Meritage Homes reports third quarter 2026 results

First-nine-month shareholder returns reached nearly $380 million, representing 177% of earnings for that period.

Rhea-AI Summary

Meritage Homes (NYSE: MTH) reported third-quarter 2026 net earnings of $67.784 million as home sales and profitability declined year over year. Net earnings fell 32%, while diluted earnings per share decreased 25% to $1.04. Home closing revenue dropped 17% to $1.162352 billion, reflecting 14% fewer closings and a 4% lower average closing price. Home closing gross margin narrowed to 17.4% from 19.1%.

Orders fell 15% to 3,083 homes, and ending backlog declined 5% to 1,611 homes. For the first nine months, net earnings decreased 42% to $213.723 million. Cash ended September 30 at $677 million, versus $775 million at year-end 2025, with no revolving credit borrowings. Third-quarter repurchases totaled $55 million, and the quarterly dividend rose to $0.48 per share from $0.43 a year earlier. Meritage expects market conditions to remain unpredictable over the next several quarters.

17 points · 0 major

NegativeiHow this balance works

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0 major · 33 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFirst-nine-month repurchases totaled $285 million, up 97% year over year, retiring 4,101,288 shares. 6.8% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Nearly 2,000 net new lots added during the quarter represent an estimated 21 future communities.
• Moderate pointEnding community count reached 348, up 4% year over year and 2% sequentially.
• Minor pointThird-quarter repurchases retired 757,128 shares, or 1.2% of shares outstanding at the quarter’s start, for $55 million.
• Minor pointQuarterly dividend increased to $0.48 per share from $0.43 a year earlier.

12 minor points

• Minor pointRemaining repurchase authorization totaled $229 million at September 30, 2026.
• Minor pointRevolving credit facility had no borrowings at September 30, 2026.
• Minor pointBook value per share increased 4% year over year at September 30, 2026.
• Minor pointThird-quarter land acquisition and development spending, net of reimbursements, fell to $329 million from $528 million.
• Minor pointThird-quarter effective income tax rate declined to 20.1% from 22.6%, reflecting acquired below-market clean fuel tax credits.
• Minor pointFirst-nine-month effective income tax rate declined to 23.1% from 23.4%.
• Minor pointThird-quarter financial services profit increased 6% to $4.759 million year over year.
• Minor pointThird-quarter commissions and other sales costs decreased 17% to $82.441 million year over year.
• Minor pointThird-quarter general and administrative expenses decreased 13% to $45.170 million year over year.
• Minor pointFirst-nine-month commissions and other sales costs decreased 16% to $253.718 million year over year.
• Minor pointFirst-nine-month general and administrative expenses decreased 9% to $148.952 million year over year.
• Minor pointEnding backlog average sales price increased 1% to $396,000 year over year.

Negative

• Moderate pointThird-quarter net earnings fell 32% to $67.784 million; diluted earnings per share declined 25% to $1.04.
• Moderate pointThird-quarter home closing revenue declined 17% to $1.162352 billion year over year.
• Moderate pointThird-quarter closings fell 14% to 3,187 homes year over year.
• Moderate pointThird-quarter home closing gross margin narrowed 170 basis points to 17.4% from 19.1%.
• Moderate pointThird-quarter orders declined 15% to 3,083 homes; order value fell 17% to $1.179266 billion. 28% of market cap
• Moderate pointThird-quarter average sales pace declined 21% year over year despite a 7% increase in average communities.
• Moderate pointCash declined to $677 million at September 30, 2026, from $775 million at December 31, 2025.
• Moderate pointOwned or controlled lots decreased to approximately 71,800 from approximately 80,800 a year earlier.

25 minor points

• Minor pointThird-quarter average closing price decreased 4% to $365,000 year over year.
• Minor pointThird-quarter average order price fell 2% to $383,000 year over year.
• Minor pointEnding backlog declined 5% to 1,611 homes; backlog value fell 5% to $637.167 million.
• Minor pointThird-quarter selling, general and administrative expense ratio increased to 11.0% from 10.8%.
• Minor pointThird-quarter inventory impairments totaled $6.6 million, versus $8.7 million a year earlier.
• Minor pointFirst-nine-month net earnings fell 42% to $213.723 million; diluted earnings per share declined 37% to $3.22.
• Minor pointFirst-nine-month home closing revenue decreased 16% to $3.658085 billion year over year.
• Minor pointFirst-nine-month closings declined 12% to 9,879 homes year over year.
• Minor pointFirst-nine-month average closing price declined 4% to $370,000 year over year.
• Minor pointFirst-nine-month home closing gross margin narrowed 290 basis points to 17.8% from 20.7%.
• Minor pointFirst-nine-month orders fell 10% to 10,322 homes; order value declined 12% to $3.956044 billion.
• Minor pointFirst-nine-month average sales pace declined 20% despite a 12% increase in average communities.
• Minor pointFirst-nine-month average order price declined 3% to $383,000 year over year.
• Minor pointFirst-nine-month selling, general and administrative expense ratio increased to 11.0% from 10.7%.
• Minor pointFirst-nine-month inventory impairments totaled $12.6 million, versus $8.7 million a year earlier.
• Minor pointFirst-nine-month terminated land deal charges totaled $1.0 million, versus $11.4 million a year earlier.
• Minor pointDebt-to-capital increased to 26.9% from 26.0% at December 31, 2025.
• Minor pointNet debt-to-capital increased to 18.9% from 16.9% at December 31, 2025.
• Minor pointThird-quarter land closing revenue fell 62% to $6.081 million year over year.
• Minor pointFirst-nine-month land closing revenue fell 29% to $28.162 million year over year.
• Minor pointFirst-nine-month financial services profit declined 1% to $13.579 million year over year.
• Minor pointThird-quarter interest expense totaled $1.352 million, versus none a year earlier.
• Minor pointFirst-nine-month interest expense totaled $4.126 million, versus none a year earlier.
• Minor pointThird-quarter other income, net, declined 23% to $6.289 million year over year.
• Minor pointFirst-nine-month other income, net, declined 27% to $20.724 million year over year.

News Explained

Through September 30, 2026, Meritage Homes had repurchased 4,101,288 shares for $285 million—6.0% of shares outstanding at the start of the year—reducing the share count; $229 million remained available for repurchases.

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Market move: MTH -6.48% vs previous close. 3Q26 earnings report

$56.00 – $65.00 Day Range

$3.78B Mkt Cap at Last Price

On Oct 28, the day this news came out, the latest delayed price for MTH is 6.48% below the previous close. Our momentum scanner has recorded 11 alerts for this stock so far that day. The latest delayed price is $58.00.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Home closing revenue: $1,162,352 thousand; down 17% YoY Net earnings: $67,784 thousand; down 32% YoY Diluted EPS: $1.04; down 25% YoY +5 more

Home closing revenue

$1,162,352 thousand; down 17% YoY

Q3 2026

Net earnings

$67,784 thousand; down 32% YoY

Q3 2026

Diluted EPS

$1.04; down 25% YoY

Q3 2026

Home closing gross margin

17.4%; down 170 bps YoY

Q3 2026

Adjusted diluted EPS

$1.11 vs. $1.55

Q3 2026 vs. Q3 2025

Home orders

3,083 homes; down 15% YoY

Q3 2026

Capital returned to shareholders

$86 million

Q3 2026, via share repurchases and dividends

Cash and cash equivalents

$677 million

At September 30, 2026

Previous Earnings Reports

3 past events · Latest: Jul 29

Same Type 3 events

1. Jul 29

   Quarterly earnings

   24h Move

   -1.1%

   Revenue, gross margin, net earnings, and orders declined year over year.

2. Apr 22

   Quarterly earnings

   24h Move

   +1.7%

   Revenue and net earnings fell year over year; cash and community count were reported.

3. Oct 28

   Quarterly earnings

   24h Move

   -5.6%

   Diluted EPS and gross margin declined year over year despite higher orders.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sg&a, diluted eps, revolving credit facility

3 terms

sg&a financial

"Selling, general and administrative expenses ("SG&A") as a percentage"

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

diluted eps financial

"Net earnings were $68 million ($1.04 per diluted share)"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

revolving credit facility financial

"no borrowings under our revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SCOTTSDALE, Ariz., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported third quarter results for the period ended September 30, 2026.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)

		Three Months Ended September 30,										Nine Months Ended September 30,
		2026				2025				% Chg		2026				2025				% Chg
Homes closed (units)			3,187				3,685			(14)%			9,879				11,271			(12)%
Home closing revenue		$	1,162,352			$	1,399,335			(17)%		$	3,658,085			$	4,357,148			(16)%
Average sales price — closings		$	365			$	380			(4)%		$	370			$	387			(4)%
Home orders (units)			3,083				3,636			(15)%			10,322				11,426			(10)%
Home order value		$	1,179,266			$	1,415,089			(17)%		$	3,956,044			$	4,520,704			(12)%
Average sales price — orders		$	383			$	389			(2)%		$	383			$	396			(3)%
Ending backlog (units)													1,611				1,699			(5)%
Ending backlog value												$	637,167			$	670,007			(5)%
Average sales price — backlog												$	396			$	394			1%
Home closing gross margin			17.4%				19.1%			(170) bps			17.8%				20.7%			(290) bps
Earnings before income taxes		$	84,815			$	128,248			(34)%		$	277,903			$	481,467			(42)%
Net earnings		$	67,784			$	99,297			(32)%		$	213,723			$	368,982			(42)%
Diluted EPS		$	1.04			$	1.39			(25)%		$	3.22			$	5.13			(37)%

MANAGEMENT COMMENTS

"In the third quarter of 2026, we navigated an increasingly challenging homebuying environment marked by rising mortgage interest rates and persistent geopolitical and macroeconomic uncertainty. Constrained affordability weighed on consumer sentiment, which was reflected in our 15% year-over-year decline in third quarter orders despite achieving an average absorption pace of 3.0 net sales per month per store," said Steven J. Hilton, executive chairman of Meritage Homes. "In light of current market conditions, we intentionally focused on preserving margins rather than pursuing a higher sales pace."

"We were able to convert nearly 190% of our backlog this quarter, delivering 3,187 homes across our larger footprint of 348 communities," added Phillippe Lord, chief executive officer of Meritage Homes. "Third quarter 2026 home closing revenue of $1.2 billion generated adjusted home closing gross margin of 17.9%, excluding $6.0 million of real estate inventory impairments and terminated land deal walk-away charges, and SG&A as a percentage of home closing revenue of 11.0%, nearly in line with the prior year period as we were able to leverage our larger size and cost control initiatives to maximize profitability."

"In today's volatile market, prudently managing capital is a key priority, as we continue to focus on maintaining sufficient liquidity. During the quarter, we pulled back our land investments by almost 40% year-over-year to $329 million and returned $86 million to shareholders via share repurchases and dividends. We are confident that the strength of our balance sheet and prudence around cash preservation will be a differentiator, as we expect market conditions to continue to be unpredictable over the next several quarters. In the first nine months of 2026, we have returned nearly $380 million of capital to shareholders, representing 177% of total earnings so far this year," concluded Mr. Lord. "We ended the third quarter of 2026 with cash of $677 million, no borrowings under our revolving credit facility, and a net debt-to-capital ratio of 18.9%. As of September 30, 2026, our book value per share increased 4% year-over-year."

THIRD QUARTER RESULTS

• Orders of 3,083 homes for the third quarter of 2026 decreased 15% year-over-year as a result of 21% lower average absorption pace, which was partially offset by a 7% increase in average community count. Third quarter 2026 average sales price ("ASP") on orders of $383,000 was down 2% from the third quarter of 2025, primarily due to higher utilization of incentives and related costs including rate buy-downs, as well as geographic mix.

• The 17% year-over-year decrease in home closing revenue in the third quarter of 2026 to $1.2 billion was due to 14% lower closing volume of 3,187 homes combined with a 4% decrease in ASP on closings to $365,000. The year-over-year decline in ASP on closings was primarily due to higher utilization of incentives and related costs including rate buy-downs, as well as geographic mix.

• Home closing gross margin of 17.4% in the third quarter of 2026 was 170 bps lower than 19.1% in the prior year as a result of higher lot and incentive costs coupled with lost leverage on lower home closing revenue, which were partially offset by direct cost savings and lower performance-based compensation expense. Excluding $6.6 million of real estate inventory impairments and a $0.6 million net credit related to terminated land deal walk-away charges in the third quarter of 2026, and $8.7 million of real estate inventory impairments and $5.8 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was 17.9% and 20.1% for the third quarters of 2026 and 2025, respectively. In the third quarter of 2026, we incurred $0.9 million of terminated land deal walk-away charges, which were more than offset by $1.5 million of recoveries related to previously incurred walk-away charges.

• Selling, general and administrative expenses ("SG&A") as a percentage of third quarter 2026 home closing revenue were 11.0% compared to 10.8% in the third quarter of 2025, as a result of lost leverage on lower home closing revenue and higher technology costs, which were partially offset by an intentional pull back in discretionary expenses and decreased performance-based compensation expense.
  
• The third quarter effective income tax rate was 20.1% in 2026 compared to 22.6% in 2025. The 2026 tax rate reflected acquired below-market transferable clean fuel production tax credits.

• Net earnings were $68 million ($1.04 per diluted share) for the third quarter of 2026, a 32% decrease from $99 million ($1.39 per diluted share) for the third quarter of 2025, mainly resulting from lower home closing revenue and gross profit. Excluding quarterly impairments and walk-away charges for each period, adjusted diluted EPS was $1.11 and $1.55 for the third quarters of 2026 and 2025, respectively.

YEAR TO DATE RESULTS

• Total sales orders for the first nine months of 2026 decreased 10% year-over-year, reflecting a 20% decrease in average absorption pace partially offset by a 12% increase in average communities compared to the first nine months of 2025. The 3% lower ASP on orders for the first nine months of 2026 compared to prior year was primarily due to higher utilization of incentives and related costs including rate buy-downs, as well as geographic mix.

• Home closing revenue decreased 16% year-over-year in the first nine months of 2026 to $3.7 billion, driven by 12% lower home closing volume and a 4% decrease in ASP on closings compared to the first nine months of 2025. The year-over-year decline in ASP on closings reflected higher utilization of incentives and related costs including rate buy-downs, as well as geographic mix.

• Home closing gross margin of 17.8% decreased 290 bps in the first nine months of 2026 from 20.7% in the prior year due to higher lot and incentive costs coupled with lost leverage on lower home closing revenue, which were partially offset by direct cost savings and lower performance-based compensation expense. Excluding $12.6 million of real estate inventory impairments and $1.0 million in terminated land deal walk-away charges in the first nine months of 2026 and $8.7 million of real estate inventory impairments and $11.4 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was 18.1% and 21.2% for the first nine months of 2026 and 2025, respectively.

• SG&A as a percentage of home closing revenue was 11.0% in the first nine months of 2026 compared to 10.7% in the prior year, as a result of lost leverage on lower home closing revenue and higher technology costs, which were partially offset by an intentional pull back in discretionary expenses and decreased performance-based compensation expense.

• The effective income tax rate in the first nine months of 2026 was 23.1% compared to 23.4% in 2025.

• Net earnings were $214 million ($3.22 per diluted share) for the first nine months of 2026, a 42% decrease from $369 million ($5.13 per diluted share) for the first nine months of 2025, primarily reflecting lower home closing revenue and gross margins. Excluding year-to-date impairments and walk-away charges for each period, adjusted diluted EPS was $3.38 and $5.35 for the first nine months of 2026 and 2025, respectively.

BALANCE SHEET & LIQUIDITY

• Cash and cash equivalents at September 30, 2026 totaled $677 million. This compared to cash and cash equivalents of $775 million at December 31, 2025.
• Land acquisition and development spend, net of land development reimbursements, totaled $329 million and $528 million for the third quarter of 2026 and 2025, respectively.
• Approximately 71,800 lots were owned or controlled as of September 30, 2026, compared to approximately 80,800 lots as of September 30, 2025. Nearly 2,000 net new lots were added in the third quarter of 2026, representing an estimated 21 future communities.
• Third quarter 2026 ending community count of 348 was up 4% compared to prior year and up 2% sequentially from the second quarter of 2026.
• Debt-to-capital and net debt-to-capital ratios were 26.9% and 18.9%, respectively, at September 30, 2026, which compared to 26.0% and 16.9%, respectively, at December 31, 2025.
• The Company declared and paid quarterly cash dividends of $0.48 per share totaling $31 million in the third quarter of 2026. This compared to $0.43 per share totaling $30 million in the third quarter of 2025. Year-to-date dividends paid were $94 million and $92 million in 2026 and 2025, respectively.
• During the third quarter of 2026, the Company repurchased 757,128 shares of stock, or 1.2% of shares outstanding at the beginning of the quarter, for $55 million, consistent with the third quarter of 2025. For the first nine months of 2026, the Company repurchased 4,101,288 shares of stock, or 6.0% of shares outstanding at the beginning of the year, for $285 million, up 97% compared to prior year of $145 million. As of September 30, 2026, $229 million remained available to repurchase.

CONFERENCE CALL

Management will host a conference call to discuss its third quarter 2026 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, October 29, 2026. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-800-445-7795 US toll free or 1-785-424-1699. 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,
		2026				2025				Change $				Change %
Homebuilding:
	Home closing revenue	$	1,162,352			$	1,399,335			$	(236,983	)		(17)%
	Land closing revenue		6,081				16,068				(9,987	)		(62)%
	Total closing revenue		1,168,433				1,415,403				(246,970	)		(17)%
	Cost of home closings		(959,746	)			(1,132,378	)			(172,632	)		(15)%
	Cost of land closings		(5,957	)			(15,876	)			(9,919	)		(62)%
	Total cost of closings		(965,703	)			(1,148,254	)			(182,551	)		(16)%
	Home closing gross profit		202,606				266,957				(64,351	)		(24)%
	Land closing gross profit		124				192				(68	)		(35)%
	Total closing gross profit		202,730				267,149				(64,419	)		(24)%
Financial Services:
	Revenue		7,497				8,460				(963	)		(11)%
	Expense		(3,982	)			(4,311	)			(329	)		(8)%
	Earnings from financial services unconsolidated entities and other, net		1,244				331				913			276%
	Financial services profit		4,759				4,480				279			6%
Commissions and other sales costs			(82,441	)			(99,722	)			(17,281	)		(17)%
General and administrative expenses			(45,170	)			(51,787	)			(6,617	)		(13)%
Interest expense			(1,352	)			—				1,352			N/A
Other income, net			6,289				8,128				(1,839	)		(23)%
Earnings before income taxes			84,815				128,248				(43,433	)		(34)%
Provision for income taxes			(17,031	)			(28,951	)			(11,920	)		(41)%
Net earnings		$	67,784			$	99,297			$	(31,513	)		(32)%
Earnings per common share:
	Basic									Change $ or shares				Change %
	Earnings per common share	$	1.05			$	1.40			$	(0.35	)		(25)%
	Weighted average shares outstanding		64,698				70,680				(5,982	)		(8)%
	Diluted
	Earnings per common share	$	1.04			$	1.39			$	(0.35	)		(25)%
	Weighted average shares outstanding		65,127				71,188				(6,061	)		(9)%

		Nine Months Ended September 30,
		2026				2025				Change $				Change %
Homebuilding:
	Home closing revenue	$	3,658,085			$	4,357,148			$	(699,063	)		(16)%
	Land closing revenue		28,162				39,766				(11,604	)		(29)%
	Total closing revenue		3,686,247				4,396,914				(710,667	)		(16)%
	Cost of home closings		(3,008,068	)			(3,453,213	)			(445,145	)		(13)%
	Cost of land closings		(27,783	)			(37,128	)			(9,345	)		(25)%
	Total cost of closings		(3,035,851	)			(3,490,341	)			(454,490	)		(13)%
	Home closing gross profit		650,017				903,935				(253,918	)		(28)%
	Land closing gross profit		379				2,638				(2,259	)		(86)%
	Total closing gross profit		650,396				906,573				(256,177	)		(28)%
Financial Services:
	Revenue		21,566				24,967				(3,401	)		(14)%
	Expense		(11,746	)			(13,159	)			(1,413	)		(11)%
	Earnings from financial services unconsolidated entities and other, net		3,759				1,846				1,913			104%
	Financial services profit		13,579				13,654				(75	)		(1)%
Commissions and other sales costs			(253,718	)			(303,272	)			(49,554	)		(16)%
General and administrative expenses			(148,952	)			(163,967	)			(15,015	)		(9)%
Interest expense			(4,126	)			—				4,126			N/A
Other income, net			20,724				28,479				(7,755	)		(27)%
Earnings before income taxes			277,903				481,467				(203,564	)		(42)%
Provision for income taxes			(64,180	)			(112,485	)			(48,305	)		(43)%
Net earnings		$	213,723			$	368,982			$	(155,259	)		(42)%
Earnings per common share:
	Basic									Change $ or shares				Change %
	Earnings per common share	$	3.24			$	5.17			$	(1.93	)		(37)%
	Weighted average shares outstanding		65,941				71,346				(5,405	)		(8)%
	Diluted
	Earnings per common share	$	3.22			$	5.13			$	(1.91	)		(37)%
	Weighted average shares outstanding		66,312				71,879				(5,567	)		(8)%

Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)

		September 30, 2026			December 31, 2025
Assets:
Cash and cash equivalents		$	677,498		$	775,157
Other receivables			345,535			306,956
Real estate (1)			6,014,511			5,987,120
Deposits on real estate under option or contract			170,777			174,170
Investments in unconsolidated entities			64,225			57,268
Property and equipment, net			45,057			46,647
Deferred tax asset, net			44,427			53,293
Prepaids, other assets and goodwill			227,614			221,676
Total assets		$	7,589,644		$	7,622,287
Liabilities:
Accounts payable		$	209,249		$	200,679
Accrued and other liabilities			476,658			387,698
Home sale deposits			7,627			9,213
Loans payable and other borrowings			42,351			24,328
Senior and convertible senior notes, net			1,809,401			1,804,726
Total liabilities			2,545,286			2,426,644
Stockholders' Equity:
Preferred stock			—			—
Common stock, par value $0.01. Authorized 125,000,000 shares; 64,423,225 and 68,168,923 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			644			682
Additional paid-in capital			—			—
Retained earnings			5,043,714			5,194,961
Total stockholders’ equity			5,044,358			5,195,643
Total liabilities and stockholders’ equity		$	7,589,644		$	7,622,287
(1) Real estate – Allocated costs:
Homes completed and under construction		$	2,045,060		$	2,069,548
Finished home sites and home sites under development			3,842,767			3,917,572
Consolidated real estate not owned			126,684			—
Total real estate		$	6,014,511		$	5,987,120

Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands)
(Unaudited)

		Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities:
Net earnings		$	213,723			$	368,982
Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities:
Depreciation and amortization			16,973				18,603
Real estate and land impairments			12,648				9,292
Write-off of terminated land deals			1,006				11,437
Stock-based compensation			16,788				14,780
Equity in earnings from unconsolidated entities			(2,941	)			(3,133	)
Distribution of earnings from unconsolidated entities			3,325				3,732
Other			8,972				7,415
Changes in assets and liabilities:
Decrease/(increase) in real estate			58,676				(413,224	)
Increase in deposits on real estate under option or contract			(1,431	)			(9,010	)
Increase in other receivables, prepaids and other assets			(42,770	)			(77,840	)
Decrease in accounts payable and accrued and other liabilities			(23,860	)			(45,326	)
Decrease in home sale deposits			(1,586	)			(11,093	)
Net cash provided by/(used in) operating activities			259,523				(125,385	)
Cash flows from investing activities:
Investments in unconsolidated entities			(21,270	)			(21,080	)
Distributions of capital from unconsolidated entities			350				—
Purchases of property and equipment			(13,917	)			(20,145	)
Proceeds from sales of property and equipment			234				184
Maturities/sales of investments and securities			—				1,750
Payments to purchase investments and securities			—				(1,750	)
Net cash used in investing activities			(34,603	)			(41,041	)
Cash flows from financing activities:
Repayment of loans payable and other borrowings			(3,302	)			(11,522	)
Proceeds from issuance of senior notes			—				497,195
Payment of debt issuance costs			—				(5,106	)
Proceeds from liabilities related to consolidated real estate not owned			59,947				—
Dividends paid			(94,224	)			(91,759	)
Repurchase of shares			(285,000	)			(145,000	)
Net cash (used in)/provided by financing activities			(322,579	)			243,808
Net (decrease)/increase in cash and cash equivalents			(97,659	)			77,382
Beginning cash and cash equivalents			775,157				651,555
Ending cash and cash equivalents		$	677,498			$	728,937

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. Our three reportable homebuilding segments are as follows:

• West: Arizona, California, Colorado, and Utah
• Central: Tennessee and Texas
• East: Alabama, Florida, Georgia, Mississippi, North Carolina and South Carolina

		Three Months Ended September 30,
		2026					2025
		Homes		Value			Homes		Value
Homes Closed:
West Region		710		$	341,836		883		$	420,658
Central Region		1,170			383,964		1,260			443,086
East Region		1,307			436,552		1,542			535,591
Total		3,187		$	1,162,352		3,685		$	1,399,335
Homes Ordered:
West Region		706		$	352,026		867		$	426,509
Central Region		1,132			396,999		1,289			468,690
East Region		1,245			430,241		1,480			519,890
Total		3,083		$	1,179,266		3,636		$	1,415,089

		Nine Months Ended September 30,
		2026					2025
		Homes		Value			Homes		Value
Homes Closed:
West Region		2,221		$	1,078,774		3,046		$	1,449,499
Central Region		3,586			1,206,990		3,821			1,336,048
East Region		4,072			1,372,321		4,404			1,571,601
Total		9,879		$	3,658,085		11,271		$	4,357,148
Homes Ordered:
West Region		2,366		$	1,187,516		2,961		$	1,450,859
Central Region		3,707			1,294,180		3,952			1,433,125
East Region		4,249			1,474,348		4,513			1,636,720
Total		10,322		$	3,956,044		11,426		$	4,520,704

		At September 30,
		2026					2025
		Homes		Value			Homes		Value
Order Backlog:
West Region		330		$	170,668		350		$	176,493
Central Region		578			217,191		612			232,018
East Region		703			249,308		737			261,496
Total		1,611		$	637,167		1,699		$	670,007

	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
	Ending		Average		Ending		Average		Ending		Average		Ending		Average
Active Communities
West Region	92		90.5		85		85.0		92		88.2		85		86.7
Central Region	104		101.5		97		91.0		104		105.6		97		88.6
East Region	152		152.0		152		147.0		152		149.2		152		132.2
Total	348		344.0		334		323.0		348		343.0		334		307.5

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,
	2026				2025				2026				2025
Depreciation and amortization	$	5,522			$	5,991			$	16,973			$	18,603
Summary of Capitalized Interest:
Capitalized interest, beginning of period	$	86,737			$	63,814			$	77,064			$	53,678
Interest incurred		20,218				20,050				60,337				54,759
Interest expensed		(1,352	)			—				(4,126	)			—
Interest amortized to cost of home and land closings		(13,434	)			(12,663	)			(41,106	)			(37,236	)
Capitalized interest, end of period	$	92,169			$	71,201			$	92,169			$	71,201

Reconciliation of Non-GAAP Information (Dollars in thousands):

This press release includes comments and discussion about our operating results that reflect certain adjustments, including to 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,
		2026				2025				2026				2025
Home closing gross profit		$	202,606			$	266,957			$	650,017			$	903,935
Home closing gross margin			17.4	%			19.1	%			17.8	%			20.7	%
Add: Real estate-related impairments			6,639				8,693				12,648				8,693
Add: Write-off of terminated land deals			(643	)			5,799				1,006				11,437
Adjusted home closing gross profit		$	208,602			$	281,449			$	663,671			$	924,065
Adjusted home closing gross margin			17.9	%			20.1	%			18.1	%			21.2	%

Earnings before income taxes, Net earnings and Diluted earnings per common share
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Earnings before income taxes		$	84,815			$	128,248			$	277,903			$	481,467
Add: Real estate-related impairments			6,845				8,693				12,884				8,693
Add: Write-off of terminated land deals			(643	)			5,799				1,006				11,437
Adjusted earnings before income taxes		$	91,017			$	142,740			$	291,793			$	501,597
Incremental tax rate			24.1	%			22.6	%			24.5	%			23.4	%
Adjusted provision for income tax			(18,526	)			(32,259	)			(67,583	)			(117,374	)
Adjusted net earnings			72,491				110,481				224,210				384,223
Diluted earnings per common share		$	1.04			$	1.39			$	3.22			$	5.13
Adjusted diluted earnings per common share		$	1.11			$	1.55			$	3.38			$	5.35

Debt-to-Capital Ratios
	September 30, 2026				December 31, 2025
Senior and convertible senior notes, net and loans payable and other borrowings	$	1,851,752			$	1,829,054
Stockholders' equity		5,044,358				5,195,643
Total capital	$	6,896,110			$	7,024,697
Debt-to-capital		26.9	%			26.0	%
Senior and convertible senior notes, net and loans payable and other borrowings	$	1,851,752			$	1,829,054
Less: cash and cash equivalents		(677,498	)			(775,157	)
Net debt	$	1,174,254			$	1,053,897
Stockholders’ equity		5,044,358				5,195,643
Total net capital	$	6,218,612			$	6,249,540
Net debt-to-capital		18.9	%			16.9	%

About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. 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 220,000 homes in its 41-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 the strength of our balance sheet.

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; shortages in the availability and cost of subcontract labor; legislation related to tariffs; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; the adverse effect of slow absorption rates; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; 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; sustainability matters and disclosures; 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, 2025 and our subsequent Form 10-Qs 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Meritage Homes’ third-quarter 2026 earnings?

Meritage Homes earned $67.784 million, or $1.04 per diluted share, in the third quarter of 2026. Net earnings declined 32% and diluted earnings per share fell 25% from the third quarter of 2025.

Why did Meritage Homes’ third-quarter 2026 home closing margin decline?

Higher lot and incentive costs, together with reduced expense leverage on lower home closing revenue, reduced home closing gross margin to 17.4% from 19.1%. Direct cost savings and lower performance-based compensation expense partly offset those pressures.

How did Meritage Homes’ adjusted third-quarter 2026 results compare with 2025?

Adjusted diluted earnings per share were $1.11, compared with $1.55 a year earlier, and adjusted home closing gross margin was 17.9%, compared with 20.1%. These measures exclude inventory impairments and terminated land deal walk-away charges for each period.

What terminated land deal charges did Meritage Homes record in the third quarter of 2026?

Meritage recorded a $0.6 million net credit related to terminated land deals. Recoveries of $1.5 million related to previously incurred walk-away charges more than offset $0.9 million of new charges during the quarter.

Why did Meritage Homes prioritize margins over sales pace in the third quarter of 2026?

Meritage said it intentionally prioritized preserving margins because of current market conditions. The company described rising mortgage interest rates and geopolitical and macroeconomic uncertainty as constraints on affordability and consumer sentiment.