) | 6,699 | (138)% | ||||||||||
| Financial services profit | 13,654 | 7,248 | 6,406 | 88 | % | ||||||||||
| Commissions and other sales costs | (303,272 | ) | (304,113 | ) | (841 | ) | — | % | |||||||
| General and administrative expenses | (163,967 | ) | (163,114 | ) | 853 | 1 | % | ||||||||
| Interest expense | — | — | — | n/a | |||||||||||
| Other income, net | 28,479 | 31,202 | (2,723 | ) | (9)% | ||||||||||
| Loss on early extinguishment of debt | — | (631 | ) | (631 | ) | (100)% | |||||||||
| Earnings before income taxes | 481,467 | 781,308 | (299,841 | ) | (38)% | ||||||||||
| Provision for income taxes | (112,485 | ) | (167,771 | ) | (55,286 | ) | (33)% | ||||||||
| Net earnings | $ | 368,982 | $ | 613,537 | $ | (244,555 | ) | (40)% | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | Change $ or shares | Change % | |||||||||||||
| Earnings per common share | $ | 5.17 | $ | 8.45 | $ | (3.28 | ) | (39)% | |||||||
| Weighted average shares outstanding | 71,346 | 72,572 | (1,226 | ) | (2)% | ||||||||||
| Diluted | |||||||||||||||
| Earnings per common share | $ | 5.13 | $ | 8.36 | $ | (3.23 | ) | (39)% | |||||||
| Weighted average shares outstanding | 71,879 | 73,402 | (1,523 | ) | (2)% | ||||||||||
| Meritage Homes Corporation and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) (Unaudited) | ||||||
| September 30, 2025 | December 31, 2024 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 728,937 | $ | 651,555 | ||
| Other receivables | 321,762 | 256,282 | ||||
| Real estate (1) | 6,140,687 | 5,728,775 | ||||
| Deposits on real estate under option or contract | 198,158 | 192,405 | ||||
| Investments in unconsolidated entities | 45,714 | 28,735 | ||||
| Property and equipment, net | 47,976 | 47,285 | ||||
| Deferred tax asset, net | 47,222 | 54,524 | ||||
| Prepaids, other assets and goodwill | 228,054 | 203,093 | ||||
| Total assets | $ | 7,758,510 | $ | 7,162,654 | ||
| Liabilities: | ||||||
| Accounts payable | $ | 217,875 | $ | 212,477 | ||
| Accrued liabilities | 414,717 | 452,213 | ||||
| Home sale deposits | 9,420 | 20,513 | ||||
| Loans payable and other borrowings | 25,811 | 29,343 | ||||
| Senior and convertible senior notes, net | 1,803,167 | 1,306,535 | ||||
| Total liabilities | 2,470,990 | 2,021,081 | ||||
| Stockholders' Equity: | ||||||
| Preferred stock | — | — | ||||
| Common stock, par value | 704 | 360 | ||||
| Additional paid-in capital | 11,416 | 143,036 | ||||
| Retained earnings | 5,275,400 | 4,998,177 | ||||
| Total stockholders’ equity | 5,287,520 | 5,141,573 | ||||
| Total liabilities and stockholders’ equity | $ | 7,758,510 | $ | 7,162,654 | ||
(1) Real estate – Allocated costs: | ||||||
| Homes completed and under construction | $ | 2,341,730 | $ | 2,375,639 | ||
| Finished home sites and home sites under development | 3,798,957 | 3,353,136 | ||||
| Total real estate | $ | 6,140,687 | $ | 5,728,775 | ||
| Meritage Homes Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 368,982 | $ | 613,537 | ||||
| Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 18,603 | 19,358 | ||||||
| Real estate and land impairments | 9,292 | — | ||||||
| Stock-based compensation | 14,780 | 19,305 | ||||||
| Loss on early extinguishment of debt | — | 631 | ||||||
| Equity in earnings from unconsolidated entities | (3,133 | ) | (3,925 | ) | ||||
| Distribution of earnings from unconsolidated entities | 3,732 | 4,005 | ||||||
| Other | 18,852 | 15,093 | ||||||
| Changes in assets and liabilities: | ||||||||
| Increase in real estate | (413,224 | ) | (723,835 | ) | ||||
| Increase in deposits on real estate under option or contract | (9,010 | ) | (96,404 | ) | ||||
| (Increase)/decrease in other receivables, prepaids and other assets | (77,840 | ) | 7,307 | |||||
| (Decrease)/increase in accounts payable and accrued liabilities | (45,326 | ) | 21,387 | |||||
| Decrease in home sale deposits | (11,093 | ) | (4,472 | ) | ||||
| Net cash used in operating activities | (125,385 | ) | (128,013 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Investments in unconsolidated entities | (21,080 | ) | (10,442 | ) | ||||
| Purchases of property and equipment | (20,145 | ) | (21,174 | ) | ||||
| Proceeds from sales of property and equipment | 184 | 179 | ||||||
| Maturities/sales of investments and securities | 1,750 | 750 | ||||||
| Payments to purchase investments and securities | (1,750 | ) | (750 | ) | ||||
| Net cash used in investing activities | (41,041 | ) | (31,437 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayment of loans payable and other borrowings | (11,522 | ) | (7,850 | ) | ||||
| Repayment of senior notes | — | (250,695 | ) | |||||
| Proceeds from issuance of senior and convertible senior notes | 497,195 | 575,000 | ||||||
| Payment of debt issuance costs | (5,106 | ) | (17,332 | ) | ||||
| Purchase of capped calls related to issuance of convertible senior notes | — | (61,790 | ) | |||||
| Dividends paid | (91,759 | ) | (81,619 | ) | ||||
| Repurchase of shares | (145,000 | ) | (85,932 | ) | ||||
| Net cash provided by financing activities | 243,808 | 69,782 | ||||||
| Net increase/(decrease) in cash and cash equivalents | 77,382 | (89,668 | ) | |||||
| Beginning cash and cash equivalents | 651,555 | 921,227 | ||||||
| Ending cash and cash equivalents | $ | 728,937 | $ | 831,559 | ||||
| Meritage Homes Corporation and Subsidiaries Operating Data (Dollars in thousands) (Unaudited) | ||||||||||
| We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Effective January 1, 2025, the Tennessee homebuilding operating segment has been reclassified from the East reporting segment to the Central reporting segment for the purpose of making operational and resource decisions and assessing financial performance. Prior period balances have been retroactively adjusted to reflect this reclassification. Our three reportable homebuilding segments are as follows: | ||||||||||
| ||||||||||
| Three Months Ended September 30, | ||||||||||
| 2025 | 2024 | |||||||||
| Homes | Value | Homes | Value | |||||||
| Homes Closed: | ||||||||||
| West Region | 883 | $ | 420,658 | 1,220 | $ | 594,509 | ||||
| Central Region | 1,260 | 443,086 | 1,346 | 484,739 | ||||||
| East Region | 1,542 | 535,591 | 1,376 | 506,536 | ||||||
| Total | 3,685 | $ | 1,399,335 | 3,942 | $ | 1,585,784 | ||||
| Homes Ordered: | ||||||||||
| West Region | 867 | $ | 426,509 | 1,067 | $ | 521,029 | ||||
| Central Region | 1,289 | 468,690 | 1,184 | 428,660 | ||||||
| East Region | 1,480 | 519,890 | 1,261 | 475,921 | ||||||
| Total | 3,636 | $ | 1,415,089 | 3,512 | $ | 1,425,610 | ||||
| Nine Months Ended September 30, | ||||||||||
| 2025 | 2024 | |||||||||
| Homes | Value | Homes | Value | |||||||
| Homes Closed: | ||||||||||
| West Region | 3,046 | $ | 1,449,499 | 3,499 | $ | 1,732,978 | ||||
| Central Region | 3,821 | 1,336,048 | 4,081 | 1,496,889 | ||||||
| East Region | 4,404 | 1,571,601 | 3,987 | 1,515,751 | ||||||
| Total | 11,271 | $ | 4,357,148 | 11,567 | $ | 4,745,618 | ||||
| Homes Ordered: | ||||||||||
| West Region | 2,961 | $ | 1,450,859 | 3,351 | $ | 1,659,130 | ||||
| Central Region | 3,952 | 1,433,125 | 3,958 | 1,455,883 | ||||||
| East Region | 4,513 | 1,636,720 | 3,993 | 1,515,248 | ||||||
| Total | 11,426 | 4,520,704 | 11,302 | 4,630,261 | ||||||
| At September 30, | ||||||||||
| 2025 | 2024 | |||||||||
| Homes | Value | Homes | Value | |||||||
| Order Backlog: | ||||||||||
| West Region | 350 | $ | 176,493 | 598 | $ | 286,336 | ||||
| Central Region | 612 | 232,018 | 718 | 267,890 | ||||||
| East Region | 737 | 261,496 | 968 | 377,430 | ||||||
| Total | 1,699 | $ | 670,007 | 2,284 | $ | 931,656 | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Ending | Average | Ending | Average | Ending | Average | Ending | Average | ||||||||
| Active Communities: | |||||||||||||||
| West Region | 85 | 85.0 | 86 | 85.5 | 85 | 86.7 | 86 | 83.2 | |||||||
| Central Region | 97 | 91.0 | 83 | 86.5 | 97 | 88.6 | 83 | 91.7 | |||||||
| East Region | 152 | 147.0 | 109 | 110.5 | 152 | 132.2 | 109 | 103.2 | |||||||
| Total | 334 | 323.0 | 278 | 282.5 | 334 | 307.5 | 278 | 278.1 | |||||||
| Meritage Homes Corporation and Subsidiaries Supplement and Non-GAAP information (Unaudited) | |||||||||||||||
| Supplemental Information (Dollars in thousands): | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Depreciation and amortization | $ | 5,991 | $ | 6,546 | $ | 18,603 | $ | 19,358 | |||||||
| Summary of Capitalized Interest: | |||||||||||||||
| Capitalized interest, beginning of period | $ | 63,814 | $ | 54,327 | $ | 53,678 | $ | 54,516 | |||||||
| Interest incurred | 20,050 | 12,752 | 54,759 | 40,004 | |||||||||||
| Interest expensed | — | — | — | — | |||||||||||
| Interest amortized to cost of home and land closings | (12,663 | ) | (13,348 | ) | (37,236 | ) | (40,789 | ) | |||||||
| Capitalized interest, end of period | $ | 71,201 | $ | 53,731 | $ | 71,201 | $ | 53,731 | |||||||
| Reconciliation of Non-GAAP Information (Dollars in thousands): | ||||||||||||||||
| This press release includes comments and discussion about our operating results that reflect certain adjustments, including home closing gross profit, home closing gross margin, earnings before income taxes, net earnings, diluted earnings per common share, and debt-to-capital ratios. These are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operating results and may be helpful in comparing our company with other companies in the homebuilding and other industries to the extent they provide similar information. We encourage investors to understand the methods used by other companies to calculate these non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures. | ||||||||||||||||
| Home Closing Gross Profit and Home Closing Gross Margin | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Home closing gross profit | $ | 266,957 | $ | 392,565 | $ | 903,935 | $ | 1,210,029 | ||||||||
| Home closing gross margin | ||||||||||||||||
| Add: Real estate-related impairments | 8,693 | — | 8,693 | — | ||||||||||||
| Add: Write-off of terminated land deals | 5,799 | 2,022 | 11,437 | 3,931 | ||||||||||||
| Adjusted home closing gross profit | $ | 281,449 | $ | 394,587 | $ | 924,065 | $ | 1,213,960 | ||||||||
| Adjusted home closing gross margin | ||||||||||||||||
| Earnings before income taxes, Net earnings and Diluted earnings per common share | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Earnings before income taxes | $ | 128,248 | $ | 249,932 | $ | 481,467 | $ | 781,308 | ||||||||
| Add: Real estate-related impairments | 8,693 | — | 8,693 | — | ||||||||||||
| Add: Write-off of terminated land deals | 5,799 | 2,022 | 11,437 | 3,931 | ||||||||||||
| Adjusted earnings before income taxes | $ | 142,740 | $ | 251,954 | $ | 501,597 | $ | 785,239 | ||||||||
| Effective income tax rate | 22.6 | % | 21.6 | % | 23.4 | % | 21.5 | % | ||||||||
| Adjusted provision for income tax | (32,259 | ) | (54,422 | ) | (117,374 | ) | (168,826 | ) | ||||||||
| Adjusted net earnings | 110,481 | 197,532 | 384,223 | 616,413 | ||||||||||||
| Diluted earnings per common share | $ | 1.39 | $ | 2.67 | $ | 5.13 | $ | 8.36 | ||||||||
| Adjusted diluted earnings per common share | $ | 1.55 | $ | 2.69 | $ | 5.35 | $ | 8.40 | ||||||||
| Debt-to-Capital Ratios | |||||||
| September 30, 2025 | December 31, 2024 | ||||||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,828,978 | $ | 1,335,878 | |||
| Stockholders' equity | 5,287,520 | 5,141,573 | |||||
| Total capital | $ | 7,116,498 | $ | 6,477,451 | |||
| Debt-to-capital | |||||||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,828,978 | $ | 1,335,878 | |||
| Less: cash and cash equivalents | (728,937) | (651,555) | |||||
| Net debt | $ | 1,100,041 | $ | 684,323 | |||
| Stockholders’ equity | 5,287,520 | 5,141,573 | |||||
| Total net capital | $ | 6,387,561 | $ | 5,825,896 | |||
| Net debt-to-capital | |||||||
About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.
Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results, including our fourth quarter 2025 projected home closing volume and home closing revenue.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
| Contacts: | Emily Tadano, VP Investor Relations and External Communications |
| (480) 515-8979 (office) | |
| investors@meritagehomes.com | |
FAQ
What were Meritage Homes (MTH) third quarter 2025 results for revenue and EPS?
How did Meritage Homes (MTH) gross margin change in Q3 2025 versus 2024?
What guidance did Meritage Homes (MTH) give for Q4 2025 on closings, revenue, and EPS?
How much cash and liquidity did Meritage Homes (MTH) report at September 30, 2025?
What capital return actions did Meritage Homes (MTH) take in Q3 2025 and year‑to‑date?
What inventory and land charges affected Meritage Homes (MTH) in Q3 2025?
