Meritage Homes Delivers 3,187 Homes in Q3: Closing Revenue of $1.16 Billion, Orders Down 15%, Land Spend Cut Nearly 40%
Meritage Homes Corporation, the fifth-largest U.S. homebuilder headquartered in Scottsdale, Arizona, reported third-quarter 2026 results on October 28: it delivered 3,187 homes for closing revenue of $1.162 billion and net earnings of $67.8 million. The company trades on the NYSE under the ticker MTH.
Closings fell 14% year over year and closing revenue fell 17%, with the average closing price down 4% to $365,000. The company said the lower average price mainly reflected greater use of incentives, including rate buy-downs, and geographic mix.
New orders totaled 3,083 homes, down 15% year over year, worth $1.179 billion, at an average absorption pace of 3.0 net sales per month per community. The ending backlog was 1,611 homes valued at $637 million, and the ending community count rose 4% to 348.
Home closing gross margin was 17.4%, down 170 basis points year over year; excluding $6.0 million of inventory impairments and terminated land deal charges, the adjusted margin was 17.9%. Diluted earnings per share were $1.04, down 25%.
The company cut land investment nearly 40% year over year to $329 million and returned $86 million to shareholders through repurchases and dividends. Executive chairman Steven J. Hilton said rising mortgage rates and macroeconomic uncertainty made for a more challenging homebuying environment, with constrained affordability weighing on consumer sentiment, and that the company intentionally focused on preserving margins rather than pursuing a higher sales pace.
Chief executive Phillippe Lord said the company converted nearly 190% of its backlog during the quarter. It ended the quarter with $677 million in cash, no borrowings under its revolving credit facility, a net debt-to-capital ratio of 18.9%, and book value per share up 4% year over year.
Source: GSM · USA (original Chinese edition)
Photo: 图：住宅木结构施工现场（资料图，与住宅建造题材相关）。美国国家职业安全卫生研究所 NIOSH 图，公共领域，经 Wikimedia Commons。Photo: Residential home framing at a construction site (file photo). NIOSH, public domain, via Wikimedia Commons.
