Meritage Homes reports strong Q3 results in Scottsdale

Meritage Homes Corporation, the fifth-largest homebuilder in the United States, announced its financial results for the third quarter of 2024 on October 29. Operating from Scottsdale, Arizona, the company reported a net earnings decline of 12% year-over-year to $196 million. This period concluded with 3,942 homes closed, an 8% increase, but was accompanied by reduced average sales prices, indicating market pressure affecting revenue streams. The overall home closing revenue, slightly down by 2% to $1.6 billion, showcased a significant shift in strategy as Meritage Homes focused on offering affordable, move-in ready homes. This pivot is essential in an evolving housing market where potential buyers are increasingly cost-sensitive. In terms of sales orders, Meritage saw a nominal 1% increase to 3,512 homes, as improvements in absorption rates contributed positively. While ending backlog units dropped by 37%, revealing potential supply issues, the company remained committed to enhancing inventory turnover. With cash reserves of $831.6 million and a net debt-to-capital ratio of 8.8%, Meritage is strategically positioned to navigate upcoming market shifts. The emphasis on affordable housing reflects a proactive approach to meet changing consumer demands, which could bolster its market standing moving forward.