Meritage Homes Corporation · NYSE:MTH
Meritage Homes — Q1 2025 Earnings Presentation
11 slides from Meritage Homes's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Analyst Conference Call
FIRST QUARTER 2025 ANALYST CONFERENCE CALL APRIL 24, 2025
Slide 2: Safe Harbor
Safe Harbor The information included in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our ability to increase
Slide 3: Speakers
Speakers Steven J. Hilton – Executive Chairman Phillippe Lord – Chief Executive Officer Hilla Sferruzza – EVP & Chief Financial Officer Emily Tadano – VP of Investor Relations and External Communications 3
Slide 4: Net Sales Orders Only Slightly Down Year-over-year
Net Sales Orders Only Slightly Down Year-over-year Net Orders & Y/Y % Ending & Average Community Count 14% -3% 14% 1% 3,991 14% 3,876 3,799 292 291.0 3,512 290 Ending 3,304 287 285.0 Community 281.0 282.5 Count 278 275 272.5 Average Community Count 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 A
Slide 5: Healthy Regional Absorption Pace In Today's Operating Environment
Healthy Regional Absorption Pace In Today’s Operating Environment West Region Central Region* East Region* Total Average Communities 88.0 86.0 117.0 291.0 Average Communities Y/Y(%) 9% (11)% 23% 7% Absorption per month 4.1 5.3 4.0 4.4 Absorption per month Y/Y(%) (15)% 2% (13)% (10)% Orders 1,093 1,3
Slide 6: Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage
Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage Spec Starts Total Specs and Ending Backlog & % of Specs Completed 6000 5000 4,319 4,142 9,225 3,798 9,024 9,067 4000 3,565 3,601 8,762 8,573 3000 2,714 2,284 1,544 2000 2,004 3,033 1000 1Q24 2Q24 3Q24 4Q24 1Q25 En
Slide 7: 1Q25 Financial Performance
1Q25 Financial Performance ($ Millions 1Q25 1Q24 % Chg except EPS & ASP) 1Q25 Highlights: Home closings 3,416 3,507 (3)% • Lower ASPs on closings from greater financing incentives utilization ASP (closings) $393K $418K (6)% • Home closing gross margin impacted by greater financing incentives utiliza
Slide 8: 1Q25 Capital Spend Activities
1Q25 Capital Spend Activities Capital Structure – Non-GAAP Reconciliation Capital Allocation Spend ($ Millions) Mar. 31, 2025 Dec. 31, 2024 1Q25 Breakdown ($ Millions) Notes payable & other borrowings $1,835 $1,336 Cash Dividends 6% Stockholders’ equity $5,195 $5,142 Share Repurchase 8% Total capita
Slide 9: Land & Development Investment
Land & Development Investment Lots Detail Land Acquisition & Development Spend* ($ Millions) 1Q25 1Q24 $693 $560 $594 Total lots controlled 84,200 66,434 $288 $465 $363 $245 $284 Supply of lots (years) 5.4 4.6 $243 $201 $405 $315 $310 - Owned 62% 69% $162 $222 1Q24 2Q24 3Q24 4Q24 1Q25 - Optioned 38%
Slide 10: Guidance
Guidance Second Quarter 2025 Home closings 3,800-4,100 units Home closing revenue $1.50-1.65 billion Home closing gross margin Around 21.5% Effective tax rate About 24.5% Diluted earnings per common share $1.85-2.10 Full Year 2025 Home closings 16,250-16,750 units Home closing revenue $6.6-6.9 billi
Slide 11: Positioned for Growing Market Share
Positioned for Growing Market Share Offering of move-in ready homes at affordable price points with a 60-day closing ready commitment Flexibility and efficient cost structure from spec building and streamlined operations Focus on pace and price to optimize returns 11