Reported Q: Q2 2024 Rev YoY: +8.6% EPS YoY: +25.6% Move: -0.03%
Meritage Homes
MTH
$75.42 -0.03%
Exchange NYSE Sector Consumer Cyclical Industry Residential Construction
Q2 2024
Published: Jul 26, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for MTH

Reported

Report Date

Jul 26, 2024

Quarter Q2 2024

Revenue

1.70B

YoY: +8.6%

EPS

6.31

YoY: +25.6%

Market Move

-0.03%

Previous quarter: Q1 2024

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Earnings Highlights

  • Revenue of $1.70B up 8.6% year-over-year
  • EPS of $6.31 increased by 25.6% from previous year
  • Gross margin of 26.4%
  • Net income of 231.56M
  • "β€œQ2 was another strong quarter for Meritage. Our backlog conversion of 136% generated 4,118 home deliveries and home closing revenue of $1.7 billion. Home closing gross margin for the quarter was 25.9%, which combined with SG&A leverage of 9.3% resulting in diluted EPS of $6.31.”" - Steve Hilton
MTH
Company MTH

Executive Summary

Meritage Homes delivered a solid QQ2 2024 performance, underpinned by the company’s strategic pivot toward move-in ready, quickly closable homes. The quarter showcased strong demand fundamentals across regions, a robust backlog conversion and an above-peer gross margin, supported by SG&A leverage and continued cost discipline. Management reaffirmed and incrementally raised full-year guidance, signaling confidence in the plan to scale to 20,000 units while maintaining a strong balance sheet and ample liquidity. The combination of a strengthened balance sheet (IG upgrade, convertible debt issuance, larger cash cushion) and a high-quality backlog and lot position provides the company with durable flexibility to fund land investments and growth, though near-term profitability is sensitive to rate volatility and the pace of move-in readiness deployment. The management cadence around 60-day move-in inventory, realtor relationships, and selective incentives remains central to the outlook and risk framework.

Key Performance Indicators

Revenue
Increasing
1.70B
QoQ: 15.41% | YoY: 8.56%
Gross Profit
Increasing
449.70M
26.42% margin
QoQ: 16.46% | YoY: 20.05%
Operating Income
Decreasing
286.04M
QoQ: 24.89% | YoY: -11.94%
Net Income
Increasing
231.56M
QoQ: 24.48% | YoY: 23.93%
EPS
Increasing
6.38
QoQ: 24.61% | YoY: 25.59%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 1,365.28 1.69 -7.4% View
Q4 2024 1,624.47 4.78 -2.3% View
Q3 2024 1,588.45 5.34 -2.1% View
Q2 2024 1,702.05 6.31 +8.6% View
Q1 2024 1,474.75 5.06 +14.7% View