Meritage Homes(NYSE) MTH

Meritage builds houses for first-time buyers and growing families. It also provides insurance and help with closing the sale. Operations focus on fast-growing areas across the United States.

What They Build

• Homebuilding: Designing and constructing single-family houses across 12 states; targets entry-level and move-up buyers.
• Financial Services: Managing title insurance and closing tasks through Carefree Title Agency; provides homeowners insurance via Meritage Insurance.
• Land Development: Preparing land for residential construction; uses partnerships with other builders or investors to share costs and risks.

How the Company Grows

• Reached a record 345 active communities by the end of March 2026.
• Purchased 2,600 lots for $141 million during the first quarter of 2026.
• Combined with Monterey Homes and Homeplex Mortgage Investments Corporation during its early history to build its current scale.
• Completed a two-for-one stock split effective January 2, 2025.

Efficiency in Every Build

Meritage builds nearly all its homes as move-in ready houses, which are homes finished before a buyer is found. This strategy helps the company complete construction in under 110 days and serves buyers who need to move quickly.

The Latest Numbers

• Revenue reached $1.1 billion in Q1 2026, down 17.7% from $1.4 billion in Q1 2025.
• Net income fell to $55.3 million in Q1 2026, a 55% decrease from $122.8 million in 2025.
• Free cash flow improved to $97 million in Q1 2026, up 301.4% from a loss of $48.2 million in 2025.
• Home closing gross margin—the profit kept after direct building costs—fell to 17.5% in Q1 2026 from 22% in 2025.

Bottom Line

Meritage has shifted toward building move-in ready homes to speed up sales and control costs. This focus on standardized designs helps the company manage rising land and labor expenses in a difficult housing market.