Q2 2026 Meritage Homes Corp Earnings Call Transcript

Jul 30, 2026 / 03:00 PM GMT

Release Date Price: €61.5 (-2.38%)

Transcript 10-Q8-K

Key Points

Positve

Meritage Homes Corp (MTH) achieved a 200% backlog conversion rate in Q2 2026, reflecting strong operational execution and a quick close strategy.
The company reduced its finished spec home inventory by 42% year-over-year, reaching the lowest level in two years and aligning with its target.
Direct construction costs per square foot decreased nearly 6% year-over-year, driven by disciplined purchasing and vendor negotiations.
Meritage Homes Corp (MTH) grew its active community count by 9% year-over-year to 340, supporting future revenue growth.
The company returned $131 million to shareholders in Q2 2026 through dividends and share repurchases, up 74% from the prior year.

Negative

Meritage Homes Corp (MTH) reported a 9% decline in quarterly sales orders year-over-year, driven by a 19% drop in average absorption pace.
Home closing revenue fell 14% year-over-year in Q2 2026, with adjusted home closing gross margin declining to 18.6% from 21.4%.
The company faces ongoing affordability pressures and economic uncertainty, which continue to dampen buyer demand.
Higher lot costs from older land vintages are expected to remain a margin headwind through at least early 2028.
Meritage Homes Corp (MTH) guided Q3 2026 home closing gross margin to around 18%, reflecting lower leverage and elevated incentive costs.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

MTH.N - Meritage Homes Corp
Q2 2026 Meritage Homes Corp Earnings Call
Jul 30, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Yeah

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Please stand by, your meeting is about to begin.

Greetings and welcome to the second quarter 2026 Meritage Homes analyst call.

At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question-and-answer session.

Please be advised that today's conference is being recorded.

If you need operator assistance, please press 0.

I would now like to turn the call over to Emily Tadano, Vice President of Investor Relations and external communications.

Please go ahead.

Thank you, operator.

Good morning and welcome to our analyst call to discuss our we press

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