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Mar 31, 2025
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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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