Reported Q: Q1 2025 Rev YoY: -7.4% EPS YoY: -66.6% Move: -0.03%
Meritage Homes
MTH
$75.42 -0.03%
Exchange NYSE Sector Consumer Cyclical Industry Residential Construction
Q1 2025
Published: Apr 25, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for MTH

Reported

Report Date

Apr 25, 2025

Quarter Q1 2025

Revenue

1.37B

YoY: -7.4%

EPS

1.69

YoY: -66.6%

Market Move

-0.03%

Previous quarter: Q4 2024

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Earnings Highlights

  • Revenue of $1.37B down 7.4% year-over-year
  • EPS of $1.69 decreased by 66.6% from previous year
  • Gross margin of 22.1%
  • Net income of 122.81M
  • ""We had a healthy start to 2025, selling almost 3,900 homes in the first quarter... backlog conversion rate was yet another all-time high for the company of 221%"" - Steve Hilton
MTH
Company MTH

Executive Summary

Meritage kicked off 2025 with a solid albeit cyclical first quarter, reflected in revenue of $1.366 billion, home closing revenue of $1.3 billion, and a 22% gross margin. The company emphasized a strategic pivot toward move-in-ready inventory and a 60-day closing window to improve certainty for buyers and real estate partners, which supported a backlog conversion rate of 221% and a robust absorption cadence (central region 5.3 net sales per quarter). Management reiterated its full-year guidance for 2025 (16,250–16,750 closings; $6.6–$6.9 billion in revenue) despite macro headwinds, underscoring confidence in a multi-quarter backlog-to-closings pipeline driven by new communities, land acquisitions, and an expanding land book. The balance sheet remains liquid with $1.01 billion cash and modest net debt to cap (13.7%), complemented by a new $500 million debt issuance at 5.65% and opportunistic share repurchases. Going forward, Meritage expects continued benefits from land positioning, selective acquisitions (e.g., Nashville-related lots and Elliott Homes Gulf Coast expansion), and ongoing cost discipline, though earnings will continue to reflect higher incentives and a higher effective tax rate in 2025 against the inflation reduction act (IRA) backdrop. Key risks include mortgage-rate volatility, consumer confidence, tariff-related cost uncertainty, and the need to sustain strong community openings to meet volume targets.

Key Performance Indicators

Revenue
Decreasing
1.37B
QoQ: -15.96% | YoY: -7.42%
Gross Profit
Decreasing
302.38M
22.15% margin
QoQ: -20.49% | YoY: -21.69%
Operating Income
Decreasing
150.66M
QoQ: -27.43% | YoY: -34.22%
Net Income
Decreasing
122.81M
QoQ: -28.87% | YoY: -33.98%
EPS
Decreasing
1.71
QoQ: -64.23% | YoY: -66.60%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 1,365.28 1.69 -7.4% View
Q4 2024 1,624.47 4.78 -2.3% View
Q3 2024 1,588.45 5.34 -2.1% View
Q2 2024 1,702.05 6.31 +8.6% View
Q1 2024 1,474.75 5.06 +14.7% View