FORWARD-LOOKING STATEMENTS Certain statements in this Investor Presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements often discuss our plans, strategies, intentions, markets, beliefs, forecasts and guidance, and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "expects," "may," "will," "believes," "should," "would," "could," "appro ...

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].

Financial Performance - Century Communities, Inc. reported net income of $34.9 million, or $1.14 per diluted share, for the second quarter of 2025, with adjusted net income of $42.1 million, or $1.37 per diluted share [4][11][29] - Total revenues for the quarter were $1.0 billion, with home sales revenues accounting for $976.5 million, and deliveries totaled 2,587 homes [4][11][29] - The average sales price of home deliveries was $377,500, reflecting a 1.1% decrease from the previous year [4][19] Operational Highlights - The company achieved a 13% increase in home deliveries on a sequential basis, driven by customer incentives [3][11] - The community count grew by 23% year-over-year to a record 327 communities, with expectations for mid-single digit percentage growth by year-end 2025 [3][11] - Net new home contracts for the quarter were 2,546, with a backlog of 1,217 homes valued at $466 million [5][11] Cost Management - Adjusted homebuilding gross margin percentage was 20.0%, while the gross margin was 17.6% for the quarter [6][11] - Selling, general, and administrative expenses represented 13.2% of home sales revenues [6] Balance Sheet and Liquidity - The company ended the quarter with $2.6 billion in stockholders' equity and $858 million in liquidity, including $127.6 million in cash [8][9] - Book value per share increased by 10% year-over-year to $86.39 [3][8] Shareholder Returns - Century Communities maintained a quarterly cash dividend of $0.29 per share and repurchased 883,602 shares of common stock for $48 million, representing approximately 3% of shares outstanding at the beginning of the quarter [9][11] Market Outlook - The company revised its full-year 2025 home delivery guidance to a range of 10,000 to 10,500 homes, with home sales revenues expected between $3.8 billion and $4.0 billion [12]

Core Insights - D.R. Horton, Inc. surpassed third-quarter revenue and earnings expectations, yet its shares experienced a decline despite positive guidance for 2025 and projected growth [1][6] Financial Performance - The company reported fiscal third-quarter revenue of $9.22 billion, exceeding analyst estimates of $8.79 billion [2] - Earnings per share for the third quarter were $3.36, surpassing analyst expectations of $2.92 [2] Growth Projections - D.R. Horton refined its 2025 revenue guidance to a range of $33.7 billion to $34.2 billion and forecasted home closings between 85,000 and 85,500 units [4] - The company is expected to achieve earnings growth in fiscal 2026, driven by mid-single-digit community expansion and a 24% quarterly, 11% annual increase in starts [3][4] Market Position and Strategy - The company's strong performance is attributed to its significant presence in smaller markets with fewer public spec builders and a 12% year-over-year increase in community count [4] - D.R. Horton maintained a core fourth-quarter gross margin of 21.8%, above the expected range of 21.0% to 21.5%, despite higher incentives [5] Analyst Insights - Bank of America Securities analyst Rafe Jadrosich reiterated a Neutral rating on D.R. Horton, raising the price forecast from $135 to $155 [1] - Jadrosich increased EPS estimates for fiscal years 2025 and 2026 by 8% and 1%, respectively [6]

RALEIGH, N.C., July 23, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced the grand opening of the highly anticipated private community clubhouse and resident amenities at Regency at Olde Towne, a premier 55+ community located at 5104 Fountainbridge Ct in Raleigh, North Carolina. Ideally situated close to downtown Raleigh, this exceptional new home community for active adults offers an array of exclusive resort-style amenities, including a ...

Exclusive Toll Brothers community amenities set to be completed by 2026PANAMA CITY BEACH, Fla., July 23, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced the highly anticipated groundbreaking of its resident-exclusive amenities at its Breakwater at Ward Creek community located in Panama City Beach, Florida. The state-of-the-art community amenities, which are set to be completed by summer of 2026, will feature a resort-style pool, fitness ...

Core Insights - Taylor Morrison Home (TMHC) reported strong second-quarter 2025 results, with adjusted EPS of $2.02 exceeding analysts' expectations of $1.93 and revenue of $2.03 billion surpassing the forecast of $1.93 billion [1][5] - Despite solid performance, the company faces challenges in its order pipeline, including increased cancellation rates, lower net sales orders, and a reduced backlog, indicating potential strain on future results [1][6] Financial Performance - Adjusted EPS for Q2 2025 was $2.02, a 2.5% increase from Q2 2024's $1.97 [2] - Revenue for Q2 2025 reached $2.03 billion, up 2.0% from $1.99 billion in Q2 2024 [2] - The company closed 3,340 homes, exceeding guidance of 3,200, with a gross margin on home closings at 23.0%, down from 23.9% a year ago [5][2] - SG&A costs as a percentage of home closings revenue improved to 9.3%, a decrease of 0.9 percentage points from the previous year [2][5] Demand and Order Trends - Net sales orders fell 12.2% year-over-year to 2,733, with the monthly absorption pace returning to pre-pandemic levels of 2.6 homes per community [2][6] - Cancellation rates increased sharply to 14.6% of gross orders, up from 9.4% the previous year, indicating buyer hesitation [6][8] - The backlog contracted significantly, with 4,461 homes at the end of the quarter, down 28.7% in units and 30% in value compared to the previous year [8][6] Pricing and Margins - The average closing price decreased by 2%, but was offset by a 4% increase in units closed [7] - The East and Central regions experienced average selling price declines of around 6%, while the West region saw a revenue increase of 5.4% due to higher prices [7] - Margins fell compared to last year and the previous quarter, as the company utilized buyer incentives to manage mortgage payments without broad price cuts [7][9] Strategic Focus and Operations - The company invested $612 million in land during the quarter, maintaining a controlled lot pipeline of over 85,000 lots, with 60% controlled off the balance sheet [10] - Financial services generated $52.9 million in revenue, with a mortgage capture rate of 87% [11] - The company emphasizes operational efficiency, energy-efficient design, and compliance with environmental standards as key priorities [12] Future Guidance - For Q3 2025, management expects home closings between 3,200 and 3,300 at an average price of around $600,000, with gross margins close to 22% [14] - For fiscal 2025, total closings are projected between 13,000 and 13,500, with an average price range of $595,000 to $600,000 [14] - Management plans to prioritize margins and capital returns over volume growth in the near term, given the current market conditions [15]

Core Insights - PulteGroup, Inc. reported second-quarter adjusted earnings of $3.03 per share, exceeding the consensus estimate of $3.00, while revenue was $4.40 billion, slightly below expectations of $4.41 billion [1][2] Financial Performance - The company experienced a decline in net new orders, falling to 7,083 homes from 7,649 in the prior-year quarter, with the dollar value of new orders decreasing to $3.9 billion from $4.4 billion [2] - PulteGroup ended the quarter with a backlog of 10,779 homes valued at $6.8 billion [2] Management Commentary - CEO Ryan Marshall highlighted that disciplined business practices are yielding strong results in a competitive housing environment and noted improving consumer activity due to recent interest rate pullbacks [2] Stock Performance - Following the earnings announcement, PulteGroup shares fell 1.4% to trade at $119.52 [2] Analyst Ratings and Price Targets - Wells Fargo analyst Sam Reid maintained an Overweight rating and raised the price target from $125 to $135 [5] - RBC Capital analyst Mike Dahl maintained a Sector Perform rating and increased the price target from $109 to $112 [5] - JP Morgan analyst Michael Rehaut kept an Overweight rating and raised the price target from $121 to $123 [5] - Raymond James analyst Buck Horne reiterated an Outperform rating and boosted the price target from $115 to $140 [5]

There is a limit to how many different companies and sectors one can reasonably follow, but with how quickly news flows, it is tempting to stretch one’s bounds. Using various tools and data sources, one can get reasonably informed on a company in a very short amount of time. However, in this haste, narratives are often driven by stock prices as much as they are by fundamentals. That is the concept I want to discuss today – stock price driven narratives not backed by fundamentals. D.R. Horton, Inc.'s (NYSE:D ...

Market Trends & Sentiment - Homebuilder ETF experienced its best day since 2022, with Horton and PTE jumping double digits [1] - Consumer confidence is improving, potentially bringing buyers off the sidelines [2] - Investor sentiment is improving with optimism that this quarter will be the last cut for homebuilders and the housing market will improve moving into 2026 [3] - Stabilization in rates is needed more than rate cuts for homebuilders to plan and consumers to make decisions [4] Company Strategy & Operations - Builders are building smaller footprints with fewer SKUs (stock keeping units) to make the build process more efficient and affordable [5] - Builders are offering financing incentives to solve for affordability [6] - Stick and brick costs (labor and material) for homebuilders are down low single digits year-over-year [7] - Public builders are gaining market share, now representing about 50% of the market among the top 16 builders, due to better access to land, labor, materials, and financing [10] External Factors & Policy - Lumber prices are up 20-30% for the year but remain in a manageable range [6] - Potential elimination of capital gains for selling homes could put incremental dollars in the hands of consumers, making home purchases more palatable [8][9] - There is a real shortage of labor in the market, but the immigration crackdown has not caused any disruption as of yet [12]