Meritage Homes ( MTH ) is currently facing headwinds due to the tough macroeconomic environment. Affordability constraints due to high interest rates are impacting sales, while large buyer incentives are hurting margins. However, with the stock trading atI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managi ...

Meritage Homes ( MTH ) is currently facing headwinds due to the tough macroeconomic environment. Affordability constraints due to high interest rates are impacting sales, while large buyer incentives are hurting margins. However, with the stock trading atI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managi ...

Heidi Overton, Novo Nordisk CEO Maziar Mike Doustdar, Eli Lilly CEO David A. Ricks, and U.S. Secretary of Commerce Howard Lutnick listen while U.S. President Donald Trump announces a deal with Eli Lilly and Novo Nordisk on to reduce the prices of GLP-1 weight‑loss drugs during an event in the Oval Office at the White House in Washington, D.C., U.S. Nov. 6, 2025.A version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health-care news straight to your inbox. Subs ...

Meritage Homes Corporation ( MTH ), which has been in the business of homebuilding for 4 decades , currently specializes in the design and building of single-family homes (both attached and detached) across three broad regions inAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

The housing market continues to limp toward the finish in 2025, as high rates have stymied potential buyers and sellers are pulling back rather than lowering asking prices.The freeze is exacerbated by several other factors, including aggressive immigration enforcement that limits the construction labor force and high tariffs on materials such as lumber, aluminum, and steel.Both starter and luxury homebuilders are feeling the pressure, and this might be a sector to avoid unless mortgage rates drop significan ...

SCOTTSDALE, Ariz., Dec. 17, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth largest public homebuilder in the U.S., plans to release the Company's fourth quarter 2025 results on Wednesday, January 28, 2026 after the market closes. Management will host a conference call to discuss the results at 8:00 a.m. Mountain Standard Time (10:00 a.m. Eastern Standard Time) on Thursday, January 29, 2026. To participate in the conference call, please go to Meritage’s Investor Relations page to ...

Core Viewpoint - Meritage Homes, the fifth-largest public homebuilder in the U.S., reinforced its commitment to community building and philanthropy in 2025, contributing over $4 million to various initiatives aimed at education, disaster relief, food security, and housing support [1][2][3]. Philanthropic Contributions - The company allocated $2 million for K-12 education initiatives and donated an additional $2 million through its philanthropic foundation, Meritage Cares, along with in-kind contributions [1]. - Meritage contributed over $600,000 to assist families affected by California wildfires and severe flooding in Texas, providing emergency relief and long-term recovery resources [2]. - An investment of nearly $450,000 was made to fund academic scholarships for students and support early careers in construction [3]. Food Security and Shelter Initiatives - Meritage donated $250,000 to No Child Hungry and employees volunteered over 2,000 hours to pack over 465,000 meal kits for children in need [4]. - The company continued its support of the Arizona Housing Fund for the fifth consecutive year to promote affordable housing initiatives [5]. Environmental and Community Support - A contribution of $300,000 was made to the Arbor Day Foundation to support reforestation and water conservation efforts [6]. - Meritage built and donated two mortgage-free homes to military families through its partnership with Operation Homefront, aiding 22 families in total [7]. Company Overview - Meritage Homes is recognized for its energy-efficient and affordable housing solutions, operating across multiple states including Arizona, California, and Texas [9]. - The company has delivered over 200,000 homes in its 40-year history and has received numerous awards for its commitment to quality construction and customer experience [10].

Core Insights - Meritage Homes celebrates its 40th anniversary in 2025, having delivered 200,000 homes since its founding in 1985 [1][2][11] - The company has evolved from a semi-custom luxury builder to focusing on affordable entry-level homes since 2016, becoming the fifth largest public homebuilder in the U.S. [1][5][10] Company Evolution - Meritage began as an Arizona homebuilder and expanded regionally in the Southwest and California through strategic mergers and acquisitions [3] - Over the last 20 years, the company diversified its geographic footprint to become a national homebuilder, expanding into the Southeast and sunbelt states [3] Strategic Focus - In 2009, Meritage adopted an energy-efficient construction focus, which has been a key driver of its growth by offering homeowners lower utility bills [4] - The company implemented a new strategy in 2016 to focus on entry-level homes, enhancing its market strategy with a 60-day closing commitment to compete against the resale market [5] Commitment to Quality - Meritage is dedicated to delivering a "Life.Built.Better.®" to stakeholders, receiving high customer satisfaction scores and multiple awards for its quality and service [6][11] - The company has been recognized as a Great Place to Work® for the past three years, emphasizing employee development and well-being [7] Community Engagement - Meritage established the Meritage Cares philanthropic foundation in 2014, contributing nearly $22 million to charitable organizations through employee-selected initiatives [8] - The company has been honored with the Hearthstone Builder Humanitarian Award in 2023 for its commitment to public service [8] Industry Recognition - Meritage is recognized as an industry leader in energy-efficient homebuilding, receiving multiple awards from the U.S. Environmental Protection Agency for its excellence in sustainability [11]

Core Viewpoint - Meritage Homes reported weaker-than-expected Q3 2025 results, with earnings and revenues declining year-over-year, attributed to ongoing housing market challenges and increased costs [2][3][4]. Earnings & Revenue Discussion - Earnings per share (EPS) of $1.39 fell 18.7% short of the Zacks Consensus Estimate of $1.71 and declined 48% year-over-year from $2.67 [4]. - Total revenues amounted to $1.424 billion, down from $1.597 billion reported in the year-ago period [4]. - Total closing revenues were $1.42 billion, an 11% decline from the prior-year quarter and missing the consensus mark of $1.52 billion by 6.6% [5]. Segment Details - Home closing revenues of $1.40 billion declined 12% from the prior-year quarter due to lower average selling prices (ASPs) and reduced closing volumes [6]. - The company closed 3,685 units, down 7% from the year-ago quarter, with an ASP of $380,000, a 5% decline year-over-year [7]. - The quarter-end backlog totaled 1,699 units, down 26% year-over-year, with a backlog value decrease of 28% to $670 million [8]. Cost and Margin Analysis - Home closing gross margin contracted 570 basis points to 19.1%, primarily due to increased buyer incentives and higher lot costs [8]. - SG&A expenses as a percentage of home closing revenues rose to 10.8% from 9.9% in the prior-year quarter, driven by reduced leverage on lower revenues [9]. Financial Position and Shareholder Returns - The company ended the quarter with $729 million in cash and equivalents, up from $652 million at year-end 2024, with a debt-to-capital ratio of 25.7% [11]. - During the quarter, Meritage returned $85 million to shareholders, including $55 million in share repurchases and $30 million in dividends [12]. Q4 2025 Guidance - The company expects home closings between 3,800 and 4,000 homes, with projected home closing revenues between $1.46 billion and $1.54 billion [13]. - EPS is expected to be between $1.51 and $1.70, down from $2.36 reported a year ago [13]. Estimate Revisions and Market Outlook - There has been a downward trend in estimates, with the consensus estimate shifting -12.57% [14]. - Meritage has a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [16]. Industry Comparison - Meritage belongs to the Zacks Building Products - Home Builders industry, where PulteGroup reported revenues of $4.4 billion, a year-over-year change of -1.6% [17].

Core Points - Meritage Homes Corporation has declared a quarterly dividend of $0.43 per share, payable on December 31, 2025, to shareholders of record as of December 17, 2025 [1] - The company has repurchased $128 million of shares in the fourth quarter and $273 million year-to-date, with $536 million remaining under the current authorization program [2] - Meritage plans to increase its share repurchase commitment to $100 million per quarter in 2026, anticipating reduced land acquisition and development spending [3] Company Overview - Meritage Homes is the fifth-largest public homebuilder in the U.S., based on homes closed in 2024, and operates in multiple states including Arizona, California, and Texas [6] - The company has delivered over 200,000 homes in its 40-year history and is recognized for its energy-efficient homebuilding practices [7] - Meritage has received multiple awards from the U.S. Environmental Protection Agency for its commitment to energy efficiency and quality construction [8]