Meritage Homes Q1 Profit Drops 55% to $55.3M as Revenue Falls 18%

Meritage Homes Corporation (NYSE: MTH), a residential homebuilder, reported net income of $55.3 million for the quarter ending March 31, 2026, down 55% from $122.8 million in the same period last year. Earnings per diluted share fell to $0.82 from $1.69. Read more earnings reports.

Revenue for the three months ending March 31, 2026 totaled $1.12 billion, a decline of 18% from $1.36 billion in the first quarter of 2025. Operating income fell to $75.9 million from $159.7 million a year earlier, a drop of 52%.

Gross profit for the quarter was $193.5 million, down from $298.8 million in the prior-year period. The company's gross margin compressed to 17.3% from 22.0% a year ago.

Cash from operations swung sharply positive to $101.3 million for the quarter, compared to a cash outflow of $42.6 million in the first quarter of 2025. The company ended March 31, 2026 with $766.6 million in cash and cash equivalents, down slightly from $775.2 million at year-end 2025.

Meritage paid $32.0 million in dividends during the quarter, up from $30.9 million in the same period last year. The company spent $102.1 million on financing activities, including share repurchases and debt transactions.

Total assets stood at $7.55 billion as of March 31, 2026, down from $7.62 billion at December 31, 2025. Stockholders' equity declined to $5.09 billion from $5.20 billion at year-end.

The company's share count fell to 66.7 million shares outstanding at quarter-end from 68.2 million at the end of 2025, reflecting the impact of share repurchases during the period.