Q4 2025 Meritage Homes Corp Earnings Call Transcript
Key Points
- Meritage Homes Corp (MTH) achieved an exceptional backlog conversion rate of 221% in Q4 2025, supported by their 60-day closing guarantee and a healthy supply of nearly completed spec inventory.
- The company delivered 3,755 homes and generated home closing revenue of $1.4 billion in Q4 2025, aligning with their guidance range.
- Meritage Homes Corp (MTH) increased their book value per share by 7% year over year and completed $150 million in share buybacks, returning nearly $180 million to shareholders in Q4 2025.
- The company opened over 160 new communities in 2025 and expects a further 5% to 10% community count growth in 2026, positioning them well for market share gains.
- Meritage Homes Corp (MTH) maintained a healthy balance sheet with $775 million in cash and a net debt to cap of 16.9% as of December 31, 2025.
- Meritage Homes Corp (MTH) faced softer than anticipated market conditions in Q4 2025 due to affordability challenges and deteriorating buyer confidence.
- The company's Q4 2025 home closing revenue was 12% lower than the prior year, with a 7% decrease in home closing volume and a 5% decrease in average selling price (ASP).
- The cancellation rate increased to 14% in Q4 2025, slightly below the historical average of mid- to high teens.
- Meritage Homes Corp (MTH) experienced a 30% year-over-year decrease in Q4 2025 adjusted diluted EPS to $1.67 from $2.39 in 2024.
- The company recorded $27.9 million in terminated land deal walkaway charges and $7.8 million in real estate inventory impairments in Q4 2025.
Greetings, and welcome to the fourth quarter 2025 Meritage Homes analyst call. (Operator Instructions) Please be advised that today's conference being recorded. (Operator Instructions)
I would now like to turn the call over to Emily Tadano, VP of Investor Relations and External Communications. Please go ahead.
Thank you, operator. Good morning, and welcome to our analyst call to discuss our fourth quarter 2025 results. We issued the press release yesterday after the market closed. You can find it along with the slides in this call on our website at investors.meritagehomes.com or by selecting the Investor Relations link at the bottom of our homepage.
Please refer to slide 2, cautioning you that our statements during this call as well as in the earnings release and accompanying slides contain forward-looking statements. Those and any other projections represent the current opinions of management, which are subject to change at any time, and we assume no obligation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
