Meritage Homes Q3 2026: Revenue Misses Expectations as Closings Slide
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Meritage is choosing margin over volume, cutting land spending 40% year over year as closings fell and both lines missed expectations. Management offered no numeric guidance and warned conditions stay unpredictable for several more quarters, leaning on $677 million of cash and no revolver borrowings.
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Meritage Homes missed expectations on revenue of $1.17 billion in Q3 2026, as a 14% drop in home closings forced heavier incentives and rate buy-downs to keep deals moving. Adjusted diluted EPS of $1.11 also came in below consensus.
Gross margin compressed to 17.4% as higher lot costs and incentive spending ate into lower volume. CEO Phillippe Lord cut land acquisition and development spending rather than chase a faster sales pace at the cost of margins.
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The balance sheet carries the quarter: Meritage Homes ended with $677 million in cash and no borrowings under its revolving credit facility. Buybacks and dividends continued through the quarter.
Management declined to give numeric guidance and expects unpredictable conditions for several more quarters, citing volatile mortgage rates and weak consumer sentiment. Each of the last four quarters has missed analyst estimates. Keep an eye on the stock as the margin-first strategy plays out.
Mentioned: MTH