Meritage Homes Reports Strong 2024 Performance

Meritage Homes Corp ( (MTH) ) has released its Q4 earnings. Here is a breakdown of the information Meritage Homes Corp presented to its investors.

Meritage Homes Corporation is a prominent U.S. homebuilder known for its energy-efficient and affordable entry-level homes, with operations in multiple states across the country. In its latest earnings report for the fourth quarter of 2024, Meritage Homes announced mixed results, featuring a record number of home closings for the year despite a slight decline in average sales prices. The company reported a 12% increase in full-year diluted earnings per share compared to 2023, driven by strong demand for its homes.

Key financial highlights from the report include a 6% rise in net earnings for the full year, amounting to $786.2 million, and a 5% increase in total home closing revenue to $6.3 billion. However, the fourth quarter saw a 13% decline in net earnings compared to the previous year, attributed to lower margins and reduced home closing revenue. The company also successfully managed its backlog conversion, achieving a record 177% conversion rate.

Strategically, Meritage Homes focused on expanding its market presence, investing $741.5 million in land acquisition and development in the fourth quarter, including the acquisition of Elliott Homes. This acquisition contributed to a 33% increase in total lots owned or controlled by the company. Additionally, Meritage Homes completed a two-for-one stock split and continued to return capital to shareholders through dividends and share repurchases.

Looking ahead, Meritage Homes remains optimistic about its growth potential, leveraging favorable demographics and market stability. The company projects further increases in home closing volumes and revenues for 2025, aiming to capitalize on sustained demand for affordable housing solutions.