Meritage kicked off 2025 with a solid albeit cyclical first quarter, reflected in revenue of $1.366 billion, home closing revenue of $1.3 billion, and a 22% gross margin. The company emphasized a strategic pivot toward move-in-ready inventory and a 60-day closing window to improve certainty for buyers and real estate partners, which supported a backlog conversion rate of 221% and a robust absorption cadence (central region 5.3 net sales per quarter). Management reiterated its full-year guidance for 2025 (16,250–16,750 closings; $6.6–$6.9 billion in revenue) despite macro headwinds, underscoring confidence in a multi-quarter backlog-to-closings pipeline driven by new communities, land acquisitions, and an expanding land book. The balance sheet remains liquid with $1.01 billion cash and modest net debt to cap (13.7%), complemented by a new $500 million debt issuance at 5.65% and opportunistic share repurchases. Going forward, Meritage expects continued benefits from land positioning, selective acquisitions (e.g., Nashville-related lots and Elliott Homes Gulf Coast expansion), and ongoing cost discipline, though earnings will continue to reflect higher incentives and a higher effective tax rate in 2025 against the inflation reduction act (IRA) backdrop. Key risks include mortgage-rate volatility, consumer confidence, tariff-related cost uncertainty, and the need to sustain strong community openings to meet volume targets.