Meritage Homes CORPMTH
Meritage Homes CORP Segments Disclosure
OPERATING AND REPORTING SEGMENTS
We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have twelve homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our three reportable homebuilding segments are as follows:
West: Arizona, California, Colorado and Utah
Central: Texas and Tennessee
East: Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina
We define our segments based on the way in which internally reported financial information is regularly provided and reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. Our CODM is the chief executive officer. The CODM’s evaluation of the homebuilding segment performance is based on segment home closing revenue, home closing gross profit and gross margin, total gross profit, commissions and other sales costs, general and administrative expenses incurred by or allocated to each segment, including impairments, and operating income. The CODM uses these performance metrics predominantly in the annual budget and forecasting process and considers budget-to-actual variances on a quarterly basis for these measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses these data points to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The CODM also reviews financial services profits and losses to evaluate the performance of the financial services segment and make decisions about allocation of resources and financial services related product offerings.
Effective January 1, 2025, we realigned our internal organizational structure and resources following continued growth and recent entry into new markets. As a result of the change in our organizational structure, the Tennessee homebuilding operating segment was reclassified from the East reporting segment to the Central reporting segment for the purpose of making operational and resource decisions and assessing financial performance. Prior period balances have been retroactively adjusted to reflect this reclassification.
Each reportable segment follows the same accounting policies described in Note 1, “Business and Summary of Significant Accounting Policies.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.
The following tables provide financial information about our reportable segments and Corporate and other categories (in thousands):
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| West | Central | East | Total | |||||||||||||||||||||||
| Home closing revenue | $ | 1,829,432 | $ | 1,835,691 | $ | 2,098,474 | $ | 5,763,597 | ||||||||||||||||||
| Land closing revenue | 7,962 | 22,656 | 30,220 | 60,838 | ||||||||||||||||||||||
| Total closing revenue | 1,837,394 | 1,858,347 | 2,128,694 | 5,824,435 | ||||||||||||||||||||||
| Cost of home closings | 1,461,313 | 1,451,785 | 1,714,307 | 4,627,405 | ||||||||||||||||||||||
| Cost of land closings | 7,534 | 23,945 | 27,547 | 59,026 | ||||||||||||||||||||||
| Total cost of closings | 1,468,847 | 1,475,730 | 1,741,854 | 4,686,431 | ||||||||||||||||||||||
| Home closing gross profit | 368,119 | 383,906 | 384,167 | 1,136,192 | ||||||||||||||||||||||
| Land closing gross profit/(loss) | 428 | (1,289) | 2,673 | 1,812 | ||||||||||||||||||||||
| Total closing gross profit | 368,547 | 382,617 | 386,840 | 1,138,004 | ||||||||||||||||||||||
| Home closing gross margin | 20.1% | 20.9% | 18.3% | 19.7% | ||||||||||||||||||||||
| Commissions and other sales costs | 110,408 | 140,114 | 153,883 | 404,405 | ||||||||||||||||||||||
| General and administrative expenses | 50,944 | 49,924 | 70,713 | 171,581 | ||||||||||||||||||||||
| Homebuilding segment operating income | 207,195 | 192,579 | 162,244 | 562,018 | ||||||||||||||||||||||
| Financial services segment profit | 18,618 | |||||||||||||||||||||||||
| Corporate and unallocated costs (1) | (40,181) | |||||||||||||||||||||||||
| Interest expense | — | |||||||||||||||||||||||||
| Other income, net | 44,145 | |||||||||||||||||||||||||
| Net earnings before income taxes | $ | 584,600 | ||||||||||||||||||||||||
(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| West | Central | East | Total | |||||||||||||||||||||||
| Home closing revenue | $ | 2,223,876 | $ | 2,015,621 | $ | 2,102,049 | $ | 6,341,546 | ||||||||||||||||||
| Land closing revenue | — | 6,017 | 16,309 | $ | 22,326 | |||||||||||||||||||||
| Total closing revenue | 2,223,876 | 2,021,638 | 2,118,358 | 6,363,872 | ||||||||||||||||||||||
| Cost of home closings | 1,715,856 | 1,492,243 | 1,553,604 | 4,761,703 | ||||||||||||||||||||||
| Cost of land closings | — | 4,149 | 14,160 | 18,309 | ||||||||||||||||||||||
| Total cost of closings | 1,715,856 | 1,496,392 | 1,567,764 | 4,780,012 | ||||||||||||||||||||||
| Home closing gross profit | 508,020 | 523,378 | 548,445 | 1,579,843 | ||||||||||||||||||||||
| Land closing gross profit/(loss) | — | 1,868 | 2,149 | 4,017 | ||||||||||||||||||||||
| Total closing gross profit | 508,020 | 525,246 | 550,594 | 1,583,860 | ||||||||||||||||||||||
| Home closing gross margin | 22.8% | 26.0% | 26.1% | 24.9% | ||||||||||||||||||||||
| Commissions and other sales costs | 123,393 | 142,485 | 143,191 | 409,069 | ||||||||||||||||||||||
| General and administrative expenses | 52,837 | 50,309 | 61,047 | 164,193 | ||||||||||||||||||||||
| Homebuilding segment operating income | 331,790 | 332,452 | 346,356 | 1,010,598 | ||||||||||||||||||||||
| Financial services segment profit | 14,410 | |||||||||||||||||||||||||
| Corporate and unallocated costs (1) | (66,663) | |||||||||||||||||||||||||
| Interest expense | — | |||||||||||||||||||||||||
| Other income, net | 45,156 | |||||||||||||||||||||||||
| Loss on early extinguishment of debt | (631) | |||||||||||||||||||||||||
| Net earnings before income taxes | $ | 1,002,870 | ||||||||||||||||||||||||
(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| West | Central | East | Total | |||||||||||||||||||||||
| Home closing revenue | $ | 2,107,095 | $ | 2,006,333 | $ | 1,943,356 | $ | 6,056,784 | ||||||||||||||||||
| Land closing revenue | 35,324 | 6,694 | 14,211 | $ | 56,229 | |||||||||||||||||||||
| Total closing revenue | 2,142,419 | 2,013,027 | 1,957,567 | $ | 6,113,013 | |||||||||||||||||||||
| Cost of home closings | 1,671,330 | 1,463,694 | 1,419,647 | $ | 4,554,671 | |||||||||||||||||||||
| Cost of land closings | 31,963 | 5,363 | 14,460 | $ | 51,786 | |||||||||||||||||||||
| Total cost of closings | 1,703,293 | 1,469,057 | 1,434,107 | $ | 4,606,457 | |||||||||||||||||||||
| Home closing gross profit | 435,765 | 542,639 | 523,709 | 1,502,113 | ||||||||||||||||||||||
| Land closing gross profit/(loss) | 3,361 | 1,331 | (249) | 4,443 | ||||||||||||||||||||||
| Total closing gross profit | 439,126 | 543,970 | 523,460 | 1,506,556 | ||||||||||||||||||||||
| Home closing gross margin | 20.7% | 27.0% | 26.9% | 24.8% | ||||||||||||||||||||||
| Commissions and other sales costs | 115,020 | 143,985 | 125,906 | 384,911 | ||||||||||||||||||||||
| General and administrative expenses | 58,627 | 50,021 | 57,842 | 166,490 | ||||||||||||||||||||||
| Homebuilding segment operating income | 265,479 | 349,964 | 339,712 | 955,155 | ||||||||||||||||||||||
| Financial services segment profit | 12,466 | |||||||||||||||||||||||||
| Corporate and unallocated costs (1) | (65,232) | |||||||||||||||||||||||||
| Interest expense | — | |||||||||||||||||||||||||
| Other income, net | 47,948 | |||||||||||||||||||||||||
| Loss on early extinguishment of debt | (907) | |||||||||||||||||||||||||
| Net earnings before income taxes | $ | 949,430 | ||||||||||||||||||||||||
(1)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| West | Central | East | Financial Services | Corporate and Unallocated | Total | ||||||||||||||||||||||||||||||
| Deposits on real estate under option or contract | $ | 26,155 | $ | 61,686 | $ | 86,329 | $ | — | $ | — | $ | 174,170 | |||||||||||||||||||||||
| Real estate | 1,782,502 | 1,685,355 | 2,519,263 | — | — | 5,987,120 | |||||||||||||||||||||||||||||
| Investments in unconsolidated entities | 28,631 | 27,734 | — | — | 903 | 57,268 | |||||||||||||||||||||||||||||
| Other assets | 37,118 | (1) | 309,583 | (2) | 78,724 | (3) | 2,342 | 975,962 | (4) | 1,403,729 | |||||||||||||||||||||||||
| Total assets | $ | 1,874,406 | $ | 2,084,358 | $ | 2,684,316 | $ | 2,342 | $ | 976,865 | $ | 7,622,287 | |||||||||||||||||||||||
(1)Balance consists primarily of property and equipment, net, prepaid expenses and other assets, and development receivables.
(2)Balance consists primarily of development reimbursements from local municipalities, property and equipment, net, goodwill (See Note 10), and prepaid expenses and other assets.
(3)Balance consists primarily of prepaid expenses and other assets, goodwill (see Note 10), and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, prepaid expenses and other assets, and deferred tax assets.
| At December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| West | Central | East | Financial Services | Corporate and Unallocated | Total | |||||||||||||||||||||||||||||||||
| Deposits on real estate under option or contract | $ | 30,179 | $ | 32,200 | $ | 130,026 | $ | — | $ | — | $ | 192,405 | ||||||||||||||||||||||||||
| Real estate | 1,862,792 | 1,613,735 | 2,252,248 | — | — | 5,728,775 | ||||||||||||||||||||||||||||||||
| Investments in unconsolidated entities | 9,062 | 18,816 | — | — | 857 | 28,735 | ||||||||||||||||||||||||||||||||
| Other assets | 28,251 | (1) | 270,203 | (2) | 91,082 | (3) | 3,049 | 820,154 | (4) | 1,212,739 | ||||||||||||||||||||||||||||
| Total assets | $ | 1,930,284 | $ | 1,934,954 | $ | 2,473,356 | $ | 3,049 | $ | 821,011 | $ | 7,162,654 | ||||||||||||||||||||||||||
(1)Balance consists primarily of property and equipment, net, prepaid expenses and other assets, and development receivables.
(2)Balance consists primarily of development reimbursements from local municipalities, property and equipment, net, goodwill (see Note 10), and prepaid expenses and other assets.
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 10), and prepaid expenses and other assets.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets, net, and prepaid expenses and other assets.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 16, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.