Fri, Jul 26, 8:18 PM (43 days ago)
Meritage Homes Corporation's Q2 2024 financial report shows strong performance with record home closing revenue of $1.7 billion, a 9.8% increase year-over-year, driven by an 18% rise in home closing volume. Gross profit margin improved to 25.9%, up 150 basis points from Q2 2023. Net earnings increased to $231.6 million from $186.8 million. Home orders rose 13.7% to 3,799 units, with a 10% cancellation rate, down from 12% in Q2 2023. Active communities slightly declined to 287 from 291 a year ago. The company issued $575 million in convertible senior notes and redeemed $250 million of its 2025 notes, impacting cash flows but maintaining a strong liquidity position with $992.9 million in cash. For the first half of 2024, home closing revenue grew 12.7% to $3.2 billion, with a gross margin of 25.9%, up 240 basis points. The company continues to focus on entry-level homes, which comprised 92% of Q2 orders, leveraging improved supply chain conditions and shorter construction cycle times.