Meritage Homes Corp ( (MTH) ) has released its Q2 earnings. Here is a breakdown of the information Meritage Homes Corp presented to its investors.
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Meritage Homes Corporation is a leading U.S. homebuilder known for its energy-efficient and affordable homes, operating across several states including Arizona, California, and Texas.
In its second quarter of 2025 earnings report, Meritage Homes Corporation reported a slight increase in home orders but faced challenges with decreased home closing revenue and net earnings compared to the previous year.
The company closed 4,170 homes this quarter, generating $1.6 billion in revenue, a 5% decrease from the previous year, primarily due to a 6% drop in average sales price. Despite these challenges, Meritage maintained a strong backlog conversion rate and increased its community count by 9% year-over-year.
Meritage Homes has adjusted its capital allocation strategy to align with current market conditions, reducing land acquisition spending and increasing cash returns to shareholders. The company remains well-positioned financially with $930 million in cash and a low net debt-to-capital ratio.
Looking ahead, Meritage Homes aims to remain competitive by focusing on move-in ready inventory and growing its market share, despite the ongoing challenges in the housing market.