Meritage Homes Corporation · NYSE:MTH
Meritage Homes — Q2 2025 Earnings Presentation
14 slides from Meritage Homes's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Analyst Conference Call
SECOND QUARTER 2025 ANALYST CONFERENCE CALL JULY 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 strategy to remain c
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 Up 3% Year-over-year
Net Sales Orders Up 3% Year-over-year Net Orders & Y/Y % Ending & Average Community Count 2Q25 Takeaways 14% -3% 3% 1% 3,876 3,914 3,799 14% 312 3,512 3,304 301.0 292 290 291.0 • Ending community count at 287 285.0 281.0 278 282.5 June 30, 2025 was 312— highest in company history 2Q24 3Q24 4Q24 1Q25
Slide 5: Diversity in Performance Across the Regions in Today's Operating Environment
Diversity in Performance Across the Regions in Today’s Operating Environment West Region Central Region East Region Total Average Communities 85.0 83.5 132.5 301.0 Average Communities Y/Y(%) 1% (9)% 26% 7% Absorption per month 3.9 5.2 4.1 4.3 Absorption per month Y/Y(%) (11)% 13% (9)% (4)% Orders 1,
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 9,225 9,067 8,573 8,762 8,671 5000 4,319 4,083 2,714 2,284 1,544 2,004 1,748 3,798 4000 3,565 3,601 Ending Backlog 3000 Total Specs 6,511 6,78
Slide 7: 2Q25 Financial Performance
2Q25 Financial Performance ($ Millions 2Q25 2Q24 % Chg YTD2025 YTD2024 % Chg 2Q25 Highlights: except EPS & ASP) Home closings 4,170 4,118 1% 7,586 7,625 (1)% • Lower ASPs from greater financing incentives ASP (closings) $387K $411K (6)% $390K $414K (6)% utilization Home closing revenue $1,616 $1,694
Slide 8: 2Q25 Capital Structure and Capital Spend Activities
2Q25 Capital Structure and Capital Spend Activities Capital Structure – Non-GAAP Reconciliation 2Q25 Capital Allocation Spend ($ Millions) Jun. 30, 2025 Dec. 31, 2024 Notes payable & other borrowings $1,828 $1,336 Cash Dividends 5% Stockholders’ equity $5,269 $5,142 Share Repurchase 8% Total capital
Slide 9: 2Q25 Land & Development Investment
2Q25 Land & Development Investment Lots Detail Land Acquisition & Development Spend* ($ Millions) 2Q25 2Q24 $688 $617 $576 $509 Total lots controlled 81,912 70,822 $283 $465 $378 $261 $307 $243 $275 Supply of lots (years) 5.3 4.7 $216 $405 $315 $310 - Owned 66% 66% $162 $222 $234 1Q24 2Q24 3Q24 4Q24
Slide 10: Guidance
Guidance Third Quarter 2025 Home closings 3,600-3,900 units Home closing revenue $1.40-1.56 billion Home closing gross margin Around 20.0% Effective tax rate About 24.5% Diluted earnings per common share $1.51-1.86 10
Slide 11: 2Q25 Key Takeaways
2Q25 Key Takeaways • Through our flexible operations and capital allocation strategy, we are focused on maximizing returns throughout periods of economic transition • 2Q25 community count expansion and improved cycle times prepare us for future growth opportunities • Reduced our land spend to $509M
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 200,000 homes in its 40-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 commitment them for sale • Move-in ready inventory • Realtor engagement Streamlined operations Focused on affordability • Leverage scale and operating • Deliver affordable entry-level an