Fri, Apr 25, 8:33 PM (20 days ago)
**Meritage Homes Corporation (MTH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1.35 billion, down 8.5% YoY due to lower volume and ASP. - **Net Earnings:** $122.8 million, down 34.4% YoY. - **Home Closings:** 3,416 units, down 2.6% YoY. - **Home Orders:** 3,876 units, down 2.9% YoY. - **Backlog:** 2,004 units, down 33.9% YoY. - **Home Closing Gross Margin:** 22.0%, down 380 basis points YoY. - **Financial Services Profit:** $3.6 million, up from a loss of $0.7 million YoY. **Cash Flow:** - **Operating Cash Flow:** $(42.6) million, down from $81.9 million YoY. - **Investing Cash Flow:** $(11.4) million, up from $(7.8) million YoY. - **Financing Cash Flow:** $414.1 million, up from $(90.1) million YoY. **Profit Margins:** - **Home Closing Gross Margin:** 22.0%, down from 25.8% YoY. - **Effective Tax Rate:** 23.3%, up from 20.5% YoY. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $1.01 billion, up from $651.6 million YoY. - **Debt-to-Capital Ratio:** 26.1%, up from 20.6% YoY. - **Net Debt-to-Capital Ratio:** 13.7%, up from 11.7% YoY. **Trends & Uncertainties:** - **Spring Selling Season:** Healthy due to sustained demand and limited supply. - **Mortgage Rates:** Volatile, impacting consumer sentiment. - **Land Costs:** Elevated, negatively impacting margins. - **Construction Cycle Times & Material Costs:** Returning to normalized levels. **Future Operations Impact:** - **Strategy:** Focus on affordable, move-in ready homes with a 60-day closing ready commitment. - **Market Position:** Aim to maintain a top 5 market position in all regions. - **Liquidity:** $1.8 billion of total available capacity. - **Dividends:** $0.43 per share, up from $0.375 YoY. - **Share Repurchases:** $45.1 million, up from $55.9 million YoY. **Segment Performance (Q1 2025 vs. Q1 2024):** - **West:** Revenue down 7.0%, volume down 1.6%, ASP down 5.5%. - **Central:** Revenue down 14.7%, volume down 8.3%, ASP down 7.0%. - **East:** Revenue down 3.6%, volume up 2.8%, ASP down 6.2%. **Forward-Looking Statements:** - **Risks:** Interest rates, material costs, cancellation rates, supply chain constraints, regulatory changes. - **Opportunities:** Land acquisition, market expansion, strategic partnerships. **Ticker:** MTH