Meritage Homes reports third quarter 2026 results
Meritage Homes reported Q3 2026 home closing revenue of $1.16 billion, down 17% year-over-year, with 3,187 homes closed (-14%) and diluted EPS of $1.04, down 25% from $1.39. New orders fell 15% to 3,083 homes amid what management called an increasingly challenging homebuying environment marked by rising mortgage rates and affordability constraints. Home closing gross margin compressed 170 bps to 17.4% (adjusted 17.9% vs 20.1%), driven by higher incentives, rate buy-downs, and lot costs. The company cut land spend nearly 40% YoY to $329 million while returning $86 million to shareholders in the quarter and nearly $380 million year-to-date (177% of earnings).
Key figures
- Eps
- 1.04
- Revenue
- 1162352000
- Revenue Yoy
- -17%
- Cash
- 677498000
- Orders
- 3083
- Asp orders
- $383,000
- Land spend
- 329000000
- Orders yoy
- -15%
- Asp closings
- $365,000
- Homes closed
- 3187
- Net earnings
- 67784000
- Backlog units
- 1611
- Backlog value
- 637167000
- Sga pct revenue
- 11.0%
- Homes closed yoy
- -14%
- Buyback remaining
- $229 million
- Net debt to capital
- 18.9%
- Q3 capital returned
- $86 million
- Adjusted diluted eps
- 1.11
- Ytd capital returned
- $380 million
- Adjusted eps prior year
- 1.55
- Home closing gross margin
- 17.4%
- Adjusted home closing gross margin
- 17.9%
AI analysis
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