Description

Meritage Homes Corporation Controls 5.2 Years of Lots — Is That Too Much?

Meritage Homes’ second quarter 2026 results reflect operational discipline amid a challenging housing market characterized by affordability pressures and economic uncertainty. The company reported quarterly sales orders of 3,575, a 9% decline year-over-year, with average absorption pace decreasing to 3.5 net sales per community per month from 4.3 a year ago. Despite softer demand, absorption rates remained stable sequentially from the first quarter, reflecting steady buying interest. Active community count rose 9% year-over-year to 340, slightly down from 345 in Q1 due to timing factors, with management targeting 5% to 10% annual growth. Operationally, Meritage focused on reducing finished home inventory by over 1,100 year-over-year and maintaining cycle times below 110 days for a fifth consecutive quarter, which supports liquidity and cost control. The company delivered 3,725 home closings generating $1.