Meritage Homes(MTH) - 2024 Q4 - Annual Results

Home Closings and Revenue - In Q4 2024, Meritage Homes closed 4,044 homes, a 2% increase from 3,951 homes in Q4 2023, while full year closings reached 15,611 homes, up 12% year-over-year[4] - Home closing revenue for Q4 2024 was $1.6 billion, a 3% decrease from $1.64 billion in Q4 2023, with full year revenue at $6.34 billion, reflecting a 5% increase from $6.06 billion in 2023[4] - The average sales price for home closings in Q4 2024 was $395,000, down 5% from $415,000 in Q4 2023, while the full year average sales price decreased by 6% to $406,000[4] - Home orders in Q4 2024 totaled 3,304 units, a 14% increase year-over-year, with a total of 14,606 orders for the full year, up 11% from 2023[4] - In Q4 2024, the total homes closed reached 4,044 with a total value of $1,595,928, compared to 3,951 homes closed valued at $1,641,520 in Q4 2023, reflecting a 2.3% increase in homes closed but a 2.8% decrease in total value[25] - For the twelve months ended December 31, 2024, homes closed totaled 15,611 with a value of $6,341,546, up from 13,976 homes closed valued at $6,056,784 in 2023, indicating an increase of 11.7% in homes closed and 4.7% in total value[25] Financial Performance - Net earnings for Q4 2024 were $172.6 million, a 13% decrease from $198.9 million in Q4 2023, resulting in diluted EPS of $4.72, down 12% from $5.38[4] - Net earnings for the twelve months ended December 31, 2024, rose by 6% to $786,186 compared to $738,748 in 2023[18] - Earnings per common share for 2024 was $21.70, an increase of 8% from $20.17 in 2023[19] - Financial services revenue increased by 23% to $31,163 in 2024 from $25,250 in 2023[18] - The company reported a total cost of closings of $4,780,012 for the twelve months ended December 31, 2024, an increase of 4% from $4,606,457 in 2023[18] - The company experienced a gross profit margin of 25% on home closings for the twelve months ended December 31, 2024[18] Backlog and Orders - The ending backlog for Q4 2024 was 1,544 units, a 39% decrease from 2,549 units in Q4 2023, with a backlog value of $629.5 million, down 42% from $1.09 billion[4] - Homes ordered in Q4 2024 totaled 3,304 with a value of $1,320,447, compared to 2,892 homes ordered valued at $1,198,740 in Q4 2023, representing a 14.2% increase in homes ordered and a 10.1% increase in value[25] - The order backlog as of December 31, 2024, was 1,544 homes valued at $629,549, down from 2,549 homes valued at $1,088,137 in 2023, indicating a 39.4% decrease in backlog homes and a 42.1% decrease in value[25] Land Acquisition and Development - The company’s land acquisition and development spend in Q4 2024 was $741.5 million, compared to $653.5 million in Q4 2023, with a total of $2.5 billion spent for the full year[11] - Meritage Homes completed the acquisition of Elliott Homes, adding approximately 5,500 lots, contributing to a total of 85,600 lots owned or controlled as of December 31, 2024, a 33% increase from 64,300 lots in 2023[11] Dividends and Share Repurchase - The company declared a quarterly cash dividend of $0.75 per share in Q4 2024, totaling $27 million, up from $0.27 per share in Q4 2023, with full year dividends of $108.6 million[11] - The company repurchased shares worth $125,932 during the twelve months ended December 31, 2024[23] Assets and Liabilities - Total assets as of December 31, 2024, were $7,162,654, up from $6,353,134 in 2023[21] - Cash and cash equivalents decreased to $651,555 as of December 31, 2024, from $921,227 in 2023[21] - The company reported a debt-to-capital ratio of 20.6% as of December 31, 2024, compared to 17.9% in 2023, reflecting an increase in leverage[30] Community and Market Position - Active communities increased to 292 in Q4 2024 from 270 in Q4 2023, showing a growth of 8.1% year-over-year[26] - The average active communities for the twelve months ended December 31, 2024, was 280.4, compared to 276.4 in 2023, indicating a slight increase of 1.4%[26] - Meritage Homes Corporation is the fifth-largest public homebuilder in the U.S., focusing on energy-efficient and affordable homes across multiple states[32] - The company has delivered nearly 200,000 homes in its 39-year history, emphasizing its commitment to quality construction and customer experience[33]