To participate in the conference call, please go to Meritage’s Investor Relations page to register for and access the live webcast. Alternatively, dial in to 1-800-445-7795 U.S. toll free or 1-785-424-1699 and reference the conference code MTHQ126 with the operator. A replay will be available on the Investor Relations page.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 210,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR^® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

Contacts: Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979 (office)
investors@meritagehomes.com

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 210,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

SCOTTSDALE, Ariz., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth largest public homebuilder in the U.S., today announced fourth quarter and full year results for the periods ended December 31, 2025.

MANAGEMENT COMMENTS
"Despite a challenging economic backdrop, Meritage wrapped up 2025 with full year sales orders of 14,650 homes, consistent with prior year. This performance reflected our push to open new communities and capitalize on our strategy of having readily available inventory in all of our stores. Our strong broker engagement was also a key differentiator, enabling us to achieve a better absorption pace than current broader market trends. We believe our affordable price points and move-in ready homes offer certainty to buyers experiencing concerns about the outlook of their personal finances and a housing market impacted by persistent affordability challenges," said Steven J. Hilton, executive chairman of Meritage Homes. "Even as we anticipate ongoing near-term noise in the market, we expect our 15% year-over-year community count growth in 2025 to position us to continue to capture market share when demand improves."

"Our efficient operating model and cycle times resulted in 3,755 closings this quarter, and with approximately 63% of these deliveries coming from intra-quarter sales, a backlog conversion rate of 221%," added Phillippe Lord, chief executive officer of Meritage Homes.

Mr. Lord continued, "We generated home closing revenue of $1.4 billion this quarter and achieved adjusted home closing gross margin of 19.3%, excluding $38.9 million of non-recurring charges, and adjusted diluted EPS of $1.67, excluding $42.9 million of non-recurring charges. These charges were primarily comprised of terminated land deal walk-away expenses as well as real estate inventory impairments and severance costs. We conducted an in-depth review of our optioned land and elected to terminate certain positions to release capital to top-grade our land portfolio as opportunities become available in the marketplace. In the near-term, we are accelerating share repurchases, consistent with our recent announcement, as we believe this represents the most compelling use of capital given the significant undervaluation of our stock. We have also taken steps to reduce our go-forward overhead costs—an intentional decision in response to broader macro conditions, with a strategic focus on both cost cutting and technological efficiencies for certain back-office functions."

"In balancing disciplined growth with shareholder returns in today's market, we invested $416 million in land acquisition and development while returning $179 million of capital to shareholders through cash dividends and share repurchases during the fourth quarter of 2025. For the full year, total capital returned exceeded $416 million, representing 92% of this year's total earnings. As previously announced, we anticipate $400 million in share repurchases during 2026, assuming no material changes to market conditions," concluded Mr. Lord. "As of December 31, 2025, we had a cash balance of $775 million, no borrowings under our revolving credit facility, and a net debt-to-capital ratio of 16.9%. We increased our book value per share 7% year-over-year."

FOURTH QUARTER RESULTS

• Orders of 3,224 for the fourth quarter of 2025 decreased 2% year-over-year primarily due to 18% lower average absorption pace to 3.2 per month from 3.9 per month which was nearly fully offset by an 18% increase in average communities. Fourth quarter 2025 average sales price ("ASP") on orders of $374,000 was down 6% from the fourth quarter of 2024 primarily due to greater utilization of incentives this year and geographic mix.
• The 12% year-over-year decrease in home closing revenue to $1.4 billion for the fourth quarter of 2025 was the result of 7% lower home closing volume of 3,755 combined with ASP on closings down 5% to $375,000. ASP on closings was primarily impacted by greater utilization of incentives this year and geographic mix.
• Home closing gross margin of 16.5% in the fourth quarter of 2025 was down 670 bps from 23.2% in the fourth quarter of 2024 as a result of non-recurring charges, greater utilization of incentives, higher lot costs, and reduced leverage of fixed costs on lower home closing revenue, all of which were partially offset by savings in direct costs and faster cycle times. Excluding $27.9 million in terminated land deal walk-away charges, $7.8 million of real estate inventory impairments, and $3.2 million in severance costs in the fourth quarter of 2025, compared to $2.8 million in terminated land deal walk-away charges and no impairments or severance costs in the prior year, adjusted home closing gross margin was 19.3% and 23.3% for the fourth quarters of 2025 and 2024, respectively.
• Selling, general and administrative expenses ("SG&A") as a percentage of home closing revenue were 10.6% for the fourth quarter of 2025 compared to 10.8% for the fourth quarter of 2024, primarily due to lower performance-based compensation, which was partially offset by reduced leverage on lower home closing revenue as well as higher external commission rates and technology costs. Fourth quarter 2025 SG&A included $2.4 million of severance costs, with no similar costs in the prior year.
• The fourth quarter effective income tax rate was 18.5% in 2025 compared to 22.1% in 2024. The 2025 tax rate reflected acquired below-market 2025 transferable clean fuel production tax credits, which were partially offset by fewer homes qualifying for energy tax credits under the Inflation Reduction Act, given the new higher construction thresholds required to earn the tax credits this year.
• Net earnings were $84.0 million ($1.20 per diluted share) for the fourth quarter of 2025, a 51% decrease from $172.6 million ($2.36 per diluted share) for the fourth quarter of 2024, mainly resulting from lower home closing revenue and gross profit as well as non-recurring charges. Excluding $27.9 million in terminated land deal walk-away charges, $9.3 million of real estate inventory impairments, and $5.7 million in severance costs in the fourth quarter of 2025, compared to $2.8 million in terminated land deal walk-away charges and no impairments or severance costs in the prior year, adjusted diluted EPS was $1.67 and $2.39 for fourth quarters 2025 and 2024, respectively.

YEAR TO DATE RESULTS

• Total sales orders of 14,650 homes for full year 2025 remained essentially flat year-over-year, primarily reflecting a 9% decline in average absorption pace which was partially offset by a 12% increase in average communities compared to full year 2024. The 4% year-over-year reduction in ASP on orders of $391,000 for 2025 was mainly due to increased utilization of incentives this year.
• Home closing revenue decreased 9% year-over-year for full year 2025 to $5.8 billion, driven by a 5% decrease in ASP on closings to $384,000 and a 4% decline in home closing volume of 15,026. ASP on closings for full year 2025 was primarily impacted by increased utilization of incentives this year.
• Home closing gross margin of 19.7% decreased 520 bps for full year 2025 from 24.9% in the prior year due to inventory-related charges and severance costs, increased utilization of incentives, higher lot costs, and reduced leverage of fixed costs on lower home closing revenue, all of which were partially offset by savings in direct costs and faster cycle times. Excluding $39.4 million in terminated land deal walk-away charges, $16.5 million of real estate inventory impairments, and $4.3 million of severance costs for full year 2025, compared to $6.7 million in terminated land deal walk-away charges and no impairments or severance costs in the prior year, adjusted home closing gross margin was 20.8% and 25.0% for full year 2025 and 2024, respectively.
• Full year 2025 SG&A as a percentage of home closing revenue was 10.7% compared to 10.1% in 2024, primarily as a result of reduced leverage on lower home closing revenue as well as higher external commission rates, maintenance costs related to increased spec inventory, and spend on technology, all of which were partially offset by lower performance-based compensation.
• The effective tax rate for full year 2025 was 22.5%, compared to 21.6% for full year 2024. The higher tax rate in 2025 reflected fewer homes qualifying for energy tax credits, which was partially offset by the acquired below-market 2025 transferable clean fuel production tax credits.
• Net earnings were $453.0 million ($6.35 per diluted share) for full year 2025, a 42% decrease from $786.2 million ($10.72 per diluted share) for full year 2024, primarily reflecting lower home closing revenue and gross margins, as well as higher tax rates. Excluding $39.4 million in terminated land deal walk-away charges, $18.6 million of real estate inventory impairments, and $8.4 million of severance costs for full year 2025, compared to $6.7 million in terminated land deal walk-away charges and no impairments or severance costs in the prior year, adjusted diluted EPS was $7.05 and $10.79 for full year 2025 and 2024, respectively.

BALANCE SHEET & LIQUIDITY

• Cash and cash equivalents at December 31, 2025 totaled $775 million, reflecting $492 million of net proceeds from the issuance of senior notes in the first quarter of 2025. This compared to cash and cash equivalents of $652 million at December 31, 2024.
• Land acquisition and development spend, net of land development reimbursements, totaled $416 million for the fourth quarter of 2025, reflecting intentionally reduced spend based on market conditions. This compared to $689 million in the fourth quarter of 2024. Full year 2025 land acquisition and development spend, net of land development reimbursements, totaled $1.9 billion compared to $2.3 billion in the prior year.
• Approximately 77,600 total lots were owned or controlled as of December 31, 2025, compared to approximately 85,600 lots as of December 31, 2024. Net new lots for the fourth quarter of 2025 totaled approximately (500), which included approximately 3,400 lots that were terminated in the current quarter. Nearly 7,200 lots were terminated in full year 2025.
• Fourth quarter 2025 ending community count of 336 was up 15% compared to prior year and up 1% compared to the third quarter of 2025.
• Debt-to-capital and net debt-to-capital ratios were 26.0% and 16.9%, respectively as of December 31, 2025, compared to 20.6% and 11.7%, respectively as of December 31, 2024.
• The Company declared and paid quarterly cash dividends of $0.43 per share totaling $29 million in the fourth quarter of 2025, up from $0.375 per share totaling $27 million in the fourth quarter of 2024. Full year dividends paid were $121 million and $109 million in 2025 and 2024, respectively.
• The Company repurchased 2,238,534 shares of stock, or 3.2% of shares outstanding at the beginning of the quarter, for $150 million during the fourth quarter. For full year 2025, 4,289,984 shares of stock, or 6.0% of shares outstanding at the beginning of the year, were repurchased for $295 million. As of December 31, 2025, $514 million remained available to repurchase under the program.
• On January 2, 2025, the Company completed a two-for-one stock split (the "Stock Split") of Meritage's common stock in the form of a stock dividend. All share and per share amounts in this press release have been retroactively restated to reflect the Stock Split for the fourth quarter of 2024 and the full year 2024.

GUIDANCE

The Company expects full year 2026 home closing volume and revenue to be consistent with full year 2025 results, assuming no further deterioration from current market conditions.

CONFERENCE CALL
Management will host a conference call to discuss its fourth quarter 2025 results at 8:00 a.m. Mountain Standard Time (10:00 a.m. Eastern Standard Time) on Thursday, January 29, 2026. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-800-445-7795 US toll free or 1-785-424-1699. A replay will be available on the Investor Relations page.

(1) Share amounts have been retroactively adjusted to reflect the 2-for-1 stock split that was effective on January 2, 2025.

Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)

We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Effective January 1, 2025, the Tennessee homebuilding operating segment has been reclassified from the East reporting segment to the Central reporting segment for the purpose of making operational and resource decisions and assessing financial performance. Prior period balances have been retroactively adjusted to reflect this reclassification. Our three reportable homebuilding segments are as follows:

• West: Arizona, California, Colorado, and Utah
• Central: Tennessee and Texas
• East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina

Reconciliation of Non-GAAP Information (In thousands):

This press release includes comments and discussion about our operating results that reflect certain adjustments, including to home closing gross profit, home closing gross margin, earnings before income taxes, net earnings, diluted earnings per common share, and debt-to-capital ratios. These adjusted results are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operating results and may be helpful in comparing our company with other companies in the homebuilding and other industries to the extent they provide similar information. We encourage investors to understand the methods used by other companies to calculate these non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures.

⁽¹⁾ Net debt-to-capital reflects certain adjustments to the debt-to-capital ratio and is defined as net debt (debt less cash and cash equivalents) divided by total capital (net debt plus stockholders' equity). Net debt-to-capital is considered a non-GAAP financial measure and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe this non-GAAP financial measure is relevant and useful to investors in understanding our operating results and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. We encourage investors to understand the methods used by other companies in the homebuilding industry to calculate non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures.

ABOUT MERITAGE HOMES CORPORATION
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 210,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

The information included in this press release 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 market share and our full year 2026 projected share repurchases, home closing volume and home closing revenue.

Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

To participate in the conference call, please go to Meritage’s Investor Relations page to register for and access the live webcast. Alternatively, dial in to 1-800-445-7795 U.S. toll free or 1-785-424-1699 and reference the conference code MTHQ425 with the operator. A replay will be available on the Investor Relations page.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

“Living our core value of Start with Heart is more than a mantra – it’s how we give back to the communities we live and operate in,” said Phillippe Lord, CEO of Meritage Homes. “In 2025, we continued to support organizations that help build stronger communities and a brighter future. Our employees embody this spirit through their volunteerism and dedication to making an impact.”

Meritage’s 2025 philanthropic impact includes: 

Helping Communities Rebuild
Meritage contributed over $600,000 to help families recover from the devastation of California wildfires and severe flooding in Texas earlier this year. Donations to Convoy of Hope, The California Fire Foundation and Community Foundation of the Texas Hill Country provided emergency relief, transitional assistance, and long-term recovery resources to help communities rebuild.

Advancing Education and Career Development Opportunities
Meritage invested almost $450,000 to fund academic scholarships for students at universities across the U.S. and support early careers in construction.

Combating Food Insecurity and Providing Shelter
The Meritage team chose to help children in need through its company-wide charitable initiative in 2025 by partnering once again with No Child Hungry. $250,000 was donated to the organization and Meritage employees volunteered over 2,000 cumulative hours to pack over 465,000 meal kits.

Meritage continued its support of the Arizona Housing Fund for the fifth year to advance affordable housing initiatives and other organizations nationwide to help those seeking shelter find safety and comfort.

Supporting Reforestation Efforts
Meritage contributed $300,000 to the Arbor Day Foundation to promote tree planting and water conservation, helping to protect communities from future climate-related impacts.

Honoring and Supporting Military Families 
Meritage built and donated two brand-new, mortgage-free homes to deserving military families in Angier, North Carolina and Colorado Springs, Colorado through its long-standing partnership with Operation Homefront’s Permanent Homes for Veterans program. With these homes, Meritage has helped 22 families build a strong foundation for their next chapter.

To commemorate its 40^th anniversary in 2025, Meritage released a video reflecting on four decades of building stronger communities and celebrating the people and partners it supports, here. For more information on Meritage Cares, please visit: www.meritagehomes.com/sustainability-and-corporate-responsibility/meritage-cares.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

Contact:
Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979
media@meritagehomes.com

SCOTTSDALE, Ariz., Dec. 04, 2025 (GLOBE NEWSWIRE) -- Meritage Homes, the fifth largest public homebuilder in the U.S., is celebrating its 40^th anniversary in 2025. Founded in 1985 by Steven J. Hilton and William W. Cleverly, Meritage started as a semi-custom luxury builder and pivoted to focus on affordable entry-level homes in 2016. Today, Meritage is a top five public homebuilder in the U.S. with more than 300 communities across 12 states.

“We have been on an incredible journey over the past four decades from the first home we built in Arizona to now having delivered the 200,000th home this year,” said Steven J. Hilton, executive chairman of Meritage Homes.

Strategic Evolution to Top Five Builder

The Company began as an Arizona homebuilder and transitioned to a regional player in the Southwest and California within the first two decades of operations through a strategic merger, start-up opportunities and acquisitions. The Company further diversified its geographic footprint and became a national homebuilder over the last 20 years via acquisition and greenfield expansion across the Southeast and sunbelt states.

In 2009, coming out of the Great Recession, Meritage strategically added an energy-efficient construction focus, a critical driver of its growth story. By providing homeowners greater comfort and lower monthly utility bills, the Company differentiated itself in the market.

After more than 30 years of offering a variety of homes to serve a wide range of buyers, Meritage implemented a new strategy focused on entry-level homes to address lower-priced demand in 2016, and recently enhanced its go-to market strategy—including a 60-day closing commitment—to provide buyers certainty of close and better compete against the largest residential homes competitor, the resale market. The Company’s strategy and the team’s disciplined execution positioned Meritage to grow market share and become a top five public builder in the U.S. since 2022.

Delivering a Life.Built.Better.®

Meritage is committed to delivering a Life.Built.Better.® to all of its stakeholders, including its customers, vendors, realtors, and those in the greater communities in which it operates. By providing quality product and superior customer experiences, the Company routinely receives best-in-class scores from ECI Software Solutions (formerly Avid), a third-party customer satisfaction survey provider, and is a three-time recipient of the AvidCX Cup Award for Production—ECI’s highest honor for homebuilders.

As a people-first organization that fosters a workplace where employees feel empowered, included and proud to contribute, investing in Meritage’s employees’ career development and wellbeing is paramount. In addition to the flexible workplace model that employees value, the Meritage Cares Assistance Fund is an employer-sponsored relief fund providing tax-advantaged financial assistance to eligible employees for financial hardship. Meritage has earned Great Place to Work® Certification™ status for the past three years.

Start with Heart

Meritage demonstrates its core value of ‘Start with Heart’ by giving back to the communities it serves. The Company established the Meritage Cares philanthropic foundation in 2014 and has contributed nearly $22 million through 2024 to charitable organizations chosen by employees to make a meaningful impact in local markets. Across all levels of the organization, employees give back by contributing thousands of volunteer hours each year to support charitable organizations. Meritage was recognized by its peers with the honor of the Hearthstone Builder Humanitarian Award in 2023 for demonstrating a lifetime commitment to public service.

“As we reflect on 40 years of growth and transformation, we are incredibly proud of delivering a Life.Built.Better.® for so many customers, employees, partners, and shareholders,” said Phillippe Lord, chief executive officer of Meritage Homes. “With our proven business model and best-in-class team members, we are committed to continuing to deliver quality homes and customer satisfaction for many decades to come.”

Learn more about Meritage Homes’ legacy and impact here.

About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

Contact:
Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979
media@meritagehomes.com

As of November 20, 2025, Meritage has repurchased $128 million of shares in the fourth quarter and $273 million of shares on a year to date basis. There is $536 million remaining under the current authorization program. Meritage expects to complete the fourth quarter with $150 million of total repurchases.

“In light of current market conditions, we have adjusted our capital allocation plan for 2026. Assuming no material additional market dynamic shifts, we plan to increase our programmatic share repurchase commitment and repurchase $100 million in shares per quarter next year as we expect reduced land acquisition and development spend,” said Phillippe Lord, chief executive officer of Meritage Homes.

Forward-Looking Statements

The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include the Company’s intentions with respect to its share repurchase program during the remainder of 2025 and in 2026.

Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage’s business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company’s stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024  under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

MANAGEMENT COMMENTS

"Meritage successfully navigated a challenging third quarter, exceeding 2024 sales volumes and ending the quarter with our highest ever community count of 334, which was a 20% increase year-over-year. We leaned into our strategy, providing our customers certainty amidst an evolving housing market with a healthy selection of available inventory and payment affordability solutions," said Steven J. Hilton, executive chairman of Meritage Homes.

"Our strategy and persistent improvement in our cycle times resulted in 3,685 closings this quarter, with nearly 60% of these deliveries coming from intra-quarter sales, translating to a backlog conversion rate of 211%," added Phillippe Lord, chief executive officer of Meritage Homes. "We generated home closing revenue of $1.4 billion and achieved an adjusted home closing gross margin of 20.1% and adjusted diluted EPS of $1.55—both of which excluded $14.5 million in combined real estate inventory impairments and terminated land deal charges. We increased our book value per share 8% year-over-year."

"We pared back our spend on land acquisition and development this quarter to $528 million and were able to redeploy some of the excess cash, returning $85 million capital to shareholders through cash dividends and share repurchases during the third quarter of 2025. In the first nine months of this year, we have returned nearly $237 million of capital to shareholders, or 64% of our total earnings so far this year," concluded Mr. Lord. "With cash of $729 million, nothing drawn under our revolving credit facility and net debt-to-capital ratio of 17.2% at September 30, 2025, we are comfortable with our current liquidity."

THIRD QUARTER RESULTS

• Orders of 3,636 homes for the third quarter of 2025 increased 4% year-over-year mainly as a result of a 14% increase in average community count and a 7% decrease in average absorption pace. Third quarter 2025 average sales price ("ASP") on orders of $389,000 was down 4% from the third quarter of 2024 primarily due to increased utilization of incentives this year.

• The 12% year-over-year decrease in home closing revenue in the third quarter of 2025 to $1.4 billion was the result of 7% lower home closing volume of 3,685 homes combined with a 5% decrease in ASP on closings to $380,000. ASP on closings was primarily impacted by increased utilization of incentives this year.

• Home closing gross margin of 19.1% decreased 570 bps in the third quarter of 2025 from 24.8% in the prior year due to increased utilization of incentives, inventory-related impairment and walk-away charges, higher lot costs and reduced leverage of fixed costs on lower home closing revenue, all of which were partially offset by savings in direct costs and faster cycle times. Third quarter 2025 home closing gross margin included $8.7 million of real estate inventory impairments and $5.8 million in terminated land deal walk-away charges, compared to no impairments and $2.0 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted home closing gross margin was 20.1% and 24.9% for third quarters of 2025 and 2024, respectively.

• Selling, general and administrative expenses ("SG&A") as a percentage of third quarter 2025 home closing revenue were 10.8% compared to 9.9% in the third quarter of 2024, primarily as a result of higher commission rates and technology costs, as well as lost leverage on lower home closing revenue, which was partially offset by lower compensation costs.
  
• The third quarter effective income tax rate was 22.6% in 2025 compared to 21.6% in 2024. The higher tax rate in 2025 reflects fewer homes qualifying for energy tax credits under the Inflation Reduction Act, given the new higher construction thresholds required to earn the tax credits this year.

• Net earnings were $99 million ($1.39 per diluted share) for the third quarter 2025, a 49% decrease from $196 million ($2.67 per diluted share) for the third quarter of 2024, mainly resulting from lower home closing revenue and gross profit as well as higher SG&A and tax rates. Third quarter 2025 diluted EPS included $8.7 million of real estate inventory impairments and $5.8 million in terminated land deal walk-away charges, compared to no impairments and $2.0 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted diluted EPS was $1.55 and $2.69 for third quarters of 2025 and 2024, respectively.

YEAR TO DATE RESULTS

• Total sales orders for the first nine months of 2025 increased 1% year-over-year, reflecting an 11% increase in average communities and a 9% decrease in average absorption pace compared to the first nine months of 2024. The 3% lower ASP on orders for the first nine months of 2025 was primarily impacted by increased utilization of incentives this year.

• Home closing revenue decreased 8% in the first nine months of 2025 to $4.4 billion, driven by a 6% decrease in ASP on closings and a 3% decline in home closing volume. ASP on closings for the first nine months of 2025 reflected increased utilization of incentives compared to prior year.

• Home closing gross margin of 20.7% decreased 480 bps in the first nine months of 2025 from 25.5% in the prior year due to increased utilization of incentives, higher lot costs, reduced leverage of fixed costs on lower home closing revenue, as well as inventory-related impairment and walk-away charges, all of which were partially offset by savings in direct costs and faster cycle times. Year to date 2025 home closing gross margin included $8.7 million of real estate inventory impairments and $11.4 million in terminated land deal walk-away charges, compared to no impairments and $3.9 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted home closing gross margin was 21.2% and 25.6% for the first nine months of 2025 and 2024, respectively.

• SG&A as a percentage of home closing revenue was 10.7% in the first nine months of 2025 compared to 9.8% in the prior year, primarily as a result of higher commission rates and technology costs, as well as lost leverage on lower home closing revenue, which was partially offset by lower performance-based compensation costs.

• The effective income tax rate in the first nine months of 2025 was 23.4% compared to 21.5% in 2024. The higher tax rate in 2025 reflects fewer homes qualifying for energy tax credits.

• Net earnings were $369 million ($5.13 per diluted share) for the first nine months of 2025, a 40% decrease from $614 million ($8.36 per diluted share) for the first nine months of 2024, primarily reflecting lower home closing revenue and gross margins, as well as higher SG&A and tax rates. Year to date 2025 diluted EPS included $8.7 million of real estate inventory impairments and $11.4 million in terminated land deal walk-away charges, compared to no impairments and $3.9 million in terminated land deal walk-away charges in the prior year. Excluding these inventory-related charges, adjusted diluted EPS was $5.35 and $8.40 for the first nine months of 2025 and 2024, respectively.

BALANCE SHEET & LIQUIDITY

• Cash and cash equivalents at September 30, 2025 totaled $729 million, reflecting $492 million of net proceeds from the issuance of senior notes in the first quarter of 2025. This compared to cash and cash equivalents of $652 million at December 31, 2024.
• Land acquisition and development spend, net of land development reimbursements, totaled $528 million for the third quarter of 2025, reflecting intentionally reduced spend based on market conditions. This compared to $617 million of land acquisition and development spend, net of land development reimbursements, in the third quarter of 2024.
• Approximately 80,800 lots were owned or controlled as of September 30, 2025, compared to approximately 74,800 total lots as of September 30, 2024. Nearly 2,000 net new lots were added in the third quarter of 2025, representing an estimated 16 future communities. During the quarter, we terminated approximately 400 lots. For the first nine months of 2025, we terminated approximately 3,700 lots.
• Third quarter 2025 ending community count of 334 was up 20% compared to prior year and up 7% compared to the second quarter of 2025.
• Debt-to-capital and net debt-to-capital ratios were 25.7% and 17.2%, respectively, at September 30, 2025, which compared to 20.6% and 11.7%, respectively, at December 31, 2024.
• The Company declared and paid quarterly cash dividends of $0.43 per share totaling $30 million in the third quarter of 2025. This compared to $0.375 per share totaling $27 million in the third quarter of 2024. Year-to-date dividends paid were $92 million and $82 million in 2025 and 2024, respectively.
• During the third quarter of 2025, the Company repurchased 772,010 shares of stock, or 1.1% of shares outstanding at the beginning of the quarter, for $55 million. For the first nine months of 2025, the Company repurchased 2,051,450 shares of stock, or 2.9% of shares outstanding at the beginning of the year, for $145 million. During the third quarter of 2025, the Board approved an additional $500 million to the authorized share repurchase program, and as of September 30, 2025, $664 million remained available to repurchase.
• During the third quarter of 2025, the Company refinanced the revolving credit facility to extend its maturity from 2029 to 2030.
• On January 2, 2025, we completed a two-for-one stock split (the "Stock Split") of Meritage's common stock in the form of a stock dividend. All share and per share amounts in this press release have been retroactively restated to reflect the Stock Split for the third quarter of 2024 and the first nine months of 2024.

GUIDANCE

The Company is providing the following guidance for the fourth quarter of 2025, based on year to date results and current market conditions:

CONFERENCE CALL
Management will host a conference call to discuss its third quarter 2025 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Wednesday, October 29, 2025. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-877-407-6951 US toll free or 1-412-902-0046. A replay will be available on the Investor Relations page.

About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

The information included in this press release 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 fourth quarter 2025 projected home closing volume and home closing revenue.

Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

To listen, please go to Meritage’s Investor Relations page for the live webcast or dial in to 1-877-407-6951 U.S. toll free or 1-412-902-0046. A replay will be available on the Investor Relations page.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

SCOTTSDALE, Ariz., Sept. 10, 2025 (GLOBE NEWSWIRE) -- Our service members, along with their families, dedicate their lives to protecting the freedoms we enjoy daily. When their time in uniform ends, the transition to civilian life is not always easy, and purchasing a home in a safe and suitable area can be challenging. Today, in recognition of their service, Meritage Homes and Operation Homefront are pleased to announce the recipients of two brand-new, mortgage-free homes in Angier, NC and Colorado Springs, CO. The military veterans and their families will be presented with the keys during a ceremony in November in celebration of Veterans Day.

“We recognize the sacrifice that military members and their families make to serve our country, and we’re honored to give back to them. We hope these homes will give them the chance to put down roots in communities where they can thrive for years to come,” said Phillippe Lord, chief executive officer of Meritage Homes. “We’re grateful to Operation Homefront for their continued partnership, and to our employees, suppliers, and trade partners who play a critical role in helping make these donations possible.”

Specialist Timothy Hunter, a Navy and National Guard veteran, and his family will receive a new 2,300+ square-foot, four-bedroom, two-and-a-half-bath home located in the River Glen community in Angier, NC.

“It [means] the world to us to finally be under the same roof, and we [can’t wait] to have Thanksgiving, Christmas and birthday parties with the whole family in our home,” said the Hunter family. “Plus, this home [will] give us a sense of community and connection with neighbors that we [have been missing] with apartment living.”

Aviation Apprentice David Green III, a Navy veteran, and his family will be presented with the keys to a new 2,000 square-foot, four-bedroom, two-and-a-half-bath home in the Lorson Ranch community in Colorado Springs, CO.

“We have been fighting to get caught up [as a family], [and] this program will change our lives,” said the Green family. “Being part of this program is a great opportunity that will affect us emotionally, mentally, and financially for years to come.”

“We’re proud to partner with Meritage Homes to provide new homes to these deserving military veterans and their families,” shared retired Rear Adm. Alan Reyes, President and CEO of Operation Homefront. “It is more than just a roof over their heads; these homes offer the Hunter and the Green families hope for a stronger, more stable future with the opportunity to put down roots and build community, helping them achieve their American Dream.”

Upon move-in, each family enters Operation Homefront’s Permanent Homes for Veterans program, which provides veterans and their families the opportunity to live in a home while working directly with a financial counselor and a caseworker to help them prepare for homeownership and learn strategies for achieving financial success. Once they complete the program, after a period of 1-2 years, they receive the deed to the mortgage-free home.

For more information about the program, please visit: https://www.meritagehomes.com/operation-homefront.  

About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2024. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 200,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

About Operation Homefront
Operation Homefront is a national nonprofit organization whose mission is to build strong, stable, and secure military and veteran families by improving their financial, emotional, and social well-being. Recognized for superior performance by leading independent charity oversight groups, 83 percent of Operation Homefront expenditures go directly to programs that support tens of thousands of military families each year. Operation Homefront provides critical financial assistance, transitional and permanent housing, and family support services to prevent short-term needs from turning into chronic, long-term struggles. Thanks to the generosity of our donors and the support from thousands of volunteers, Operation Homefront proudly serves America’s military families.

For more information, visit OperationHomefront.org.

Contact:
Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979
media@meritagehomes.com