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Meritage Homes (NYSE: MTH) Q1 2026 earnings fall as margins compress

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Meritage Homes reported weaker first quarter 2026 results as slowing demand and higher incentives pressured profitability. Home closing revenue fell to $1.1 billion, down 17% year-over-year, on 13% fewer closings and a 5% lower average sales price of $373,000.

Home closing gross margin declined to 17.5% from 22.0%, reflecting heavier incentives, higher lot costs and lower fixed-cost leverage, partially offset by cost savings. Net earnings dropped 55% to $55 million, with diluted EPS at $0.82 versus $1.69 a year earlier; adjusted diluted EPS was $0.86.

Orders softened, with 3,664 homes ordered, a 5% decline, and backlog value down 12% to $711 million. Despite the tougher backdrop, the company maintained a strong balance sheet with $767 million in cash, net debt-to-capital of 17.4%, and 345 active communities. It repurchased $130 million of stock and paid $32 million in dividends.

Positive

  • None.

Negative

  • Profitability and demand weakened materially: Q1 2026 home closing revenue fell 17%, home closing gross margin contracted from 22.0% to 17.5%, and net earnings declined 55% to $55 million, indicating a significantly less profitable environment.

Insights

Meritage posted materially lower Q1 profit as incentives and softer demand weighed on margins.

Meritage Homes saw first quarter 2026 home closing revenue decline to $1.1 billion, down 17%, driven by 13% fewer closings and a 5% lower average selling price. Orders fell 5%, and backlog value declined 12%, signaling a cooler demand environment.

Profitability compressed sharply. Home closing gross margin dropped from 22.0% to 17.5% as higher incentive use, increased lot costs and reduced fixed-cost leverage outweighed savings in direct costs and compensation. Net earnings fell 55% to $55 million, with diluted EPS of $0.82 and adjusted diluted EPS of $0.86.

Despite earnings pressure, balance sheet metrics remained solid. Cash stood at $767 million, with net debt-to-capital at 17.4% and 345 communities, up 19% year-over-year. Management updated 2026 guidance to home closing volume and revenue at or within 5% of full-year 2025, tying expectations closely to recent performance.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Home closing revenue $1,107,822,000 Three months ended March 31, 2026, down 17% year-over-year
Home closing gross margin 17.5% Q1 2026 vs 22.0% in Q1 2025
Net earnings $55,309,000 Three months ended March 31, 2026, down 55% year-over-year
Diluted EPS $0.82 Three months ended March 31, 2026; adjusted diluted EPS $0.86
Cash and cash equivalents $766,632,000 Balance as of March 31, 2026
Net debt-to-capital ratio 17.4% As of March 31, 2026
Share repurchases $130,000,000 Q1 2026 repurchases of 1,815,820 shares
Ending community count 345 communities First quarter 2026, up 19% year-over-year
home closing gross margin financial
"Home closing gross margin of 17.5% in the first quarter of 2026 was 450 bps lower than 22.0% in the prior year"
backlog conversion rate financial
"with nearly 70% of these deliveries coming from intra-quarter sales, a backlog conversion rate of 254%"
Backlog conversion rate measures how quickly work that a company has promised but not yet delivered—orders, contracts or production backlog—turns into actual revenue or completed shipments over a set period. For investors it signals whether promised demand is being fulfilled on schedule and how reliably future sales will materialize; a higher rate is like seeing a long grocery list steadily checked off, while a lower rate suggests delays, capacity problems, or weakening demand that can affect near-term cash flow and growth forecasts.
net debt-to-capital financial
"Debt-to-capital and net debt-to-capital ratios were 26.6% and 17.4%, respectively, at March 31, 2026"
real estate inventory impairments financial
"home closing gross margin included $2.4 million of real estate inventory impairments and $1.4 million in terminated land deal walk-away charges"
adjusted diluted earnings per common share financial
"Adjusted diluted earnings per common share | | $ | 0.86 | | | $ | 1.71"
Adjusted diluted earnings per common share is a measure of a company’s profit allocated to each common share after removing one-time or unusual items and counting all potential shares (like options) that could dilute ownership. Think of it as the company’s “cleaned-up” profit per share—useful for investors because it aims to show the underlying earning power and makes trends or comparisons clearer, though the adjustments depend on management’s choices.
capitalized interest financial
"Summary of Capitalized Interest: Capitalized interest, beginning of period | $ | 77,064"
Capitalized interest is the interest that is added to the total amount of a loan or project cost instead of being paid immediately. This means the interest becomes part of the principal, growing over time, much like compounding interest in a savings account. For investors, it matters because it affects the total amount owed and the future value of the investment or project.
Home closing revenue $1,107,822,000 -17% YoY
Net earnings $55,309,000 -55% YoY
Diluted EPS $0.82 -51% YoY
Home closing gross margin 17.5% -450 bps YoY
Home orders 3,664 units -5% YoY
Guidance

Full-year 2026 home closing volume and revenue expected to be at or within 5% of full-year 2025 results.

Understanding 8-K Material Events →
0000833079false00008330792026-04-222026-04-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 22, 2026
_______________________
MTH_Logo_Standard_Horizontal_Tagline_RGB narrow white space.jpg
MERITAGE HOMES CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Maryland 001-09977 86-0611231
(State or Other Jurisdiction
of Incorporation)		 (Commission File
Number)		 (IRS Employer
Identification No.)
   
18655 North Claret Drive, Suite 400, Scottsdale, Arizona 85255
(Address of Principal Executive Offices, including Zip Code)
(480) 515-8100
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock $.01 par valueMTHNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 
 Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 22, 2026, Meritage Homes Corporation (the "Company") announced in a press release information concerning its results for the quarterly period ended March 31, 2026. A copy of this press release, including information concerning forward-looking statements and factors that may affect the Company's future results, is attached as Exhibit 99.1. This press release is being furnished, not filed, under Item 2.02 in this Report on Form 8-K.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Exhibit NumberDescription
99.1
Press Release dated April 22, 2026
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 22, 2026
 
MERITAGE HOMES CORPORATION
/s/Alison Sasser
By:Alison Sasser
Senior Vice President and Chief Accounting Officer



Exhibit 99.1


mth_logoxstandardxhorizont.jpg
 
Contacts:Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979 (office)
investors@meritagehomes.com

Meritage Homes reports first quarter 2026 results
SCOTTSDALE, Ariz., April 22, 2026 - Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported first quarter results for the period ended March 31, 2026.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 Three Months Ended March 31,
 20262025% Chg
Homes closed (units)2,9673,416(13)%
Home closing revenue$1,107,822$1,342,104(17)%
Average sales price — closings $373$393(5)%
Home orders (units)3,6643,876(5)%
Home order value$1,400,440$1,558,177(10)%
Average sales price — orders$382$402(5)%
Ending backlog (units)1,8652,004(7)%
Ending backlog value$711,466$812,358(12)%
Average sales price — backlog$381$405(6)%
Home closing gross margin17.5%22.0%(450) bps
Earnings before income taxes$72,524$160,159(55)%
Net earnings$55,309$122,806(55)%
Diluted EPS$0.82$1.69(51)%



1

MANAGEMENT COMMENTS
"With the spring selling season commencing this quarter, we experienced some improved demand, achieving an absorption rate of 3.6 net sales per month and sales orders of 3,664 homes. However, these results were below our expectations as 2026 began with a severe winter storm in January and then transitioned into military operations in Iran midway through the quarter, which negatively impacted consumer sentiment and mortgage rates," said Steven J. Hilton, executive chairman of Meritage Homes. "In this environment, we acknowledge that capturing demand requires higher than anticipated incentive utilization, even as we look to optimize every asset while balancing pace and margin."

"We leaned into our strategy again this quarter, focusing on what we can control. We are proud of another year-over-year improvement in our cycle times driving 2,967 closings this quarter, and, with nearly 70% of these deliveries coming from intra-quarter sales, a backlog conversion rate of 254%," added Phillippe Lord, chief executive officer of Meritage Homes. "First quarter 2026 home closing revenue totaled $1.1 billion, however the difficult macroeconomic conditions this quarter drove a lower revenue leverage and increased incentives, resulting in home closing gross margin of 17.5% and diluted EPS of $0.82. As of March 31, 2026, our book value per share increased 6% year-over-year."

"We also maintained our objective of balance sheet preservation in uncertain times while continuing to execute on our shareholder returns commitment. In addition to opening 40 new communities and ending the quarter with 345 communities—our highest ever store count—we also completed $130 million of share repurchases, paid $32 million in dividends and finished the quarter with cash of $767 million, nothing drawn under our revolving credit facility and a net debt-to-capital ratio of 17.4%," concluded Mr. Lord.

2


FIRST QUARTER RESULTS

•Orders of 3,664 homes for the first quarter of 2026 decreased 5% year-over-year mainly as a result of 18% lower average absorption pace, which was partially offset by a 17% increase in average community count. First quarter 2026 average sales price ("ASP") on orders of $382,000 was down 5% from the first quarter of 2025, primarily due to increased utilization of incentives and geographic mix this year.

•The 17% year-over-year decrease in home closing revenue in the first quarter of 2026 to $1.1 billion was due to 13% lower closing volume of 2,967 homes combined with a 5% decrease in ASP on closings to $373,000. ASP on closings was impacted by increased utilization of incentives and geographic mix this year.
•Home closing gross margin of 17.5% in the first quarter of 2026 was 450 bps lower than 22.0% in the prior year as a result of increased utilization of incentives, 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, decreased compensation expense and faster cycle times. First quarter 2026 home closing gross margin included $2.4 million of real estate inventory impairments and $1.4 million in terminated land deal walk-away charges, compared to no impairments and $1.4 million in terminated land deal walk-away charges in the prior year.

•Selling, general and administrative expenses ("SG&A") as a percentage of first quarter 2026 home closing revenue were 11.8% compared to 11.3% in the first quarter of 2025, primarily as a result of lost leverage on lower home closing revenue as well as higher technology costs, which were partially offset by decreased compensation expense and an intentional reduction in discretionary expenses.
•The first quarter effective income tax rate was 23.7% in 2026 compared to 23.3% in 2025.

•Net earnings were $55 million ($0.82 per diluted share) for the first quarter 2026, a 55% decrease from $123 million ($1.69 per diluted share) for the first quarter of 2025, mainly resulting from lower home closing revenue and gross profit.

BALANCE SHEET & LIQUIDITY
•Cash and cash equivalents at March 31, 2026 totaled $767 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 $326 million for the first quarter of 2026, reflecting a deliberate pullback due to market conditions. This compared to $465 million of land acquisition and development spend, net of land development reimbursements, in the first quarter of 2025.
•Approximately 75,500 lots were owned or controlled as of March 31, 2026, compared to approximately 84,200 lots as of March 31, 2025. Nearly 400 net new lots were added in the first quarter of 2026, representing an estimated 11 future communities.
3

•First quarter 2026 ending community count of 345 was up 19% compared to prior year and up 3% compared to the fourth quarter of 2025.
•Debt-to-capital and net debt-to-capital ratios were 26.6% and 17.4%, respectively, at March 31, 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 $32 million in the first quarter of 2026. This compared to $0.43 per share totaling $31 million in the first quarter of 2025.
•During the first quarter of 2026, the Company repurchased 1,815,820 shares of stock, or 2.7% of shares outstanding at the beginning of the quarter, for $130 million. This compared to $45 million in the first quarter of 2025. As of March 31, 2026, $384 million remained available to repurchase.

GUIDANCE
Based on current market conditions, the Company is updating its guidance for full year 2026 home closing volume and revenue to at or within 5% of full year 2025 results.


CONFERENCE CALL
Management will host a conference call to discuss its first quarter 2026 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, April 23, 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.



4

Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)

 
 Three Months Ended March 31,
20262025Change $Change %
Homebuilding:
Home closing revenue$1,107,822 $1,342,104 $(234,282)(17)%
Land closing revenue9,361 15,421 (6,060)(39)%
Total closing revenue1,117,183 1,357,525 (240,342)(18)%
Cost of home closings(914,024)(1,046,454)(132,430)(13)%
Cost of land closings(9,630)(12,256)(2,626)(21)%
Total cost of closings(923,654)(1,058,710)(135,056)(13)%
Home closing gross profit193,798 295,650 (101,852)(34)%
Land closing gross (loss)/profit(269)3,165 (3,434)(108)%
Total closing gross profit193,529 298,815 (105,286)(35)%
Financial Services:
Revenue6,285 7,082 (797)(11)%
Expense(3,623)(4,192)(569)(14)%
Earnings from financial services unconsolidated entities and other, net831 673 158 23 %
Financial services profit3,493 3,563 (70)(2)%
Commissions and other sales costs(79,472)(94,720)(15,248)(16)%
General and administrative expenses(51,402)(56,997)(5,595)(10)%
Interest expense(587)— 587 N/A
Other income, net6,963 9,498 (2,535)(27)%
Earnings before income taxes72,524 160,159 (87,635)(55)%
Provision for income taxes(17,215)(37,353)(20,138)(54)%
Net earnings$55,309 $122,806 $(67,497)(55)%
Earnings per common share:
BasicChange $ or sharesChange %
Earnings per common share$0.82 $1.71 $(0.89)(52)%
Weighted average shares outstanding67,367 71,915 (4,548)(6)%
Diluted
Earnings per common share$0.82 $1.69 $(0.87)(51)%
Weighted average shares outstanding67,806 72,650 (4,844)(7)%









5

Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
 
March 31, 2026December 31, 2025
Assets:
Cash and cash equivalents$766,632 $775,157 
Other receivables280,922 306,956 
Real estate (1)
5,962,075 5,987,120 
Deposits on real estate under option or contract166,236 174,170 
Investments in unconsolidated entities60,762 57,268 
Property and equipment, net46,064 46,647 
Deferred tax asset, net51,211 53,293 
Prepaids, other assets and goodwill220,709 221,676 
Total assets$7,554,611 $7,622,287 
Liabilities:
Accounts payable$199,943 $200,679 
Accrued and other liabilities408,718 387,698 
Home sale deposits10,907 9,213 
Loans payable and other borrowings34,990 24,328 
Senior and convertible senior notes, net1,806,284 1,804,726 
Total liabilities2,460,842 2,426,644 
Stockholders' Equity:
Preferred stock— — 
Common stock, par value $0.01. Authorized 125,000,000 shares; 66,702,433 and 68,168,923 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively667 682 
Additional paid-in capital— — 
Retained earnings5,093,102 5,194,961 
Total stockholders’ equity5,093,769 5,195,643 
Total liabilities and stockholders’ equity$7,554,611 $7,622,287 

(1) Real estate – Allocated costs:
Homes completed and under construction$1,933,033 $2,069,548 
Finished home sites and home sites under development3,963,883 3,917,572 
Consolidated real estate not owned65,159 — 
Total real estate$5,962,075 $5,987,120 




 


6

Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands)
(Unaudited)
Three Months Ended March 31,
 20262025
Cash flows from operating activities:
Net earnings$55,309 $122,806 
Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities:
Depreciation and amortization5,373 5,949 
Real estate and land impairments2,427 — 
Write-off of terminated land deals1,373 1,433 
Stock-based compensation5,860 6,325 
Equity in earnings from unconsolidated entities(656)(626)
Distribution of earnings from unconsolidated entities673 588 
Other2,074 489 
Changes in assets and liabilities:
Decrease/(increase) in real estate34,049 (60,821)
Decrease/(increase) in deposits on real estate under option or contract7,389 (62,179)
Decrease/(increase) in other receivables, prepaids and other assets29,018 (37,636)
Decrease in accounts payable and accrued and other liabilities(43,274)(16,041)
Increase/(decrease) in home sale deposits1,694 (2,863)
Net cash provided by/(used in) operating activities101,309 (42,576)
Cash flows from investing activities:
Investments in unconsolidated entities(3,517)(5,850)
Purchases of property and equipment(4,308)(5,592)
Proceeds from sales of property and equipment94 29 
Net cash used in investing activities(7,731)(11,413)
Cash flows from financing activities:
Repayment of loans payable and other borrowings(33)(2,150)
Proceeds from issuance of senior notes— 497,195 
Payment of debt issuance costs— (5,073)
Proceeds from liabilities related to consolidated real estate not owned59,947 — 
Dividends paid(32,017)(30,887)
Repurchase of shares(130,000)(44,999)
Net cash (used in)/provided by financing activities(102,103)414,086 
Net (decrease)/increase in cash and cash equivalents(8,525)360,097 
Beginning cash and cash equivalents775,157 651,555 
Ending cash and cash equivalents $766,632 $1,011,652 

7





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 March 31,
 20262025
 HomesValueHomesValue
Homes Closed:
West Region686 $336,183 998 $479,636 
Central Region1,108 376,300 1,187 412,537 
East Region1,173 395,339 1,231 449,931 
Total2,967 $1,107,822 3,416 $1,342,104 
Homes Ordered:
West Region898 $444,293 1,093 $539,594 
Central Region1,316 457,299 1,365 489,160 
East Region1,450 498,848 1,418 529,423 
Total3,664 $1,400,440 3,876 $1,558,177 


At March 31,
20262025
HomesValueHomesValue
Order Backlog:
West Region397 $193,651 530 $262,627 
Central Region665 238,387 659 242,919 
East Region803 279,428 815 306,812 
Total1,865 $711,466 2,004 $812,358 


 Three Months Ended March 31,
 20262025
 EndingAverageEndingAverage
Active Communities:
West Region88 85.5 85 88.0 
Central Region107 109.5 82 86.0 
East Region150 145.5 123 117.0 
Total345 340.5 290 291.0 

8

Meritage Homes Corporation and Subsidiaries
Supplement and Non-GAAP information
(Unaudited)

Supplemental Information (Dollars in thousands):


 Three Months Ended March 31,
 20262025
Depreciation and amortization$5,373$5,949
Summary of Capitalized Interest:
Capitalized interest, beginning of period$77,064 $53,678
Interest incurred20,005 14,714
Interest expensed(587)—
Interest amortized to cost of home and land closings(12,018)(11,285)
Capitalized interest, end of period$84,464 $57,107



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 March 31,
20262025
Home closing gross profit$193,798$295,650
Home closing gross margin17.5 %22.0 %
Add: Real estate-related impairments2,427—
Add: Write-off of terminated land deals1,3731,433
Adjusted home closing gross profit$197,598$297,083
Adjusted home closing gross margin17.8 %22.1 %
9

Earnings before income taxes, Net earnings and Diluted earnings per common share
Three Months Ended March 31,
20262025
Earnings before income taxes$72,524$160,159
Add: Real estate-related impairments2,457—
Add: Write-off of terminated land deals1,3731,433
Adjusted earnings before income taxes$76,354$161,592
Incremental tax rate24.8 %24.4 %
Adjusted provision for income tax(18,165)(37,703)
Adjusted net earnings58,189123,889
Diluted earnings per common share$0.82 $1.69 
Adjusted diluted earnings per common share$0.86 $1.71 
Debt-to-Capital Ratios
 March 31, 2026December 31, 2025
Senior and convertible senior notes, net and loans payable and other borrowings$1,841,274$1,829,054
Stockholders' equity5,093,7695,195,643
Total capital$6,935,043$7,024,697
Debt-to-capital26.6%26.0%
Senior and convertible senior notes, net and loans payable and other borrowings$1,841,274$1,829,054
Less: cash and cash equivalents(766,632)(775,157)
Net debt$1,074,642$1,053,897
Stockholders’ equity5,093,7695,195,643
Total net capital$6,168,411$6,249,540
Net debt-to-capital17.4%16.9%


10

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 210,000 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 our future results including our full year 2026 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; 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;
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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 under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

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Source: View Original Filing on SEC EDGAR

FAQ

How did Meritage Homes (MTH) perform financially in Q1 2026?

Meritage Homes’ Q1 2026 home closing revenue was $1.1 billion, down 17% year-over-year. Net earnings declined 55% to $55 million, and diluted EPS fell to $0.82 from $1.69, reflecting softer demand and lower margins.

What happened to Meritage Homes’ margins in the first quarter of 2026?

Meritage Homes’ Q1 2026 home closing gross margin declined to 17.5% from 22.0% a year earlier. Management cited higher incentives, increased lot costs and reduced fixed-cost leverage, partly offset by direct cost savings and lower compensation expense.

How did Meritage Homes’ orders and backlog trend in Q1 2026?

In Q1 2026, Meritage Homes recorded 3,664 home orders, a 5% year-over-year decline. Ending backlog stood at 1,865 homes with value of $711 million, down 7% and 12%, respectively, indicating softer demand versus the prior year.

What is Meritage Homes’ balance sheet and leverage position as of March 31, 2026?

As of March 31, 2026, Meritage Homes held $767 million in cash and cash equivalents. Debt-to-capital was 26.6% and net debt-to-capital was 17.4%, supported by stockholders’ equity of about $5.1 billion and no revolver borrowings.

How much stock did Meritage Homes repurchase in Q1 2026?

During Q1 2026, Meritage Homes repurchased 1,815,820 shares, or about 2.7% of beginning shares outstanding, for $130 million. The company also noted that $384 million remained available under its share repurchase authorization as of March 31, 2026.

What guidance did Meritage Homes provide for full-year 2026?

Meritage Homes updated its guidance for full-year 2026, expecting home closing volume and revenue to be at or within 5% of full-year 2025 levels. This outlook is based on current market conditions described by management in the release.

What were Meritage Homes’ non-GAAP results for Q1 2026?

For Q1 2026, Meritage Homes reported adjusted earnings before income taxes of $76.4 million and adjusted net earnings of $58.2 million. Adjusted diluted EPS was $0.86, which excludes real estate-related impairments and terminated land deal write-offs.

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