Meritage Homes(US:MTH)2025-01-30 17:24Financial Performance - Home closings increased by 2% in 4Q24, totaling 4,044 units, and by 12% for the full year 2024, reaching 15,611 units[21] - Home closing revenue decreased by 3% to $1.596 billion in 4Q24, but increased by 5% to $6.341 billion for the full year 2024[21] - The average selling price (ASP) on closings decreased by 5% to $395,000 in 4Q24 and by 6% to $406,000 for the full year 2024[21] - Home closing gross profit decreased by 10% to $370 million in 4Q24, but increased by 5% to $1.580 billion for the full year 2024[21] - Diluted EPS decreased by 12% to $4.72 in 4Q24, but increased by 8% to $21.44 for the full year 2024[21] Sales and Orders - Net sales orders increased by 14% year-over-year in 4Q24, reaching 3,304 orders[7,8] - The average absorption pace improved by 8% year-over-year to 3.9 in 4Q24[9,10] - Entry-level homes accounted for 91% of total orders in 4Q24[11,12] Land and Inventory - Total lots controlled increased to 85,613, representing a 5.5-year supply[25] - Of the total lots controlled, 62% are owned and 38% are optioned[25] - Land spend was $808 million, representing 92% of total capital allocation spend[24] Guidance - For the first quarter of 2025, the company projects home closings between 3,200 and 3,500 units and home closing revenue between $1.26 billion and $1.40 billion[28] - The company anticipates a home closing gross margin of around 22% and an effective tax rate of about 24% for the first quarter of 2025[28] - Diluted earnings per common share are projected to be between $1.59 and $1.83 for the first quarter of 2025[28] - For the full year 2025, the company projects home closings between 16,250 and 16,750 units and home closing revenue between $6.6 billion and $6.9 billion[28]