Meritage Homes updated its full-year 2026 guidance, now projecting home closings and revenue around 5% below 2025 results, a shift from its prior expectation of results at or within 5% of 2025. For the third quarter, the company expects home closings between 3,300 and 3,600 units, home closing revenue of $1.26 billion to $1.35 billion, home closing gross margin around 18%, and diluted earnings per share in the range of $1.10 to $1.30. In the second quarter, Meritage reported 3,725 home closings and $1.4 billion in home closing revenue, with adjusted home closing gross margin of 18.6% and adjusted diluted EPS of $1.42, excluding $3.9 million in impairments and walkaway charges. The company also outlined a longer-term strategic shift to increase its mix of first-time move-up homes to about one-third of the business, though the financial impact is not expected until 2029 and beyond. Amid rate uncertainty, the CFO indicated that share buybacks would be reduced to a minimum of $55 million per quarter for the remainder of 2026.
Meritage CorporationCompany lowered full-year outlook to ~5% below 2025, Q3 EPS guidance of $1.10-$1.30 below Q2's $1.42, and reduced buybacks to $55M/quarter.