Meritage Homes reports first quarter 2025 results
Meritage Homes (NYSE: MTH) reported mixed Q1 2025 results with declining metrics across key areas. Home closing revenue decreased 8% to $1.3 billion, with deliveries down 3% to 3,416 units. The company's net earnings fell 34% to $123 million, resulting in diluted EPS of $1.69, down from $2.53 year-over-year.
Home closing gross margin contracted to 22.0% from 25.8% due to increased financing incentives and higher lot costs. The company maintained strong liquidity with $1 billion in cash and a net debt-to-capital ratio of 13.7%. During Q1, MTH issued $500 million in senior notes, spent $465 million on land acquisition, paid $31 million in dividends, and repurchased $45 million in shares.
The company reiterated its full-year 2025 guidance, projecting 16,250-16,750 home closings and revenue between $6.6-6.9 billion. MTH's community count grew 7% year-over-year to 290 communities, while maintaining control of approximately 84,200 lots.
Meritage Homes (NYSE: MTH) ha riportato risultati contrastanti nel primo trimestre 2025, con indicatori in calo nelle aree chiave. Il fatturato da chiusura delle vendite di case è diminuito dell'8% a 1,3 miliardi di dollari, con le consegne in calo del 3% a 3.416 unità. L'utile netto dell'azienda è sceso del 34% a 123 milioni di dollari, con un utile per azione diluito di 1,69 dollari, in calo rispetto ai 2,53 dollari dell'anno precedente.
Il margine lordo sulle chiusure delle vendite si è ridotto al 22,0% dal 25,8%, a causa dell'aumento degli incentivi finanziari e dei costi dei terreni. L'azienda ha mantenuto una solida liquidità con 1 miliardo di dollari in contanti e un rapporto debito netto/capitale del 13,7%. Nel primo trimestre, MTH ha emesso obbligazioni senior per 500 milioni di dollari, speso 465 milioni per l'acquisto di terreni, pagato 31 milioni di dividendi e riacquistato azioni per 45 milioni.
L'azienda ha confermato le previsioni per l'intero anno 2025, prevedendo tra 16.250 e 16.750 chiusure di case e un fatturato compreso tra 6,6 e 6,9 miliardi di dollari. Il numero di comunità di MTH è cresciuto del 7% su base annua, raggiungendo 290 comunità, mantenendo il controllo di circa 84.200 lotti.
Meritage Homes (NYSE: MTH) reportó resultados mixtos en el primer trimestre de 2025, con métricas en descenso en áreas clave. Los ingresos por cierre de viviendas disminuyeron un 8% hasta 1.300 millones de dólares, con entregas que bajaron un 3% a 3.416 unidades. Las ganancias netas de la compañía cayeron un 34% hasta 123 millones de dólares, resultando en una utilidad diluida por acción de 1,69 dólares, frente a 2,53 dólares del año anterior.
El margen bruto por cierre de viviendas se redujo al 22,0% desde el 25,8%, debido a mayores incentivos financieros y costos más altos de terrenos. La empresa mantuvo una fuerte liquidez con 1.000 millones de dólares en efectivo y una ratio deuda neta-capital del 13,7%. Durante el primer trimestre, MTH emitió 500 millones de dólares en bonos senior, gastó 465 millones en adquisición de terrenos, pagó 31 millones en dividendos y recompró acciones por 45 millones.
La compañía reiteró su guía para todo el año 2025, proyectando entre 16.250 y 16.750 cierres de viviendas y unos ingresos entre 6,6 y 6,9 mil millones de dólares. El número de comunidades de MTH creció un 7% interanual hasta 290 comunidades, manteniendo el control de aproximadamente 84.200 lotes.
Meritage Homes (NYSE: MTH)는 2025년 1분기 실적에서 주요 지표가 하락하는 혼조된 결과를 보고했습니다. 주택 마감 수익은 8% 감소한 13억 달러를 기록했으며, 인도 건수는 3% 감소한 3,416세대였습니다. 회사의 순이익은 34% 감소한 1억 2,300만 달러로, 희석 주당순이익은 전년 대비 2.53달러에서 1.69달러로 하락했습니다.
주택 마감 총마진은 금융 인센티브 증가와 부지 비용 상승으로 인해 25.8%에서 22.0%로 축소되었습니다. 회사는 10억 달러의 현금과 13.7%의 순부채 대비 자본 비율로 강력한 유동성을 유지했습니다. 1분기 동안 MTH는 5억 달러의 선순위 채권을 발행하고, 토지 매입에 4억 6,500만 달러를 지출했으며, 3,100만 달러의 배당금을 지급하고, 4,500만 달러 상당의 자사주를 매입했습니다.
회사는 2025년 전체 연간 가이던스를 재확인하며, 16,250~16,750건의 주택 마감과 66억~69억 달러의 수익을 예상했습니다. MTH의 커뮤니티 수는 전년 대비 7% 증가한 290개로 늘었으며, 약 84,200개의 부지를 관리하고 있습니다.
Meritage Homes (NYSE : MTH) a publié des résultats mitigés pour le premier trimestre 2025, avec des indicateurs en baisse dans les domaines clés. Le chiffre d'affaires lié aux clôtures de ventes de maisons a diminué de 8 % pour atteindre 1,3 milliard de dollars, avec des livraisons en baisse de 3 % à 3 416 unités. Le résultat net de la société a chuté de 34 % à 123 millions de dollars, entraînant un bénéfice dilué par action de 1,69 dollar, contre 2,53 dollars un an plus tôt.
La marge brute sur les clôtures de ventes s'est contractée à 22,0 % contre 25,8 %, en raison d'une augmentation des incitations financières et des coûts des terrains plus élevés. La société a maintenu une forte liquidité avec 1 milliard de dollars en liquidités et un ratio dette nette/capitaux propres de 13,7 %. Au cours du premier trimestre, MTH a émis 500 millions de dollars d'obligations senior, dépensé 465 millions pour l'acquisition de terrains, versé 31 millions en dividendes et racheté pour 45 millions d'actions.
La société a réitéré ses prévisions pour l'ensemble de l'année 2025, prévoyant entre 16 250 et 16 750 clôtures de maisons et un chiffre d'affaires compris entre 6,6 et 6,9 milliards de dollars. Le nombre de communautés de MTH a augmenté de 7 % sur un an pour atteindre 290, tout en conservant le contrôle d'environ 84 200 lots.
Meritage Homes (NYSE: MTH) meldete gemischte Ergebnisse für das erste Quartal 2025 mit rückläufigen Kennzahlen in wichtigen Bereichen. Der Umsatz aus Hausabschlüssen sank um 8 % auf 1,3 Milliarden US-Dollar, die Auslieferungen gingen um 3 % auf 3.416 Einheiten zurück. Der Nettoertrag des Unternehmens fiel um 34 % auf 123 Millionen US-Dollar, was zu einem verwässerten Ergebnis je Aktie von 1,69 US-Dollar führte, gegenüber 2,53 US-Dollar im Vorjahreszeitraum.
Die Bruttomarge bei Hausabschlüssen schrumpfte von 25,8 % auf 22,0 %, bedingt durch höhere Finanzierungsanreize und gestiegene Grundstückskosten. Das Unternehmen hielt eine starke Liquidität mit 1 Milliarde US-Dollar in bar und einem Netto-Schulden-zu-Kapital-Verhältnis von 13,7 %. Im ersten Quartal gab MTH Senior Notes im Wert von 500 Millionen US-Dollar aus, investierte 465 Millionen in den Grundstückserwerb, zahlte 31 Millionen Dividenden und kaufte Aktien im Wert von 45 Millionen zurück.
Das Unternehmen bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet 16.250 bis 16.750 Hausabschlüsse sowie Umsätze zwischen 6,6 und 6,9 Milliarden US-Dollar. Die Anzahl der MTH-Gemeinschaften wuchs im Jahresvergleich um 7 % auf 290, während rund 84.200 Grundstücke kontrolliert werden.
- Strong liquidity position with $1 billion in cash
- 7% increase in community count to 290 communities
- 27% increase in controlled lots to 84,200
- 221% backlog conversion rate, an all-time high
- 11% increase in book value per share year-over-year
- 34% decline in net earnings to $123 million
- 8% decrease in home closing revenue to $1.3 billion
- 380 basis points decline in gross margin to 22.0%
- 34% decrease in backlog units to 2,004
- 33% decrease in diluted EPS to $1.69
Insights
Meritage Homes reported significant declines across key metrics with Q1 EPS down 33% amid housing market challenges.
Meritage Homes delivered concerning Q1 results with substantial year-over-year declines across nearly all key metrics. Home closing revenue fell
The dramatic compression in gross margins to
Particularly concerning is the sharp reduction in backlog, with units down
The balance sheet remains solid with
Despite these headwinds, management maintained full-year guidance of 16,250-16,750 home closings and
SCOTTSDALE, Ariz., April 23, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported first quarter results for the period ended March 31, 2025.
| Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | % Chg | |||||
| Homes closed (units) | 3,416 | 3,507 | (3)% | ||||
| Home closing revenue | $ | 1,342,104 | $ | 1,466,096 | (8)% | ||
| Average sales price — closings | $ | 393 | $ | 418 | (6)% | ||
| Home orders (units) | 3,876 | 3,991 | (3)% | ||||
| Home order value | $ | 1,558,177 | $ | 1,631,195 | (4)% | ||
| Average sales price — orders | $ | 402 | $ | 409 | (2)% | ||
| Ending backlog (units) | 2,004 | 3,033 | (34)% | ||||
| Ending backlog value | $ | 812,358 | $ | 1,244,257 | (35)% | ||
| Average sales price — backlog | $ | 405 | $ | 410 | (1)% | ||
| Earnings before income taxes | $ | 160,159 | $ | 234,015 | (32)% | ||
| Net earnings | $ | 122,806 | $ | 186,016 | (34)% | ||
| Diluted EPS | $ | 1.69 | $ | 2.53 | (33)% | ||
MANAGEMENT COMMENTS
"Meritage had a healthy start to 2025, selling almost 3,900 homes in the first quarter despite a slower start to the year. We achieved an average absorption pace of 4.4 net sales per month this quarter, overcoming still-elevated mortgage rates and increasing macroeconomic concerns," said Steven J. Hilton, executive chairman of Meritage Homes. "As a result of favorable demographics and the limited supply of homes at affordable price points, the new home market is experiencing sustainable homebuying demand. With our focus on affordability and move-in ready inventory, we believe we are well-positioned to capture additional market share."
"With over
"We issued
FIRST QUARTER RESULTS
- Orders of 3,876 homes for the first quarter of 2025 decreased
3% year-over-year as a result of a10% decrease in average absorption pace which was partially offset by a7% increase in average community count. First quarter 2025 average sales price ("ASP") on orders of$402,000 was down2% from the first quarter of 2024 due to increased utilization of financing incentives. - The
8% year-over-year decrease in home closing revenue in the first quarter of 2025 to$1.3 billion was the result of declines in both home closing volume of 3,416 homes and ASP on closings of$393,000 due to increased utilization of financing incentives. - Home closing gross margin of
22.0% decreased 380 bps in the first quarter of 2025 from25.8% in the prior year due to increased utilization of financing incentives, reduced leverage of fixed costs on lower home closing revenue, and higher lot costs, all of which were partially offset by savings in direct costs. - The financial services profit of
$4 million included$400,000 in write-offs related to rate buydown expiration costs in the first quarter of 2025. The financial services loss of$1 million in the first quarter of 2024 had$6 million of similar write-offs. - Selling, general and administrative expenses ("SG&A") as a percentage of first quarter 2025 home closing revenue were
11.3% compared to10.4% in the first quarter of 2024, primarily as a result of reduced leverage of fixed costs on lower home closing revenue, as well as greater spend on technology and start-up overhead costs for our new Gulf Coast and Huntsville divisions in advance of a full quarter's contribution of home closings. As a percentage of home closing revenue, commissions were relatively flat year-over-year despite the tougher selling environment. - The first quarter effective income tax rate was
23.3% in 2025 compared to20.5% in 2024. The higher tax rate in 2025 reflects fewer homes qualifying for energy tax credits under the Inflation Reduction Act, given the new higher construction thresholds required to earn the tax credits this year. - Net earnings were
$123 million ($1.69 per diluted share) for the first quarter 2025, a34% decrease from$186 million ($2.53 per diluted share) for the first quarter of 2024, mainly resulting from lower home closing revenue and gross margins, as well as a higher tax rate.
BALANCE SHEET & LIQUIDITY
- Cash and cash equivalents at March 31, 2025 totaled
$1 billion , compared to$652 million at December 31, 2024. - Land acquisition and development spend, net of land development reimbursements, totaled
$465 million and$363 million for the first quarter of 2025 and 2024, respectively. - Approximately 84,200 lots were owned or controlled as of March 31, 2025, compared to approximately 66,400 total lots as of March 31, 2024. Nearly 2,200 net new lots were added in the first quarter of 2025, representing an estimated 19 future communities.
- First quarter 2025 ending community count was 290 compared to 275 at March 31, 2024 and 292 at December 31, 2024.
- Debt-to-capital and net debt-to-capital ratios were
26.1% and13.7% , respectively, at March 31, 2025, which compared to20.6% and11.7% , respectively, at December 31, 2024. - On January 2, 2025, we completed a two-for-one stock split (the "Stock Split") of Meritage's common stock in the form of a stock dividend. All share and per share amounts in this press release have been retroactively restated to reflect the Stock Split for the first quarter 2024 period.
- The Company declared and paid quarterly cash dividends of
$0.43 per share totaling$31 million in the first quarter of 2025. This compared to$0.37 5 per share totaling$27 million in the first quarter of 2024. - During the first quarter of 2025, the Company repurchased 605,316 shares of stock, or
0.8% of shares outstanding at the beginning of the quarter, for$45 million . As of March 31, 2025,$264 million remained available to repurchase under the authorized share repurchase program. - During the first quarter of 2025, the Company issued
$500 million of5.650% senior notes due 2035.
GUIDANCE
| The Company is reiterating the following guidance for full year 2025: | |
| Full Year 2025 | |
| Home closing volume | 16,250-16,750 units |
| Home closing revenue | |
CONFERENCE CALL
Management will host a conference call to discuss its first quarter 2025 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, April 24, 2025. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-877-407-6951 US toll free or 1-412-902-0046. A replay will be available on the Investor Relations page.
* The Company's return on equity is calculated as net earnings for the trailing twelve months divided by average total stockholders' equity for the trailing five quarters.
| Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (Unaudited) | ||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | Change $ | Change % | |||||||||||
| Homebuilding: | ||||||||||||||
| Home closing revenue | $ | 1,342,104 | $ | 1,466,096 | $ | (123,992 | ) | (8 | )% | |||||
| Land closing revenue | 15,421 | 2,305 | 13,116 | 569 | % | |||||||||
| Total closing revenue | 1,357,525 | 1,468,401 | (110,876 | ) | (8 | )% | ||||||||
| Cost of home closings | (1,046,454 | ) | (1,088,138 | ) | (41,684 | ) | (4 | )% | ||||||
| Cost of land closings | (12,256 | ) | (2,298 | ) | 9,958 | 433 | % | |||||||
| Total cost of closings | (1,058,710 | ) | (1,090,436 | ) | (31,726 | ) | (3 | )% | ||||||
| Home closing gross profit | 295,650 | 377,958 | (82,308 | ) | (22 | )% | ||||||||
| Land closing gross profit | 3,165 | 7 | 3,158 | 45,114 | % | |||||||||
| Total closing gross profit | 298,815 | 377,965 | (79,150 | ) | (21 | )% | ||||||||
| Financial Services: | ||||||||||||||
| Revenue | 7,082 | 6,353 | 729 | 11 | % | |||||||||
| Expense | (4,192 | ) | (3,003 | ) | 1,189 | 40 | % | |||||||
| Earnings/(loss) from financial services unconsolidated entities and other, net | 673 | (4,040 | ) | 4,713 | (117 | )% | ||||||||
| Financial services profit/(loss) | 3,563 | (690 | ) | 4,253 | (616 | )% | ||||||||
| Commissions and other sales costs | (94,720 | ) | (101,550 | ) | (6,830 | ) | (7 | )% | ||||||
| General and administrative expenses | (56,997 | ) | (50,732 | ) | 6,265 | 12 | % | |||||||
| Interest expense | — | — | — | — | % | |||||||||
| Other income, net | 9,498 | 9,022 | 476 | 5 | % | |||||||||
| Earnings before income taxes | 160,159 | 234,015 | (73,856 | ) | (32 | )% | ||||||||
| Provision for income taxes | (37,353 | ) | (47,999 | ) | (10,646 | ) | (22 | )% | ||||||
| Net earnings | $ | 122,806 | $ | 186,016 | $ | (63,210 | ) | (34 | )% | |||||
| Earnings per common share: | ||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||
| Earnings per common share | $ | 1.71 | $ | 2.56 | $ | (0.85 | ) | (33 | )% | |||||
| Weighted average shares outstanding | 71,915 | 72,622 | (707 | ) | (1 | )% | ||||||||
| Diluted | ||||||||||||||
| Earnings per common share | $ | 1.69 | $ | 2.53 | $ | (0.84 | ) | (33 | )% | |||||
| Weighted average shares outstanding | 72,650 | 73,558 | (908 | ) | (1 | )% | ||||||||
| Meritage Homes Corporation and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) (Unaudited) | |||||
| March 31, 2025 | December 31, 2024 | ||||
| Assets: | |||||
| Cash and cash equivalents | $ | 1,011,652 | $ | 651,555 | |
| Other receivables | 262,103 | 256,282 | |||
| Real estate (1) | 5,800,954 | 5,728,775 | |||
| Deposits on real estate under option or contract | 254,546 | 192,405 | |||
| Investments in unconsolidated entities | 31,288 | 28,735 | |||
| Property and equipment, net | 47,015 | 47,285 | |||
| Deferred tax asset, net | 54,145 | 54,524 | |||
| Prepaids, other assets and goodwill | 238,515 | 203,093 | |||
| Total assets | $ | 7,700,218 | $ | 7,162,654 | |
| Liabilities: | |||||
| Accounts payable | $ | 229,845 | $ | 212,477 | |
| Accrued liabilities | 422,711 | 452,213 | |||
| Home sale deposits | 17,650 | 20,513 | |||
| Loans payable and other borrowings | 35,183 | 29,343 | |||
| Senior and convertible senior notes, net | 1,800,085 | 1,306,535 | |||
| Total liabilities | 2,505,474 | 2,021,081 | |||
| Stockholders' Equity: | |||||
| Preferred stock | — | — | |||
| Common stock, par value | 718 | 360 | |||
| Additional paid-in capital | 103,930 | 143,036 | |||
| Retained earnings | 5,090,096 | 4,998,177 | |||
| Total stockholders’ equity | 5,194,744 | 5,141,573 | |||
| Total liabilities and stockholders’ equity | $ | 7,700,218 | $ | 7,162,654 | |
| (1) Real estate – Allocated costs: | |||||
| Homes completed and under construction | $ | 2,454,275 | $ | 2,375,639 | |
| Finished home sites and home sites under development | 3,346,679 | 3,353,136 | |||
| Total real estate | $ | 5,800,954 | $ | 5,728,775 | |
| Meritage Homes Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 122,806 | $ | 186,016 | |||
| Adjustments to reconcile net earnings to net cash (used in)/provided by operating activities: | |||||||
| Depreciation and amortization | 5,949 | 6,038 | |||||
| Stock-based compensation | 6,325 | 6,114 | |||||
| Equity in earnings from unconsolidated entities | (626 | ) | (972 | ) | |||
| Distribution of earnings from unconsolidated entities | 588 | 985 | |||||
| Other | 1,922 | 1,001 | |||||
| Changes in assets and liabilities: | |||||||
| Increase in real estate | (60,821 | ) | (193,431 | ) | |||
| Increase in deposits on real estate under option or contract | (62,179 | ) | (11,449 | ) | |||
| (Increase)/decrease in other receivables, prepaids and other assets | (37,636 | ) | 53,769 | ||||
| (Decrease)/increase in accounts payable and accrued liabilities | (16,041 | ) | 27,668 | ||||
| (Decrease)/increase in home sale deposits | (2,863 | ) | 6,191 | ||||
| Net cash (used in)/provided by operating activities | (42,576 | ) | 81,930 | ||||
| Cash flows from investing activities: | |||||||
| Investments in unconsolidated entities | (5,850 | ) | (1,586 | ) | |||
| Purchases of property and equipment | (5,592 | ) | (6,258 | ) | |||
| Proceeds from sales of property and equipment | 29 | 79 | |||||
| Net cash used in investing activities | (11,413 | ) | (7,765 | ) | |||
| Cash flows from financing activities: | |||||||
| Repayment of loans payable and other borrowings | (2,150 | ) | (6,922 | ) | |||
| Proceeds from issuance of senior notes | 497,195 | — | |||||
| Payment of debt issuance costs | (5,073 | ) | — | ||||
| Dividends paid | (30,887 | ) | (27,239 | ) | |||
| Repurchase of shares | (44,999 | ) | (55,933 | ) | |||
| Net cash provided by/(used in) financing activities | 414,086 | (90,094 | ) | ||||
| Net increase/(decrease) in cash and cash equivalents | 360,097 | (15,929 | ) | ||||
| Beginning cash and cash equivalents | 651,555 | 921,227 | |||||
| Ending cash and cash equivalents | $ | 1,011,652 | $ | 905,298 | |||
| Meritage Homes Corporation and Subsidiaries Operating Data (Dollars in thousands) (Unaudited) |
We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Effective January 1, 2025, the Tennessee homebuilding operating segment has been reclassified from the East reporting segment to the Central reporting segment for the purpose of making operational and resource decisions and assessing financial performance. Prior period balances have been retroactively adjusted to reflect this reclassification. Our three reportable homebuilding segments are as follows:
- West: Arizona, California, Colorado, and Utah
- Central: Tennessee and Texas
- East: Alabama, Florida, Georgia, Mississippi, North Carolina and South Carolina
| Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Homes | Value | Homes | Value | ||||||
| Homes Closed: | |||||||||
| West Region | 998 | $ | 479,636 | 1,014 | $ | 515,632 | |||
| Central Region | 1,187 | 412,537 | 1,295 | 483,770 | |||||
| East Region | 1,231 | 449,931 | 1,198 | 466,694 | |||||
| Total | 3,416 | $ | 1,342,104 | 3,507 | $ | 1,466,096 | |||
| Homes Ordered: | |||||||||
| West Region | 1,093 | $ | 539,594 | 1,170 | $ | 580,805 | |||
| Central Region | 1,365 | 489,160 | 1,500 | 556,159 | |||||
| East Region | 1,418 | 529,423 | 1,321 | 494,231 | |||||
| Total | 3,876 | $ | 1,558,177 | 3,991 | $ | 1,631,195 | |||
| Order Backlog: | |||||||||
| West Region | 530 | $ | 262,627 | 902 | $ | 439,957 | |||
| Central Region | 659 | 242,919 | 1,046 | 390,848 | |||||
| East Region | 815 | 306,812 | 1,085 | 413,452 | |||||
| Total | 2,004 | $ | 812,358 | 3,033 | $ | 1,244,257 | |||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Ending | Average | Ending | Average | ||||
| Active Communities: | |||||||
| West Region | 85 | 88.0 | 83 | 80.5 | |||
| Central Region | 82 | 86.0 | 94 | 96.5 | |||
| East Region | 123 | 117.0 | 98 | 95.5 | |||
| Total | 290 | 291.0 | 275 | 272.5 | |||
| Meritage Homes Corporation and Subsidiaries Supplement and Non-GAAP information (Unaudited) Supplemental Information (Dollars in thousands): | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Depreciation and amortization | $ | 5,949 | $ | 6,038 | |||
| Summary of Capitalized Interest: | |||||||
| Capitalized interest, beginning of period | $ | 53,678 | $ | 54,516 | |||
| Interest incurred | 14,714 | 12,925 | |||||
| Interest expensed | — | — | |||||
| Interest amortized to cost of home and land closings | (11,285 | ) | (13,214 | ) | |||
| Capitalized interest, end of period | $ | 57,107 | $ | 54,227 | |||
| (1) | Net debt-to-capital reflects certain adjustments to the debt-to-capital ratio and is defined as net debt (debt less cash and cash equivalents) divided by total capital (net debt plus stockholders' equity). Net debt-to-capital is considered a non-GAAP financial measure and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe this non-GAAP financial measure is relevant and useful to investors in understanding our operating results and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. We encourage investors to understand the methods used by other companies in the homebuilding industry to calculate non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures. |
| Reconciliation of Non-GAAP Information (Dollars in thousands): | |||||||
| Debt-to-Capital Ratios | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,835,268 | $ | 1,335,878 | |||
| Stockholders' equity | 5,194,744 | 5,141,573 | |||||
| Total capital | $ | 7,030,012 | $ | 6,477,451 | |||
| Debt-to-capital | 26.1 | % | 20.6 | % | |||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,835,268 | $ | 1,335,878 | |||
| Less: cash and cash equivalents | (1,011,652 | ) | (651,555 | ) | |||
| Net debt | $ | 823,616 | $ | 684,323 | |||
| Stockholders’ equity | 5,194,744 | 5,141,573 | |||||
| Total net capital | $ | 6,018,360 | $ | 5,825,896 | |||
| Net debt-to-capital (1) | 13.7 | % | 11.7 | % | |||
About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.
Meritage has delivered almost 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our ability to increase our market share and our full year 2025 projected home closing volume and home closing revenue.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; shortages in the availability and cost of subcontract labor; the replication of our energy-efficient technologies by our competitors; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024 under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
| Contacts: | Emily Tadano, VP Investor Relations and External Communications (480) 515-8979 (office) investors@meritagehomes.com |
FAQ
What were Meritage Homes (MTH) key financial results for Q1 2025?
How many homes did Meritage Homes (MTH) close in Q1 2025?
What is Meritage Homes (MTH) guidance for full year 2025?
How much cash did Meritage Homes (MTH) return to shareholders in Q1 2025?
What was MTH's home closing gross margin in Q1 2025?
