Meritage Homes Corporation (MTH) experienced a significant pre-market plunge of 5.38% following the release of its disappointing first-quarter financial results and cautious outlook.

The homebuilder reported adjusted earnings per share of $0.86 for the quarter, missing the analyst consensus estimate of $1.01. Revenue also declined to $1.12 billion, falling short of expectations. The company attributed the weaker performance to challenging macroeconomic conditions, including the impact of a severe winter storm in January and military operations in Iran that negatively affected consumer sentiment and mortgage rates during the quarter.

Management noted that higher-than-anticipated sales incentives were needed to capture demand, which pressured average sales prices and margins. For the full year 2026, Meritage Homes updated its guidance, expecting home closing volume and revenue to be at or within 5% of 2025 results, indicating a cautious outlook amid the difficult market environment.