A strong fourth quarter—which included a company-record backlog conversion of 177%—closed out a record financial year for Meritage Homes.

The company increased home closings by 12% to 15,611 for the full fiscal year while also pivoting to a new corporate strategy to compete with the resale market.

“2024 was another record-setting year for Meritage as we began to roll out our new move-in ready strategy and were able to capitalize on continuing demand for affordable, immediately available homes,” said executive chairman Steven Hilton. “For the full year 2024, we generated our highest annual closing volume of 15,611 homes and, despite a pullback in average sales price, we achieved a company-high home closing revenue of $6.3 billion.”

In the fiscal fourth quarter, Meritage closed 4,044 homes and secured 3,304 home orders at a monthly absorption pace of 3.9. Entry-level represented 91% of fourth quarter 2024 sales orders, up from 88% in the same period a year ago. The home builder generated $1.6 billion in home closing revenue on an average sales price of $395,000, down 3% and 5%, respectively, from the fourth quarter of 2023.

Meritage generated profit of $172.6 million, or $4.72 per share, in the fourth quarter, a 13% decrease from profit of $198.9 in the fourth quarter of 2023.

“With favorable demographics for our product offerings, an undersupply of homes at our price points, and stability in the job market, we believe that we are well-positioned to capture demand in the spring selling season while continuing to grow our market share.”

For the full year, total sales orders increased 11% to 14,606 while average absorption pace increased 8% to 4.3 per month. Profit for the full fiscal year was $786.2 million, or $21.44 per share, an increase of 6% compared to profit of $738.7 million, or $19.93 per share, in fiscal 2023.

CEO Phillippe Lord said the builder allocated $741.5 million in land acquisition and development in the fourth quarter, which included putting 14,400 net new lots under control. For the full fiscal year, Meritage Homes allocated $2.5 billion on land spend, up from $1.9 billion in 2023.

At year’s end, approximately 85,600 total lots were owned or controlled, a 33% increase from 64,300 total lots at the end of 2023.