Meritage Homes(US:MTH) Globenewswire·2025-01-29 21:30Core Viewpoint - Meritage Homes Corporation reported a record-setting year in 2024, achieving the highest annual closing volume and home closing revenue despite a decline in average sales prices. The company is well-positioned to capture demand in the upcoming spring selling season due to favorable demographics and an undersupply of homes at their price points [4][10]. Financial Performance - In Q4 2024, homes closed increased by 2% year-over-year to 4,044 units, while home closing revenue decreased by 3% to $1.6 billion. The average sales price for closings fell by 5% to $395,000 [2][9]. - For the full year 2024, home closing revenue rose by 5% to $6.3 billion, driven by a 12% increase in home closing volume to 15,611 units, despite a 6% decline in average sales prices [2][5]. - Net earnings for Q4 2024 were $172.6 million, a 13% decrease from the previous year, resulting in diluted EPS of $4.72, down 12% year-over-year. However, full year net earnings increased by 6% to $786.2 million, with diluted EPS rising to $21.44 [2][9][10]. Orders and Backlog - Home orders in Q4 2024 increased by 14% year-over-year to 3,304 units, with an average monthly absorption pace of 3.9 homes. The total home orders for the full year reached 14,606, an 11% increase from 2023 [5][6]. - The ending backlog decreased by 39% to 1,544 units, with a backlog value of $629.5 million, down 42% from the previous year [2][5]. Cost and Margins - The home closing gross margin for Q4 2024 was 23.2%, down from 25.2% in Q4 2023, attributed to higher lot costs and increased financing incentives [9][10]. - Selling, general and administrative expenses as a percentage of home closing revenue were 10.8% for Q4 2024, slightly up from 10.7% in the previous year [9]. Capital Allocation and Liquidity - The company invested $741.5 million in land acquisition and development in Q4 2024, including the acquisition of Elliott Homes, and ended the year with cash of $651.6 million [4][13]. - Meritage Homes declared and paid quarterly cash dividends of $0.75 per share in Q4 2024, totaling $27 million, an increase from $0.27 per share in the same quarter of 2023 [13][10]. Guidance - For full year 2025, the company projects home closing volume between 16,250 and 16,750 units and home closing revenue of $6.6 to $6.9 billion [10].