Insight
Meritage Homes' gross margin fell to 17.5% in Q1 2026, with incentives, higher lot costs, and lost fixed-cost leverage contributing to the decline.
Meritage Q1 2026 shows why incentives are the new battlefield
Summary
Meritage Homes' Q1 2026 earnings highlight challenges in the housing market, with falling orders, revenue, and margins. The builder's response involves increased incentives and a focus on move-in ready homes. Despite headwinds, Meritage aims to maintain its affordable home strategy through operational discipline and realtor engagement, even when balancing velocity with margin.
Key takeaway