Meritage Homes : Earnings Presentation Q1 2026

About this update from Meritage Homes Corporation

FIRST QUARTER 2026 ANALYST CONFERENCE CALL APRIL 23, 2026 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 3 334 345 340.5 312 323.0 301.0 Ending Average 1Q26 4Q25 3Q25 2Q25 1Q25 291.0 335.0 Ending & Average Community Count 290 336 Net Sales Orders Down 5% Year-over-year Grew ending community count 19% year-over-year to a company record 345 communities at March 31, 2026 1Q26 backlog conversion rate was 254% with nearly 70% of deliveries from intra-quarter orders, reflecting the benefit of our 60-day closing ready guarantee 1Q26 net orders were down 5% year-over-year in a tougher selling environment 1Q26 Takeaways Net Orders & Y/Y % -3% 3,876 3% 3,914 4% 3,636 -2% -5% 3,664 3,224 1Q25 2Q25 3Q25 4Q25 1Q26 Average Absorption Pace & Y/Y % -10% 4.4 -4% 4.3 -7% 3.8 -18% -18% 3.6 3.2 1Q25 2Q25 3Q25 4Q25 1Q26 Backlog Conversion Rate 254% 221% 208% 211% 221% 1Q25 2Q25 3Q25 4Q25 1Q26 4 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)% Orders 898 1,316 1,450 3,664 Orders Y/Y(%) (18)% (4)% 2% (5)% ASP on Orders $495K $348K $344K $382K ASP on Orders Y/Y(%) 0% (3)% (8)% (5)% Order Value Y/Y(%) (18)% (7)% (6)% (10)% The data above relates to our three reportable homebuilding segments which include: West: Arizona, California, Colorado, and Utah Central: Tennessee and Texas East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina 5 Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage Spec Starts Total Specs and Ending Backlog & % of Specs Completed 4,083 3,601 3,072 2,694 2,524 6,758 39% 2,004 8,762 8,671 1,748 8,054 4,734 46% 1,865 6,355 47% 1,699 7,006 6,599 1,168 Ending Backlog Total Specs 5,838 50% 6,923 38% 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 Average Specs Per Community 23.3 22.2 19.0 17.4 13.7 Takeaways 13.7 specs per community for 1Q26 is our lowest level since 2022 and aligns with the accelerated cycle times and slower sales environment Our completed specs comprised 46% of total spec count at March 31, 2026. We will continue to focus on bringing down this ratio in Q2 1Q25 2Q25 3Q25 4Q25 1Q26 6 1Q26 Financial Performance ($ Millions except EPS & ASP) 1Q26 1Q25 % Chg Home closings 2,967 3,416 (13)% ASP (closings) $373K $393K (5)% Home closing revenue $1,108 $1,342 (17)% Home closing gross profit $194 $296 (34)% Home closing gross margin 17.5% 22.0% (450) bps SG&A expenses $131 $152 (14)% SG&A % of home closing revenue 11.8% 11.3% 50 bps Earnings before taxes $73 $160 (55)% Effective tax rate 23.7% 23.3% 40 bps Net earnings $55 $123 (55)% Diluted EPS $0.82 $1.69 (51)% 1Q26 Highlights: Decline in ASPs from greater incentive use and geographic mix Gross margin impacted by greater incentive use, higher lot costs, and lost leverage, which were partially offset by savings in direct costs, decreased compensation expense and faster cycle times SG&A % reflected lost leverage and higher technology costs, which were partially offset by decreased compensation expense and an intentional reduction in discretionary expenses 7 1Q26 Capital Structure and Capital Spend Activities Capital Structure - Non-GAAP Reconciliation 1Q26 Capital Allocation Spend ($ Millions) Mar. 31, 2026 Dec. 31, 2025 Notes payable & other borrowings $1,841 $1,829 Stockholders' equity $5,094 $5,196 Total capital $6,935 $7,025 Debt-to-capital 26.6% 26.0% Less: cash & cash equivalents $(767) $(775) Net debt $1,075 $1,053 Total net capital $6,168 $6,250 Net debt-to-capital 17.4% 16.9% Book value per share $76.37 $76.22 Cash Dividends 6% Share Repurchase 27% Strong financial position supported by a healthy balance sheet and ample liquidity $488 million total spend Land Spend 67% Returned $162M of cash to shareholders, totaling 295% of quarterly earnings in 1Q26 Returned $416M in FY25, totaling 92% of FY25 earnings, via $295M in share buybacks (reduced 6% of the outstanding shares at the start of 2025) and $121M in cash dividends 8 1Q26 Land & Development Investment Lots Detail Land Acquisition & Development Spend* ($ Millions) 1Q26 1Q25 Total lots controlled 75,481 84,200 Supply of lots (years) 5.2 5.4 - Owned 70% 62% - Optioned 30% 38% $688 $405 $141 $148 $234 $222 $264 $185 $268 $243 $264 $275 $283 $465 $509 $528 $416 $326 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Column1 Development Acqusition Takeaways Intentional slowdown of land acquisition and development spend, given current market conditions Positioned well with 5.2 years supply of lots, in line with our target of 4-5 years and our growth plans * Land acquisition and development spend is net of land development reimbursements. 2024 metrics have been adjusted to the current presentation Net Newly Controlled Lots 14,359 2,188 1,795 1,996 380 -517 4Q24 1Q25 2Q25 3Q25 4Q25* 1Q26 * 4Q25 included 3,434 lots we terminated 9 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 Top 5 builder focused on spec building Differentiated ability to compete against resale, given our 60-day closing guarantee and realtor engagement 1Q26 Key Takeaways Prioritized balance sheet strength and disciplined capital allocation in 1Q26 under current market conditions Community count growth and faster cycle times paired with our strategy position us well to capture incremental market share as demand conditions improve 11 ABOUT MERITAGE 12 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 Meritage Key Strategies Spec strategy Go-to market strategy Start all homes prior to releasing them for sale • 60-day closing ready guarantee Move-in ready inventory Realtor engagement Streamlined operations Focused on affordability Cost savings from national vendors derived from reduced number of house plans and SKUs, lack of design center and a simplified sale to close process Deliver affordable entry-level and first move-up homes 14 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

View stock analysis, news, and events for Meritage Homes Corporation