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SECOND QUARTER 2026 ANALYST CONFERENCE CALL JULY 30, 2026
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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 ability to increase market share, our full year 2026 home closing volume, home closing revenue and community count growth, and third quarter 2026 projected home closing volume, home closing revenue, home closing gross margin, effective tax rate and diluted EPS. 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; shortages in the availability and cost of subcontract labor; legislation related to tariffs; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; the adverse effect of slow absorption rates; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; 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; sustainability matters and disclosures; 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, 2025 and our subsequent Form 10-Qs 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 2Q26 Average Absorption Pace Down YOY Yet In Line With 1Q26 Net Orders & Y/Y % 3,914 3,636 3,224 3,664 3,575 2Q25 3Q25 4Q25 1Q26 2Q26 3% 2Q26 Takeaways • Averaged 3.5 net sales per month in 2Q26, down 19% YOY and in line with 1Q26 • 200% backlog conversion rate in 2Q26, with nearly 60% of deliveries from intra-quarter orders • 2Q26 ending community count up 9% YOY, down 1% sequentially Ending & Average Community Count Average Absorption Pace & Y/Y % Backlog Conversion Rate 312 334 336 345 340 301.0 323.0 335.0 340.5 342.5 2Q25 3Q25 4Q25 1Q26 2Q26 Ending Average 208% 211% 221% 254% 200% 2Q25 3Q25 4Q25 1Q26 2Q26 4.3 3.8 3.2 3.6 3.5 2Q25 3Q25 4Q25 1Q26 2Q26 -4% -7% -18% -19%-18% 4% -2% -9%-5%
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Performance Reflects Diversity in Demand Across Our Regions 55 West Region Central Region East Region Total Average Communities 88.5 103.0 151.0 342.5 Average Communities Y/Y(%) 4% 23% 14% 14% Absorption per month 2.9 4.1 3.4 3.5 Absorption per month Y/Y(%) (26)% (21)% (17)% (19)% Orders 762 1,259 1,554 3,575 Orders Y/Y(%) (24)% (3)% (4)% (9)% ASP on Orders $513K $349K $351K $385K ASP on Orders Y/Y(%) 6% (5)% (4)% (3)% Order Value Y/Y(%) (19)% (7)% (7)% (11)% The data above relates to our three reportable homebuilding segments which include: West: Arizona, California, Colorado, and Utah Central: Tennessee and Texas East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina
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Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage 6 4,083 3,072 2,694 2,524 3,929 1000 2000 3000 4000 5000 6000 2Q25 3Q25 4Q25 1Q26 2Q26 6 22.2 19.0 17.4 13.7 14.9 2Q25 3Q25 4Q25 1Q26 2Q26 6,923 6,355 5,838 4,734 5,075 1,748 1,699 1,168 1,865 1,715 2Q25 3Q25 4Q25 1Q26 2Q26 Ending Backlog Total Specs 8,671 8,054 46%50%47%38% 30% 7,006 6,7906,599 Spec Starts Total Specs and Ending Backlog & % of Specs Completed Average Specs Per Community • Worked down completed specs to 30% of total spec count at June 30, 2026 • Starts down YOY, yet up sequentially, providing sufficient supply for Q3, and replacing older inventory with lower- cost new starts • Total specs and ending backlog down YOY, reflecting alignment with market conditions Takeaways
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2Q26 Financial Performance 77 ($ Millions except EPS & ASP) 2Q26 2Q25 % Chg YTD2026 YTD2025 % Chg Home closings 3,725 4,170 (11)% 6,692 7,586 (12)% ASP (closings) $373K $387K (4)% $373K $390K (4)% Home closing revenue $1,388 $1,616 (14)% $2,496 $2,958 (16)% Home closing gross profit $254 $341 (26)% $447 $637 (30)% Home closing gross margin 18.3% 21.1% (280) bps 17.9% 21.5% (360) bps Adjusted home closing gross margin1 18.6% 21.4% (280) bps 18.2% 21.7% (350) bps SG&A expenses $144 $164 (12)% $275 $316 (13)% SG&A % of home closing revenue 10.4% 10.2% 20 bps 11.0% 10.7% 30 bps Earnings before taxes $121 $193 (38)% $193 $353 (45)% Effective tax rate 24.8% 23.9% 90 bps 24.4% 23.6% 80 bps Net earnings $91 $147 (38)% $146 $270 (46)% Diluted EPS $1.37 $2.04 (33)% $2.18 $3.73 (42)% Adjusted Diluted EPS1 $1.42 $2.09 (32)% $2.27 $3.79 (40)% 2Q26 Highlights: • Decline in ASP from geographic mix • Gross margin impacted by lost leverage and higher lot costs, which were partially offset by direct cost savings and quicker cycle times • SG&A % reflected lost leverage, which was partially offset by decreased compensation expense and an intentional reduction in discretionary expenses • Increase in effective tax rate from higher state income taxes 1 Excluded real estate inventory impairments and terminated land deal walk-away charges totaling $3.9M in 2Q26 and $4.2M in 2Q25 as well as $7.7M 1H26 and $5.6M in 1H25. See 2Q26 Earnings Release for Non-GAAP Reconciliation
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2Q26 Capital Structure and Capital Spend Activities 8 Capital Structure – Non-GAAP Reconciliation ($ Millions) Jun. 30, 2026 Dec. 31, 2025 Notes payable & other borrowings $1,847 $1,829 Stockholders’ equity $5,058 $5,196 Total capital $6,905 $7,025 Debt-to-capital 26.8% 26.0% Less: cash & cash equivalents $(807) $(775) Net debt $1,040 $1,053 Total net capital $6,098 $6,250 Net debt-to-capital 17.1% 16.9% Book value per share $77.61 $76.22 Land Spend 73% Cash Dividends 6% $488 million total spend Share Repurchase 21% 2Q26 Capital Allocation Spend Returned $131M of cash to shareholders, totaling 145% of quarterly earnings in 2Q26 Returned $293M in the first half of 2026, totaling 201% of year-to-date earnings, via $230M in share buybacks and $63M in cash dividends Strong financial position generated by a healthy balance sheet and ample liquidity
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2Q26 Land & Development Investment 9 2Q26 2Q25 Total lots controlled 73,233 81,912 Supply of lots (years) 5.2 5.3 - Owned 69% 66% - Optioned 31% 34% $222 $234 $264 $148 $141 $136 $243 $275 $264 $268 $185 $221 $465 $509 $528 $416 $326 $357 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Column1 Development Acqusition 2,188 1,795 1,996 -517 380 1,681 -1000 1000 3000 1Q25 2Q25 3Q25 4Q25* 1Q26 2Q26 * Land acquisition and development spend is net of land development reimbursements. Net Newly Controlled Lots Lots Detail Land Acquisition & Development Spend* ($ Millions) * 4Q25 included 3,434 lots we terminated Takeaways • Deliberately slowed land and development spend to $357M, aligning growth spend with slower market conditions • Well positioned with 5.2 years of lot supply, inside our 4-5 year target, with the owned mix up to 69% from 66%
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Guidance 10 Third Quarter 2026 Home closings 3,300-3,600 units Home closing revenue $1.26-1.35 billion Home closing gross margin Around 18% Effective tax rate 24.5-25.0% Diluted earnings per common share $1.10-1.30 Full Year 2026: • Home closing volume and revenue around 5% below full year 2025, although home closing revenue could trend lower if market conditions require higher incentives
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2Q26 Key Takeaways 11 • Q2 results reflected solid execution in a softer demand environment, no meaningful deterioration in demand from Q1 to Q2 • We remained focused on controlling what we can control—strategically reducing aged inventory as we target the right level of specs per store, balancing pace and price, and allocating capital thoughtfully to maximize returns • Looking ahead, with community count expected to grow in the second half of 2026, we believe we have the units to achieve our full-year revenue guidance despite ongoing market challenges
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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 210,000 homes in its 41-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 ready guarantee • 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