Meritage Homes Corporation reported full year (FY) 2025 home closing revenue of USD 5.76 billion, reflecting a 9.1% decrease. The company closed 15,026 homes during the period, down 3.7%. Companywide home closing gross margin for the year ended December 31, 2025, was 19.7%, impacted by increased utilization of financing incentives, higher lot costs, real estate-related impairments, charges related to terminated land contracts, and severance costs. Adjusted home closing gross margin, excluding certain charges, was 20.8%. Management noted that the 2025 market for new homes faced softer demand than anticipated, citing ongoing affordability challenges and deteriorating consumer confidence. Meritage Homes highlighted its strategy of offering affordable, move-in ready homes and leveraging financing incentives, such as interest rate locks and buy-downs, to differentiate from resale homes. The company ended the year with a 26.0% debt-to-capital ratio and a 16.9% net debt-to-capital ratio, following the issuance of USD 500 million in senior notes. The company continues to focus on construction efficiency, cost management, and balancing shareholder returns with internal growth objectives.

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