Meritage Homes Corporation · NYSE:MTH
Meritage Homes — Q1 2026 Earnings Presentation
14 slides from Meritage Homes's earnings presentation, Apr 23, 2026
Slide 1: First Quarter 2026 Analyst Conference Call
FIRST QUARTER 2026 ANALYST CONFERENCE CALL APRIL 23, 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: Net Sales Orders Down 5% Year-over-year
Net Sales Orders Down 5% Year-over-year Net Orders & Y/Y % Ending & Average Community Count 1Q26 Takeaways -3% 3% 4% -5% 3,876 3,914 -2% 3,636 3,664 345 340.5 334 336 335.0 • Grew ending community count 3,224 323.0 312 19% year-over-year to a 301.0 290 291.0 company record 345 communities at March 3
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 85.5 109.5 145.5 340.5 Average Communities Y/Y(%) (3)% 27% 24% 17% Absorption per month 3.5 4.0 3.3 3.6 Absorption per month Y/Y(%) (15)% (25)% (18)% (18)% Or
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 6,000 8,762 8,671 5,000 8,054 4,083 2,004 1,748 7,006 4,000 3,601 1,699 6,599 3,072 1,168 Ending Backlog 3,000 2,694 2,524 1,865 Total Specs 6,758
Slide 7: 1Q26 Financial Performance
1Q26 Financial Performance ($ Millions 1Q26 Highlights: 1Q26 1Q25 % Chg except EPS & ASP) • Decline in ASPs from greater incentive use and geographic mix Home closings 2,967 3,416 (13)% • Gross margin impacted by greater incentive use, ASP (closings) $373K $393K (5)% higher lot costs, and lost lever
Slide 8: 1Q26 Capital Structure and Capital Spend Activities
1Q26 Capital Structure and Capital Spend Activities Capital Structure – Non-GAAP Reconciliation 1Q26 Capital Allocation Spend ($ Millions) Mar. 31, 2026 Dec. 31, 2025 Notes payable & other borrowings $1,841 $1,829 Cash Dividends 6% Stockholders’ equity $5,094 $5,196 Total capital $6,935 $7,025 Share
Slide 9: 1Q26 Land & Development Investment
1Q26 Land & Development Investment Lots Detail Land Acquisition & Development Spend* ($ Millions) $688 1Q26 1Q25 $509 $528 Total lots controlled 75,481 84,200 $283 $465 $416 $275 $264 $326 $243 Supply of lots (years) 5.2 5.4 $268 $185 $405 $222 $234 $264 - Owned 70% 62% $148 $141 4Q24 1Q25 2Q25 3Q25
Slide 10: Guidance
Guidance Second Quarter 2026 Home closings 3,650-3,900 units Home closing revenue $1.37-1.47 billion Home closing gross margin Around 18% Effective tax rate 24.5-25.0% Diluted earnings per common share $1.18-1.46 Full Year 2026: • Home closing volume and revenue at or within 5% of full year 2025 10
Slide 11: 1Q26 Key Takeaways
1Q26 Key Takeaways • Top 5 builder focused on spec building • Differentiated ability to compete against resale, given our 60-day closing guarantee and realtor engagement • Prioritized balance sheet strength and disciplined capital allocation in 1Q26 under current market conditions • Community count
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