Loading...
•
Dec 31, 2025
Meritage Homes Q4 2025 Earnings Report
Meritage Homes reported its fourth quarter 2025 earnings with a decrease in home closing revenue and net earnings compared to the previous year.
Key Takeaways
Meritage Homes Corporation announced its fourth quarter and full year results for the periods ended December 31, 2025. The company reported a home closing gross margin of 16.5% and adjusted gross margin of 19.3% excluding non-recurring charges. Net earnings for the quarter decreased by 51% to $84.0 million, with diluted EPS at $1.20.
Home closing revenue decreased by 12% year-over-year to $1.4 billion in Q4 2025.
Net earnings for Q4 2025 were $84.0 million, a 51% decrease from $172.6 million in Q4 2024.
Diluted EPS for Q4 2025 was $1.20, down 49% from $2.36 in Q4 2024.
The company's home closing gross margin was 16.5%, a decrease of 670 basis points from 23.2% in Q4 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects full year 2026 home closing volume and revenue to be consistent with full year 2025 results, assuming no further deterioration from current market conditions.
Positive Outlook
- Anticipates 15% year-over-year community count growth in 2025 to capture market share when demand improves.
- Efficient operating model and cycle times resulted in 3,755 closings this quarter.
- Strong broker engagement is a key differentiator, enabling better absorption pace.
- Affordable price points and move-in ready homes offer certainty to buyers.
- Accelerating share repurchases, with $400 million anticipated in 2026, represents a compelling use of capital.
Challenges Ahead
- Anticipates ongoing near-term noise in the market.
- Home closing revenue decreased 12% year-over-year in Q4 2025.
- Home closing gross margin decreased by 670 bps due to non-recurring charges, incentives, and higher lot costs.
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
Loading earnings performance data...
Loading earnings reaction data...