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Jun 30, 2022

Meritage Homes Q2 2022 Earnings Report

Meritage Homes' Q2 2022 results were reported, highlighting the achievement of its 300 community goal, a 55% increase in diluted EPS, and a 430 bps increase in home closing gross margin over the prior year.

Key Takeaways

Meritage Homes reported strong second quarter 2022 results, with a 6% increase in sales orders, an 11% increase in home closing revenue to $1.4 billion, and a 430 bps improvement in home closing gross margin to 31.6%. Diluted EPS increased by 55% year-over-year to $6.77.

Achieved long-term goal of 300 communities, ending June 2022 with 303 communities.

Sales orders increased by 6% year-over-year, driven by a 33% increase in average community count.

Home closing revenue increased by 11% year-over-year to $1.4 billion.

Home closing gross margin improved by 430 bps year-over-year to 31.6%.

Total Revenue
$1.41B
Previous year: $1.28B
+10.5%
EPS
$3.39
Previous year: $2.37
+43.0%
Total Avg Sales Price Backlog
$480K
Previous year: $421
+113914.3%
Gross Profit
$449M
Previous year: $345M
+30.3%
Cash and Equivalents
$272M
Previous year: $684M
-60.2%
Free Cash Flow
-$225M
Previous year: -$136M
+66.4%
Total Assets
$5.31B
Previous year: $4.32B
+22.8%

Meritage Homes

Meritage Homes

Forward Guidance

Due to the lack of visibility into the market at this time, we are not providing full year 2022 guidance.