Meritage Homes Corp ( (MTH) ) has released its Q1 earnings. Here is a breakdown of the information Meritage Homes Corp presented to its investors.
Meritage Homes Corporation, a leading U.S. homebuilder, specializes in energy-efficient and affordable homes across various states including Arizona, California, and Texas, with a strong focus on entry-level and first move-up homes.
In the first quarter of 2025, Meritage Homes reported a slight decline in home closings and revenue compared to the previous year, attributed to elevated mortgage rates and macroeconomic concerns. Despite these challenges, the company maintained a robust market presence by focusing on affordability and move-in ready inventory.
Key financial metrics showed a decrease in home closing revenue by 8% to $1.3 billion, with net earnings falling by 34% to $123 million. The company achieved a gross margin of 22% on home closings and reported a diluted EPS of $1.69. Meritage Homes also issued $500 million in new debt to balance growth investments and shareholder returns, while maintaining a strong balance sheet with $1 billion in cash.
Looking ahead, Meritage Homes remains optimistic about capturing additional market share due to favorable demographics and limited supply of affordable homes. The company reiterates its guidance for 2025, projecting home closing volumes between 16,250 and 16,750 units and revenue between $6.6 billion and $6.9 billion.