Shares of Meritage Homes (MTH) plummeted 5.05% in intraday trading on Thursday, following the release of the company's second quarter 2025 results. Despite reporting a 3% year-over-year increase in net sales orders, the mixed performance across regions and other metrics appear to have disappointed investors.

The homebuilder achieved a record ending community count of 312, the highest in the company's history. However, the average absorption pace of 4.3 homes per community per month indicates a challenging selling environment. While the Central region showed strength with a 13% year-over-year increase in absorption, the West and East regions experienced declines of 11% and 9%, respectively.

Meritage Homes reported a notable backlog conversion rate of 208%, with more than half of the deliveries coming from intra-quarter orders. However, the lack of specific details on net income or revenue in the release may have contributed to investor uncertainty. The mixed regional performance and the absence of clear financial metrics likely triggered the sell-off, as the market reacted to results that seemingly fell short of expectations in a competitive housing market.