Meritage Homes Corporation · NYSE:MTH
Meritage Homes — Q2 2026 Earnings Presentation
14 slides from Meritage Homes's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Analyst Conference Call
SECOND QUARTER 2026 ANALYST CONFERENCE CALL JULY 30, 2026
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: 2Q26 Average Absorption Pace Down YOY Yet In Line With 1Q26
2Q26 Average Absorption Pace Down YOY Yet In Line With 1Q26 Net Orders & Y/Y % Ending & Average Community Count 2Q26 Takeaways 3% 4% -5% -9% 3,914 • Averaged 3.5 net sales per month 3,636 -2% 3,664 3,575 336 335.0 345 340.5 340 342.5 334 in 2Q26, down 19% YOY and in 3,224 312 323.0 line with 1Q26 30
Slide 5: Performance Reflects Diversity in Demand Across Our Regions
Performance Reflects Diversity in Demand Across Our Regions West Region Central Region East Region Total Average Communities 88.5 103.0 151.0 342.5 Average Communities Y/Y(%) 4% 23% 14% 14% Absorption per month 2.9 4.1 3.4 3.5 Absorption per month Y/Y(%) (26)% (21)% (17)% (19)% Orders 762 1,259 1,55
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 8,671 5000 8,054 4,083 3,929 1,748 7,006 4000 1,699 6,599 6,790 3,072 1,168 Ending Backlog 2,694 1,865 1,715 3000 2,524 Total Specs 6,923 6,35
Slide 7: 2Q26 Financial Performance
2Q26 Financial Performance ($ Millions except EPS & ASP) 2Q26 2Q25 % Chg YTD2026 YTD2025 % Chg 2Q26 Highlights: • Decline in ASP from geographic mix Home closings 3,725 4,170 (11)% 6,692 7,586 (12)% ASP (closings) $373K $387K (4)% $373K $390K (4)% • Gross margin impacted by lost leverage and higher
Slide 8: Capital Structure and Capital Spend Activities
2Q26 Capital Structure and Capital Spend Activities Capital Structure – Non-GAAP Reconciliation 2Q26 Capital Allocation Spend ($ Millions) Jun. 30, 2026 Dec. 31, 2025 Notes payable & other borrowings $1,847 $1,829 Cash Dividends 6% Stockholders’ equity $5,058 $5,196 Total capital $6,905 $7,025 Share
Slide 9: Land & Development Investment
2Q26 Land & Development Investment Lots Detail Land Acquisition & Development Spend* ($ Millions) 2Q26 2Q25 $509 $528 Total lots controlled 73,233 81,912 $465 $416 $326 $357 $275 $264 $243 Supply of lots (years) 5.2 5.3 $268 $185 $221 $222 $234 $264 - Owned 69% 66% $148 $141 $136 1Q25 2Q25 3Q25 4Q25
Slide 10: Guidance
Guidance Third Quarter 2026 Home closings 3,300-3,600 units Home closing revenue $1.26-1.35 billion Home closing gross margin Around 18% Effective tax rate 24.5-25.0% Diluted earnings per common share $1.10-1.30 Full Year 2026: • Home closing volume and revenue around 5% below full year 2025, althou
Slide 11: 2Q26 Key Takeaways
2Q26 Key Takeaways • Q2 results reflected solid execution in a softer demand environment, no meaningful deterioration in demand from Q1 to Q2 • We remained focused on controlling what we can control—strategically reducing aged inventory as we target the right level of specs per store, balancing pace
Slide 12: About Meritage
ABOUT MERITAGE 12
Slide 13: Meritage Company Overview
Meritage Company Overview Affordable spec builder specializing in entry-level and first move-up homes Top five U.S. public homebuilder Delivered over 210,000 homes in its 41-year history Diversified geographic footprint with 25 markets in 12 states 13
Slide 14: Meritage Key Strategies
Meritage Key Strategies Spec strategy Go-to market strategy • Start all homes prior to releasing • 60-day closing ready guarantee them for sale • Move-in ready inventory • Realtor engagement Streamlined operations Focused on affordability • Cost savings from national • Deliver affordable entry-level