Meritage Homes reports fourth quarter 2024 results
Meritage Homes (NYSE: MTH) reported its Q4 and full-year 2024 results. Full-year 2024 highlights include record home closing volume of 15,611 units (+12% YoY) and home closing revenue of $6.3 billion (+5% YoY). Net earnings reached $786.2 million (+6% YoY) with diluted EPS of $21.44 (+8% YoY).
Q4 2024 performance showed mixed results with home closing revenue decreasing 3% to $1.6 billion, while orders increased 14% to 3,304 homes. Home closing gross margin declined to 23.2% from 25.2% YoY. Net earnings decreased 13% to $172.6 million with diluted EPS of $4.72.
The company maintained strong liquidity with $651.6 million in cash and completed the acquisition of Elliott Homes, adding approximately 5,500 lots. Meritage executed a two-for-one stock split on January 2, 2025, and provided FY2025 guidance projecting home closing volume of 16,250-16,750 units and revenue of $6.6-6.9 billion.
Meritage Homes (NYSE: MTH) ha riportato i risultati del Q4 e dell'intero anno 2024. Risultati dell'intero anno 2024 includono un volume record di chiusure immobiliari di 15.611 unità (+12% rispetto all'anno precedente) e un fatturato dalle chiusure immobiliari di 6,3 miliardi di dollari (+5% rispetto all'anno precedente). Gli utili netti hanno raggiunto i 786,2 milioni di dollari (+6% rispetto all'anno precedente) con un utile per azione diluito di 21,44 dollari (+8% rispetto all'anno precedente).
Performance del Q4 2024 ha mostrato risultati misti con un fatturato dalle chiusure immobiliari in calo del 3% a 1,6 miliardi di dollari, mentre gli ordini sono aumentati del 14% a 3.304 abitazioni. Il margine lordo delle chiusure immobiliari è diminuito al 23,2% rispetto al 25,2% dell'anno precedente. Gli utili netti sono diminuiti del 13% a 172,6 milioni di dollari con un utile per azione diluito di 4,72 dollari.
L'azienda ha mantenuto una solida liquidità con 651,6 milioni di dollari in contante e ha completato l'acquisizione di Elliott Homes, aggiungendo circa 5.500 lotti. Meritage ha effettuato uno scorporo azionario di due a uno il 2 gennaio 2025 e ha fornito una guida per l'anno fiscale 2025, prevedendo un volume di chiusure immobiliari di 16.250-16.750 unità e ricavi di 6,6-6,9 miliardi di dollari.
Meritage Homes (NYSE: MTH) reportó sus resultados del Q4 y del año completo 2024. Aspectos destacados del año completo 2024 incluyen un volumen récord de cierres de viviendas de 15,611 unidades (+12% en comparación con el año anterior) y unos ingresos por cierres de viviendas de 6.3 mil millones de dólares (+5% en comparación con el año anterior). Las ganancias netas alcanzaron 786.2 millones de dólares (+6% en comparación con el año anterior) con un EPS diluido de 21.44 dólares (+8% en comparación con el año anterior).
Desempeño del Q4 2024 mostró resultados mixtos, con los ingresos por cierres de viviendas disminuyendo un 3% a 1.6 mil millones de dólares, mientras que los pedidos aumentaron un 14% a 3,304 viviendas. El margen bruto de cierres de viviendas disminuyó al 23.2% desde el 25.2% del año anterior. Las ganancias netas disminuyeron un 13% a 172.6 millones de dólares con un EPS diluido de 4.72 dólares.
La compañía mantuvo una fuerte liquidez con 651.6 millones de dólares en efectivo y completó la adquisición de Elliott Homes, añadiendo aproximadamente 5,500 lotes. Meritage realizó una división de acciones de dos por uno el 2 de enero de 2025 y proporcionó una guía para el año fiscal 2025, proyectando un volumen de cierres de viviendas de 16,250-16,750 unidades y unos ingresos de 6.6-6.9 mil millones de dólares.
Meritage Homes (NYSE: MTH)는 2024년 4분기 및 전체 연도 결과를 발표했습니다. 2024년 전체 연도 주요 내용은 15,611채의 주택 거래량(+12% 전년 대비)과 63억 달러(+5% 전년 대비)의 주택 거래 수익을 포함합니다. 순이익은 7억 8,620만 달러(+6% 전년 대비)에 도달했으며, 희석 주당 순이익(EPS)은 21.44달러(+8% 전년 대비)였습니다.
2024년 4분기 성과는 주택 거래 수익이 16억 달러로 3% 감소한 반면, 주문 수가 3,304채로 14% 증가하는 등 혼합된 결과를 보였습니다. 주택 거래의 총 매출 마진은 25.2%에서 23.2%로 감소했습니다. 순이익은 1억 7,260만 달러로 13% 감소하였고, 희석 EPS는 4.72달러입니다.
회사는 6억 5,160만 달러의 현금을 보유하며 강력한 유동성을 유지했고, 약 5,500개의 부지를 추가하는 Elliott Homes의 인수를 완료했습니다. Meritage는 2025년 1월 2일에 2대 1 주식 분할을 시행하였으며, 2025 회계연도에 대한 지침을 제공하여 주택 거래량을 16,250-16,750채, 수익을 66억-69억 달러로 예상하고 있습니다.
Meritage Homes (NYSE: MTH) a annoncé ses résultats pour le 4ème trimestre et l'année entière 2024. Points forts de l'année 2024 comprennent un volume record de 15 611 unités de fermetures de maisons (+12% par rapport à l'année précédente) et des revenus de fermetures de maisons de 6,3 milliards de dollars (+5% par rapport à l'année précédente). Le bénéfice net a atteint 786,2 millions de dollars (+6% par rapport à l'année précédente) avec un BPA dilué de 21,44 dollars (+8% par rapport à l'année précédente).
Performance du 4ème trimestre 2024 a montré des résultats mitigés, avec des revenus de fermetures de maisons en baisse de 3% à 1,6 milliard de dollars, tandis que les commandes ont augmenté de 14% à 3 304 maisons. La marge brute des fermetures de maisons a diminué à 23,2% contre 25,2% l'année précédente. Le bénéfice net a diminué de 13% à 172,6 millions de dollars avec un BPA dilué de 4,72 dollars.
L'entreprise a maintenu une solide liquidité avec 651,6 millions de dollars en liquidités et a finalisé l'acquisition d'Elliott Homes, ajoutant environ 5 500 lots. Meritage a réalisé une division d'actions au ratio de deux pour un le 2 janvier 2025 et a fourni une prévision pour l'exercice 2025 projetant un volume de fermetures de maisons de 16 250 à 16 750 unités et des revenus de 6,6 à 6,9 milliards de dollars.
Meritage Homes (NYSE: MTH) hat seine Ergebnisse für das 4. Quartal und das Gesamtjahr 2024 veröffentlicht. Highlights des Gesamtjahres 2024 umfassen ein Rekordvolumen von 15.611 abgeschlossenen Häusern (+12% im Vergleich zum Vorjahr) und Einnahmen aus Hausabschlüssen von 6,3 Milliarden Dollar (+5% im Vergleich zum Vorjahr). Die Nettogewinne erreichten 786,2 Millionen Dollar (+6% im Vergleich zum Vorjahr) mit einem verwässerten Gewinn pro Aktie von 21,44 Dollar (+8% im Vergleich zum Vorjahr).
Leistung im 4. Quartal 2024 zeigte gemischte Ergebnisse, wobei die Einnahmen aus Hausabschlüssen um 3% auf 1,6 Milliarden Dollar sanken, während die Bestellungen um 14% auf 3.304 Häuser stiegen. Die Bruttomarge aus Hausabschlüssen fiel von 25,2% auf 23,2% im Jahresvergleich. Die Nettogewinne gingen um 13% auf 172,6 Millionen Dollar zurück, mit einem verwässerten Gewinn pro Aktie von 4,72 Dollar.
Das Unternehmen behielt eine starke Liquidität mit 651,6 Millionen Dollar in bar und schloss die Übernahme von Elliott Homes ab, was etwa 5.500 Grundstücke hinzufügte. Meritage führte am 2. Januar 2025 einen Aktiensplit im Verhältnis 2 zu 1 durch und gab eine Prognose für das Geschäftsjahr 2025 heraus, die ein Schlussvolumen von 16.250-16.750 Einheiten und Einnahmen von 6,6-6,9 Milliarden Dollar prognostiziert.
- Record annual home closing volume of 15,611 units (+12% YoY)
- Full-year home closing revenue increased 5% to $6.3 billion
- Annual net earnings grew 6% to $786.2 million
- Q4 orders increased 14% to 3,304 homes
- Strong liquidity position with $651.6 million in cash
- Strategic acquisition of Elliott Homes adding 5,500 lots
- Q4 home closing revenue decreased 3% to $1.6 billion
- Q4 home closing gross margin declined 200 bps to 23.2%
- Q4 net earnings decreased 13% to $172.6 million
- Ending backlog value down 42% to $629.5 million
- Average sales price declined 5% for closings and 4% for orders
Insights
Meritage Homes' Q4 results reveal important strategic shifts and market dynamics that warrant careful analysis. The company's focus on affordable, move-in ready homes is driving volume but pressuring margins, as evidenced by the
The
The acquisition of Elliott Homes and aggressive land strategy (adding 14,400 net new lots) demonstrates confidence in long-term growth prospects. The company now controls 85,600 lots - representing over 5 years of supply at current sales pace. This positions MTH well for expansion but increases near-term capital needs, as evidenced by the decline in cash position to
Management's enhanced capital return program, including higher dividends (
SCOTTSDALE, Ariz., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2024.
| Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) | |||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| 2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||||||||||||
| Homes closed (units) | 4,044 | 3,951 | 2 | % | 15,611 | 13,976 | 12 | % | |||||||||
| Home closing revenue | $ | 1,595,928 | $ | 1,641,523 | (3 | )% | $ | 6,341,546 | $ | 6,056,784 | 5 | % | |||||
| Average sales price - closings | $ | 395 | $ | 415 | (5 | )% | $ | 406 | $ | 433 | (6 | )% | |||||
| Home orders (units) | 3,304 | 2,892 | 14 | % | 14,606 | 13,193 | 11 | % | |||||||||
| Home order value | $ | 1,320,447 | $ | 1,198,744 | 10 | % | $ | 5,950,708 | $ | 5,675,892 | 5 | % | |||||
| Average sales price - orders | $ | 400 | $ | 415 | (4 | )% | $ | 407 | $ | 430 | (5 | )% | |||||
| Ending backlog (units) | 1,544 | 2,549 | (39 | )% | |||||||||||||
| Ending backlog value | $ | 629,549 | $ | 1,088,137 | (42 | )% | |||||||||||
| Average sales price - backlog | $ | 408 | $ | 427 | (4 | )% | |||||||||||
| Earnings before income taxes | $ | 221,562 | $ | 258,869 | (14 | )% | $ | 1,002,870 | $ | 949,430 | 6 | % | |||||
| Net earnings | $ | 172,649 | $ | 198,851 | (13 | )% | $ | 786,186 | $ | 738,748 | 6 | % | |||||
| Diluted EPS | $ | 4.72 | $ | 5.38 | (12 | )% | $ | 21.44 | $ | 19.93 | 8 | % | |||||
MANAGEMENT COMMENTS
"2024 was another record-setting year for Meritage as we began to roll out our new move-in ready strategy and were able to capitalize on continuing demand for affordable, immediately available homes. For the full year 2024, we generated our highest annual closing volume of 15,611 homes and, despite a pullback in average sales price, we achieved a company-high home closing revenue of
"With over
“Our capital allocation in the fourth quarter of 2024 remained centered on investing in growth and returning cash to shareholders. Our land acquisition and development spend totaled
FOURTH QUARTER RESULTS
- Orders of 3,304 for the fourth quarter of 2024 increased
14% year-over-year due to an8% increase in average absorption pace to 3.9 per month from 3.6 per month in the fourth quarter of 2023 and a5% increase in average communities. Fourth quarter 2024 average sales price ("ASP") on orders of$400,000 was down4% from the fourth quarter of 2023 due to greater utilization of financing incentives as well as product and geographic mix shift. Entry-level represented91% of fourth quarter 2024 sales orders, compared to88% in the prior year. - The
3% year-over-year decrease in home closing revenue to$1.6 billion for the fourth quarter of 2024 was primarily the result of a5% lower ASP on closings due to greater utilization of financing incentives as well as product and geographic mix. The fourth quarter 2024 closing volume totaled 4,044 units, which was2% higher than prior year. Entry-level represented91% of fourth quarter 2024 home closings, compared to86% in the prior year. - Home closing gross margin of
23.2% in the fourth quarter of 2024 was down 200 bps from25.2% in the fourth quarter of 2023 as a result of greater utilization of financing incentives and higher lot costs, which were partially offset by lower direct costs per square foot and improved cycle times. - Selling, general and administrative expenses ("SG&A") as a percentage of home closing revenue was
10.8% for the fourth quarter of 2024 compared to10.7% for the fourth quarter of 2023. As we moved into the tougher selling environment, commission rates in the fourth quarter of 2024 increased. - The fourth quarter effective income tax rate was
22.1% in 2024, compared to23.2% in 2023. The Company's tax rates in both periods benefited from earned eligible energy tax credits on qualifying homes under the Inflation Reduction Act ("IRA"). - Net earnings were
$172.6 million ($4.72 per diluted share) for the fourth quarter of 2024, a13% decrease from$198.9 million ($5.38 per diluted share) for the fourth quarter of 2023. Lower home closing revenue and lower margins led to a12% year-over-year decrease in earnings per diluted share.
YEAR TO DATE RESULTS
- Total sales orders of 14,606 homes for full year 2024 increased
11% over prior year due to an8% year-over-year increase in average absorption pace to 4.3 per month in 2024 and a1% increase in average community count. - Home closing revenue increased
5% for full year 2024 to$6.3 billion due to a12% increase in home closing volume year-over-year partially offset by a6% decline in ASPs on closings. - Full year 2024 home closing gross margin of
24.9% was slightly up from24.8% for full year 2023, due to lower direct costs per square foot and improved cycle time, which were partially offset by greater utilization of financing incentives and higher lot costs. - SG&A as a percentage of home closing revenue of
10.1% was slightly lower year-over-year from10.2% in 2023. Commissions were higher year-over-year as a result of tougher selling conditions in 2024. - For the full year 2024, the Company recognized a loss on early extinguishment of debt of
$0.6 million in connection with the$250.0 million redemption of its remaining6.00% senior notes due 2025 (the "2025 Notes"). The Company recognized a loss on early extinguishment of debt of$0.9 million in 2023 in connection with the$150.0 million partial redemption of the 2025 Notes. - The effective tax rate for full year 2024 was
21.6% , compared to22.2% for full year 2023. The Company's tax rates in both periods benefited from earned eligible energy tax credits on qualifying homes under the IRA. - Net earnings were
$786.2 million ($21.44 per diluted share) for full year 2024, a6% increase from$738.7 million ($19.93 per diluted share) for full year 2023, primarily reflecting higher home closing revenue and slightly lower overhead costs in 2024.
BALANCE SHEET & LIQUIDITY
- On October 29, 2024, the Company completed the acquisition of the assets of private builder Elliott Homes ("Elliott"), which built entry-level homes in Mississippi, Alabama and the Florida panhandle. Approximately 5,500 lots were included in the acquisition.
- Cash and cash equivalents at December 31, 2024 totaled
$651.6 million , compared to$921.2 million at December 31, 2023, as we increased our investments in real estate and also completed the Elliott acquisition in the fourth quarter of 2024. - Land acquisition and development spend totaled
$741.5 million for the fourth quarter of 2024, compared to$653.5 million for the fourth quarter of 2023. The 2024 spend included the Elliott acquisition. Full year 2024 land spend was$2.5 billion compared to$1.9 billion in the prior year. - Approximately 85,600 total lots were owned or controlled as of December 31, 2024, which included the approximately 5,500 lots from the Elliott acquisition. This was a
33% increase from approximately 64,300 total lots as of December 31, 2023. Approximately 14,400 net new lots were added in the fourth quarter of 2024, which compared to over 7,600 net new lots in the fourth quarter of 2023. - Fourth quarter 2024 ending community count was 292, which compared to 278 ending communities at September 30, 2024 and 270 at December 31, 2023.
- Debt-to-capital and net debt-to-capital ratios were
20.6% and11.7% , respectively as of December 31, 2024, compared to17.9% and1.9% , respectively as of December 31, 2023. - The Company declared and paid quarterly cash dividends of
$0.75 per share totaling$27.0 million in the fourth quarter of 2024, up from$0.27 per share totaling$9.8 million in the fourth quarter of 2023. Full year dividends paid were$108.6 million and$39.5 million in 2024 and 2023, respectively. - During the fourth quarter of 2024, the Company repurchased 218,616 shares of stock, or
0.6% of shares outstanding at the beginning of the quarter, for$40.0 million , which compared to 24,869 shares of stock repurchased in the fourth quarter of 2023 for$4.1 million . For full year 2024, the Company repurchased 732,255 shares of stock, or2.0% of shares outstanding at the beginning of the year, for a total of$125.9 million , which compared to 437,882 shares of stock repurchased in full year 2023 for$59.1 million . During the fourth quarter of 2024, the Board approved an additional$250.0 million to the authorized share repurchase program, and as of December 31, 2024,$309.1 million remained available to repurchase under the program. - Subsequent to the fourth quarter of 2024, we completed a two-for-one stock split of Meritage's common stock in the form of a stock dividend on January 2, 2025.
GUIDANCE
The Company is providing the following updated guidance for full year 2025, based on current market conditions:
| 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 fourth quarter 2024 results at 8:00 a.m. Mountain Standard Time (10:00 a.m. Eastern Standard Time) on Thursday, January 30, 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. The Company's book value per share is calculated as total stockholders' equity as of the last day of the period divided by the shares outstanding as of the last day of the period.
| Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||
| 2024 | 2023 | Change $ | Change % | |||||||||||||
| Homebuilding: | ||||||||||||||||
| Home closing revenue | $ | 1,595,928 | $ | 1,641,523 | $ | (45,595 | ) | (3 | )% | |||||||
| Land closing revenue | 17,356 | 11,682 | 5,674 | 49 | % | |||||||||||
| Total closing revenue | 1,613,284 | 1,653,205 | (39,921 | ) | (2 | )% | ||||||||||
| Cost of home closings | (1,226,114 | ) | (1,228,426 | ) | 2,312 | — | % | |||||||||
| Cost of land closings | (14,026 | ) | (9,104 | ) | (4,922 | ) | 54 | % | ||||||||
| Total cost of closings | (1,240,140 | ) | (1,237,530 | ) | (2,610 | ) | — | % | ||||||||
| Home closing gross profit | 369,814 | 413,097 | (43,283 | ) | (10 | )% | ||||||||||
| Land closing gross profit | 3,330 | 2,578 | 752 | 29 | % | |||||||||||
| Total closing gross profit | 373,144 | 415,675 | (42,531 | ) | (10 | )% | ||||||||||
| Financial Services: | ||||||||||||||||
| Revenue | 8,429 | 7,200 | 1,229 | 17 | % | |||||||||||
| Expense | (4,024 | ) | (3,218 | ) | (806 | ) | 25 | % | ||||||||
| Earnings from financial services unconsolidated entities and other, net | 2,757 | 2,418 | 339 | 14 | % | |||||||||||
| Financial services profit | 7,162 | 6,400 | 762 | 12 | % | |||||||||||
| Commissions and other sales costs | (104,956 | ) | (107,145 | ) | 2,189 | (2 | )% | |||||||||
| General and administrative expenses | (67,742 | ) | (68,972 | ) | 1,230 | (2 | )% | |||||||||
| Interest expense | — | — | — | — | % | |||||||||||
| Other income, net | 13,954 | 12,911 | 1,043 | 8 | % | |||||||||||
| Earnings before income taxes | 221,562 | 258,869 | (37,307 | ) | (14 | )% | ||||||||||
| Provision for income taxes | (48,913 | ) | (60,018 | ) | 11,105 | (19 | )% | |||||||||
| Net earnings | $ | 172,649 | $ | 198,851 | $ | (26,202 | ) | (13 | )% | |||||||
| Earnings per common share: | ||||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||||
| Earnings per common share | $ | 4.78 | $ | 5.46 | $ | (0.68 | ) | (12 | )% | |||||||
| Weighted average shares outstanding | 36,094 | 36,446 | (352 | ) | (1 | )% | ||||||||||
| Diluted | ||||||||||||||||
| Earnings per common share | $ | 4.72 | $ | 5.38 | $ | (0.66 | ) | (12 | )% | |||||||
| Weighted average shares outstanding | 36,562 | 36,947 | (385 | ) | (1 | )% | ||||||||||
| Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (unaudited) | ||||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||||
| 2024 | 2023 | Change $ | Change % | |||||||||||||
| Homebuilding: | ||||||||||||||||
| Home closing revenue | $ | 6,341,546 | $ | 6,056,784 | $ | 284,762 | 5 | % | ||||||||
| Land closing revenue | 22,326 | 56,229 | (33,903 | ) | (60 | )% | ||||||||||
| Total closing revenue | 6,363,872 | 6,113,013 | 250,859 | 4 | % | |||||||||||
| Cost of home closings | (4,761,703 | ) | (4,554,671 | ) | (207,032 | ) | 5 | % | ||||||||
| Cost of land closings | (18,309 | ) | (51,786 | ) | 33,477 | (65 | )% | |||||||||
| Total cost of closings | (4,780,012 | ) | (4,606,457 | ) | (173,555 | ) | 4 | % | ||||||||
| Home closing gross profit | 1,579,843 | 1,502,113 | 77,730 | 5 | % | |||||||||||
| Land closing gross profit | 4,017 | 4,443 | (426 | ) | (10 | )% | ||||||||||
| Total closing gross profit | 1,583,860 | 1,506,556 | 77,304 | 5 | % | |||||||||||
| Financial Services: | ||||||||||||||||
| Revenue | 31,163 | 25,250 | 5,913 | 23 | % | |||||||||||
| Expense | (14,657 | ) | (12,128 | ) | (2,529 | ) | 21 | % | ||||||||
| Loss from financial services unconsolidated entities and other, net | (2,096 | ) | (656 | ) | (1,440 | ) | 220 | % | ||||||||
| Financial services profit | 14,410 | 12,466 | 1,944 | 16 | % | |||||||||||
| Commissions and other sales costs | (409,069 | ) | (384,911 | ) | (24,158 | ) | 6 | % | ||||||||
| General and administrative expenses | (230,856 | ) | (231,722 | ) | 866 | — | % | |||||||||
| Interest expense | — | — | — | — | % | |||||||||||
| Other income, net | 45,156 | 47,948 | (2,792 | ) | (6 | )% | ||||||||||
| Loss on early extinguishment of debt | (631 | ) | (907 | ) | 276 | (30 | )% | |||||||||
| Earnings before income taxes | 1,002,870 | 949,430 | 53,440 | 6 | % | |||||||||||
| Provision for income taxes | (216,684 | ) | (210,682 | ) | (6,002 | ) | 3 | % | ||||||||
| Net earnings | $ | 786,186 | $ | 738,748 | $ | 47,438 | 6 | % | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||||
| Earnings per common share | $ | 21.70 | $ | 20.17 | $ | 1.53 | 8 | % | ||||||||
| Weighted average shares outstanding | 36,238 | 36,619 | (381 | ) | (1 | )% | ||||||||||
| Diluted | ||||||||||||||||
| Earnings per common share | $ | 21.44 | $ | 19.93 | $ | 1.51 | 8 | % | ||||||||
| Weighted average shares outstanding | 36,666 | 37,069 | (403 | ) | (1 | )% | ||||||||||
| Meritage Homes Corporation and Subsidiaries Consolidated Balance Sheets (Dollars in thousands) (unaudited) | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 651,555 | $ | 921,227 | ||
| Other receivables | 256,282 | 266,972 | ||||
| Real estate (1) | 5,728,775 | 4,721,291 | ||||
| Deposits on real estate under option or contract | 192,405 | 111,364 | ||||
| Investments in unconsolidated entities | 28,735 | 17,170 | ||||
| Property and equipment, net | 47,285 | 48,953 | ||||
| Deferred tax assets, net | 54,524 | 47,573 | ||||
| Prepaids, other assets and goodwill | 203,093 | 218,584 | ||||
| Total assets | $ | 7,162,654 | $ | 6,353,134 | ||
| Liabilities: | ||||||
| Accounts payable | $ | 212,477 | $ | 271,650 | ||
| Accrued liabilities | 452,213 | 424,764 | ||||
| Home sale deposits | 20,513 | 36,605 | ||||
| Loans payable and other borrowings | 29,343 | 13,526 | ||||
| Senior and convertible senior notes, net | 1,306,535 | 994,689 | ||||
| Total liabilities | 2,021,081 | 1,741,234 | ||||
| Stockholders' Equity: | ||||||
| Preferred stock | — | — | ||||
| Common stock, par value | 360 | 364 | ||||
| Additional paid-in capital | 143,036 | 290,955 | ||||
| Retained earnings | 4,998,177 | 4,320,581 | ||||
| Total stockholders’ equity | 5,141,573 | 4,611,900 | ||||
| Total liabilities and stockholders’ equity | $ | 7,162,654 | $ | 6,353,134 | ||
| (1) Real estate – Allocated costs: | ||||||
| Homes under contract under construction | 525,271 | $ | 704,206 | |||
| Unsold homes, completed and under construction | 1,730,636 | 1,260,855 | ||||
| Model homes | 119,732 | 118,252 | ||||
| Finished home sites and home sites under development | 3,353,136 | 2,637,978 | ||||
| Total real estate | $ | 5,728,775 | $ | 4,721,291 | ||
| Meritage Homes Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (unaudited) | ||||||||
| Twelve Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 786,186 | $ | 738,748 | ||||
| Adjustments to reconcile net earnings to net cash (used in)/provided by operating activities: | ||||||||
| Depreciation and amortization | 25,959 | 25,334 | ||||||
| Stock-based compensation | 25,809 | 22,511 | ||||||
| Loss on early extinguishment of debt | 631 | 907 | ||||||
| Equity in earnings from unconsolidated entities | (9,225 | ) | (6,371 | ) | ||||
| Distribution of earnings from unconsolidated entities | 7,461 | 6,792 | ||||||
| Other | 14,460 | 4,115 | ||||||
| Changes in assets and liabilities: | ||||||||
| Increase in real estate | (979,254 | ) | (357,408 | ) | ||||
| (Increase)/decrease in deposits on real estate under option or contract | (81,354 | ) | (36,140 | ) | ||||
| Decrease/(increase) in receivables, prepaids and other assets | 39,776 | (64,169 | ) | |||||
| (Decrease)/increase in accounts payable and accrued liabilities | (41,933 | ) | 22,609 | |||||
| Decrease in home sale deposits | (16,092 | ) | (1,356 | ) | ||||
| Net cash (used in)/provided by operating activities | (227,576 | ) | 355,572 | |||||
| Cash flows from investing activities: | ||||||||
| Investments in unconsolidated entities | (18,545 | ) | (5,991 | ) | ||||
| Distributions of capital from unconsolidated entities | 2,867 | 137 | ||||||
| Purchases of property and equipment | (28,658 | ) | (38,192 | ) | ||||
| Proceeds from sales of property and equipment | 262 | 423 | ||||||
| Maturities/sales of investments and securities | 750 | 750 | ||||||
| Payments to purchase investments and securities | (750 | ) | (750 | ) | ||||
| Net cash used in investing activities | (44,074 | ) | (43,623 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayment of loans payable and other borrowings | (8,933 | ) | (2,798 | ) | ||||
| Repayment of senior notes | (250,695 | ) | (150,884 | ) | ||||
| Proceeds from issuance of convertible senior notes | 575,000 | — | ||||||
| Payment of debt issuance costs | (17,082 | ) | — | |||||
| Purchase of capped calls related to issuance of convertible senior notes | (61,790 | ) | — | |||||
| Dividends paid | (108,590 | ) | (39,534 | ) | ||||
| Repurchase of shares | (125,932 | ) | (59,067 | ) | ||||
| Net cash provided by/(used in) financing activities | 1,978 | (252,283 | ) | |||||
| Net (decrease)/increase in cash and cash equivalents | (269,672 | ) | 59,666 | |||||
| Cash and cash equivalents, beginning of period | 921,227 | 861,561 | ||||||
| Cash and cash equivalents, end of period | $ | 651,555 | $ | 921,227 | ||||
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. Our three reportable homebuilding segments are as follows:
- West: Arizona, California, Colorado, and Utah
- Central: Texas
- East: Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee
| Three months ended December 31, | ||||||||||
| 2024 | 2023 | |||||||||
| Homes | Value | Homes | Value | |||||||
| Homes Closed: | ||||||||||
| West Region | 1,027 | $ | 490,898 | 1,155 | $ | 563,723 | ||||
| Central Region | 1,228 | 436,006 | 1,242 | 464,571 | ||||||
| East Region | 1,789 | 669,024 | 1,554 | 613,229 | ||||||
| Total | 4,044 | $ | 1,595,928 | 3,951 | $ | 1,641,523 | ||||
| Homes Ordered: | ||||||||||
| West Region | 864 | $ | 425,038 | 722 | $ | 373,941 | ||||
| Central Region | 1,067 | 378,358 | 1,054 | 392,421 | ||||||
| East Region | 1,373 | 517,051 | 1,116 | 432,382 | ||||||
| Total | 3,304 | $ | 1,320,447 | 2,892 | $ | 1,198,744 | ||||
| Twelve months ended December 31, | ||||||||||
| 2024 | 2023 | |||||||||
| Homes | Value | Homes | Value | |||||||
| Homes Closed: | ||||||||||
| West Region | 4,526 | $ | 2,223,876 | 4,109 | $ | 2,107,095 | ||||
| Central Region | 4,834 | 1,739,553 | 4,486 | 1,798,939 | ||||||
| East Region | 6,251 | 2,378,117 | 5,381 | 2,150,750 | ||||||
| Total | 15,611 | $ | 6,341,546 | 13,976 | $ | 6,056,784 | ||||
| Homes Ordered: | ||||||||||
| West Region | 4,215 | $ | 2,084,168 | 3,983 | $ | 2,046,251 | ||||
| Central Region | 4,508 | 1,626,919 | 4,291 | 1,678,484 | ||||||
| East Region | 5,883 | 2,239,621 | 4,919 | 1,951,157 | ||||||
| Total | 14,606 | $ | 5,950,708 | 13,193 | $ | 5,675,892 | ||||
| Order Backlog: | ||||||||||
| West Region | 435 | $ | 214,360 | 746 | $ | 379,785 | ||||
| Central Region | 442 | 159,546 | 768 | 289,375 | ||||||
| East Region | 667 | 255,643 | 1,035 | 418,977 | ||||||
| Total | 1,544 | $ | 629,549 | 2,549 | $ | 1,088,137 | ||||
| Three months ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Ending | Average | Ending | Average | Ending | Average | Ending | Average | |||||||||
| Active Communities: | ||||||||||||||||
| West Region | 91 | 88.5 | 78 | 81.0 | 91 | 84.6 | 78 | 90.0 | ||||||||
| Central Region | 79 | 75.5 | 88 | 85.0 | 79 | 79.0 | 88 | 83.0 | ||||||||
| East Region | 122 | 121.0 | 104 | 105.0 | 122 | 116.8 | 104 | 103.4 | ||||||||
| Total | 292 | 285.0 | 270 | 271.0 | 292 | 280.4 | 270 | 276.4 | ||||||||
| Meritage Homes Corporation and Subsidiaries Supplemental and Non-GAAP information (Unaudited) | ||||||||||||||||
| Supplemental Information (In thousands): | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Depreciation and amortization | $ | 6,601 | $ | 7,758 | $ | 25,959 | $ | 25,334 | ||||||||
| Summary of Capitalized Interest: | ||||||||||||||||
| Capitalized interest, beginning of period | $ | 53,732 | $ | 58,476 | $ | 54,516 | $ | 60,169 | ||||||||
| Interest incurred | 12,713 | 12,845 | 52,717 | 57,759 | ||||||||||||
| Interest expensed | — | — | — | — | ||||||||||||
| Interest amortized to cost of home and land closings | (12,767 | ) | (16,805 | ) | (53,555 | ) | (63,412 | ) | ||||||||
| Capitalized interest, end of period | $ | 53,678 | $ | 54,516 | $ | 53,678 | $ | 54,516 | ||||||||
| Reconciliation of Non-GAAP Information (In thousands): | ||||||||
| Debt-to-Capital Ratios | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,335,878 | $ | 1,008,215 | ||||
| Stockholders' equity | 5,141,573 | 4,611,900 | ||||||
| Total capital | $ | 6,477,451 | $ | 5,620,115 | ||||
| Debt-to-capital | 20.6 | % | 17.9 | % | ||||
| Senior and convertible senior notes, net, loans payable and other borrowings | $ | 1,335,878 | $ | 1,008,215 | ||||
| Less: cash and cash equivalents | (651,555 | ) | (921,227 | ) | ||||
| Net debt | $ | 684,323 | $ | 86,988 | ||||
| Stockholders’ equity | 5,141,573 | 4,611,900 | ||||||
| Total net capital | $ | 5,825,896 | $ | 4,698,888 | ||||
| Net debt-to-capital (1) | 11.7 | % | 1.9 | % | ||||
| (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. |
ABOUT MERITAGE HOMES CORPORATION
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2023. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Meritage has delivered almost 200,000 homes in its 39-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, 2023 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
| Contacts: | Emily Tadano, VP Investor Relations and ESG | |
| (480) 515-8979 (office) | ||
| investors@meritagehomes.com |
FAQ
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