Meritage Homes : Earnings Presentation Q1 2026

Published: 2026-04-23 11:00:15 ET MTH

Published on 04/23/2026 at 11:00 am EDT

APRIL 23, 2026

Speakers

334

345 340.5

312

323.0

301.0

Ending Average

1Q26

4Q25

3Q25

2Q25

1Q25

291.0

335.0

Ending & Average Community Count

290

336

Net Sales Orders Down 5% Year-over-year

Grew ending community count

19% year-over-year to a

company record 345

communities at March 31, 2026

1Q26 backlog conversion rate was 254% with nearly 70% of deliveries from intra-quarter orders, reflecting the benefit of our 60-day closing ready guarantee

1Q26 net orders were down 5% year-over-year in a tougher selling environment

1Q26 Takeaways

Net Orders & Y/Y %

-3%

3,876

3,914

3,636

-2%

-5%

3,664

3,224

1Q25

2Q25

3Q25

4Q25

1Q26

Average Absorption Pace & Y/Y %

-10%

4.4

-4%

4.3

-7%

3.8

-18%

3.6

3.2

1Q25

2Q25

3Q25

4Q25

1Q26

Backlog Conversion Rate

254%

221%

208%

211%

221%

1Q25

2Q25

3Q25

4Q25

1Q26

Diversity in Performance Across the Regions in Today's

Operating Environment

West Region Central Region East Region

Total

Average Communities

85.5

109.5

145.5

340.5

Average Communities Y/Y(%)

(3)%

27%

24%

17%

Absorption per month

3.5

4.0

3.3

3.6

Absorption per month Y/Y(%)

(15)%

(25)%

(18)%

Orders

898

1,316

1,450

3,664

Orders Y/Y(%)

(18)%

(4)%

(5)%

ASP on Orders

$495K

$348K

$344K

$382K

ASP on Orders Y/Y(%)

(3)%

(8)%

(5)%

Order Value Y/Y(%)

(18)%

(7)%

(6)%

(10)%

The data above relates to our three reportable homebuilding segments which include: West: Arizona, California, Colorado, and Utah

Central: Tennessee and Texas

East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina

Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage

Spec Starts

Total Specs and Ending Backlog & % of Specs Completed

4,083

3,601

3,072

2,694

2,524

6,758

39%

2,004

8,762

8,671

1,748

8,054

4,734

46%

1,865

6,355

47%

1,699

7,006 6,599

1,168

Ending Backlog Total Specs

5,838

50%

6,923

38%

1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26

Average Specs Per Community

23.3 22.2

19.0 17.4

13.7

Takeaways

13.7 specs per community for 1Q26 is our lowest level since 2022 and aligns with the accelerated cycle times and slower sales environment

Our completed specs comprised 46% of total spec count at March 31, 2026. We will continue to focus on bringing down this ratio in Q2

1Q25 2Q25 3Q25 4Q25 1Q26

1Q26 Financial Performance

($ Millions

except EPS & ASP) 1Q26 1Q25 % Chg

Home closings

2,967

3,416

(13)%

ASP (closings)

$373K

$393K

(5)%

Home closing revenue

$1,108

$1,342

(17)%

Home closing gross profit

$194

$296

(34)%

Home closing gross margin

17.5%

22.0%

(450) bps

SG&A expenses

$131

$152

(14)%

SG&A % of home closing revenue

11.8%

11.3%

50 bps

Earnings before taxes

$73

$160

(55)%

Effective tax rate

23.7%

23.3%

40 bps

Net earnings

$55

$123

(55)%

Diluted EPS

$0.82

$1.69

(51)%

Decline in ASPs from greater incentive use and geographic mix

Gross margin impacted by greater incentive use, higher lot costs, and lost leverage, which were partially offset by savings in direct costs, decreased compensation expense and faster cycle times

SG&A % reflected lost leverage and higher technology costs, which were partially offset by decreased compensation expense and an intentional reduction in discretionary expenses

1Q26 Capital Structure and Capital Spend Activities

Capital Structure - Non-GAAP Reconciliation

1Q26 Capital Allocation Spend

($ Millions)

Mar. 31, 2026

Dec. 31, 2025

Notes payable & other borrowings

$1,841

$1,829

Stockholders' equity

$5,094

$5,196

Total capital

$6,935

$7,025

Debt-to-capital

26.6%

26.0%

Less: cash & cash equivalents

$(767)

$(775)

Net debt

$1,075

$1,053

Total net capital

$6,168

$6,250

Net debt-to-capital

17.4%

16.9%

Book value per share

$76.37

$76.22

Cash Dividends 6%

Share Repurchase 27%

Strong financial position supported by a healthy balance sheet and

ample liquidity

$488 million total spend

Land Spend 67%

Returned $162M of cash to shareholders, totaling 295% of quarterly

earnings in 1Q26

Returned $416M in FY25, totaling 92% of FY25 earnings, via $295M in share buybacks (reduced 6% of the outstanding shares at the start of 2025) and $121M in cash dividends

1Q26 Land & Development Investment

Lots Detail

Land Acquisition & Development Spend* ($ Millions)

1Q26

1Q25

Total lots controlled

75,481

84,200

Supply of lots (years)

5.2

5.4

- Owned

70%

62%

- Optioned

30%

38%

$688

$405

$141

$148

$234

$222

$264

$185

$268

$243

$264

$275

$283

$465 $509 $528

$416

$326

4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

Column1

Takeaways

Intentional slowdown of land acquisition and development

spend, given current market conditions

Positioned well with 5.2 years supply of lots, in line with our target of 4-5 years and our growth plans

* Land acquisition and development spend is net of land development reimbursements. 2024 metrics have been adjusted to the current presentation

Net Newly Controlled Lots

14,359

2,188

1,795

1,996

380

-517

4Q24 1Q25 2Q25 3Q25 4Q25* 1Q26

* 4Q25 included 3,434 lots we terminated

Guidance

Second Quarter 2026

Home closings

3,650-3,900 units

Home closing revenue

$1.37-1.47 billion

Home closing gross margin

Around 18%

Effective tax rate

24.5-25.0%

Diluted earnings per common share

$1.18-1.46

Home closing volume and revenue at or within 5% of full year 2025

Top 5 builder focused on spec building

Differentiated ability to compete against resale, given our 60-day closing guarantee and realtor engagement

1Q26 Key Takeaways

Prioritized balance sheet strength and disciplined capital allocation in 1Q26 under current market conditions

Community count growth and faster cycle times paired with our strategy position us well to capture incremental market share as demand conditions improve

Meritage Company Overview

Affordable spec builder specializing in entry-level and first move-up homes

Top five U.S. public homebuilder

Delivered over 210,000 homes in its 41-year history

Diversified geographic footprint with 25 markets in 12 states

Meritage Key Strategies

Spec strategy

Go-to market strategy

Start all homes prior to releasing

them for sale • 60-day closing ready guarantee

Move-in ready inventory

Realtor engagement

Streamlined operations

Focused on affordability

Cost savings from national vendors derived from reduced number of house plans and SKUs, lack of design center and a simplified sale to close process

Deliver affordable entry-level and first move-up homes

Disclaimer

Meritage Homes Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 14:59 UTC.