Financial Data and Key Metrics Changes - In Q4 2025, home closing revenue was $1.4 billion, a 12% decrease year-over-year due to a 7% lower home closing volume and a 5% decrease in average selling price (ASP) to $375,000 per home [23][30] - Adjusted diluted EPS decreased by 30% year-over-year to $1.67 from $2.39 in Q4 2024 [30] - The company completed $150 million in share buybacks, returning nearly $180 million in total capital to shareholders this quarter [9][33] Business Line Data and Key Metrics Changes - Q4 2025 sales orders totaled 3,224, with an average absorption pace of 3.2 net sales per month, reflecting a pullback in buyer urgency [8] - The cancellation rate increased to 14%, slightly below the historical average [15] - The average community count grew by 15% year-over-year to 336 communities, with 35 new communities brought online in Q4 [15][16] Market Data and Key Metrics Changes - Demand patterns were localized, with stronger absorption in markets like Dallas and Houston, while facing lower demand in Austin and parts of Florida [17][18] - The ASP on orders decreased by 6% year-over-year, influenced by increased incentives and geographic mix [17] - The company anticipates continued challenges from elevated mortgage rates and job security concerns, but long-term housing demand remains supported by favorable demographics [10] Company Strategy and Development Direction - The company is focused on a balanced approach to capital allocation, terminating certain land deals to redeploy capital towards share repurchases and acquiring new land [11][12] - A multi-year technology initiative aims to improve back-office productivity and operational efficiency [13] - The company plans to redeploy $400 million towards share buybacks in 2026, indicating a belief that the stock is undervalued [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions are expected to remain challenging in the near term but expressed optimism for improved demand in the spring selling season [10][68] - The company is cautious about the current economic environment but believes it is well-positioned to capture market share as conditions improve [16][38] - Management highlighted the importance of consumer confidence as a key factor influencing demand [61] Other Important Information - The company ended Q4 2025 with approximately 7,000 specs and backlog units, down from about 8,600 units a year prior [20] - The balance sheet remained healthy with cash of $775 million and no debt drawn on the credit facility [32] - The company plans to maintain a net debt to cap ceiling in the mid-20% range [32][91] Q&A Session Summary Question: 2026 outlook and absorption pace - Management indicated that while they aim for an average of 4 net sales per month, they are willing to operate below that temporarily due to current market conditions [41][43] Question: Specs per community - Management stated that they are close to their target of 17 specs per community but would like to adjust the ratio of finished specs to improve efficiency [46][48] Question: Community count guidance - The company clarified that the 5%-10% growth in community count is based on the year-end count, not an average [53] Question: Margin guidance and seasonality - Management acknowledged typical seasonal margin pressure and indicated that Q1 guidance reflects this [55][56] Question: Demand trends in January - Management expressed optimism for improved demand in January compared to Q4, citing better realtor feedback and reduced discounting [68][69] Question: Share repurchase strategy - Management emphasized the importance of balancing share repurchases with operational growth and returning capital to shareholders [73][74] Question: Delivery outlook and community conversions - Management noted that while community count growth has been strong, conversions in new communities have been modest compared to historical trends [83][85]

Meritage Homes (NYSE:MTH) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsAlan Ratner - Managing DirectorAlex Barron - FounderEmily Tadano - VP of Investor RelationsHilla Sferruzza - EVP and CFOJason Sabshon - Equity Research AssociateJohn Lovallo - UBSPhillippe Lord - CEOStephen Kim - Senior Managing DirectorSteve Hilton - Executive ChairmanConference Call ParticipantsMichael Rehaut - Executive Director and Senior AnalystRafe Jadrosich - Senior Equity Research AnalystTrevor Allinson ...

Financial Data and Key Metrics Changes - In Q4 2025, home closing revenue was $1.4 billion, a 12% decrease year-over-year due to a 7% lower home closing volume and a 5% decrease in average selling price (ASP) to $375,000 per home [20][27] - Adjusted diluted EPS decreased by 30% year-over-year to $1.67 from $2.39 in Q4 2024 [27] - The company achieved a 19.3% adjusted home closing gross margin, down from 23.3% in Q4 2024 [21][27] - Full year 2025 home closing revenue decreased by 9% to $5.8 billion [27] Business Line Data and Key Metrics Changes - Q4 2025 sales orders totaled 3,224, reflecting a 2% decrease year-over-year, primarily due to an 18% decline in average absorption rates [12] - The cancellation rate increased to 14%, slightly below the historical average [12] - The average absorption pace for the full year 2025 was 3.9, better than broader market trends [7] Market Data and Key Metrics Changes - Demand patterns in Q4 were localized, with stronger performance in Dallas, Houston, and North and South Carolina, while facing lower demand in Austin, San Antonio, and parts of Florida [15] - The company anticipates continued impact from elevated mortgage interest rates and job security concerns in the near term [8] Company Strategy and Development Direction - The company is focused on a balanced approach to capital allocation, including share repurchases and land acquisitions [9] - A commitment to redeploy $400 million towards share buybacks in 2026 was announced, indicating the stock is viewed as undervalued [11] - The strategy includes maintaining a competitive edge through a 60-day closing guarantee and realtor engagement [34] Management's Comments on Operating Environment and Future Outlook - Management noted that long-term housing demand is supported by favorable demographics and an undersupply of affordable homes [8] - The company expects the spring selling season to improve compared to Q4 2025, with signs of better demand in January [48] - Management remains cautious about the impact of consumer confidence and affordability on future sales [44] Other Important Information - The company returned $179 million to shareholders in Q4 2025 through buybacks and dividends, significantly up from $67 million in the same period last year [30] - The balance sheet remained healthy with cash of $775 million and no debt drawn on the credit facility [29] Q&A Session Summary Question: 2026 outlook and absorption pace - Management indicated a temporary refocus on margin rather than chasing incentives due to elevated inventory levels in Q4, with expectations for improved returns in Q1 and Q2 [35][36] Question: Specs and inventory management - Approximately 50% of specs are nearing completion, with a target to have one-third ready for quick move-in [39] Question: Community count guidance - The 5%-10% community count growth is based on year-end figures, indicating continued expansion [40] Question: Margin guidance and seasonality - Management acknowledged typical seasonal margin pressure and expects a flattish margin guide for Q1 [41] Question: Demand trends and selling season expectations - Management expressed optimism for improved demand in the spring selling season compared to Q4, with indications of increased buyer activity in January [48][49] Question: Share repurchase strategy - The company balances share repurchases with operational growth, emphasizing the importance of returning capital to shareholders when stock is undervalued [51]

FOURTH QUARTER 2025 ANALYST CONFERENCE CALL JANUARY 29, 2026 Safe Harbor The information included in this presentation 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 ability to increase market share, our full year 2026 projected share repurchases, home closing volume and home closing revenue, and first quarter 2026 projected home closi ...

For the quarter ended December 2025, Meritage Homes (MTH) reported revenue of $1.43 billion, down 11.5% over the same period last year. EPS came in at $1.67, compared to $4.72 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -5.16%. The company delivered an EPS surprise of +8.06%, with the consensus EPS estimate being $1.55.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Meritage Homes (MTH) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $4.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +8.06%. A quarter ago, it was expected that this homebuilder would post earnings of $1.71 per share when it actually produced earnings of $1.39, delivering a surprise of -18.71%.Over the last four quarters, the compa ...

Financial Performance - Home closing revenue for Q4 2025 was $1.4 billion, a 12% decrease year-over-year, driven by a 7% decline in home closing volume to 3,755 units and a 5% drop in average sales price to $375,000[9] - The home closing gross margin for Q4 2025 was 16.5%, down 670 basis points from 23.2% in Q4 2024, primarily due to non-recurring charges and increased lot costs[9] - Net earnings for Q4 2025 were $84.0 million, or $1.20 per diluted share, reflecting a 51% decrease from $172.6 million, or $2.36 per diluted share, in Q4 2024[9] - Net earnings for the twelve months ended December 31, 2025, were $453,013, a decrease of 42% compared to $786,186 in 2024[19] - Basic earnings per share for Q4 2025 were $1.21, down 49% from $2.39 in Q4 2024, with diluted earnings per share at $1.20, also down 49% from $2.36[17] - Adjusted net earnings for the twelve months ended December 31, 2025, were $503,074,000, a decrease from $791,249,000 in 2024, with adjusted diluted earnings per share at $7.05 compared to $10.79 in the previous year[37] Sales and Orders - Total sales orders for full year 2025 were 14,650 homes, essentially flat year-over-year, with a 9% decline in average absorption pace offset by a 12% increase in average communities[9] - Homes ordered in Q4 2025 totaled 3,224 with a value of $1,206,142,000, compared to 3,304 homes valued at $1,320,440,000 in Q4 2024, showing a decrease of 2.4% in homes ordered and 9.6% in value[27] - In Q4 2025, the total homes closed were 3,755 with a total value of $1,406,449,000, compared to 4,044 homes closed valued at $1,595,920,000 in Q4 2024, representing a decrease of 7.1% in homes closed and 12.0% in total value[27] - For the twelve months ended December 31, 2025, total homes closed were 15,026 with a total value of $5,763,597,000, compared to 15,611 homes closed valued at $6,341,546,000 in 2024, indicating a decrease of 3.7% in homes closed and 9.1% in total value[28] - The order backlog at December 31, 2025, was 1,168 homes valued at $440,562,000, down from 1,544 homes valued at $629,549,000 in 2024, reflecting a decrease of 24.4% in homes and 30.0% in value[30] Investments and Assets - The company invested $416 million in land acquisition and development during Q4 2025, a decrease from $689 million in Q4 2024, reflecting a strategic response to market conditions[11] - Total assets increased to $7,622,287 as of December 31, 2025, compared to $7,162,654 in 2024, reflecting a growth of 6.4%[22] - Cash and cash equivalents at the end of Q4 2025 were $775,157, up from $651,555 at the end of Q4 2024, marking an increase of 19%[22] Margins and Costs - The company reported a total closing gross profit of $231,431 for Q4 2025, a decline of 38% from $373,144 in Q4 2024[16] - Home closing gross profit for Q4 2025 was $232,257,000, down from $369,814,000 in Q4 2024, resulting in a gross margin of 16.5%, compared to 23.2% in the prior year[36] - The cost of home closings decreased by 4% to $1,174,192 in Q4 2025 from $1,226,114 in Q4 2024[16] Shareholder Actions - The company repurchased 2,238,534 shares for $150 million during Q4 2025, with a total of 4,289,984 shares repurchased for $295 million throughout the year[14] - The weighted average shares outstanding decreased by 4% to 69,254 in Q4 2025 from 72,188 in Q4 2024[17] Market Outlook - The company anticipates full year 2026 home closing volume and revenue to be consistent with full year 2025 results, assuming no further deterioration in market conditions[12] - The effective tax rate for full year 2025 was 22.5%, compared to 21.6% in 2024, influenced by fewer homes qualifying for energy tax credits[11] Company Overview - The company has a strong presence in the U.S. housing market, operating in multiple states including Arizona, California, Colorado, and Texas, and is recognized for its energy-efficient homebuilding practices[40] - Meritage Homes has delivered over 210,000 homes in its 40-year history, emphasizing its commitment to quality construction and customer experience[41]

Reported home closing gross margin of 16.5% and adjusted of 19.3% excluding non-recurring chargesSCOTTSDALE, Ariz., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth largest public homebuilder in the U.S., today announced fourth quarter and full year results for the periods ended December 31, 2025. Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % Chg<td ...

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