Meritage Homes Corporation Q3 2025 Earnings Release

Meritage Homes Corporation reported its third quarter 2025 results, showing a 12% decrease in home closing revenue to $1.4 billion compared to the same period in 2024. The company closed 3,685 homes, a 7% decrease year-over-year. The average sales price for closings dropped 5% to $380,000, primarily due to increased use of incentives. Home closing gross margin declined to 19.1% from 24.8% in the prior year, impacted by higher lot costs, inventory impairments, and reduced leverage of fixed costs. Net earnings for the quarter were $99 million, a 49% decrease from $196 million in Q3 2024. The company also returned $85 million to shareholders through dividends and share repurchases. Despite challenges, Meritage Homes increased its community count by 20% year-over-year to 334 communities.