Meritage Homes (MTH) Q4 2024 earnings summary

Executive summary

• Achieved record annual home closing volume of 15,611 units and $6.34 billion in revenue for 2024, despite a lower average sales price below $400,000 by year-end.

• Maintained historically elevated home closing gross margin of 24.9% and delivered diluted EPS of $21.44 for the year.

• Returned nearly $500 million to shareholders over three years through buybacks and dividends, and completed a two-for-one stock split in January 2025.

• Expanded operations via the Elliott Homes acquisition and entry into Huntsville, Alabama, supporting long-term growth goals.

• Entry-level homes comprised 91% of Q4 2024 sales orders and closings, reflecting a focus on affordability and move-in ready strategy.

Financial highlights

• Q4 2024 home deliveries totaled 4,044 units, with home closing revenue of $1.6 billion, down 3% year-over-year due to a 5% lower ASP, partially offset by a 2% increase in volume.

• Q4 home closing gross margin was 23.2%, down 200 bps from prior year, reflecting higher financing incentives and lot costs.

• Q4 diluted EPS was $4.72, a 12% decrease year-over-year; full-year net earnings rose 6% to $786 million.

• SG&A as a percentage of home closing revenue was 10.8% in Q4 and 10.1% for the year, consistent with 2023.

• Cash and cash equivalents at year-end were $652 million, down from $921 million a year earlier.

Outlook and guidance

• 2025 guidance: 16,250–16,750 home closings and $6.6–$6.9 billion in home closing revenue.

• Q1 2025 guidance: 3,200–3,500 closings, $1.26–$1.40 billion revenue, ~22% gross margin, 24% tax rate, and diluted EPS of $1.59–$1.83.

• Targeting double-digit community count growth by end of 2025, with a goal of 20,000 units by 2027.

• Management expects to capture spring demand and grow market share, citing favorable demographics and undersupply at target price points.