Meritage Homes COO Clint Szubinski to Depart Company

Meritage Homes Corporation announced that Executive Vice President and Chief Operating Officer Clint Szubinski has informed the company of his decision to resign for personal reasons. His final day with the homebuilder is expected to be May 16, 2025. The company thanked Szubinski for his contributions during his tenure.

Meritage Homes Reports Lower Q1 2025 Earnings Amid Softer Market Conditions, Reaffirms Full-Year Guidance


SCOTTSDALE, Ariz., April 23, 2025 — Meritage Homes Corporation (NYSE: MTH), the fifth-largest public homebuilder in the U.S., reported a year-over-year decline in first-quarter 2025 results as elevated mortgage rates and increased financing incentives impacted both home orders and profitability. Despite the softer start to the year, the company reaffirmed its full-year guidance.

For the quarter ended March 31, 2025, net earnings declined 34% to $122.8 million, or $1.69 per diluted share, compared to $186.0 million, or $2.53 per share, in the same period last year. Home closing revenue dropped 8% to $1.34 billion, on 3% fewer closings and a 6% lower average sales price.

“We had a healthy start to 2025, closing over 3,400 homes and maintaining an absorption pace of 4.4 net sales per month despite continued macroeconomic headwinds,” said Executive Chairman Steven J. Hilton. “Our focus on affordability and move-in ready inventory continues to support resilient demand in a supply-constrained housing market.”

Operational Highlights
Home orders totaled 3,876 units, down 3% year-over-year, with order value slipping 4% to $1.56 billion.

Backlog units fell 34% to 2,004, while backlog value declined 35% to $812.4 million.

Gross margin on home closings dropped to 22.0% from 25.8% due to higher lot costs and increased incentive usage.

SG&A expenses rose to 11.3% of home closing revenue, up from 10.4% a year ago, impacted by new division start-up costs and tech investments.

“Our strategic shift toward spec homes is yielding record backlog conversion and enabling operational efficiency,” said CEO Phillippe Lord. “Over 60% of closings this quarter were from homes sold in the same period, setting a company record with a 221% conversion rate.”

Balance Sheet and Liquidity
Meritage ended the quarter with $1.01 billion in cash, up from $651.6 million at year-end. The company issued $500 million in senior notes due 2035 and repurchased 605,316 shares for $45 million. The net debt-to-capital ratio remained conservative at 13.7%, providing ample flexibility for growth and shareholder returns.

“With 84,200 lots under control and nearly 2,200 net new lots added in Q1, we are well-positioned to meet future housing demand,” Lord added. “We remain committed to capital discipline while also returning capital through dividends and buybacks.”

2025 Guidance Reaffirmed
Meritage maintained its full-year 2025 forecast, including:

Home closings between 16,250 to 16,750 units

Home closing revenue of $6.6 billion to $6.9 billion

Meritage Homes Corporation announced compensation increases for several executive officers, effective January 1, 2025. The changes, approved by the Executive Compensation Committee, impact the base salaries, cash incentives, and equity compensation of the executives.

Hilla Sferruzza (Executive VP & CFO) and Clinton Szubinski (Executive VP & COO) will each receive a base salary of $800,000, while Malissia Clinton (Executive VP & General Counsel) and Javier Feliciano (Executive VP & Chief People Officer) will receive $560,000 and $515,000, respectively. Phillippe Lord (CEO) and Steven J. Hilton (Executive Chairman) will not see changes to their base salaries.

Annual cash incentive targets have been raised, with Phillippe Lord now eligible for $3,250,000, while other executives receive varying increases. Equity incentive compensation also increased, with Lord's set at $5,500,000. About 50% of the awards will be time-based restricted stock units, and 50% will be performance-based share awards.

Meritage Homes Corporation Completes $500 Million Senior Notes Offering
Scottsdale, AZ (March 6, 2025) – Meritage Homes Corporation (NYSE: MTH) announced today that it has successfully completed a public offering of $500 million aggregate principal amount of 5.650% Senior Notes due 2035.

The net proceeds of approximately $493.4 million (before expenses) will be used for general corporate purposes.

Key Terms of the Senior Notes
Interest Rate: 5.650% per annum
Payment Schedule: Semi-annual payments due on March 15 and September 15, beginning September 15, 2025
Maturity Date: March 15, 2035
Guarantors: The Notes are unconditionally guaranteed on a senior unsecured basis by the Company’s subsidiaries
Optional Redemption Terms
Before December 15, 2034 (Par Call Date):
Redemption price will be the greater of:
Present value of remaining payments (discounted at the Treasury Rate + 25 basis points)
100% of the principal amount
Accrued interest will also be paid.
On or after December 15, 2034:
Redeemable at 100% of the principal amount plus accrued interest.
Covenants and Security
The Indenture contains restrictions on secured debt, sale-leaseback transactions, and mergers or asset sales.

In the event of both a Change of Control and a Rating Decline, holders may require the Company to repurchase the Notes at 101% of the principal amount plus accrued interest.

Ranking and Security
The Notes are unsecured senior obligations of Meritage Homes Corporation.
They rank equally with the Company’s existing senior and convertible senior notes and revolving credit facility.
They are senior to any subordinated debt.
Underwriting and Legal Counsel
The offering was underwritten by J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, and Mizuho Securities USA LLC.

Legal counsel was provided by Snell & Wilmer L.L.P. (Phoenix, Arizona) and Venable LLP (Baltimore, Maryland).