Overview

* Meritage Q3 home closing revenue falls 12% yr/yr due to lower closing volume

* Adjusted EPS for Q3 misses analyst expectations

* Company increased community count by 20% yr/yr, returning $85 mln to shareholders

Outlook

* Meritage expects Q4 2025 home closing volume of 3,800-4,000 units

* Company forecasts Q4 2025 home closing revenue of $1.46-1.54 bln

* Meritage projects Q4 2025 diluted EPS of $1.51-1.70

Result Drivers

* INCREASED INCENTIVES - Co attributes lower average sales price and revenue decline to increased utilization of incentives

* COMMUNITY EXPANSION - Co increased community count by 20% yr/yr, contributing to a 4% rise in home orders

* BACKLOG CONVERSION - Co achieved a backlog conversion rate of 211% due to improved cycle times

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Home $1.40

Closing bln

Revenue

Q3 Miss $1.55 $1.63 (9

Adjusted Analysts

EPS )

Q3 EPS $1.39

Q3 Net $99 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the homebuilding peer group is "hold."

* Wall Street's median 12-month price target for Meritage Homes Corp ( MTH ) is $82.00, about 12.9% above its October 27 closing price of $71.41

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)