--- title: "Meritage Homes | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 1.408 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/294260346.md" datetime: "2026-07-29T20:51:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294260346.md) - [en](https://longbridge.com/en/news/294260346.md) - [zh-HK](https://longbridge.com/zh-HK/news/294260346.md) --- # Meritage Homes | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 1.408 B Revenue: As of FY2026 Q2, the actual value is USD 1.408 B, missing the estimate of USD 1.415 B. EPS: As of FY2026 Q2, the actual value is USD 1.37, beating the estimate of USD 1.2928. EBIT: As of FY2026 Q2, the actual value is USD 122.75 M. ### Second Quarter 2026 Financial and Operational Highlights #### Homebuilding Segment - Homes Closed: Meritage Homes Corporation closed 3,725 homes, an 11% decrease compared to 4,170 homes in the second quarter of 2025. - Home Closing Revenue: Home closing revenue was $1,387,911 thousand, down 14% from $1,615,709 thousand in the prior year. - Average Sales Price (Closings): The average sales price for closings decreased by 4% to $373 thousand from $387 thousand in the second quarter of 2025. - Home Orders: Total home orders were 3,575 units, a 9% decrease from 3,914 units in the second quarter of 2025. - Home Order Value: Home order value was $1,376,338 thousand, an 11% decrease from $1,547,438 thousand in the prior year. - Average Sales Price (Orders): The average sales price for orders was $385 thousand, a 3% decrease from $395 thousand in the second quarter of 2025. - Home Closing Gross Margin: The home closing gross margin was 18.3%, down 280 basis points from 21.1% in the second quarter of 2025. - Adjusted Home Closing Gross Margin: Excluding $3.6 million of real estate inventory impairments and $0.3 million in terminated land deal walk-away charges, the adjusted home closing gross margin was 18.6% for the second quarter of 2026, compared to 21.4% in the prior year. #### Financial Services Segment - Revenue: Revenue from financial services was $7,784 thousand, a decrease of 17% from $9,425 thousand in the second quarter of 2025. - Profit: Financial services profit was $5,327 thousand, a 5% decrease from $5,611 thousand in the prior year. #### Overall Operational Metrics (Q2 2026) - Selling, General and Administrative (SG&A) Expenses: SG&A expenses as a percentage of home closing revenue were 10.4%, compared to 10.2% in the second quarter of 2025. - Earnings Before Income Taxes: Earnings before income taxes decreased by 38% to $120,564 thousand from $193,060 thousand in the second quarter of 2025. - Net Earnings: Net earnings were $90,630 thousand, a 38% decrease from $146,879 thousand in the second quarter of 2025. - Effective Income Tax Rate: The effective income tax rate was 24.8% in 2026, up from 23.9% in 2025. ### Year-to-Date 2026 Financial and Operational Highlights #### Homebuilding Segment (YTD) - Home Closing Revenue: For the first six months of 2026, home closing revenue decreased 16% year-over-year to $2,495,733 thousand. - Home Orders: Total sales orders for the first six months of 2026 decreased 7% year-over-year to 7,239 units. - Home Closing Gross Margin: The home closing gross margin was 17.9%, a decrease of 360 basis points from 21.5% in the prior year. - Ending Backlog (units): The ending backlog in units was 1,715, a 2% decrease from 1,748 units at June 30, 2025. - Ending Backlog Value: The ending backlog value was $661,906 thousand, a 5% decrease from $695,476 thousand at June 30, 2025. #### Overall Operational Metrics (YTD) - Net Earnings: Net earnings for the first six months of 2026 were $145,939 thousand, a 46% decrease from $269,685 thousand in the prior year. - SG&A as a percentage of home closing revenue: SG&A was 11.0% in the first six months of 2026, compared to 10.7% in the prior year. ### Balance Sheet and Liquidity as of June 30, 2026 - Cash and Cash Equivalents: Cash and cash equivalents totaled $807,267 thousand, an increase from $775,157 thousand at December 31, 2025. - Land Acquisition and Development Spend: Spend was $357 million in the second quarter of 2026, down from $509 million in the second quarter of 2025. - Lots Owned or Controlled: Approximately 73,200 lots were owned or controlled, compared to 81,900 lots as of June 30, 2025. - Community Count: The ending community count was 340, up 9% compared to the prior year. - Debt-to-Capital Ratio: The debt-to-capital ratio was 26.8%, compared to 26.0% at December 31, 2025. - Net Debt-to-Capital Ratio: The net debt-to-capital ratio was 17.1%, compared to 16.9% at December 31, 2025. - Book Value Per Share: Book value per share increased 5% year-over-year. - Dividends Paid: Meritage Homes Corporation paid quarterly cash dividends of $0.48 per share totaling $31 million in the second quarter of 2026. - Share Repurchases: The company repurchased 1,528,340 shares for $100 million in the second quarter of 2026. - Revolving Credit Facility: The revolving credit facility was refinanced, increasing its size to $980 million and extending its maturity to 2031. #### Cash Flow from Operating Activities - Net Cash Provided by Operating Activities (Six Months Ended June 30): Meritage Homes Corporation generated $290,781 thousand in net cash from operating activities, compared to using -$28,875 thousand in the prior year. ### Outlook Meritage Homes Corporation updated its guidance for full year 2026 home closing volume and revenue to be around 5% below full year 2025 results. However, home closing revenue could trend lower if market conditions require higher incentives. The company reiterated its prior community count growth expectation of 5-10% year-over-year for full year 2026. ### Related Stocks - [MTH.US](https://longbridge.com/en/quote/MTH.US.md) ## Related News & Research - [Meritage Homes (NYSE:MTH) Issues Quarterly Earnings Results, Beats Estimates By $0.13 EPS](https://longbridge.com/en/news/294261035.md) - [Meritage Homes (NYSE:MTH) Releases Q2 2026 Earnings Guidance](https://longbridge.com/en/news/283903854.md) - [Gran Tierra Energy amends 8-K to file share sale and purchase agreement exhibit](https://longbridge.com/en/news/295388778.md) - [SKYH: Q2 2026 saw record revenue growth, positive cash flow, and reaffirmed year-end guidance](https://longbridge.com/en/news/295712441.md) - [TELA Bio amends 8-K to detail former CEO Koblish separation benefits](https://longbridge.com/en/news/295839267.md)