Meritage Homes Corporation reported second quarter 2025 diluted EPS of $2.04, a significant 35.1% decrease year-over-year from $3.14. Home closing revenue for the quarter was $1.62 billion, down 4.6% from $1.69 billion in the prior year, despite a 1.3% increase in home closing units to 4,170.
The company's home closing gross margin experienced a substantial decline, falling 480 basis points to 21.1% in Q2 2025, compared to 25.9% in Q2 2024. This was attributed to higher lot costs and $4.2 million in charges from terminated land contracts, partially offset by direct cost savings.
Meritage lowered its full-year 2025 land spend target from $2.5 billion to $2 billion, reallocating capital towards shareholder returns, including $45 million in share repurchases during the quarter. The company provided Q3 2025 guidance, projecting diluted EPS between $1.51 and $1.86 and a home closing gross margin of around 20%.
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