Core Viewpoint - Meritage Homes reported a solid performance in Q2 2025 despite challenging market conditions, with a focus on increasing market share through a strategy of move-in ready inventory [3][4]. Financial Performance - Home closing revenue for Q2 2025 was $1.6 billion, a decrease of 5% from Q2 2024, primarily due to a 6% drop in average sales price (ASP) to $387,000, although home closing volume increased by 1% to 4,170 units [7][11]. - Net earnings for Q2 2025 were $146.9 million, down 37% from $231.6 million in Q2 2024, resulting in diluted EPS of $2.04, a 35% decrease year-over-year [7][14]. - For the first six months of 2025, home closing revenue decreased by 6% to $3.0 billion, with net earnings of $270 million, reflecting a 35% decline from the same period in 2024 [7][14]. Operational Highlights - The company sold 3,914 homes in Q2 2025, a 3% increase year-over-year, supported by a 7% increase in average community count [4][12]. - The ending backlog of homes decreased by 36% to 1,748 units, with a backlog value of $695.5 million, down 37% from the previous year [7][20]. Cost and Margin Analysis - Home closing gross margin for Q2 2025 was 21.1%, down from 25.9% in Q2 2024, impacted by higher lot costs and increased utilization of financing incentives [7][12]. - Selling, general and administrative expenses (SG&A) as a percentage of home closing revenue increased to 10.2% in Q2 2025 from 9.3% in Q2 2024, primarily due to higher commissions and maintenance costs [7][12]. Capital Allocation and Liquidity - The company reduced land acquisition and development spending to $509 million in Q2 2025, targeting $2.0 billion for the full year, down from a previous estimate of $2.5 billion [3][12]. - As of June 30, 2025, Meritage had cash and cash equivalents of $930 million, reflecting a strong liquidity position [6][12]. Market Strategy - The management emphasized a go-to-market strategy focusing on move-in ready inventory to remain competitive amid elevated mortgage rates and weakened consumer confidence [3][4]. - The company aims to increase its return of cash to shareholders, with $76 million spent on cash dividends and share repurchases in Q2 2025, tripling its quarterly buyback commitment [3][12].

Core Points - Meritage Homes has extended its partnership with Operation Homefront's Permanent Homes for Veterans Program, donating two new, mortgage-free homes for veteran families in Colorado Springs, Colorado, and Raleigh, North Carolina, marking the 12th year of collaboration and a total of 22 donations to date [1][2] Company Overview - Meritage Homes is the fifth-largest public homebuilder in the United States based on homes closed in 2024, offering energy-efficient and affordable entry-level and first move-up homes across multiple states including Arizona, California, Colorado, and others [5] - The company has delivered nearly 200,000 homes in its 40-year history, known for distinctive style, quality construction, and award-winning customer experience [6] - Meritage Homes is recognized as an industry leader in energy-efficient homebuilding, having received multiple awards from the U.S. Environmental Protection Agency for its commitment to sustainability [6] Partnership Details - The new homes will feature open-concept floorplans, designer-curated interiors, and energy-efficient features such as ENERGY STAR® appliances and smart home technology [2] - The recipients of this year's homes will be announced in September, with key presentations scheduled for November around Veterans Day [3] Operation Homefront Overview - Operation Homefront is a national nonprofit organization focused on building strong, stable, and secure military families, with 83% of its expenditures directed towards programs supporting military families [8] - The organization provides critical financial assistance, housing, and family support services to help prevent short-term needs from becoming long-term struggles [8]