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olivLaw · US equity research

Meritage Homes Corporation MTH

Operative Builders · SIC 1531 · Vertical: Operative Builders (SIC 1531)

73.29USD+9.26% · 1 dayClose 04 Nov 2026

Meritage Homes designs and builds single-family attached and detached homes aimed at first-time and first move-up buyers, using a fully speculative model and a 60-day closing-ready promise. With weak demand and tight affordability, home closing revenue reached 5.8 billion USD in 2025, and in the second quarter of 2026 home closing revenue fell 14%.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Meritage Homes Corporation (MTH) stock was 73.29 USD (+9.26% on the day), with market capitalisation 4.7 bn USD, P/E 16.5 on diluted EPS of 4.43 USD over the last 12 months, dividend yield 4.31%, beta 0.86, 52-week range 57.85–85.18 USD. Latest reported quarter (Q3 2026): net income of 67.8 m USD (−31.7% YoY), diluted EPS 1.04 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
4.7 bn USD
shares as of 26 Oct 2026
P/E (TTM)
16.5
Diluted EPS TTM 4.43 · TTM to 30 Sept 2026
E/P (TTM)
6.05%
TTM to 30 Sept 2026
Dividend yield
4.31%
DPS 12m 3.16
Beta (2y)
0.86
Volatility (1y) 40%
52-week range
57.8585.18

Price history

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Technical reading

RSI (14)
68.9
strong (55–70)
Bollinger (20, 2)
54.33 – 70.33
above the upper band · %B 1.18 · band width 25.7%
SMA 50 / 200
64.11 / 68.80
mixed trend
MACD (12, 26, 9)
1.40 / 0.06
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+17.7%−1.1%+18.8 pp—
3 months−2.2%−0.5%−1.7 pp—
6 months+13.0%+4.4%+8.6 pp—
Year to date+11.4%+12.3%−0.9 pp—
1 year+12.2%+13.5%−1.3 pp−12.9%
3 years+9.9%+76.4%−66.5 pp+22.3%
5 years+30.0%+63.7%−33.7 pp—
Max drawdown (1y)
−32.1%
26 Jun 2026 → 12 Oct 2026
Max drawdown (5y)
−46.8%
31 Dec 2021 → 21 Jun 2022
Compound annual growth (5y)
+5.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
unavailable USD
unavailable YoY
Net income
67.8 m USD
−31.7% YoY
Diluted EPS
1.04
−25.2% YoY
net / operating
unavailable / unavailable

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Depreciation & amortisation6.6 m5.9 m6.7 m ≈6.0 m ≈6.7 m5.4 m6.1 m ≈5.5 m ≈
Interest expense00000587.0 k2.2 m1.4 m
Pre-tax income221.6 m160.2 m193.1 m128.2 m103.1 m72.5 m120.6 m84.8 m
Income tax48.9 m37.4 m46.2 m29.0 m19.1 m17.2 m29.9 m17.0 m
Net income172.6 m122.8 m146.9 m99.3 m84.0 m55.3 m90.6 m67.8 m
Diluted EPS2.36 ≈1.692.041.391.20 ≈0.821.371.04
Operating cash flow-99.6 m-42.6 m13.7 m ≈-96.5 m ≈243.7 m101.3 m189.5 m ≈-31.3 m ≈
Capex7.5 m5.6 m6.8 m ≈7.8 m ≈5.6 m4.3 m5.6 m ≈4.0 m ≈
Dividends paid27.0 m30.9 m30.6 m ≈30.3 m ≈29.3 m32.0 m31.3 m ≈30.9 m ≈
Share repurchases40.0 m45.0 m45.0 m ≈55.0 m ≈150.0 m130.0 m100.0 m ≈55.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 98 percentile of its own 40-quarter history (min 1.4, median 5.0, max 17.5; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenueunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Revenue YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Net income227.3 m249.7 m423.5 m737.4 m992.2 m738.7 m786.2 m453.0 m
Net income YoY+58.7%+9.8%+69.6%+74.1%+34.5%−25.5%+6.4%−42.4%
Diluted EPS5.586.4211.0019.2913.379.9610.726.35
Diluted EPS YoY+63.6%+15.1%+71.3%+75.4%−30.7%−25.5%+7.6%−40.8%
net %unavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Free cash flow228.8 m322.4 m510.4 m-177.8 m378.3 m317.4 m-256.2 m92.6 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
775.2 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
5.2 bn USD
Total assets
7.6 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
8.8%
ROA
6.1%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Depreciation & amortisation
2023
25.3 m
2024
26.0 m
2025
25.3 m

SEC (XBRL)· 13 Feb 2026verified

Interest expense
2023
0
2024
0
2025
0

SEC (XBRL)· 13 Feb 2026verified

Pre-tax income
2023
949.4 m
2024
1.0 bn
2025
584.6 m

SEC (XBRL)· 13 Feb 2026verified

Income tax
2023
210.7 m
2024
216.7 m
2025
131.6 m

SEC (XBRL)· 13 Feb 2026verified

Net income
2023
738.7 m
2024
786.2 m
2025
453.0 m

SEC (XBRL)· 13 Feb 2026verified

Diluted EPS
2023
9.96
2024
10.72
2025
6.35

SEC (XBRL)· 13 Feb 2026verified

Weighted average diluted shares
2023
74.1 m
2024
73.3 m
2025
71.3 m

SEC (XBRL)· 13 Feb 2026verified

Dividend per share
2023
0.14
2024
0.38
2025
0.43

SEC (XBRL)· 13 Feb 2026verified

Balance sheet · USD

Cash
2023
921.2 m
2024
651.6 m
2025
775.2 m

SEC (XBRL)· 13 Feb 2026verified

Property, plant & equipment, net
2023
49.0 m
2024
47.3 m
2025
46.6 m

SEC (XBRL)· 13 Feb 2026verified

Goodwill
2023
33.0 m
2024
33.0 m
2025
33.0 m

SEC (XBRL)· 13 Feb 2026verified

Total assets
2023
6.4 bn
2024
7.2 bn
2025
7.6 bn

SEC (XBRL)· 13 Feb 2026verified

Total liabilities
2023
1.7 bn
2024
2.0 bn
2025
2.4 bn

SEC (XBRL)· 13 Feb 2026verified

Equity
2023
4.6 bn †
2024
5.1 bn †
2025
5.2 bn †

SEC (XBRL)· 13 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
355.6 m
2024
-227.6 m
2025
118.3 m

SEC (XBRL)· 13 Feb 2026verified

Capex
2023
38.2 m
2024
28.7 m
2025
25.7 m

SEC (XBRL)· 13 Feb 2026verified

Free cash flow
2023
317.4 m ≈
2024
-256.2 m ≈
2025
92.6 m ≈

SEC (XBRL)· 13 Feb 2026derived

Investing cash flow
2023
-43.6 m
2024
-44.1 m
2025
-57.7 m

SEC (XBRL)· 13 Feb 2026verified

Financing cash flow
2023
-252.3 m
2024
2.0 m
2025
63.0 m

SEC (XBRL)· 13 Feb 2026verified

Dividends paid
2023
39.5 m
2024
108.6 m
2025
121.1 m

SEC (XBRL)· 13 Feb 2026verified

Share repurchases
2023
59.1 m
2024
125.9 m
2025
295.0 m

SEC (XBRL)· 13 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
unavailable
input data missing
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-42.4%
computed by olivLawFY 2025
Net income CAGR 3Y
-23.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
1.4%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
-40.8%
computed by olivLawFY 2025
EPS CAGR 3Y
-22.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
-10.4%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
unavailable
input data missing
FCF margin
unavailable
input data missing

Returns

ROE
5.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
3.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
71.3%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
25.5%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
503.2 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
19.5 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
483.7 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
162.5%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
4.7 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
15.9x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
16.5x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
6.1%
computed by olivLawTTM to 30 Sept 2026
P/B
0.9x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
9.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
10.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
4.3%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
11.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

73.29 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 4.7 bn USD

Key indicators

Market capitalisation
4.7 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
16.5x
computed by olivLawTTM to 30 Sept 2026
P/B
0.9x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
5.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
unavailable
input data missing
Revenue growth (YoY)
unavailable
input data missing
Dividend yield
4.3%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

21/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 26 Oct 2026
Source: SEC (XBRL)published 30 Oct 2026
verified 1802derived 141

Score by group

44% · Insufficient data

Estimated value range

Low
32.29
USD per share
Mid
36.34
USD per share
High
39.36
USD per share
Price: 73.29 USD
The price is above the range
Potential to the central value: -50.4% (value / price − 1)
Margin of safety: -101.7% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.65 – 71.12 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E58.94 – 71.12 (Mid 66.19)
    12 companies used · median multiple 14.9x · quartiles 13.3x – 16.0x
    CCS, DFH, DHI, ECG, GRBK, KBH, LGIH, MHO, NVR, PHM, SDHC, TOL
  • Dividend discount (DDM)5.65 – 7.60 (Mid 6.48)
Multiple comparisons use the SIC vertical: Operative Builders (SIC 1531)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Qualityunavailableunavailable—
FCF conversion · Quality162.5%100 (on a fixed band)14%
Revenue CAGR 3Y · Growthunavailableunavailable—
EPS CAGR 3Y · Growth-22.0%0 (on a fixed band)19%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation16.5x23 (vs peers)24%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation10.2%100 (on a fixed band)19%
Shareholder yield (distributions) · Returns11.8%100 (on a fixed band)14%
Payout ratio (FCF) · Returns25.5%100 (on a fixed band)10%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial100/100 · 1/3 factors with a value
  • Returns100/100 · 2/2 factors with a value
  • Valuation57/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Meritage Homes Corporation (MTH). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: ROE 5.8%.

The estimated value range is 32.29–39.36 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 36.34 USD, the price of 73.29 USD leaves a potential of -50.4% (value / price − 1) and a margin of safety of -101.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 162.5%
  • FCF yield: 10.2%
  • Shareholder yield (distributions): 11.8%
  • Payout ratio (FCF): 25.5%

What contradicts it

  • EPS CAGR 3Y: -22.0%
  • P/E (TTM): 16.5x
  • The price is above the estimated value range
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, Revenue CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.

Versus the vertical median

Operative Builders (SIC 1531) · same industry (4-digit SIC) · compared with 16 companies

Multiples and returns vs the median

P/E
16.5x
vertical median 14.9x
above median (+10.7%)
EV/EBITDA
—
vertical median —
P/S
—
vertical median 0.9x
P/B
0.9x
vertical median 1.2x
below median (−23.9%)
ROE
5.8%
vertical median 10.4%
below median (−44.6%)
Net margin
—
vertical median 4.3%
EBIT margin
—
vertical median 7.1%
Revenue YoY
—
vertical median -1.9%
Net debt/EBITDA
—
vertical median —
Dividend yield
4.3%
vertical median 1.1%
above median (+286.8%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
DHID.R. Horton, Inc.43.9 bn14.912.8%9.2%−6.9%−1% / +23%
PHMPultegroup, Inc.25.0 bn14.513.9%11.2%−3.5%+7% / +54%
NVRNVR, Inc.16.9 bn17.628.3%11.2%−1.9%−15% / +4%
TOLToll Brothers, Inc.14.6 bn12.714.4%11.1%+1.1%+13% / +85%
MTHMeritage Homes Corporation4.7 bn16.55.8%—unavailable+12% / +10%
ECGEverus Construction Group, Inc.4.1 bn16.039.5%6.0%+31.5%−13% / unavailable
MHOM/i Homes, Inc.3.5 bn13.18.7%6.6%−1.9%+0% / +31%
KBHKb Home3.2 bn14.95.9%4.4%−10.0%−17% / +2%
GRBKGreen Brick Partners, Inc.2.8 bn10.714.3%14.2%−1.0%−2% / +40%
CCSCentury Communities, Inc.1.6 bn15.24.2%2.9%−6.4%−12% / −21%
LGIHLgi Homes, Inc.1.1 bn16.03.4%4.2%−22.6%−6% / −59%
BZHBeazer Homes USA Inc893.2 m—-0.7%-0.4%+1.8%+49% / +38%
HOVHovnanian Enterprises Inc79.6 m81.22.2%0.6%−0.9%−16% / +22%
LRELead Real Estate Co., Ltd——12.2%3.5%−3.5%−14% / −84%
LGPSLogprostyle Inc.——19.7%3.4%+7.6%−43% / unavailable
DFHDream Finders Homes, Inc.—13.37.6%2.6%−2.9%−35% / −47%
SDHCSmith Douglas Homes Corp.—18.06.0%0.5%−0.4%−50% / unavailable

1- and 3-year price returns: for MTH from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).

In brief

Meritage Homes designs and builds single-family attached and detached homes aimed at first-time and first move-up buyers, using a fully speculative model and a 60-day closing-ready promise. With weak demand and tight affordability, home closing revenue reached 5.8 billion USD in 2025 1, and in the second quarter of 2026 home closing revenue fell 14% 3.

SWOT

Strengths

  • The company has large national scale, purchasing power with suppliers, and a fully speculative model that reduces variability and improves construction efficiency 12.
  • The balance sheet remains solid, with investment-grade ratings and a controlled debt level, which allowed both share repurchases and dividend payments through a difficult period 13.
  • Affordable, move-in ready homes with fast closing differentiate the offer from existing resale homes, particularly through the financing incentives the builder can provide 1.

Weaknesses

  • Gross margins have fallen materially in recent periods due to financing incentives, higher land costs and loss of fixed-cost leverage 13.
  • Home closing revenue and volume declined in 2025 and in the first half of 2026, and net profit fell substantially from earlier years 13.
  • The company recorded real estate inventory impairments and charges on terminated land contracts, showing exposure to revaluation when the market weakens 13.

Opportunities

  • If demand and affordability improve, orders and market share could grow quickly, helped by the short construction cycle and record backlog conversion 12.
  • Partnerships with external realtors can widen the buyer pool, particularly first-time buyers 12.
  • Acquiring land at lower costs and securing further vendor savings could support margins if land prices stabilize 2.

Threats

  • High interest rates and possible credit restrictions could reduce buyers' ability to obtain mortgages 13.
  • Rising cancellations and pressure from better-resourced competitors could affect revenue 12.
  • Tariffs on building materials and supply chain risks could raise costs and delay deliveries 1.

Risks

  • Demand and affordabilityhigh

    Weak demand and affordability problems could persist, which could push the company to use larger incentives and compress margins 13.

  • Gross marginshigh

    Financing incentives, elevated land costs and loss of fixed-cost leverage could compress margins if volume stays low 13.

  • Inventory impairmentsmedium

    If the market deteriorates further, revaluations could lead to additional impairments and lower the book value of assets 13.

  • Construction costs and supply chainmedium

    Tariffs, shortages of skilled labor and supplier disruptions could raise costs and delay home deliveries 1.

  • Warranty and construction defect claimslow

    Warranty and construction defect claims may require additional reserves, and insurance might not cover all claims 1.

Investment thesis

What would need to be true (bull case)

  • If demand for affordable homes recovers, the company could benefit from its scale, short construction cycle and backlog that converts quickly into closings 12.
  • A commitment to disciplined capital allocation, including share repurchases and dividends, may support shareholder returns even in a weak cycle 3.
  • The move-in ready model and quick closing guarantee could attract buyers who would otherwise buy resale homes, potentially raising market share 1.

What would break the thesis

  • If macroeconomic strain and high rates persist, closing volume and margins could stay below earlier levels for an extended period 23.
  • Reliance on financing incentives can compress average prices and margins, while land costs remain elevated 12.
  • Falling profit and possible repeated inventory impairments could weigh on investor confidence if the market does not improve 13.

What to watch

  • Trend in home closing gross margin and closing volume against the updated guidanceQ3 2026
  • Order pace and the level of order cancellationsQ3 2026
  • Delivery against the guidance for 5-10% year-over-year community count growth in 20262026
  • Level of financing incentives and trend in average sales pricenext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).

The business

Meritage Homes Corporation is a leading designer and builder of single-family attached and detached homes, mainly in long-term high-growth markets of the United States 1. The company operates in three regions (West, Central and East), which are its principal homebuilding reporting segments, across twelve states 1. At December 31, 2025 it was actively selling homes in 336 communities, with base prices from about 161,000 USD to 1,000,000 USD 1.

Its operating model centers on affordable, move-in ready homes built fully on a speculative basis, meaning every home is pre-started with preselected plans and features 1. Since mid-2024 it has sold homes later in the construction process and introduced a 60-day closing-ready guarantee beginning in 2025 1. Homes meet or exceed ENERGY STAR standards and come standard with a smart home automation suite 1.

The company also runs a financial services segment offering title and escrow, mortgage and insurance services to homebuyers, through its title subsidiary Carefree Title and insurance broker Meritage Insurance 1. Mortgage services are provided through an unconsolidated joint venture 1.

Segments

Homebuilding (West, Central, East)

The homebuilding segments are the three regions, covering markets in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina and others 1. The aggregate home closing revenue figures above are the relevant measure for these segments 13.

Financial services

The financial services segment provides title, mortgage and insurance services to buyers and contributes profit through revenue and unconsolidated entities, at a far smaller scale than homebuilding 13.

Market context

The new-home market in 2025 was marked by much softer demand than anticipated, as affordability challenges persisted and consumer confidence deteriorated 1. Buyers increasingly rely on financing assistance, and in the first half of 2026 home orders fell 7% year over year while the cancellation rate rose to 12% 23. Macroeconomic strain and volatile interest rates continue to pressure demand 3.

Land costs remain elevated after years of historically high acquisition and development costs, while material costs have eased 12. The company says its scale and purchasing power secure volume discounts from national vendors, partly offsetting these pressures 2.

Trends

  • Mortgage affordability and interest ratesheadwind

    High interest rates and tighter lending standards could reduce buyers' ability to obtain financing, which could weigh on sales, especially if buyers are not locked into a favorable rate 13.

  • Shorter construction cycle timestailwind

    Cycle times fell below 110 calendar days, under the historical normalized level of about 120 days, supporting faster conversion of backlog into closings 12.

  • Reliance on financing incentivesmixed

    Greater use of financing incentives such as rate locks and buy-downs supports volume but compresses average prices and margins, and could continue if the environment stays difficult 12.

  • Demand from first-time buyerstailwind

    Continued demand from millennial, Gen Z and baby boomer buyers for affordable, move-in ready homes could support the company's market share if demand improves 12.

Competitive position

The housing industry is highly competitive, with national, regional and local developers and homebuilders, resale of existing homes and rental housing all competing for buyers 1. Some competitors have greater financial resources or lower costs, and competition rests on location, reputation, product, price and innovation 1.

The company positions itself as the fifth-largest U.S. homebuilder and aims to hold a top-5 position in every market 12. Its differentiation comes from move-in ready homes, the 60-day closing guarantee and partnerships with external realtors, whom it views as strategic partners 12.

  • D.R. HortonDHI

    National U.S. homebuilder cited as a rival in the industry competitive landscape, without financial detail in the analyzed excerpts.

  • LennarLEN

    National homebuilder and direct competitor in the affordable new-home segment, referenced within the industry competition.

  • PulteGroupPHM

    National homebuilder competing in the same regional markets, referenced within the industry competition.

  • Existing home resale market

    Individual sellers of existing homes are indirect competitors, since they cannot offer financing incentives comparable to the builder's.

News & filings

In the press

The latest news item in our archive is from 21 Sept 2026; the newest SEC filing is from 30 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Meritage Homes Corporation · 13 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Meritage Homes Corporation · 31 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Meritage Homes Corporation · 29 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.