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What is the revenue and EPS growth rate for Meritage Homes year over year?

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- **Resilient Execution in Challenging Market**: 3,416 closings (22% gross margin) with 221% backlog conversion, despite 8% revenue decline YoY.
- **Community Growth Drives Future**: 290 communities (8% YoY) and 30 new openings in Q1, targeting 20,000+ closings by 2027.
- **Operational Efficiency**: 2% direct cost savings and 11.3% SG&A ratio reflect disciplined cost management.
- **Strategic Differentiation**: 60-day move-in inventory and 92% co-broke rate create 4.4 net sales pace vs. 4.9 YoY.
- **Financial Strength**: $1 billion cash, 13.7% net debt-to-cap, and 14.5% ROE as of Q1 2025.

**【Executive Chairman Opening Remarks】**
- Q1 2025 home closings reached 3,416 units, generating $1.3 billion in revenue with a 22% gross margin.
- Backlog conversion rate hit an all-time high of 221%, driven by 60-day move-in-ready inventory strategy.
- Despite macroeconomic uncertainty, the company maintained strong demand in lower-price-point markets, with 60% of Q1 closings sold intra-quarter.

**【CEO Phillippe Lord Strategy Update】**
- Achieved 3,876 orders (down 3% YoY) with a 4.4 net sales pace, supported by 7% community count growth to 290.
- ASP on orders declined 2% YoY due to rate buy-down incentives, but cancellation rate remained low at 9%.
- 30 new communities opened in Q1, including Gulf Coast and Nashville acquisitions, with 2,500 lots added.
- 2027 goal of 20,000 annual closings supported by double-digit community count growth.

**【CFO Hilla Sferruzza Financial Highlights】**
- Q1 2025 diluted EPS of $1.69 (down 33% YoY) due to lower revenue and higher tax rate (23.3% vs. 20.5% YoY).
- Home closing gross margin of 22% (down 380bps YoY) reflected incentive utilization, partially offset by 2% direct cost savings.
- SG&A as % of revenue rose to 11.3% (from 10.4%) due to lower leverage on lower volume.
- Balance sheet remains strong with $1 billion cash and net debt-to-cap of 13.7%.

**【Q&A Key Takeaways】**
- Community count growth (~10% YoY) is primary driver for 2025 guidance of 16,250-16,750 closings.
- 92% co-broke rate with realtors creates competitive advantage vs. resale market.
- Labor market slack and supply chain stability support 21.5% Q2 gross margin guidance.
- Tariff risks minimal for 2025, with lumber prices locked in for current inventory.
- Incentive levels expected to remain stable, with no plans to cut prices despite competitors' price discounts.

Meritage Homes (MTH)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Performance**: 2024 closing revenue of $6.3B (+5% YoY), 24.9% gross margin, 177% backlog conversion.
- **Strategic Expansion**: 129 new communities, Gulf Coast acquisition, Huntsville launch.
- **2025 Outlook**: 16,250-16,750 closings, $6.6-6.9B revenue, 22% gross margin target.
- **Shareholder Returns**: $235M returned in 2024, 2-for-1 stock split completed in Q1 2025.
- **Operational Efficiency**: 120-day cycle times, 7,000 specs in inventory, 40% complete at year-end.
- **Market Resilience**: Texas absorption pace of 4.7/month, 91% entry-level mix, ASP of $400K.


**【Executive Chairman Opening Remarks】**
- Full-year 2024 deliveries reached 15,611 homes, with closing revenue of $6.3 billion, up 5% year-over-year.
- Home closing gross margin of 24.9% remained historically elevated, despite lower average sales prices (ASP) of $400,000.
- Book value per share expanded 21% over 3 years to $143.98, with ROE of 16.1% in 2024.
- Backlog conversion rate hit a record 177% in Q4, driven by 60-day closing commitments.
- Share buybacks and dividends returned $235 million to shareholders in 2024, up 138% year-over-year.

**【CEO Strategy Update】**
- Expanded into Gulf Coast markets via Elliott Homes acquisition and Huntsville, Alabama, with 129 new community openings in 2024.
- Q4 2024 sales orders of 3,304 homes (14% YoY growth) with 91% entry-level mix, ASP of $400,000 (-4% YoY).
- 292 ending communities (8% YoY increase), with 39 new openings in Q4.
- 7,000 specs in inventory (20% YoY increase), 40% complete at year-end, enabling 98% closings from existing inventory.
- Texas regional absorption pace of 4.7/month, highest in company.

**【CFO Financial Highlights】**
- Q4 2024 home closing revenue: $1.6 billion (-3% YoY), driven by 5% lower ASPs.
- Gross margin: 23.2% (-200bps YoY) due to higher incentives and lumber costs.
- SG&A leverage: 10.8% (flat YoY), with $42 million in incentives.
- Full-year 2024 net income: $786 million (+6%), EPS: $21.44.
- 2025 guidance: 16,250-16,750 closings, $6.6-6.9B revenue, 22% gross margin.

**【Q&A Key Takeaways】**
- Gross margin outlook: 22% in Q1, potential improvement if volume stabilizes.
- 2025 closings target achievable with current incentives, assuming 7% mortgage rates.
- SG&A target: 9.5%+ by 2027, enabled by scale and new strategy efficiencies.
- Land strategy: 86,000 lots under control, 33,000 in diligence, with JV partnerships for off-balance-sheet financing.
- Texas market strength: 14% YoY absorption growth, limited competition at entry-level price point.
- Cycle times: 120 days (historical average), no near-term expansion expected.


Meritage Homes (MTH)-30 Jan 25-2024 Q4 Earnings call transcript

Meritage Homes (MTH)-30 Oct 24-2024 Q3 Earnings call transcript

Meritage Homes (MTH)-25 Jul 24-2024 Q2 Earnings call transcript

Meritage Homes (MTH)-25 Apr 24-2024 Q1 Earnings call transcript

Meritage Homes (MTH)-1 Feb 24-2023 Q4 Earnings call transcript

Meritage Homes (MTH)-27 Apr 23-2023 Q1 Earnings call transcript

Meritage Homes (MTH)-2 Feb 23-2022 Q4 Earnings call transcript

Meritage Homes (MTH)-28 Oct 22-2022 Q3 Earnings call transcript

Meritage Homes (MTH)-28 Jul 22-2022 Q2 Earnings call transcript

Meritage Homes (MTH)-28 Apr 22-2022 Q1 Earnings call transcript

Meritage Homes (MTH)-27 Jan 22-2021 Q4 Earnings call transcript

Meritage Homes (MTH)-28 Oct 21-2021 Q3 Earnings call transcript

Meritage Homes (MTH)-29 Jul 21-2021 Q2 Earnings call transcript

Meritage Homes (MTH)-1 May 21-2021 Q1 Earnings call transcript

Meritage Homes (MTH)-28 Jan 21-2020 Q4 Earnings call transcript

Meritage Homes (MTH)-22 Oct 20-2020 Q3 Earnings call transcript

Meritage Homes (MTH)-23 Jul 20-2020 Q2 Earnings call transcript

Meritage Homes (MTH)-29 Apr 20-2020 Q1 Earnings call transcript

Meritage Homes (MTH)-30 Jan 20-2019 Q4 Earnings call transcript

Meritage Homes (MTH)-23 Oct 19-2019 Q3 Earnings call transcript

Meritage Homes (MTH)-25 Jul 19-2019 Q2 Earnings call transcript

Meritage Homes (MTH)-24 Apr 19-2019 Q1 Earnings call transcript

Meritage Homes (MTH)-31 Jan 19-2018 Q4 Earnings call transcript

Meritage Homes (MTH)-25 Oct 18-2018 Q3 Earnings call transcript

Meritage Homes (MTH)-26 Jul 18-2018 Q2 Earnings call transcript

Meritage Homes (MTH)-26 Apr 18-2018 Q1 Earnings call transcript

Meritage Homes (MTH)-1 Feb 18-2017 Q4 Earnings call transcript

Meritage Homes (MTH)-27 Oct 17-2017 Q3 Earnings call transcript

Actual											0.915	1.19	1.42	1.985	1.72	2.18	2.625	3.125	2.895	3.385	3.55	3.545	1.77	2.51	2.99	2.69	2.53	3.155	2.67	2.36	1.69	2.04	1.39	1.2
Forecast											0.6057	0.761	1.1892	1.6658	1.2478	1.6384	2.23	2.9955	2.3999	2.9301	3.2299	3.5115	1.2895	1.7271	2.5579	2.5766	1.7764	2.5707	2.487	2.2393	1.6919	1.9661	1.6276	1.5615	1.0106
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+51.06%	+56.37%	+19.41%	+19.16%	+37.84%	+33.06%	+17.71%	+4.32%	+20.63%	+15.53%	+9.91%	+0.95%	+37.26%	+45.33%	+16.89%	+4.40%	+42.42%	+22.73%	+7.36%	+5.39%	-0.11%	+3.76%	-14.60%	-23.15%	0.00%

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