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THIRD QUARTER 2025 ANALYST CONFERENCE CALL OCTOBER 29, 2025
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Safe Harbor 2 The information included in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our fourth quarter 2025 projected home closing volume, home closing revenue, home closing gross margin, effective tax rate and diluted EPS. All historical 2024 share and per share amounts in this earnings presentation have been retroactively restated to reflect the two-for-one stock split completed on January 2, 2025. Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
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Speakers Steven J. Hilton – Executive Chairman Phillippe Lord – Chief Executive Officer Hilla Sferruzza – EVP & Chief Financial Officer Emily Tadano – VP of Investor Relations and External Communications 3
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4 Net Sales Orders Up 4% Year-over-year Net Orders & Y/Y % 3,512 3,304 3,876 3,914 3,636 3Q24 4Q24 1Q25 2Q25 3Q25 -3% 1% 3% 14% 3Q25 Takeaways • Ending community count at September 30, 2025 of 334 was the highest in company history • 3Q25 backlog conversion rate was 211% with 60% of deliveries from intra-quarter orders • 3Q25 net orders were up 4% year-over-year in a tougher selling environment Ending & Average Community Count Average Absorption Pace & Y/Y % Backlog Conversion Rate 278 292 290 312 334 282.5 285.0 291.0 301.0 323.0 3Q24 4Q24 1Q25 2Q25 3Q25 Ending Average 145% 177% 221% 208% 211% 3Q24 4Q24 1Q25 2Q25 3Q25 4.1 3.9 4.4 4.3 3.8 3Q24 4Q24 1Q25 2Q25 3Q25 -10% -4% 8% -7% 0% 4%
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Diversity in Performance Across the Regions in Today’s Operating Environment 55 West Region Central Region* East Region Total Average Communities 85.0 91.0 147.0 323.0 Average Communities Y/Y(%) (1)% 5% 33% 14% Absorption per month 3.4 4.7 3.4 3.8 Absorption per month Y/Y(%) (19)% 2% (11)% (7)% Orders 867 1,289 1,480 3,636 Orders Y/Y(%) (19)% 9% 17% 4% ASP on Orders $492K $364K $351K $389K ASP on Orders Y/Y(%) 1% 1% (7)% (4)% Order Value Y/Y(%) (18)% 9% 9% (1)% * As of January 1, 2025, the Central Region includes Nashville The data above relates to our three reportable homebuilding segments which include: West: Arizona, California, Colorado, and Utah Central: Tennessee and Texas East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina
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Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage 6 3,798 3,565 3,601 4,083 3,072 1000 2000 3000 4000 5000 6000 3Q24 4Q24 1Q25 2Q25 3Q25 6 24.4 24.1 23.3 22.2 19.0 3Q24 4Q24 1Q25 2Q25 3Q25 6,783 7,029 6,758 6,923 6,355 2,284 1,544 2,004 1,748 1,699 3Q24 4Q24 1Q25 2Q25 3Q25 Ending Backlog Total Specs 9,067 8,762 8,6718,573 38%39%40%33% 47% 8,054 Spec Starts Total Specs and Ending Backlog & % of Specs Completed Average Specs Per Community • 19 specs per community translates to 5 months supply for 3Q25, compared to 24 specs per store and 6 months for 3Q24 Takeaways
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3Q25 Financial Performance 77 ($ Millions except EPS & ASP) 3Q25 3Q24 % Chg YTD2025 YTD2024 % Chg Home closings 3,685 3,942 (7)% 11,271 11,567 (3)% ASP (closings) $380K $402K (5)% $387K $410K (6)% Home closing revenue $1,399 $1,586 (12)% $4,357 $4,746 (8)% Home closing gross profit $267 $393 (32)% $904 $1,210 (25)% Home closing gross margin 19.1% 24.8% (570) bps 20.7% 25.5% (480) bps Adjusted home closing gross margin2 20.1% 24.9% (480) bps 21.2% 25.6% (440) bps SG&A expenses $152 $157 (4)% $467 $467 0% SG&A % of home closing revenue 10.8% 9.9% 90 bps 10.7% 9.8% 90 bps Earnings before taxes $128 $250 (49)% $481 $781 (38)% Effective tax rate 22.6% 21.6% 100 bps 23.4% 21.5% 190 bps Net earnings $99 $196 (49)% $369 $614 (40)% Diluted EPS1 $1.39 $2.67 (48)% $5.13 $8.36 (39)% Adjusted Diluted EPS1,2 $1.55 $2.69 (42)% $5.35 $8.40 (36)% 3Q25 Highlights: • Decline in ASPs from greater incentive use • Adjusted gross margin impacted by greater incentive use and lot costs, and lost leverage • Lower SG&A % from higher commission rates and tech costs, and lost leverage • 2025 tax rate reflects fewer homes meeting greater energy tax credit thresholds 1 2024 historical data is adjusted for the two-for-one stock split completed on January 2, 2025 2 Adjusted to exclude real estate inventory impairments and terminated land deal walk away charges totaling $14.5M in 3Q25 and $2.0M in 3Q24; totaling $20.1M in YTD2025 and $3.9M in YTD2024
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3Q25 Capital Structure and Capital Spend Activities 8 Capital Structure – Non-GAAP Reconciliation ($ Millions) Sept. 30, 2025 Dec. 31, 2024 Notes payable & other borrowings $1,829 $1,336 Stockholders’ equity $5,288 $5,142 Total capital $7,117 $6,478 Debt-to-capital 25.7% 20.6% Less: cash & cash equivalents $(729) $(652) Net debt $1,100 $684 Total net capital $6,388 $5,826 Net debt-to-capital 17.2% 11.7% Book value per share1 $75.10 $71.49 Land Spend 86% Cash Dividends 5% $613 million total spend Share Repurchase 9% 1 2024 historical data is adjusted for the two-for-one stock split completed on January 2, 2025 3Q25 Capital Allocation Spend Returned $85M of cash to shareholders in 3Q25 and $237M year to date through September 30, 2025 Strong financial position supported by a healthy balance sheet and ample liquidity
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3Q25 Land & Development Investment 9 3Q25 3Q24 Total lots controlled 80,836 74,819 Supply of lots (years) 5.3 4.8 - Owned 69% 64% - Optioned 31% 36% $315 $310 $405 $222 $234 $264 $261 $307 $283 $243 $275 $264 $576 $617 $688 $465 $509 $528 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Column1 Development Acqusition 8,707 7,795 14,359 2,188 1,795 1,996 0 2000 4000 6000 8000 10000 12000 14000 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 * Land acquisition and development spend is net of land development reimbursements. 2Q24 to 3Q25 have been adjusted to the current presentation Takeaways • Intentional slowdown in net new lot acquisition, given current market conditions • Continue to have the right amount of lots under control for multiyear community growth, in line with our target of 4-5 year supply of lots Net Newly Controlled Lots Lots Detail Land Acquisition & Development Spend* ($ Millions)
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4Q25 Guidance 10 Fourth Quarter 2025 Home closings 3,800-4,000 units Home closing revenue $1.46-1.54 billion Home closing gross margin 19-20% Effective tax rate About 24.5% Diluted earnings per common share $1.51-1.70
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3Q25 Key Takeaways 11 • Led by our flexible operations and capital allocation strategy, we are focused on maximizing returns throughout periods of economic transition • 3Q25 community count expansion and improved cycle times prepare us for future growth opportunities • Reduced our land spend to $528M and increased our return of cash to shareholders to $85M
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ABOUT MERITAGE 12
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Meritage Company Overview 13 Affordable spec builder specializing in entry-level and first move-up homes Top five U.S. public homebuilder Delivered over 200,000 homes in its 40-year history Diversified geographic footprint with 25 markets in 12 states
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Meritage Key Strategies 14 Spec strategy • Start all homes prior to releasing them for sale • 60-day closing commitment • Move-in ready inventory • Realtor engagement Go-to market strategy • Cost savings from national vendors derived from reduced number of house plans and SKUs, lack of design center and a simplified sale to close process • Deliver affordable entry-level and first move-up homes Streamlined operations Focused on affordability