Methode Reports Q2 Revenue of $246.9M, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Reports Q2 revenue $246.9M, consensus $237.69M. President and CEO Jon DeGaynor said, "Methode's transformation journey made further progress in the quarter and is on track. I am proud of the unwavering commitment and hard work that the Methode team has put into our transformation. The tangible improvements we have made are creating real value for our customers and shareholders. We are laser focused on improving execution and making Methode a more reliable and resilient company."
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Analyst Views on MTH
Wall Street analysts forecast MTH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MTH is 85.50 USD with a low forecast of 74.00 USD and a high forecast of 104.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 69.960
Low
74.00
Averages
85.50
High
104.00
Current: 69.960
Low
74.00
Averages
85.50
High
104.00
About MTH
Meritage Homes Corporation is a designer and builder of single-family attached and detached homes. The Company’s segments include homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. It has operations in three regions: West, Central and East, which are comprised of 12 states: Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. These three regions are its principal homebuilding segments. The financial services segment offers title and escrow, mortgage, and insurance services. Its financial services operations also provide mortgage services to its homebuyers through an unconsolidated joint venture. The Company’s homebuilding activities are conducted under the name of Meritage Homes in each of its homebuilding markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meritage Homes Q4 2025 Earnings Call Insights
- Delivery Performance: Meritage Homes delivered 3,755 homes in Q4 2025, generating $1.4 billion in revenue, despite a 7% decline in delivery volume compared to the previous year, highlighting ongoing market demand challenges.
- Capital Allocation Strategy: The company strategically terminated certain land deals to redeploy capital, planning to buy back $400 million in shares in 2026, aiming to enhance long-term portfolio value creation.
- Financial Metrics: The adjusted gross margin for the fourth quarter was 19.3%, down from 23.3% a year ago, primarily impacted by $27.9 million in land deal termination charges and other nonrecurring expenses, indicating pressure on profitability.
- Future Outlook: The company expects 2026 closings to align with 2025 performance, with community count growth projected at 5% to 10%, while management remains optimistic about potential improvements in the spring selling season despite ongoing affordability challenges and market uncertainties.
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UBS Lowers Target Price for Meritage Homes Corp to $95 from $101
Company Overview: Meritage Homes Corp is a homebuilding company that focuses on residential construction.
Stock Price Adjustment: The company has cut its target price from $101 to $95, indicating a reassessment of its market value.
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