Meritage Homes reported a fourth quarter of 2024 characterized by strong operating momentum on a record annual performance, but with notable margin headwinds tied to elevated financing incentives and higher lot costs. In Q4 2024, Meritage delivered 4,044 homes, generating home closing revenue of $1.6 billion and a gross margin of 23.2%, aided by SG&A leverage of 10.8% and an EPS of $4.72. For the full year, the company achieved its best annual closing volume on record (15,611 homes) and closed revenue of $6.3 billion, with a full-year gross margin of 24.9% and net earnings of $786 million ($21.44 per diluted share). Management underscored the resilience of the new move-in strategy, the benefits of a tighter construction cycle (120 days), and a deliberate capital-allocation framework focused on land development and shareholder returns. The 2025 guidance contemplates a wide range of 6,250 to 16,750 closings and $6.6–$6.9 billion in home closing revenue, reflecting the sensitivity of the near-term margin trajectory to mortgage-rate dynamics and financing incentives, as well as advances in land strategy including Elliott Homes integration and Huntsville expansion. Management projects a gradual improvement in utilization of incentives if interest rates stabilize and emphasizes the company’s scalable platform and growing lot pipeline as key drivers of future volume growth toward the stated long-term target of 20,000 closings by 2027. The leadership team also highlighted California JV land financing pilots as a potential cornerstone of capital efficiency and margin expansion over time, while reaffirming commitment to 100% energy-efficient homes and ongoing 60-day close commitments to support customer affordability. Investors should monitor: (1) the trajectory of mortgage rates and the level of financing incentives required to sustain sales pace; (2) progress on Elliott/Huntsville integration and the effectiveness of off-balance sheet land financing; (3) the evolution of lot availability and cycle times as the company scales toward 20k units; and (4) gross- and SG&A-margin progression as volume recovers and the new strategy fully deploys across economic cycles.