Meritage Homes Reports Q3 2026 Decline in Revenue and Earnings Amid Mortgage Rate Pressures
Meritage Homes (MTH) reported a challenging third quarter for 2026, marked by a 17% year-over-year decrease in home closing revenue to $1.2 billion. Net earnings fell 32% to $68 million, driven by lower closing volumes and compressed gross margins. The company faced headwinds from rising mortgage rates and affordability challenges, which slowed the absorption pace to 3.0 net sales per month. In response to market volatility, management focused on liquidity preservation, significantly reducing land acquisition and development spend by 38% compared to the previous year. While direct construction costs have decreased for 14 consecutive quarters, legacy land development costs from 2022-2025 are expected to continue weighing on gross margins through at least 2027. Due to market uncertainty, the company declined to provide guidance for the fourth quarter or full year.
Tickers: $MTH
Topics: Absorption Pace Adjusted EPS Home Closing Revenue Net Earnings Sales Orders
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