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Dec 31, 2024

Meritage Homes Q4 2024 Earnings Report

Meritage Homes reported fourth quarter results, experiencing seasonality but securing orders totaling 3,304 homes with a focus on affordability.

Key Takeaways

Meritage Homes reported a decrease in home closing revenue and diluted EPS for Q4 2024 compared to Q4 2023. However, home orders increased by 14% year-over-year. The company's focus on affordability and move-in ready homes contributed to a company-record backlog conversion rate.

Home orders increased 14% year-over-year, driven by an increase in average absorption pace.

Home closing revenue decreased 3% year-over-year due to a lower average sales price.

Home closing gross margin decreased to 23.2% due to greater utilization of financing incentives and higher lot costs.

Net earnings decreased 13% year-over-year, resulting in diluted EPS of $4.72.

Total Revenue
$1.6B
Previous year: $1.64B
-2.8%
EPS
$2.36
Previous year: $2.69
-12.3%
Total Homes Backlog
1.54K
Previous year: 2.55K
-39.4%
Total Value Backlog
$630M
Previous year: $1.09B
-42.1%
Total Avg Sales Price Backlog
$408
Previous year: $427
-4.4%
Gross Profit
$373M
Previous year: $416M
-10.2%
Cash and Equivalents
$652M
Previous year: $921M
-29.3%
Free Cash Flow
-$107M
Previous year: -$112M
-4.0%
Total Assets
$7.16B
Previous year: $6.35B
+12.7%

Meritage Homes

Meritage Homes

Meritage Homes Revenue by Geographic Location

Forward Guidance

The Company is providing the following updated guidance for full year 2025, based on current market conditions: Full Year 2025Home closing volume16,250-16,750 unitsHome closing revenue$6.6-6.9 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income