Financial Performance - Home closing revenue for 2022 reached $6.2 billion, a 21.8% increase year-over-year, driven by a 10.2% rise in closing volume and a 10.6% increase in average sales price [27][30]. - Net earnings increased by 34.5% to $992.2 million, with diluted EPS rising by 38.6% compared to the previous year [27][30]. - The gross margin on home closings improved to 28.6%, up 80 basis points from 27.8% in 2021, marking the highest full-year margin in company history [30]. - Earnings before income taxes increased by 35.0% to $1.3 billion in 2022, up from $954.8 million in 2021 [154]. - Home closing gross profit increased by $354.6 million to $1.8 billion in 2022, with a gross margin improvement to 28.6% [181]. - Financial services profit for 2022 was $18.3 million, a slight increase of $0.3 million compared to 2021, despite higher home closing volumes [186]. Sales and Orders - The company experienced a 14.8% reduction in order volume in the second half of 2022, leading to a 9.3% decrease in home order value compared to 2021 [30][29]. - The company experienced significant cancellations in the last half of 2022, attributed to economic uncertainty and rising interest rates, with expectations for cancellations to trend above normal in early 2023 [90]. - Homes in backlog decreased by 41.3% year-over-year, totaling 3,332 units valued at $1.5 billion as of December 31, 2022, down from 5,679 units valued at $2.5 billion in 2021 [153]. - The company experienced a 14.8% decline in order volume, with 11,759 orders in 2022 compared to 13,808 in 2021, attributed to decreased demand and a higher cancellation rate of 21.0% [153]. - Cancellation rates increased to 21.0% in 2022, compared to 10.2% in 2021, indicating a significant rise in cancellations [173]. Inventory and Land Acquisition - As of December 31, 2022, the company had cash and cash equivalents of $861.6 million, up from $618.3 million at the end of 2021, while inventory grew by 16.7% to $4.4 billion [31]. - In 2022, the company invested approximately $1.5 billion in land acquisition and development, securing about 2,000 net new lots, a significant decrease from 34,000 in 2021 [32]. - As of December 31, 2022, the company had 63,182 lots under control, down from 75,049 in 2021, maintaining a 4.5-year supply of lots based on 2022 closings [32]. - At the end of 2022, the company had 46,317 owned lots and 16,865 lots under committed purchase or option contracts, with a total purchase price of approximately $738.5 million [39]. Debt and Liquidity - The debt-to-capital ratio was 22.6% and the net debt-to-capital ratio was 6.8% at the end of 2022, compared to 27.6% and 15.1% respectively at the end of 2021 [31]. - As of December 31, 2022, the company had approximately $1.2 billion in indebtedness and $861.6 million in cash and cash equivalents [102]. - The company has $725.6 million available to be drawn under its credit facility, which may be necessary for working capital needs [102]. - The company's credit ratings were BB+, Ba1, and BB+ from Standard and Poor's, Moody's, and Fitch Ratings, respectively, as of December 31, 2022 [104]. Operational Challenges - The company experienced building material cost pressures and supply chain constraints throughout 2022, impacting construction timelines [45]. - Supply chain and labor constraints in 2021 and 2022 led to lengthened construction cycle times, with expectations for these conditions to persist at least through early 2023 [91]. - The company faced higher material and labor costs in recent months, negatively impacting profitability, although it has historically passed cost increases onto customers [87]. - The company experienced delays in construction schedules due to a limited pool of subcontract labor, impacting construction cycle times in 2021 and 2022 [112]. Market Conditions - In 2022, long-term interest rates increased significantly from historically low averages, impacting home sales and cash flow, with potential material effects on the business [84]. - Home prices declined in the latter half of 2022 due to rising interest rates, with expectations for this trend to continue into 2023 and potentially beyond, adversely affecting homebuilding volumes and cash flows [92]. - The company is subject to competitive pressures from national, regional, and local developers, with competition expected to intensify in the housing industry [97]. - The company’s operational success is dependent on the availability of lots and land that meet its investment criteria, which is influenced by external factors [107]. Strategic Initiatives - The company’s strategy includes a focus on affordable, quick move-in homes, with a goal of achieving a 100% speculative home building strategy for entry-level products [20][21]. - The company’s marketing strategy includes digital offerings such as virtual tours and a chatbot for customer support, enhancing the home buying experience [51]. - The company aims for a 100% spec home building strategy for entry-level products, with spec inventory per active community increasing to 18.0 units or 4,891 units as of December 31, 2022, compared to 12.3 units or 3,180 units a year prior [54]. - The company believes favorable homebuyer demographics support long-term demand for homes, despite current downward pressure on the housing market [151]. Environmental and Regulatory Factors - Meritage Homes has adopted an Environmental Responsibility Policy and issued its inaugural Task Force on Climate-Related Financial Disclosures report in 2022 [23]. - The company has received multiple awards for its commitment to energy efficiency, including the 2022 EPA's ENERGY STAR Partner of the Year for Sustained Excellence [24]. - California's updated building codes require all homes constructed with permits obtained in 2020 and beyond to have solar panels, which may increase future operating and compliance costs [123]. - The company anticipates that new building code requirements imposing stricter energy efficiency standards could significantly increase construction costs [124]. - The SEC's proposed climate-related disclosure rules could impose significant compliance costs if adopted, impacting the company's financial performance [125].

Financial Data and Key Metrics Changes - Home closing revenue grew 32% year-over-year to $2 billion in Q4 2022, driven by a 29% increase in home closing volume and a 3% increase in average selling prices (ASPs) [11][49] - The fourth quarter 2022 home closing gross margin was 25.2%, a decline of 380 basis points from 29.8% in Q4 2021, attributed to higher incentives and direct costs [22][49] - Diluted EPS increased by 13% year-over-year to $7.09, supported by higher closing volume and a lower outstanding share count [24][52] Business Line Data and Key Metrics Changes - The company delivered 4,540 homes in Q4 2022, a 29% increase year-over-year, with entry-level homes making up 85% of closings, up from 81% in the prior year [16][49] - Sales orders for Q4 2022 totaled 1,808 homes, with 89% being entry-level homes, an increase from 82% in Q4 2021 [16][43] - The cancellation rate in Q4 2022 was 39%, up from 12% in Q4 2021, significantly impacting net sales [43][49] Market Data and Key Metrics Changes - The highest regional absorption pace was 2.6 homes per month in the Central region, while the West region saw a decline in orders with an absorption pace of 1.6 homes per month [17][18] - In Florida, average selling prices on orders increased by 11% despite a 25% reduction in orders, indicating a shift in product mix [18] - The East region had the lowest decline in orders at 41% year-over-year, with a gross sales pace in line with the target of 3 to 4 homes per month [44] Company Strategy and Development Direction - The company aims to maintain a sales pace of 3 to 4 net sales per month by prestarting 100% of entry-level homes, which are ready for quick sale [30][40] - The strategy includes moderating construction starts to align with lower demand, with approximately 2,100 homes started in Q4 2022 compared to over 3,700 in Q4 2021 [19] - The company is focused on cost reductions and operational efficiencies, targeting a long-term gross margin of 22% or higher [50][81] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing economic uncertainty, rising mortgage rates, and inflation have overshadowed favorable demographics and low housing inventory [5][39] - The company expressed cautious optimism about January sales, reporting a net absorption pace greater than 4 homes per month, indicating potential recovery in demand [45][65] - Management highlighted the importance of move-in ready inventory in driving sales, as buyers prefer homes that can close within 45 to 60 days [40][70] Other Important Information - The company ended Q4 2022 with a backlog of 3,300 units, improving the conversion rate from 60% last year to 75% this year [20] - The company maintained a strong cash position with over $860 million in cash and generated $562 million of free cash flow in Q4 2022 [25][53] - The company has no impaired communities despite reduced ASPs and higher direct costs, indicating confidence in asset valuations [26][103] Q&A Session Questions and Answers Question: Can you help us think through Q1 gross margins? - Management indicated that Q1 margins are expected to be choppy due to various cost factors and market conditions, with no clear guidance beyond Q1 [32][80] Question: What are the potential cost tailwinds outside of lumber? - Management is actively rebidding vertical costs to capture savings, with some divisions reporting savings of $15,000 per home [35][62] Question: How does the company view the current market conditions? - Management noted that while January showed improvement, the overall market remains uncertain, and they are focused on operational discipline [65][94] Question: What is the strategy regarding community openings? - Management stated that they will prioritize opening communities with strong inventory and cost structures rather than rushing to increase community counts [94][95]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-9977 Meritage Homes Corporation (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorpo ...

Financial Data and Key Metrics Changes - Home closing revenue increased by 25% year-over-year to $1.6 billion due to a 12% greater home closing volume and a 12% increase in average selling prices (ASPs) [43][48] - The gross margin for home closings was 28.7%, a 100 basis points decline from 29.7% a year ago, primarily due to increased incentives and $8.8 million in write-offs for option deposits [44][48] - Diluted EPS reached a record high of $7.10, reflecting a 35% year-over-year increase [48] Business Line Data and Key Metrics Changes - Sales order volume decreased by 33% year-over-year to 2,310 homes, with a cancellation rate of 30%, significantly above the historical average [13][27] - The absorption pace was 2.7 homes per month, down from 5.0 homes per month in the prior year [13][27] - Entry-level homes constituted 84% of closings, up from 78% in the prior year [26] Market Data and Key Metrics Changes - The East region outperformed other regions with an average absorption pace of 3.8 homes per month, while the West region struggled with a pace of 1.5 homes per month [28][29] - Florida maintained strong performance, representing 44% of the East region's orders, with an absorption pace of 5.0 net sales per month [33] - The company experienced the highest cancellation rates in the West region, particularly in Colorado and Arizona, due to affordability issues and supply chain challenges [30][31] Company Strategy and Development Direction - The company is focusing on pre-starting 100% of entry-level homes and prioritizing pace over price to navigate the current market environment [20][63] - A significant pullback on new land deals has been implemented, with a focus on exceptional opportunities only [22][24] - The company aims to maintain a strong balance sheet and liquidity while managing through changing market conditions [50][51] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued weaker demand in the near term due to rising mortgage rates and economic uncertainty [12][20] - The company expects further deterioration in buyer confidence, impacting both new customers and those in the backlog [20] - Future gross margins are projected to be materially impacted by aggressive incentive actions and increasing costs in a rising interest rate environment [60][62] Other Important Information - The company ended the third quarter with a backlog of approximately 6,100 units, with a conversion rate decline from 57% last year to 48% this year [41] - The company has ample liquidity, with a cash balance of $299 million and no draws on its credit facility [50][51] - The company is forecasting total closings for Q4 2022 to be between 4,300 and 4,700 units, with home closing revenue projected at $1.85 billion to $2.10 billion [60][61] Q&A Session Summary Question: What are the expectations for gross margins in the current environment? - Management indicated that predicting future margins is challenging due to fluctuating market dynamics and costs, but they believe they can outperform despite the need for incentives [66][68] Question: What are the current incentive levels across markets? - Incentives vary by region, with high teens in the West and more normal adjustments in the East, reflecting the need to remain competitive [75][78] Question: Has the speed of price adjustments surprised management? - Management expressed surprise at the rapid increase in mortgage rates, which necessitated significant price rollbacks to maintain consumer confidence [88][90] Question: What is the outlook for impairments in the current market? - Management does not anticipate broad-based impairments unless there are significant further declines in ASPs, as many communities are still above impairment thresholds [94][96] Question: What is the expected sales pace for Q4? - Management does not expect a significant improvement in sales pace for Q4, citing ongoing market challenges and the need for rate stabilization [105]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Maryland 86-0611231 (State or Other Jurisdiction of Incorporation or Organization) (IRS Employer Identification No.) 8800 E. Raintree Driv ...

Financial Data and Key Metrics Changes - Home closing revenue grew 11% year-over-year to $1.4 billion in Q2 2022, driven by a 13% increase in average selling price (ASP) despite a 2% decline in closing volumes due to supply chain issues [35][39] - The gross margin for home closings reached a record 31.6%, a 430 basis points improvement from 27.3% a year ago, attributed to higher ASPs and lower land costs [35][38] - Diluted EPS increased by 55% year-over-year to $6.77, reflecting improved pricing power and expanded margins [38][39] Business Line Data and Key Metrics Changes - The company achieved its highest second quarter sales order volume of 3,767 homes, a 6% increase from the previous year, with entry-level homes comprising 86% of quarterly orders [9][20] - Order cancellation rates increased from 10% in Q1 to 13% in Q2, with some buyers opting for move-in ready homes [21][29] Market Data and Key Metrics Changes - Demand was strongest in the East region, with a 24% increase in order volume, primarily due to a 37% increase in active communities [23] - South Carolina saw a 64% year-over-year increase in order volume, while Texas experienced flat order volume due to a decline in average orders placed [24][25] Company Strategy and Development Direction - The company aims to focus on affordable products and streamline operations, with a disciplined land acquisition process to move down the price band [49][50] - The strategy includes offering rate locks to help buyers secure monthly payments and adjusting pricing and incentives based on local market conditions [17][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a softening housing market due to rising mortgage rates and changing buyer psychology, but remains optimistic about long-term demand driven by favorable demographics [8][18] - The company expects to navigate the current market dynamics and maintain volume and market share through strategic adjustments [19][50] Other Important Information - The company opened 49 new communities, increasing its community count to 303, and plans to maintain this count for the rest of the year [44] - The cash balance at June 30, 2022, was $272 million, with a net debt to capitalization ratio of 20.6% [40] Q&A Session Summary Question: Impact of rate locks and lumber costs on gross margin - Management indicated that rate locks would weigh on gross margin, with an estimated impact of around 100 basis points, while lumber savings are expected to materialize late in Q4 [54][56] Question: Normal absorption levels and incentives - Management expects normal absorption levels to be between 3 and 4 sales per month, with current incentives aligned with historical averages [57][59] Question: Cancellation rates and buyer behavior - Cancellation rates were reported at 13% in Q2, with a mix of recent and legacy buyers contributing to this figure [64][65] Question: Build-to-rent segment performance - The build-to-rent segment accounted for approximately 5% of orders, with steady demand anticipated as more communities come online [66][68] Question: Land acquisition strategy - Management is closely scrutinizing land deals, renegotiating terms where necessary, and has not walked away from significant options yet [75][79]

| --- | --- | --- | --- | |--------------------------------------------|-------|-------|-------| | | | | | | | | | | | FIRST QUARTER 2022 ANALYST CONFERENCE CALL | | | | | APRIL 28, 2022 | | | | SAFE HARBOR 2 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; projected 2022 home closings, home closing revenue, home closing gross ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-9977 Meritage Homes Corporation (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporati ...

Financial Data and Key Metrics Changes - Homebuilding revenue grew 15% year-over-year to $1.2 billion in Q1 2022, driven by a 17% increase in average selling prices (ASPs) [45][46] - Home closing gross margin reached a record 30.3%, a 560 basis point improvement from 24.7% a year ago, primarily due to higher ASPs offsetting increased commodity costs [46][50] - Diluted EPS increased by 68% year-over-year to $5.79 [50] Business Line Data and Key Metrics Changes - Entry-level homes comprised 86% of closings, up from 72% in the prior year, reflecting a shift in product mix [26][27] - Total orders for Q1 2022 were 3,874, reflecting a 12% year-over-year increase, driven by a 32% increase in average asset community count [26][28] - Cancellation rate remained stable at 9.6%, similar to the last eight quarters [22] Market Data and Key Metrics Changes - The central region, primarily Texas, saw a 16% increase in order volume, attributed to a 21% increase in average asset communities [28] - The east region experienced a 15% year-over-year order growth, primarily due to a 45% increase in average asset communities [29] - The west region's order volume increased by 5% year-over-year, despite a 19% decline in average order pace [31] Company Strategy and Development Direction - The company focuses on entry-level and first move-up markets, emphasizing affordability and efficient operations [18][67] - A new division was announced for the Salt Lake City market, expanding operations into a region with steady growth [14] - The company plans to maintain a disciplined approach to land acquisition, evaluating opportunities in light of rising interest rates [100][101] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that rising interest rates may impact buyer psychology and affordability but believes underlying demand remains solid [11][62] - The company expects total closings for 2022 to be between 14,500 and 15,500 units, with home closing revenue projected at $6.5 billion to $6.9 billion [63] - Management remains prepared for market fluctuations and is focused on maintaining a healthy land position [67] Other Important Information - The company has initiated a tree planting program in partnership with the Arbor Day Foundation as part of its ESG initiatives [16] - A new general counsel was appointed, bringing extensive legal experience to the company [15] Q&A Session Summary Question: Is the entry-level segment still a good place to be in a rising rate environment? - Management indicated that demand is based on current rates, with buyers adjusting their expectations accordingly [73][76] Question: What is the outlook for gross margins and incentives? - Management expects margins to stabilize and anticipates some incremental incentives to be necessary in the rising interest rate environment [80][81] Question: How is consumer behavior changing in the current market? - There is more handholding required to get buyers comfortable with financing, but demand remains strong [87][89] Question: What is the level of investor activity in core for-sale communities? - The company maintains a tight control on investor activity, limiting it to around 5% of overall community sales [91] Question: What are the economics of the build-for-rent (BFR) platform? - The BFR platform is expected to be net neutral for the company, with some cost savings passed to operator partners [96] Question: What is the strategy regarding land acquisition? - The company plans to adopt a more measured approach to land acquisition, focusing on quality over quantity in light of rising interest rates [100][101]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-9977 Meritage Homes Corporation (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or ...