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Mar 31
Meritage Homes Q1 2025 Earnings Report
Meritage Homes reported lower earnings and revenue in Q1 2025 compared to the same quarter last year.
Key Takeaways
Meritage Homes experienced a decline in earnings and revenue in Q1 2025, impacted by lower home closings and average selling prices. However, strong operational execution resulted in a record-high backlog conversion rate, reflecting the company's strategic pivot towards move-in ready inventory and affordability.
Meritage Homes
Meritage Homes
Meritage Homes Revenue by Segment
Meritage Homes Revenue by Geographic Location
Forward Guidance
Meritage Homes reaffirmed its full-year 2025 guidance, anticipating between 16,250 and 16,750 home closings and $6.6 to $6.9 billion in home closing revenue.
Positive Outlook
- Maintained guidance of 16,250–16,750 home closings for FY25
- Expected full-year revenue range between $6.6B and $6.9B
- Strong liquidity position with $1B in cash at quarter-end
- Backlog conversion rate hit record 221%
- Growth investment in 2,200 net new lots for future communities
Challenges Ahead
- Decreased ASP due to higher financing incentives
- Lower year-over-year gross margin at 22.0%
- SG&A expenses increased due to expansion costs
- Higher income tax rate due to reduced energy credit eligibility
- Declines in backlog units and value year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income