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Meritage Homes is upgraded to buy as shares now trade at 0.8x book value, offering attractive downside support. MTH demonstrates strong execution in procurement cost savings, community count growth, and a strategic shift toward first-time move-up buyers. Accretive share repurchases below book value and a >3% dividend yield enhance medium- to long-term shareholder returns.

Jupiter Topco LLC bought a new position in shares of Meritage Homes Corporation (NYSE:MTH – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 26,656 shares of the construction company’s stock, valued at approximately $2,237,000.

A number of other institutional investors and hedge funds also recently modified their holdings of MTH. Essential Partners LLC boosted its holdings in shares of Meritage Homes by 163.8% in the 1st quarter. Essential Partners LLC now owns 401 shares of the construction company’s stock valued at $25,000 after buying an additional 249 shares during the period. Larson Financial Group LLC raised its stake in Meritage Homes by 265.5% during the third quarter. Larson Financial Group LLC now owns 402 shares of the construction company’s stock worth $29,000 after acquiring an additional 292 shares during the period. EverSource Wealth Advisors LLC raised its stake in Meritage Homes by 194.9% during the second quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company’s stock worth $47,000 after acquiring an additional 462 shares during the period. Kestra Advisory Services LLC bought a new position in Meritage Homes in the fourth quarter worth about $49,000. Finally, Assetmark Inc. lifted its holdings in Meritage Homes by 43.9% in the first quarter. Assetmark Inc. now owns 774 shares of the construction company’s stock worth $48,000 after acquiring an additional 236 shares during the last quarter. 98.44% of the stock is owned by institutional investors and hedge funds.

Meritage Homes Stock Performance MTH opened at $67.36 on Friday. The business’s 50 day moving average is $74.01 and its 200-day moving average is $70.01. The stock has a market cap of $4.39 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 4.93 and a beta of 1.35. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.37. Meritage Homes Corporation has a twelve month low of $58.03 and a twelve month high of $85.38.

Meritage Homes (NYSE:MTH – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The construction company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.30 by $0.12. Meritage Homes had a return on equity of 7.13% and a net margin of 6.11%.The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same period in the prior year, the company posted $2.04 EPS. The business’s revenue for the quarter was down 14.1% compared to the same quarter last year. On average, analysts predict that Meritage Homes Corporation will post 5.04 earnings per share for the current year. Meritage Homes Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 2.9%. Meritage Homes’s dividend payout ratio is presently 40.17%.

Analysts Set New Price Targets Several research firms have recently commented on MTH. Zelman & Associates lowered Meritage Homes from an “outperform” rating to a “neutral” rating in a report on Tuesday, July 7th. Wall Street Zen upgraded Meritage Homes from a “sell” rating to a “hold” rating in a research report on Saturday, July 25th. Zacks Research upgraded Meritage Homes from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Citigroup restated a “market outperform” rating on shares of Meritage Homes in a research note on Monday, July 6th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $93.00 target price (up from $82.00) on shares of Meritage Homes in a research report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Meritage Homes has an average rating of “Hold” and an average target price of $79.25.

View Our Latest Stock Analysis on MTH

Meritage Homes Profile (Free Report)

Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company’s core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.

See Also Five stocks we like better than Meritage Homes The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern Want to see what other hedge funds are holding MTH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meritage Homes Corporation (NYSE:MTH – Free Report).

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It has been about a month since the last earnings report for Meritage Homes (MTH - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Meritage due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Meritage Homes Corporation before we dive into how investors and analysts have reacted as of late.

Meritage Homes Q2 Earnings Beat on Cost Savings, Revenues MissMeritage Homes reported second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate but total closing revenues missing the same. Year-over-year , both metrics declined.

MTH’s Q2 Earnings & Revenue DiscussionAdjusted earnings were $1.42 per share, down 32.1% year over year but beat the Zacks Consensus Estimate of $1.30. The bottom line surpassed the consensus mark by 9.23%, aided by lower direct construction costs and improved operating leverage from the first quarter.

Total revenues (including Total Closing revenues and Financial Services revenues) were $1.408 billion, down 13.3% year over year.

Segment Details of Meritage HomesHomebuilding: Total home closing revenues were $1.4 billion, down 13.8% year over year and missed the consensus mark of $1.43 billion by 1.8%. Under the Homebuilding umbrella, home closing revenues declined 14.1% year over year to $1.388 billion, reflecting continued affordability pressures, volatile mortgage rates and cautious buyer sentiment. However, Land closing revenues rose to $12.72 million from $8.28 million a year ago.

Home closings totaled 3,725 units in the second quarter of 2026, down 11% from the year-ago period as softer selling conditions weighed on delivery volume. Home closing revenues declined 14% year over year to $1.39 billion, reflecting lower closings and a 4% decrease in average sales price. Average sales price on closings fell to $373,000 from $387,000 a year ago, primarily due to geographic mix. Product mix also had an impact, while Meritage Homes used incremental incentives in certain markets to move aged spec inventory.

Total home orders declined 9% year over year to 3,575 units. Home order value fell 11% to $1.38 billion, while average absorption pace decreased 19% to 3.5 sales per community per month from 4.3 a year ago. The lower absorption rate was partly offset by a 14% increase in average community count. Management noted that demand remained relatively stable sequentially, with no meaningful deterioration from the first quarter.

Meritage Homes ended the quarter with 340 active communities, up 9% year over year but down 1% sequentially as some communities closed earlier than expected and certain planned openings shifted into the third quarter. Quarter-end backlog totaled 1,715 homes, down 2% from the prior-year period, while backlog value declined 5% to $661.9 million.

Financial Services: Segment revenues fell 17.4% to $7.78 million, while segment profit slipped to $5.33 million from $5.61 million as results remained closely tied to home closing activity.

Meritage Homes’ Margins Benefit From Lower Direct CostsHome closing gross margin contracted 280 basis points year over year to 18.3%, reflecting lost leverage on lower revenues and higher lot costs. Adjusted home closing gross margin was 18.6% versus 21.4% a year ago, but improved 80 basis points sequentially as direct costs per square foot fell nearly 6% year over year and cycle times stayed below 110 days.

SG&A expenses declined 12% to $144 million, though SG&A as a percentage of home closing revenues increased 20 basis points to 10.4%. Net earnings fell 38% to $90.6 million, while the effective tax rate rose to 24.8% from 23.9% because of higher state income taxes.

MTH's Liquidity Supports Capital ReturnsMeritage Homes ended the second quarter with $807 million in cash and cash equivalents, up from $775 million at year-end 2025. The company’s debt-to-capital ratio stood at 26.8%, while net debt-to-capital was 17.1%. Meritage Homes also had no outstanding borrowings under its revolving credit facility, underscoring its solid liquidity position. The company increased the revolver size to $980 million and had $896.9 million available under the facility at quarter-end.

MTH returned $131 million to its shareholders through $100 million of share repurchases and $31 million of dividends. Land acquisition and development spending declined to $357 million from $509 million a year ago, while the company controlled 73,233 lots, equal to 5.2 years of supply.

MTH's Outlook Leans on Community GrowthFor the third quarter of 2026, Meritage Homes expects 3,300-3,600 home closings, home closing revenues of $1.26-$1.35 billion and home closing gross margin of around 18%. Earnings are projected at $1.10-$1.30 per share, with an effective tax rate of 24.5-25%.

For full-year 2026, management now expects home closing volume and revenues to be around 5% below 2025 levels, although revenues could trend lower if market conditions require higher incentives. Meritage Homes reiterated its 5-10% year-over-year community count growth target and said second-half volume growth is expected to come from community expansion rather than an improving demand environment.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -13.23% due to these changes.

VGM ScoresCurrently, Meritage has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Meritage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerMeritage is part of the Zacks Building Products - Home Builders industry. Over the past month, NVR (NVR - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago.

NVR reported revenues of $2.28 billion in the last reported quarter, representing a year-over-year change of -10.5%. EPS of $83.96 for the same period compares with $108.54 a year ago.

For the current quarter, NVR is expected to post earnings of $108.90 per share, indicating a change of -3.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for NVR. Also, the stock has a VGM Score of D.

Time to Load Up on Home Builders?Meritage Homes NYSE: MTH reported lower second-quarter sales, revenue and earnings as affordability pressures and economic uncertainty contributed to a slower-than-normal spring selling season. Still, management said demand was broadly stable sequentially, construction costs improved and the company maintained its full-year outlook for community growth while raising its expectations for 2026 closings and revenue.

Executive Chairman Steven Hilton said second-quarter orders totaled 3,575, down 9% from a year earlier. The company’s average absorption pace was 3.5 net sales per community per month, compared with 4.3 a year earlier and 3.6 in the first quarter. Hilton said there was “no meaningful sequential deterioration” in demand between the first and second quarters.

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Small-cap surge: Outpacing large caps on hopes for '24 rate cutsMeritage closed 3,725 homes during the quarter and generated $1.4 billion in home closing revenue. Adjusted home closing gross margin was 18.6%, while adjusted diluted earnings per share were $1.42, excluding $3.9 million of inventory impairments and terminated land-deal walkaway charges. Book value per share rose 5% year over year as of June 30.

Demand varied by market as incentives remained elevated CEO Phillippe Lord said the company continued to encounter highly localized demand conditions. Parts of Texas, Southern California, Atlanta, Raleigh and the Coastal Carolinas were among its strongest markets, particularly where available housing inventory was limited. In contrast, demand was softer in Orlando, Denver, Salt Lake City and Northern California.

Lord said temporary declines in mortgage rates during the quarter supported stronger demand and allowed Meritage to sell and close homes with lower-cost incentives. However, he noted that more recent increases in interest and mortgage rates could affect demand in the coming weeks if rates do not decline.

The company’s cancellation rate rose to 13% from 11% in the first quarter but remained below typical industry averages, according to Lord. Meritage attributed that performance in part to its shorter sale-to-close process and move-in-ready inventory strategy.

Average selling price on orders fell 3% year over year to $385,000, primarily because the company’s geographic mix shifted from higher-priced Western markets toward lower-priced Eastern markets. Home closing average selling price declined 4% to $373,000, also reflecting geographic mix, lower-priced homes selling faster than higher-priced homes within some communities, and incremental incentives on aged inventory in certain markets.

Inventory reduction and cost savings supported margins Meritage reduced its finished-home inventory by more than 1,100 homes from the prior year, replacing older homes with newer product carrying lower direct costs. The company ended the quarter with about 5,100 spec homes, down 27% from approximately 6,900 a year earlier. Completed specs totaled 1,500 homes, down 42% year over year and representing 30% of total specs.

The company’s 15 specs per active community equated to roughly four months of supply, near the low end of its four- to six-month target range. Meritage ended the quarter with approximately 1,720 homes in backlog, compared with roughly 1,750 a year earlier. Combined specs and backlog declined 22% year over year to about 6,800 homes.

Meritage started approximately 3,900 homes in the second quarter, down 4% from the prior year but up roughly 1,400 homes from the first quarter. Nearly 60% of quarterly closings were homes sold during the quarter, producing a 200% backlog conversion rate that was within the company’s 175% to 200% target range.

Chief Financial Officer Hilla Sferruzza said direct construction costs per square foot declined nearly 6% year over year, with savings coming from both labor and materials. Those cost improvements, faster cycle times and improved leverage on higher sequential revenue helped adjusted gross margin rise 80 basis points from 17.8% in the first quarter.

However, reported home closing gross margin fell to 18.3% from 21.1% a year earlier, reflecting lower revenue leverage and higher lot costs, partly offset by lower direct costs and quicker construction cycles. Sferruzza said the company’s land basis remains weighted toward higher-cost land acquired between 2022 and 2025. She said lower-basis land is expected to begin benefiting margins near the end of 2027 or early 2028, assuming oil and gas price increases are not prolonged.

Company plans gradual shift toward first move-up buyers Meritage said it intends over time to rebalance its portfolio toward a mix of roughly one-third first-time move-up homes and two-thirds entry-level homes. Lord said the shift reflects the company’s longstanding strategy as well as demographic changes, with Millennial buyers progressing from first homes toward second-home purchases.

The change will primarily be driven by new land acquisitions and is expected to affect financial results beginning around 2028 or later, management said. Lord said the company does not plan to move into higher-end move-up or luxury categories that generally require greater buyer customization.

Meritage expects to retain its streamlined operating approach, including limited choices and options, while making targeted adjustments for first move-up buyers. Those changes may include offering somewhat larger homes and upgraded features, as well as releasing homes earlier to accommodate customers who may need to sell an existing home.

Capital returns and outlook Meritage ended the quarter with $807 million in cash, no borrowings under its credit facility and a net debt-to-capital ratio of 17.1%. In June, the company refinanced its revolving credit facility, increasing its size to $980 million, extending its maturity to 2031 and expanding its accordion feature to permit total capacity of up to $1.47 billion.

Second-quarter land spending declined 30% year over year to $357 million. The company expects full-year land acquisition and development spending of $1.7 billion to $2 billion. It controlled approximately 73,200 lots as of June 30, equal to a 5.2-year supply based on trailing 12-month closings.

The company returned $131 million to shareholders during the quarter through dividends and share repurchases. It repurchased more than 1.5 million shares for $100 million and raised its quarterly cash dividend 12% year over year to $0.48 per share. Meritage said it will target at least $55 million of quarterly share repurchases for the remainder of 2026, while retaining flexibility to buy additional shares based on cash flow and stock-price movements.

For the third quarter, Meritage forecast 3,300 to 3,600 home closings, $1.26 billion to $1.35 billion in home closing revenue, home closing gross margin of about 18%, and diluted EPS of $1.10 to $1.30. For the full year, the company increased its guidance for closings and revenue to approximately 5% below 2025 levels, though it said revenue could be somewhat lower if market conditions require additional incentives.

About Meritage Homes (NYSE:MTH)Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company's core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Melbourne, Australia and Vancouver, Canada – July 31, 2026 – TheNewswire - Mithril Silver and Gold Limited ("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to report on its quarterly activities and cash flow for its Copalquin and La Dura properties in Durango State, Mexico for the period ended June 30, 2026.

EXPLORATION HIGHLIGHTS

Significant mineral resource estimate (MRE) upgrade with total constrained and diluted Indicated and Inferred resources of 343 koz gold + 8.479 Moz silver (464 koz AuEq) and 103 koz gold + 3.398 Moz silver (151 koz AuEq), respectively. Indicated totals 3.391 Mt grading 3.15 g/t gold and 77.8 g/t silver (diluted) and Inferred totals 1.436 Mt grading 2.23 g/t gold and 73.6 g/t silver (diluted). See Table 2 for details1 

196% increase in higher-confidence indicated gold and silver compared to previous MRE. 

75% of total gold and silver now classified as indicated 

Resource constrained within preliminary underground mining shapes and incorporates expected mining dilution, providing a more realistic basis for future engineering and economic studies 

High confidence resource, remains open along strike and at depth with multiple opportunities for expansion 

Overall Target 1 MRE discovery cost of less than US$20 per ounce AuEq from approximately 60,000 metres of drilling in 204 drill holes 

First drilling at Target 3 area since 2020 has shown extensive gold and silver mineralisation with high grades intercepted.  Further drilling planned for next quarter. 

Drilling at Target 5 has expanded the known gold-silver mineralisation with high grades intercepted at the La Maquina area 

The final Target 1 drilling for the for the MRE upgrade produced strong results on the western end of the deposit area for extensional follow-up. 

Corporate

Cash balance of A$7.3M as of 30 June 2026 and Mithril remains debt free 

Mexican value added tax refunds have continued with MXN11.5M (~A$940k) of refunds received in Mexico during the June 2026 quarter. 

Commenting on the June 2026 quarter, Managing Director and CEO John Skeet said:

“The June quarter marked a significant step in the systematic de-risking of Target 1 and the broader expansion of the large Copalquin epithermal silver-gold system. The upgraded MRE moves the deposit beyond a purely geological inventory by constraining the resource within preliminary underground mining shapes and incorporating dilution. This provides a more practical foundation for mine planning, engineering and economic evaluation.

The Target 1 drilling program strengthened the geological model at El Refugio and La Soledad. Results confirmed continuity through and beyond the post-mineral dyke system, identified additional mineralised structures and demonstrated that the system remains open. The knowledge gained at Target 1 is being applied across the broader Copalquin district.

Two drills are active on site to execute the remaining fully funded 12,000 metres of drilling for the 2026 program. The aim of the program is to advance other current target areas for additional resources and to test the deeper system driving targets identified from the extensive mapping, geophysics and structural work across this exceptional epithermal system.”

PLANNED EXPLORATION ACTIVITIES – SEPTEMBER 2026 QUARTER

During the September 2026 quarter, Mithril plans to:

Drill test west and northwest of the Target 1 resource area 

Follow-up drilling along strike from the high-grade intercepts at the historic Copalquin mine workings 

Progress a series of deep, key structural targeting drill holes across the district 

Follow-up drilling to test deeper at Target 3 

Progress economic assessment and derisking work for the Target 1 resource area 

Progress initial drill plan and permitting for La Dura 

Fully funded to complete remaining 12,000 m of drilling for 2026 

TARGET 1 MRE UPGRADE

(For full detail of the Target 1 MRE Upgrade see ASX announcement 3 July 2026 – “Amended Announcement Copalquin Project Target 1 Deposit MRE”)

The following Table 1 provides the highlighted base case for undiluted mineralisation reporting within the underground mining shapes (mine stope optimiser – MSO) at a cut-off grade of 1.5 g/t AuEq plus sensitivities to gold prices.

The MRE for Target 1 (Table 2) was generated from the highlighted base case in Table 1 assuming bulk underground mining method (long hole open stoping - LHOS) with mining widths averaging approximately 4 metres as presented on a diluted basis in Table 2.  The MSO work identified areas where more selective underground mining methods such as cut and fill (higher cost than LHOS) could be utilised to reduce dilution and increase mined grades.  The difference between the undiluted grade of 6.85 g/t AuEq (Table 1 Indicated base case) and the diluted grade of 4.26 g/t AuEq (Table 2, Total Indicate Target 1 MRE) reflects this conservative mining dilution assumption whereby lower grade mineralisation surrounding the high-grade core would be extracted within geometry of a minable shape adding more tonnes and ounces at a lower average grade.  More detailed mining study work will fully assess the mining methods across the Target 1 MRE.

Table 1  Gold price sensitivity to constraining shapes, reported at 1.5 g/t AuEq cut-off (constrained and undiluted)

Au Prices

Classification

Tonnes

Gold

Silver

Gold Eq.

Gold

Silver

Gold Eq.

(USD)

  (kt)

(g/t)

(g/t)

(g/t)

(koz)

(koz)

(koz)

2,700

Ind

1,888

5.28

126.1

7.08

321

7,654

430

Inf

831

3.46

113.7

5.08

92

3,038

136

3,000

Ind

1,941

5.18

124.2

6.96

323

7,752

434

Inf

863

3.39

111.7

4.98

94

3,099

138

3,300

Ind

1,990

5.10

122.4

6.85

326

7,832

438

Inf

900

3.32

109.1

4.87

96

3,155

141

3,500

Ind

2,038

5.01

120.9

6.74

329

7,922

442

Inf

923

3.27

107.5

4.81

97

3,189

143

4,000

Ind

2,074

4.96

119.7

6.67

330

7,984

445

Inf

949

3.23

105.9

4.74

98

3,233

145

  Notes to Table 1:

The Table presents the results of a sensitivity analysis by varying gold prices on AuEq block model values and reports an undiluted tonnage, grade and metal content contained within the mining shapes.  The scenarios as presented are not considered to be a statement of mineral resources or reserves, and do not have demonstrated economic viability. 

AuEq calculated using metal prices of USD $3,300/oz Au and $50/oz Ag where AuEq g/t = Au g/t + (Ag g/t x (Au price/Ag price) x (Ag recovery/Au recovery)) with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples 2. An AuEq cut-off grade of 1.5 g/t was selected after applying 95% mining recovery and 5% dilution factors to the metal price and metallurgical recovery values. 

Table 2 Upgraded Copalquin Target 1 Mineral Resource Estimate (underground mining shape constrained & diluted)

Target 1
Area

Class

Tonnes

Gold

Silver

Gold Eq.

Gold

Silver

Gold Eq.

    (kt)

(g/t)

(g/t)

(g/t)

(koz)

(koz)

(koz)

El Refugio

Ind

2,557

3.38

73.7

4.44

278

6,061

365

  Inf

1,217

2.17

82.1

3.35

85

3,214

131

La Soledad

Ind

834

2.43

90.2

3.72

65

2,418

100

  Inf

219

2.54

26.1

2.92

18

184

21

Total

Ind

3,391

3.15

77.8

4.26

343

8,479

464

  Inf

1,436

2.23

73.6

3.28

103

3,398

151

Notes to Table 2:

Numbers may not add due to rounding. 

All dollar values in United States Dollars (USD) unless otherwise noted. 

Mineral resources were prepared in accordance with the CIM Definition Standards (2014) and Estimation of Mineral Resource and Mineral Reserve Best Practice guidelines (2019), which are materially identical to the JORC Code (2012). 

The preparation of the mineral resource estimate was supervised by John Sims, President of Sims Resources LLC, an independent contractor and Qualified Person (QP), and Competent Person (CP), as a Certified Professional Geologist (CPG) member with the American Institute of Professional Geologists (AIPG). 

The effective date of the estimate is June 29, 2026. 

Inferred Mineral Resources have been estimated from geological evidence and drill core sampling and have a lower level of confidence than Measured and Indicated Mineral Resources due to the distance between sampled drill holes. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 

Constrained and diluted Mineral Resources for Copalquin Target 1 are based on underlying metal prices of $3,300/oz Au and $50/oz Ag, unless otherwise noted. 

AuEq g/t = Au g/t + (Ag g/t x (Au price/Ag price) x (Ag recovery/Au recovery)), and is calculated using the underlying metals prices, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples. 3 

Underground Resource estimates are based on economically constrained mining shapes generated using Datamine’s Mineable Shape Optimizer (MSO) algorithm and the following optimization parameters: 

Diluted to a minimum 2 m shape width with a 92% mining recovery. 

Metallurgical recoveries of 96% for Au and 91% for Ag, from metallurgical test work on Target 1 composite samples 2 Longhole Open Stope mining with a total Mining+Processing+General and Administration (GA) cost of $97/t processed operating cost comprised of $60/t incremental mining, $25/t processing, $10/t GA, and $2/t sustaining.  

The mineable shapes reported are valued greater than the incremental cost to mine, which equates to approximately 1.0 g/t AuEq on a fully diluted basis. 

Mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 

In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold. 

  Target 1 Resource Upgrade Details

The Copalquin Target 1 resource model was prepared under the supervision of Sims Resources LLC (Independent QP) in accordance the JORC Code (2012) and to be consistent with the CIM Definition Standards (2014) and Estimation of Mineral Resource and Mineral Reserve Best Practice guidelines (2019) which are materially identical to the JORC Code (2012).

The estimate incorporates results from 204 diamond drill holes totaling approximately 60,568 metres, including 127 drill holes totalling approximately 42,861 metres completed since the previous resource estimate. The recent drilling was primarily focused on:

Increasing drill density within the core of the deposit to improve resource confidence; 

Extending known mineralised shoots along strike and down plunge; 

Testing interpreted extensions of high-grade structures; and 

Improving the geological model through enhanced structural understanding and dyke mapping. 

The resource estimate has been prepared as a major de-risking milestone to serve as a valuable stepping stone towards future development of a mineable resource supported by an economic study.   Application of the mine stope optimization process to constrain the block model by mining shapes has achieved several goals including the evaluation of realistic minimum mining widths on the deposit, evaluation of the continuity of the mineralisation along potential underground development levels and has provided understanding of a potential extractable grade that incorporates the mineralised dilution envelope surrounding the high-grade core of the deposit.

An evaluation of gold price sensitivity on the mining shape constraints, on a diluted basis indicates a narrow band of output scenarios across a wide range of metal prices (Table 3). Evaluating the sensitivity scenarios on an undiluted basis (Table 1) reveals the high-grade core of the deposit that is driving the mining shapes.

With 95% of the undiluted and high-grade core of the block model being captured by the mining shape constraints, there is opportunity to drill the remaining 5% of the block model to refine mineralisation boundaries for potential inclusion to future constrained mineral resource estimates.

  Table 3 Gold price sensitivity to constraining shapes, reported using all contained blocks (diluted)

Au Price

Classification

Tonnes

Gold

Silver

Gold Eq.

Gold

Silver

Gold Eq.

(USD)

  (kt)

(g/t)

(g/t)

(g/t)

(koz)

(koz)

(koz)

2,700

Ind

2,939

3.52

85.9

4.75

333

8,114

449

Inf

1,187

2.53

83.4

3.72

97

3,183

142

3,000

Ind

3,130

3.35

82.3

4.53

338

8,283

456

Inf

1,291

2.39

79.1

3.52

99

3,285

146

3,300*

Ind

3,391

3.15

77.8

4.26

343

8,479

464

Inf

1,436

2.23

73.6

3.28

103

3,398

151

3,500

Ind

3,718

2.92

72.9

3.96

349

8,711

474

Inf

1,588

2.07

68.5

3.05

106

3,498

156

4,000

Ind

4,149

2.67

67.2

3.63

356

8,965

484

Inf

1,815

1.88

62.4

2.77

110

3,640

162

Notes to Table 3:

AuEq g/t = Au g/t + (Ag g/t x (Au price/Ag price) x (Ag recovery/Au recovery)), and is calculated using the underlying metals prices, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples. 4 

MSO shapes were based on long hole stope configuration with a 2.0 m minimum width, and a USD $97/t operating cost comprised of $60/t incremental mining, $25/t processing, $10/t GA, and $2/t sustaining, and 92% mining recovery.  Blocks were evaluated using AuEq value, using variable gold prices according to the sensitivity scenario. 

The scenarios as presented are not considered statement of mineral resources or reserves, and do not have demonstrated economic viability. 

Reporting of Constrained and Diluted Mineral Resources, Mining and Processing Methods

Mineral Resources are reported from within economically constrained Longhole Open Stopes (LHOS) mining shapes generated using Datamine’s Mineable Shape Optimizer (MSO).  An operating cost of $97/t processed operating cost comprised of $60/t incremental mining, $25/t processing, $10/t G&A, and $2/t sustaining was applied.  An AuEq grade was basis used to determine block value using (1) a gold price of US$3,300/oz; (2) a silver price of US$50/oz; (3) gold recovery of 96%; (4) silver recovery of 91%, based on preliminary studies. Reported gold and silver grades in the Mineral Resource are stope-constrained and include internal dilution.  No external dilution was applied.  Historical workings were flagged to the block model and were assigned a density of 0.0 t/m3 to exclude mined out material from the stated Mineral Resources.

LHOS parameters applied in stope optimization include the following – (1) sublevel spacing = 20m; (2) stope slice interval = 5m; (3) minimum mining width = 2m; (4) minimum stope dip = 45 degrees; (5) minimum pillar between adjacent stopes = 0.01m; (6) Indicated and Inferred assurance categories only.

Metallurgical recoveries of 96% Au and 91% Ag were determined from metallurgical test work on Target 1 composite samples.  (ASX Announcement 25 February 2022).   The process route for extraction is crushing and grinding followed by flotation, intensive cyanide leaching of flotation concentrate and conventional cyanide leaching of the flotation tail.  Merrill-Crowe zinc precipitation assumed to recover gold and silver from solutions prior to smelting of the precipitate to produce gold-silver doré bars for sale.

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Figure 1: Series of plan view maps of the Mineral Resource Estimate showing: a) AuEq grade (g/t), b) block classification, and c) mining shapes used to constrain the block model

Click Image To View Full Size

Figure 2: Cross- section view of El Refugio, looking east, showing the mineralised block model and the mining shape constraints used in the Mineral Resource Estimate

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Figure 3: Cross- section view of La Soledad, looking northwest, showing the mineralised block model and the mining shape constraints used in the Mineral Resource Estimate

Target 3 – Initial 2026 Drill Program

Target 3, on the eastern side of the district, is hosted in a favourable intermediate volcaniclastic tuff and breccia with several phases of rhyolitic intrusive and flows present.  Dominant veins are trending east-west, northwest and locally in a less common northeast trend at Jabali.  Styles of mineralisation include disseminated and banded silver-sulphides, as well as observed visible gold (GU26-002).

These features indicate high level continuity within the broad property wide east-west mineral trend and/or a localized upwelling source to mineralisation.  Intersection of the Jabali and Guadalupe structures is projected approximately 950 metres west of Guadalupe and approximately 200 metres south of the southernmost Jabali drillhole JA26-004 and is a favourable target for future drill testing.  The Target 3 drill programs are described below, and drilling highlights are listed in Table 4.

The first program of shallow drilling in the Target 3 area since 2020 has tested 700 metres of strike within this 1.2 km x 1.2 km area.

 Target 3 Drill Program Highlights include:

0.90 m @ 2.79 g/t gold, 151 g/t silver from 151.0 m (JA26-002)

0.50 m @ 6.91 g/t gold, 475 g/t silver from 102.5 m (JA26-004)

0.50 m @ 33.2 g/t gold, 5.9 g/t silver from 134.95 m (GU26-002)

The drill program at Target 3, consisting of 3,039 m, tested four of several historic workings.  These initial results confirm extensive epithermal style mineralisation, with important key attributes observed in the drill core.  The vein style and grades being intercepted indicate the mineralisation is at a high level in the system, with best intercepts and vein thicknesses found deeper in the drill holes.  The results establish Target 3 as a highly prospective area for growth, reinforcing the broader district scale upside at Copalquin.

Further drilling is planned for Target 3 in the second half of 2026.

Jabali

  Six drill holes were completed at Jabali to test two veins mapped on surface and within historical workings. The Jabali main workings, located to the north, have less than 150 metres of lateral development over two levels, while the smaller southern workings have about 40 metres of lateral development on one level. Recent channel sampling in the Jabali main workings returned assay results of up to 0.65 m at 16 g/t gold and 1,275 g/t silver5. Drill results confirm vein continuity down dip and along strike at least 230 metres with mineralisation remaining open in all directions.

  Guadalupe

  Five holes were drilled at Guadalupe to test the dip of a small stope in historical workings. Hole GU26-002 intersected minor veining and stockwork with visible gold. Channel samples from quartz veining near historical workings on the surface returned assay results of up to 0.50 m at 13.25 g/t gold and 558 g/t silver6. These holes confirm the presence of quartz veining with epithermal breccia textures within a broad zone of anomalous gold and silver mineralisation.

  Constancia

  Two holes were drilled along the northwest trending Constancia veins. The first hole tested a small historical working approximately 150 metres immediately south of Jabali while the second drill hole tested the down dip continuity of mapped surface vein located 100 metres immediately south of the Guadalupe workings. Hole CS26-001 intersected weak alteration and anomalous gold and silver grades over 4 m, from approximately 177-181 m.  CS26-002 intercepted weak to moderate alteration over 30 metres between 45-75 m with anomalous gold and silver grades.

  El Maizon

  Two holes were drilled to test the continuity of a new vein mapped on surface along an interpreted east-west mineral trend. The holes successfully intercepted quartz breccia/epithermal veining and anomalous gold and silver assays over several intervals within weakly altered microdiorite.

 

Figure 4 Map – Target 3 Area showing drilling and channel sampling

      

Figure 5 Section – JA26-004, looking northeast

  Target 5 Drilling

One drill hole has been completed at the northern end of the Target 5 area confirming continuing high-grade silver-gold mineralisation located 68 metres down dip from surface in this silver rich area of the Copalquin District.

La Maquina Discovery Drill Hole

0.85 m @ 6.20 g/t gold, 764 g/t silver from 122.8 m (MA26-001) 7

The veins are hosted in granodiorite within a parallel vein set trending northwest, approximately on trend 1.6 m southwest of El Gallo where drilling in 2021 intercepted high-grade veins.  Like recent intersections reported in Target 5 at Apomal (see Mithril News Release from February 11, 2026 – Target 5 Drilling and District Update), the mineralisation contains high grade silver and gold, and we continue to prepare Target 5 for its next phase of drilling.

  One drill hole at La Maquina was completed during the quarter to test the down dip extension of a new vein discovery on surface in an area where no historical workings are known to exist.  Channel sampling conducted by Mithril returned grades of up to 0.50 m at 3.54 g/t gold, 11.3 g/t silver8. The drill hole intercepted the projected vein 68 metres down dip from the surface within the granodiorite intrusive, with mineralisation characterised as concordant veining with banding and microbands of black sulphides.  Vein continuity seen in mapping and sampling to the northwest remains a favourable target for future drill testing.  La Maquina drilling highlights are listed below in Table 4.

 

Figure 6:  Map – La Maquina area, between Targets 1 and 5 showing channel sample and drilling results

  

Figure 7:  Section – La Maquina section, looking to the northwest

  Table 4:  Drill results received for Target 3 and Target 5 reported during the quarter

Hole ID

From (m)

 To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t9

Target 5

            MA26-001*

122.80

123.65

0.85

6.20

764.0

17.11

MA26-001*

169.45

170.20

0.75

1.16

18.1

1.42

Target 3

            JA26-002

29.35

29.95

0.60

0.14

10.9

0.30

JA26-002

35.00

36.00

1.00

0.16

7.6

0.26

JA26-002

36.00

36.50

0.50

0.95

120.0

2.67

JA26-002

92.00

93.35

1.35

0.33

0.5

0.34

JA26-002*

155.45

156.35

0.90

2.79

151.0

4.95

JA26-003

57.45

58.45

1.00

0.23

1.2

0.25

JA26-003

69.65

70.50

0.85

0.26

5.2

0.33

JA26-004

27.95

29.45

1.50

0.38

3.3

0.42

JA26-004

34.70

36.80

2.1

0.12

18.4

0.38

JA26-004*

102.50

103.00

0.50

6.91

475.0

13.70

JA26-006*

54.50

55.15

0.65

1.12

17.8

1.37

GU26-001

6.70

7.70

1.00

0.27

1.2

0.29

GU26-001

25.70

26.70

1.00

0.16

17.0

0.40

GU26-001

74.30

75.00

0.70

1.02

68.4

2.00

GU26-001

79.50

80.00

0.50

0.50

1.5

0.52

GU26-002*

134.95

135.45

0.50

33.20

5.9

33.28

GU26-003

19.20

20.20

1.00

0.69

0.9

0.70

GU26-003

20.20

21.20

1.00

0.29

2.1

0.32

GU26-003

19.20

21.20

2.00

0.49

1.5

0.51

GU26-003*

68.65

69.15

0.50

0.76

27.7

1.16

GU26-004

11.10

11.60

0.50

0.28

1.2

0.30

GU26-004

31.75

33.50

1.75

0.41

0.3

0.41

GU26-004

33.50

34.00

0.50

0.37

0.9

0.38

GU26-004

62.30

62.80

0.50

0.80

0.7

0.81

GU26-004

67.35

68.00

0.65

0.20

6.7

0.30

GU26-004

68.00

69.20

1.20

0.54

21.2

0.84

GU26-004*

75.85

76.40

0.55

1.24

6.1

1.33

GU26-004

80.50

81.05

0.55

0.26

0.3

0.26

GU26-005

32.20

33.00

0.80

0.19

8.4

0.31

GU26-005

48.65

50.15

1.50

0.39

2.4

0.42

GU26-005

68.30

68.90

0.60

0.18

8.3

0.30

CS26-002

48.65

49.15

0.50

0.13

15.6

0.35

CS26-002

54.50

56.00

1.50

0.26

1.9

0.29

* Intercepts shown on attached maps and sections

See ASX announcements: 09 April 2026 - HIGH-GRADE AND WIDESPREAD SILVER AND GOLD AT TARGET 3, for details

  Target 1 Drilling – Pre MRE Upgrade

  The recent drilling program has targeted areas within and around the perimeter of Inferred Mineral Resources defined in November 202110 with the intention to upgrade technical confidence in the geology and mineral continuity.  A total of 20 drill holes were completed in these areas, which include portions of the near surface Cometa, El Refugio and La Soledad vein systems.

Pre MRE drilling at Target 1 focused on testing the lateral extents of the resource area for potential expansion with approximately 5,000 m of drilling.   Hole RE26-009 was drilled as a 50 m step out to the high-grade intercepts previously reported in El Refugio in holes MTH-RE25-44 and MTH-RE25-4511 which are located approximately 300 m to the west and down plunge from the 2021 MRE footprint.  Drilling in the area has helped improve the geological understanding of this area which is dominated by multiphase quartz breccia mineralisation and is spatially influenced by a post-mineral dike system that cuts-across the northwest plunging El Refugio trend.

Drill hole LS26-005, which tested beyond the southeastern limits of the previous resource footprint of La Soledad, intersected elevated gold values in a series of concordant and banded veins, containing milky to translucent grey quartz.

Several holes are planned in this area as part of a lateral extension drilling program at Target 1 following the MRE update.  The Pre MRE upgrade drilling completed during the quarter at Target 1 Is listed below in Table 5.

Table 5 Recent results received for Target 1resource upgrade drilling

Hole ID

From (m)

 To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t12

El Refugio

RE26-001

304.00

305.20

1.20

0.85

32.7

1.31

RE26-001

313.15

317.15

4.00

1.02

31.6

1.47

including

316.65

317.15

0.50

4.36

50.2

5.08

RE26-002

290.25

290.90

0.65

3.12

86.7

4.36

RE26-003

64.20

66.20

2.00

0.24

12.3

0.42

RE26-003*

78.15

94.15

16.00

0.59

41.0

1.18

including

78.95

85.75

6.80

0.77

46.6

1.44

including

91.20

91.85

0.65

3.48

258.0

7.17

RE26-003

96.90

98.20

1.30

0.33

76.4

1.42

RE26-003

104.30

113.35

9.05

0.35

33.0

0.82

including

110.90

112.55

1.65

0.49

71.0

1.50

RE26-004*

153.90

157.35

3.45

12.09

249.3

15.65

including

156.00

156.85

0.85

24.60

327.0

29.27

RE26-005

228.30

229.85

1.55

3.38

12.0

3.55

RE26-005

233.00

240.00

7.00

1.67

35.0

2.17

RE26-005

244.00

247.00

3.00

1.50

46.0

2.16

RE26-005

275.00

278.50

3.50

0.81

12.8

0.99

RE26-006

23.00

24.65

1.65

0.33

18.1

0.59

RE26-006

28.00

33.50

5.50

0.33

15.8

0.56

RE26-006

36.05

38.05

2.00

0.15

11.2

0.31

RE26-006

40.25

42.00

1.75

0.98

56.5

1.79

RE26-006

59.15

60.70

1.55

0.32

15.2

0.54

RE26-006

65.05

70.00

4.95

0.50

49.2

1.21

including

65.65

67.00

1.35

0.98

115.0

2.62

RE26-006

82.15

82.85

0.70

0.10

10.7

0.25

RE26-006

83.55

84.05

0.50

0.18

6.5

0.28

RE26-006

85.00

86.00

1.00

0.14

21.1

0.44

RE26-006

89.00

90.00

1.00

0.35

1.1

0.37

RE26-007

102.85

104.30

1.45

2.26

82.2

3.43

RE26-009*

271.40

281.05

9.65

7.00

370.3

12.29

including

271.40

274.15

2.75

8.58

486.0

15.52

including

271.40

272.35

0.95

15.15

980.0

29.15

and

275.80

279.05

3.25

11.52

596.2

20.04

including

276.45

276.95

0.50

30.70

1780.0

56.13

RE26-009

285.60

286.15

0.55

6.55

400.0

12.26

RE26-010*

395.05

397.90

2.85

2.41

107.8

3.94

including

396.95

397.90

0.95

2.83

188.0

5.52

RE26-012

304.20

305.40

1.20

6.64

6.4

6.73

RE26-012

316.75

318.40

1.65

3.79

8.3

3.91

including

317.65

318.40

0.75

5.55

11.9

5.72

RE26-013*

375.70

382.95

7.25

4.01

225.1

7.22

including

376.80

380.10

3.30

7.11

368.2

12.37

and*

378.00

378.50

0.50

15.25

533.0

22.86

La Soledad

LS26-001

193.00

193.95

0.95

1.37

77.8

2.48

LS26-002

187.80

188.30

0.50

1.04

47.5

1.72

LS26-002

201.50

202.00

0.50

1.00

59.0

1.84

LS26-003

147.25

147.75

0.50

2.02

20.7

2.32

LS26-005*

58.80

62.40

3.60

2.18

24.9

2.53

including

61.65

62.40

0.75

9.60

111.0

11.19

LS26-005

171.00

171.50

0.50

10.30

14.4

10.51

LS26-005

194.00

196.00

2.00

0.95

32.0

1.41

LS26-005

207.00

208.00

1.00

1.03

60.5

1.89

LS26-005*

239.20

240.40

1.20

10.55

8.0

10.66

LS26-006*

66.00

67.00

1.00

1.22

149.1

3.34

LS26-006

117.55

118.30

0.75

1.49

50.7

2.21

LS26-007

58.20

58.75

0.55

0.95

53.7

1.71

LS26-007

81.90

88.65

6.75

0.65

23.4

0.98

LS26-007

92.00

95.25

3.25

5.23

30.5

5.66

Including*

94.40

95.25

0.85

19.45

96.8

20.83

LS26-007

99.75

100.25

0.50

1.70

10.8

1.85

LS26-007

293.15

294.00

0.85

2.04

5.8

2.12

* Intercepts shown on attached maps and sections

See ASX announcements: 12 May 2026 - MTH Drills 7.00 G/T Gold, 370 G/T Silver Over 9.65 M at T1 and 10 June 2026 - MITHRIL DRILLS 7.25 M @ 4.01 G/T AU, 225 G/T AG AT T1, for details.

  
Click Image To View Full Size

Figure 8: Target 1 plan map showing drill hole trace locations, some highlight intercepts and resource footprint area

Click Image To View Full Size

Figure 9 Cross section +/- 50 metres for drilling on the western extension of the Target 1 resource area. Drill hole RE26-009 is located approximately 50 metres east of drill holes MTH-RE25-044 and 045

   Along the western extension of El Refugio main, the vein system consolidates into one main structure.  The final seven holes (totalling 2,868.0 m) of the 2026 campaign at El Refugio were drilled to test continuity of the mineralized system and successfully intersected mineralization beyond the post-mineral dyke system.  Recent age dating confirms the approximate age of mineralization around 27 Ma, relative to the post mineral dyke system with an age of 22 Ma, based on K-Ar age dating methods.  Mineralization within the structure remains open to depth.

  Drilling at La Soledad since the 2021 Mineral Resource Estimate focused on drill testing mineralized extensions projected from the historical workings, which were surveyed with underground LiDAR in May 2025, in addition to the successful extension of the mineralized structure to the southeast.  Drilling in 2026 continued testing the extension of the mineralization along the southeast trend.  Together, the campaigns have culminated in identifying six subparallel mineralized structures located in the footwall to La Soledad main near the intersection with Refugio main vein.

   
Click Image To View Full Size

Figure 10: Long section view of the El Refugio vein looking perpendicular to the vein to the northwest

Click Image To View Full Size

Figure 11: Cross section +/- 50 metres for drilling on the western extension of the Target 1 resource area, centred on drill hole RE26-013; drill hole RE26-010 and CDH-094 are located approximately 50 metres east.

Click Image To View Full Size

Figure 12: Long section view of the El Refugio vein looking perpendicular to vein to the northeast

  CORPORATE AND FINANCIAL SUMMARY

Cash balance of A$7.3M at June 30, 2026 and Mithril remains debt free. 

Mexican value added tax refunds have continued with MXN11.5M (~A$940k) of refunds received in Mexico during the June 2026 quarter. 

Exploration Expenditure

Exploration expenditure for the quarter was A$3.4M focussed entirely on the Copalquin District in Mexico.

Related Party Payments

In line with its obligations under ASX Listing Rule 5.3.5, Mithril Silver and Gold Limited notes that the only payments to related parties of the Company, as advised in the Appendix 5B for the period ended 30 June 2026, pertain to payments to directors and consultants for fees, salary and superannuation.

  PLANNED EXPLORATION ACTIVITIES – SEPTEMBER 2026 QUARTER

During the September 2026 quarter, Mithril plans to:

Drill test west and northwest of the Target 1 resource area 

Follow-up drilling along strike from the high-grade intercepts at the historic Copalquin mine workings 

Progress a series of deep, key structural targeting drill holes across the district 

Follow-up drilling to test deeper at Target 3 

Progress economic assessment and derisking work for the Target 1 resource area 

Progress initial drill plan and permitting for La Dura 

Fully funded to complete remaining 12,000 m of drilling for 2026 

  ASX Announcements released during the June 2026 quarter:

3 JULY 2026        Amended Announcement Copalquin Project Target 1 Deposit MRE

30 JUNE 2026        Mithril Derisks Target 1 with Mine Constrained and Diluted Resource Upgrade - 75% Indicated

17 JUNE 2026        Section 708A Notice

17 JUNE 2026        Application for quotation of securities - MTH

10 JUNE 2026        Mithril Drills 4.01 G/T Gold, 225 G/T Silver Over 7.25 M Including 15.25 G/T Gold, 533 G/T Silver Over 0.5 M At Target 1, Copalquin

12 MAY 2026        Mithril Drills 7.00 G/T Gold, 370 G/T Silver Over 9.65 M Including 30.7 G/T Gold, 1,780 G/T Silver Over 0.5 M At Target 1, Copalquin

8 MAY 2026        Unaudited 31 March 2026 Financial Statements

1 MAY 2026        Application for quotation of securities - MTH

29 APRIL 2026        Mithril Silver and Gold March 2026 Quarterly Report

15 APRIL 2026        Investor Presentation

9 APRIL 2026        Mithril Confirms High-Grade and Widespread Silver and Gold at Target 3, Copalquin Project       

  ABOUT THE COPALQUIN AND LA DURA GOLD SILVER PROPERTIES

Mithril is undertaking an aggressive exploration program in 2026, with 25,000 metres of drilling planned during the year across the Copalquin District. Upcoming work will focus on expanding known mineralized zones, testing new high-priority targets, integrating district-wide geophysical data, and continuing to advance the Company’s district-scale exploration thesis.  The district features over 100 historic underground workings including several notable producing multi-level mines and 200 surface workings.  Mapping and sampling across the lower half of the 70 km2 mining concession area demonstrates and a large epithermal silver-gold system with multiple target areas for potential resource growth plus the conduit system responsible for the widespread silver and gold mineralisation.

The northern half of the Copalquin concession area features large areas of alteration. The LiDAR image shows evidence of historic mining activity and indicates some key structures.  Along with historic sampling data, the northern section of the property presents as a potentially significant large exploration area within Mithril’s Copalquin mining concessions.

Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10M on or any time before 7 August 2028.

The nearby 20 km2 La Dura property13 has recently been added to the portfolio providing a brown field property with a database of mapping, sampling and drilling.  The recent LiDAR survey has revealed multiple historic workings within the concession area, including the 4-level high-grade La Dura mine.  An initial 1.5 km long mineralisation corridor has been identified as a future drill target.  An aerial magnetic survey has been completed with interpretation work currently progressing.

 
Click Image To View Full Size

Figure 13 Mithril’s Copalquin and La Dura property locations in Durango State, Mexico

  -ENDS-

Released with the authority of the Board.

For further information contact:

  The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

  Competent Persons Statement (JORC), and Qualified Persons (NI 43-101) Statement

The information in this announcement that relates to metallurgical test results, mineral processing and project development and study work has been compiled, reviewed and approved by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code and Acceptable Foreign Association under NI 43-101.

Mr Skeet has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person (non-independent) as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and as a Qualified Person (non-independent) as defined by NI 43-101. Mr Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

The information in this announcement that relates to sampling techniques, sample data, exploration results and geological interpretation for Mithril’s Mexican project, has been compiled, reviewed and approved by Mr James Barr who is Mithril’s Vice President - Exploration. Mr Barr is a registered member and Professional Geologist (P.Geo.) of the Engineers and Geoscientists of British Columbia. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code and recognized Canadian Professional Association under NI 43-101.

Mr Barr has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person (non-independent) as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and as a Qualified Person (non-independent) as defined by NI 43-101. Mr Barr consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources has been compiled, reviewed and approved by Mr John Sims, a Certified Registered Geologist (CPG) with the American Institute of Professional Geologists (AIPG).  This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code and Acceptable Foreign Association under NI 43-101.

Mr Sims is acting as the Competent Person (independent), as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and as the Qualified Person (independent) as defined by NI 43-101, for the reporting of the Upgraded Copalquin Target 1 Mineral Resource Estimate, with effective date of June 29, 2026. A site visit was carried out by Mr Sims, between 5 May 2025 and 7 May 2025 to observe the drilling, logging, sampling and assay database. Mr Sims has reviewed and approved the contents of this report, and consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The relevant sections of “JORC Code, 2012 Edition - Table 1” as defined by the Joint Ore Reserves Committee (JORC) Code are incorporated into the Public Report announced as an amended version on ASX dated 3 July 2026 - Amended Announcement Copalquin Project Target 1 Deposit MRE.

A NI 43-101 Technical Report entitled “Technical Report and Upgraded Mineral Resource Estimate for the Copalquin Target 1 Area, Durango, Mexico” will be filed on SEDAR+ within 45 days of the release.

Qualified Persons – NI 43-101

Scientific and technical information in this Report has been reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’s Managing Director and Chief Executive Officer. Mr John Skeet is a qualified person within the meaning of NI 43-101.

Samples are sent to ALS Global with sample preparation performed in Chihuahua City, Mexico and assaying of sample pulps performed in North Vancouver, BC, Canada.

Tenement and Mining Concession Information – 30 June 2026

Mithril Silver and Gold Limited Group

Australian Interests:

Mining Concession

Tenement title number

Interest owned %

Murchison Area (Limestone Well)

E20/846

10.00

Murchison Area (Limestone Well)

E57/1069

10.00

Mithril continues to hold a 10% free carried interest in the Limestone Well tenements with Firefly Metals (formerly Auteco Minerals).

  Mexican Operations:

  Copalquin Property

Mining Concession

Mining Concession title number

Interest owned %

La Soledad

52033

50.00

El Cometa

164869

50.00

San Manuel

165451

50.00

Copalquin

178014

50.00

El Sol

236130

50.00

El Corral

236131

50.00

Mithril owns 50% interest in the Copalquin mining concessions and has an exclusive option to purchase the remaining 50% (bringing Mithril’s ownership of the Copalquin mining concessions to 100%) by paying US$10M to the vendor on or any time before 7 August 2026 (the due date for payment was initially 7 August 2023, and was extended by 3 years by written agreement between Mithril and the vendor). Mithril has executed and registered an agreement with the vendor for an extension of the payment date by a further 2 years (bringing the payment date to 7 August 2028).

  La Dura Property

Mining Concession

Mining Concession title number

Interest owned %

La Dura

51845

Option to Acquire 100%

Ampliacion La Dura

196005

Option to Acquire 100%

La Dura Plus

220859

Option to Acquire 100%

La Dura Plus

220860

Option to Acquire 100%

La Dura

234913

Option to Acquire 100%

In December 2025, Mithril executed an Agreement to acquire 100% interest in the La Dura mining concessions over a 4-year period for a purchase price of US$4M (See ASX announcement: 05/12/2025 - Mithril to Acquire the La Dura Gold-Silver Property).

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Name of entity

MITHRIL SILVER AND GOLD LIMITED

ABN

Quarter ended (“current quarter”)

30 099 883 922

  30 JUNE 2026

  Consolidated statement of cash flows

Current quarter
$A’000

Year to date

(12 months)
$A’000

1.

Cash flows from operating activities

    1.1

Receipts from customers

1.2

Payments for

      (a)exploration evaluation  

  (b)development 

      (c)production 

      (d)staff costs  

(172)

(670)

  (e)administration and corporate costs 

(391)

(1,991)

1.3

Dividends received (see note 3)

    1.4

Interest received

96

475

1.5

Interest and other costs of finance paid

    1.6

Income taxes paid

    1.7

Government grants and tax incentives

    1.8

Other – Mexico tax adjustments

24

24

1.9

Net cash from / (used in) operating activities

(443)

(2,162)

  2.

Cash flows from investing activities

    2.1

Payments to acquire or for:

  (a)entities 

  (b)tenements 

      (c)property, plant and equipment 

      (d)exploration evaluation  

(3,402)

(15,024)

  (e)investments 

      (f)other term deposits 

    2.2

Proceeds from the disposal of:

      (a)entities 

  (b)tenements 

  25

  (c)property, plant and equipment 

      (d)investments 

      (e)other term deposits 

    2.3

Cash flows from loans to other entities

    2.4

Dividends received (see note 3)

    2.5

Other (provide details if material)

    2.6

Net cash from / (used in) investing activities

(3,402)

(14,999)

  3.

Cash flows from financing activities

  12,727

3.1

Proceeds from issues of equity securities (excluding convertible debt securities)

3.2

Proceeds from issue of convertible debt securities

    3.3

Proceeds from exercise of options

265

1,699

3.4

Transaction costs related to issues of equity securities or convertible debt securities

  (1,058)

3.5

Proceeds from borrowings

    3.6

Repayment of borrowings

    3.7

Transaction costs related to loans and borrowings

    3.8

Dividends paid

    3.9

Other (provide details if material)

    3.10

Net cash from / (used in) financing activities

265

13,368

  4.

Net increase / (decrease) in cash and cash equivalents for the period

    4.1

Cash and cash equivalents at beginning of period

10,839

11,056

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(443)

(2,162)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(3,402)

(14,999)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

265

  13,368

4.5

Effect of movement in exchange rates on cash held

(3)

(7)

4.6

Cash and cash equivalents at end of period

7,256

7,256

  5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

2,256

3,839

5.2

Call deposits

5,000

7,000

5.3

Bank overdrafts

    5.4

Other (provide details)

    5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

7,256

10,839

6.

Payments to related parties of the entity and their associates

Current quarter
$A'000

6.1

Aggregate amount of payments to related parties and their associates included in item 1

155

6.2

Aggregate amount of payments to related parties and their associates included in item 2

  Amounts in 6.1 relate to Director fees, employee salaries and consulting services.

  Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

  7.

Financing facilities
Note: the term “facility’ includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

7.1

Loan facilities

    7.2

Credit standby arrangements

    7.3

Other  - Insurance funding loan

    7.4

Total financing facilities

          7.5

Unused financing facilities available at quarter end

  7.6

Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

        8.

Estimated cash available for future operating activities

$A’000

8.1

Net cash from / (used in) operating activities (item 1.9)

(443)

8.2

(Payments for exploration & evaluation classified as investing activities) (item 2.1(d))

(3,402)

8.3

Total relevant outgoings (item 8.1 + item 8.2)

(3,845)

8.4

Cash and cash equivalents at quarter end (item 4.6)

7,256

8.5

Unused finance facilities available at quarter end (item 7.5)

-

8.6

Total available funding (item 8.4 + item 8.5)

7,256

      8.7

Estimated quarters of funding available (item 8.6 divided by item 8.3)

1.89

Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.

8.8

If item 8.7 is less than 2 quarters, please provide answers to the following questions:

  8.8.1        Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

  Answer: Yes, the Company is executing the second half of the 2026 drill programme with two drills operating, with anticipated completion about mid-October 2026.  The Company has the option to continue drilling at the same rate or to reduce.

  8.8.2        Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

  Answer:  The Company will rely on its existing cash resources and future capital raising (either debt and/or equity), including its ability to place securities under LR7.1 and LR7.1A to funds its current activities. The Company has a history of raising funds as required and believes further successful fundraising will be able to be completed. No capital raising has been planned or committed as at the date of this report.

  8.8.3        Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

  Answer: In light of the above factors, the Company will have sufficient cash to fund its existing and planned activities with ability to make adjustments. The Company’s Board and Management is focused on meeting its current objectives and confirm that it is in compliance with ASX Listing Rules, in particular, Listing Rule 3.1.

    Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

  Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

  Date:        ...................................................................................

   Authorised by:        ...................................................................................

(Name of body or officer authorising release – see note 4)

  Notes

1.        This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.        If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.        Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.        If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5.        If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

  1 See ASX announcement dated 3 July 2026, “Amended Announcement Copalquin Project Target 1 Deposit MRE”

2 See ASX announcement dated 25 February 2022, “Further Excellent Metallurgy Results – Copalquin District, Mexico”

3 See ASX announcement dated 25 February 2022, “Further Excellent Metallurgy Results – Copalquin District, Mexico”

4 See ASX announcement dated 25 February 2022, “Further Excellent Metallurgy Results – Copalquin District, Mexico”

5 See ASX Announcement 01 Dec 2025 Exploration Sampling up to 4,520 g/t Silver, 38.2 g/t Gold

6 See ASX Announcement 07 July 2025 MTH EXTENDS 8 KM LONG HIGH-GRADE GOLD-SILVER SYSTEM

7 See Announcement dated 9 April 2026, High-Grade and Widespread Silver and Gold at Target 3

8 See Announcement dated 29 July 2025, High-Grade Channel Sampling Results

9 AuEq g/t = Au g/t + (Ag g/t x (Au price/Ag price) x (Ag recovery/Au recovery)), and is calculated using the underlying metals prices, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples.

  10 See Announcement dated 17 November 2021, Maiden JORC Resource 529,000 Ounces @ 6.81g/t

11 See Announcement dated 16 October 2025, 300 Metre T1 Extension -10.9 G/T AUEQ over 8.03m

12 AuEq g/t = Au g/t + (Ag g/t x (Au price/Ag price) x (Ag recovery/Au recovery)), and is calculated using the underlying metals prices, along with metallurgical recoveries of 96% Au and 91% Ag from metallurgical test work on Target 1 composite samples.

  13 See ASX announcement: 05/12/2025 - Mithril to Acquire the La Dura Gold-Silver Property

Meritage Homes (MTH - Free Report) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.3 per share. This compares to earnings of $2.04 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.23%. A quarter ago, it was expected that this homebuilder would post earnings of $1.01 per share when it actually produced earnings of $0.86, delivering a surprise of -14.85%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Meritage, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $1.4 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.78%. This compares to year-ago revenues of $1.62 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Meritage shares have added about 11.3% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Meritage?While Meritage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Meritage was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.39 on $1.45 billion in revenues for the coming quarter and $5.00 on $5.48 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Beazer Homes (BZH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This homebuilder is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -230.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Beazer Homes' revenues are expected to be $510.43 million, down 6.4% from the year-ago quarter.

SCOTTSDALE, Ariz., July 29, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported second quarter results for the period ended June 30, 2026.

 Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
  Three Months Ended June 30, Six Months Ended June 30, 2026
 2025
 % Chg 2026
 2025
 % ChgHomes closed (units) 3,725  4,170 (11)%  6,692  7,586 (12)%Home closing revenue$1,387,911 $1,615,709 (14)% $2,495,733 $2,957,813 (16)%Average sales price — closings$373 $387 (4)% $373 $390 (4)%Home orders (units) 3,575  3,914 (9)%  7,239  7,790 (7)%Home order value$1,376,338 $1,547,438 (11)% $2,776,778 $3,105,615 (11)%Average sales price — orders$385 $395 (3)% $384 $399 (4)%Ending backlog (units)       1,715  1,748 (2)%Ending backlog value      $661,906 $695,476 (5)%Average sales price — backlog      $386 $398 (3)%Home closing gross margin 18.3%  21.1% (280) bps  17.9%  21.5% (360) bpsEarnings before income taxes$120,564 $193,060 (38)% $193,088 $353,219 (45)%Net earnings$90,630 $146,879 (38)% $145,939 $269,685 (46)%Diluted EPS$1.37 $2.04 (33)% $2.18 $3.73 (42)%
MANAGEMENT COMMENTS

"The 2026 spring selling season remained softer than expected this quarter as macroeconomic uncertainty and volatile interest rates continued to pressure buyer psychology. Although below prior year levels, our second quarter 2026 absorptions reflected pockets of solid performance which accelerated community close outs in some markets," said Steven J. Hilton, executive chairman of Meritage Homes.

"Our available home inventory and improved cycle times drove a backlog conversion rate of 200% and 3,725 closings this quarter, with nearly 60% generated from intra-quarter sales," added Phillippe Lord, chief executive officer of Meritage Homes. "Second quarter 2026 home closing revenue totaled $1.4 billion which generated adjusted home closing gross margin of 18.6% and adjusted diluted EPS of $1.42, excluding $3.6 million of real estate inventory impairments and $0.3 million in terminated land deal walk-away charges."

"We remain committed to a disciplined capital allocation strategy that balances growth and shareholder returns while ensuring sufficient liquidity in a volatile interest rate environment. During the current quarter, we returned $131 million to shareholders via share repurchases and dividends. And while we moderated land spend to $357 million from $509 million in the second quarter of 2025, we are reiterating our prior community count growth expectation of 5-10% year-over-year for full year 2026," concluded Mr. Lord. "We ended the second quarter of 2026 with cash of $807 million, no borrowings under our revolving credit facility and a net debt-to-capital ratio of 17.1%. As of June 30, 2026, our book value per share increased 5% year-over-year."

SECOND QUARTER RESULTS

Orders of 3,575 homes for the second quarter of 2026 decreased 9% year-over-year mainly as a result of 19% lower average absorption pace, which was partially offset by a 14% increase in average community count. Second quarter 2026 average sales price ("ASP") on orders of $385,000 was down 3% from the second quarter of 2025, primarily due to geographic mix.
The 14% year-over-year decrease in home closing revenue in the second quarter of 2026 to $1.4 billion was due to 11% lower closing volume of 3,725 homes combined with a 4% decrease in ASP on closings to $373,000. The closing ASP decline was a function of geographic mix.
Home closing gross margin of 18.3% in the second quarter of 2026 was 280 bps lower than 21.1% in the prior year as a result of lost leverage on lower home closing revenue and higher lot costs, which were partially offset by direct cost savings and quicker cycle times. Excluding $3.6 million of real estate inventory impairments and $0.3 million in terminated land deal walk-away charges in the second quarter of 2026, compared to no impairments and $4.2 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was 18.6% and 21.4% for the second quarters of 2026 and 2025, respectively.
Selling, general and administrative expenses ("SG&A") as a percentage of second quarter 2026 home closing revenue were 10.4% compared to 10.2% in the second quarter of 2025, as a result of lost leverage on lower home closing revenue, which was partially offset by decreased compensation expense and an intentional pull back in discretionary expenses.
The second quarter effective income tax rate was 24.8% in 2026 compared to 23.9% in 2025 due to higher income state tax. 
Net earnings were $91 million ($1.37 per diluted share) for the second quarter 2026, a 38% decrease from $147 million ($2.04 per diluted share) for the second quarter of 2025, mainly resulting from lower home closing revenue and gross profit. Excluding quarterly impairments and walk-away charges for each period, adjusted diluted EPS was $1.42 and $2.09 for the second quarters of 2026 and 2025, respectively. YEAR TO DATE RESULTS

Total sales orders for the first six months of 2026 decreased 7% year-over-year, reflecting an 18% decrease in average absorption pace partially offset by a 14% increase in average communities compared to the first six months of 2025. The 4% lower ASP on orders for the first six months of 2026 year-over-year was primarily due to geographic mix.
Home closing revenue decreased 16% year-over-year in the first six months of 2026 to $2.5 billion, driven by 12% lower home closing volume and a 4% decrease in ASP on closings compared to the first six months of 2025. The 4% lower ASP on closings for the first six months of 2026 compared to prior year reflected geographic mix.
Home closing gross margin of 17.9% decreased 360 bps in the first six months of 2026 from 21.5% in the prior year due to lost leverage on lower home closing revenue and higher lot costs, which were partially offset by direct cost savings and quicker cycle times. Excluding $6.0 million of real estate inventory impairments and $1.6 million in terminated land deal walk-away charges in the first six months of 2026, compared to no impairments and $5.6 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was 18.2% and 21.7% for the first six months of 2026 and 2025, respectively.
SG&A as a percentage of home closing revenue was 11.0% in the first six months of 2026 compared to 10.7% in the prior year, as a result of lost leverage on lower home closing revenue, which was partially offset by decreased compensation expense and an intentional reduction in discretionary expenses.
The effective income tax rate in the first six months of 2026 was 24.4% compared to 23.6% in 2025 due to higher income state tax.
Net earnings were $146 million ($2.18 per diluted share) for the first six months of 2026, a 46% decrease from $270 million ($3.73 per diluted share) for the first six months of 2025, primarily reflecting lower home closing revenue and gross margins. Excluding year-to-date impairments and walk-away charges for each period, adjusted diluted EPS was $2.27 and $3.79 for the first six months of 2026 and 2025, respectively. BALANCE SHEET & LIQUIDITY

Cash and cash equivalents at June 30, 2026 totaled $807 million. This compared to cash and cash equivalents of $775 million at December 31, 2025.Land acquisition and development spend, net of land development reimbursements, totaled $357 million and $509 million for the second quarter of 2026 and 2025, respectively.Approximately 73,200 lots were owned or controlled as of June 30, 2026, compared to approximately 81,900 lots as of June 30, 2025. Nearly 1,700 net new lots were added in the second quarter of 2026, representing an estimated 13 future communities. Second quarter 2026 ending community count of 340 was up 9% compared to prior year and down 1% sequentially from the first quarter of 2026.Debt-to-capital and net debt-to-capital ratios were 26.8% and 17.1%, respectively, at June 30, 2026, which compared to 26.0% and 16.9%, respectively, at December 31, 2025.The Company declared and paid quarterly cash dividends of $0.48 per share totaling $31 million in the second quarter of 2026. This compared to $0.43 per share totaling $31 million in the second quarter of 2025. Year-to-date dividends paid were $63 million and $61 million in 2026 and 2025, respectively.During the second quarter of 2026, the Company repurchased 1,528,340 shares of stock, or 2.3% of shares outstanding at the beginning of the quarter, for $100 million. This compared to $45 million in the second quarter of 2025. For the first six months of 2026, the Company repurchased 3,344,160 shares of stock, or 4.9% of shares outstanding at the beginning of the year, for $230 million. This compared to year-to-date 2025 spend of $90 million. As of June 30, 2026, $284 million remained available to repurchase.During the second quarter of 2026, the Company refinanced the revolving credit facility, primarily to increase the facility size to $980 million and extend its maturity from 2030 to 2031. GUIDANCE

Based on current market conditions and year-to-date results, we are updating our guidance for full year 2026 home closing volume and revenue to around 5% below full year 2025 results, although home closing revenue could trend lower if market conditions require higher incentives.

CONFERENCE CALL
Management will host a conference call to discuss its second quarter 2026 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, July 30, 2026. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-800-445-7795 US toll free or 1-785-424-1699. A replay will be available on the Investor Relations page.

 Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
  Three Months Ended June 30,  2026   2025  Change $ Change %Homebuilding:       Home closing revenue$1,387,911  $1,615,709  $(227,798) (14 )%Land closing revenue 12,720   8,277   4,443  54%Total closing revenue 1,400,631   1,623,986   (223,355) (14 )%Cost of home closings (1,134,298)  (1,274,381)  (140,083) (11 )%Cost of land closings (12,196)  (8,996)  3,200  36%Total cost of closings (1,146,494)  (1,283,377)  (136,883) (11 )%Home closing gross profit 253,613   341,328   (87,715) (26 )%Land closing gross profit/(loss) 524   (719)  1,243  173%Total closing gross profit 254,137   340,609   (86,472) (25 )%Financial Services:       Revenue 7,784   9,425   (1,641) (17 )%Expense (4,141)  (4,656)  (515) (11 )%Earnings from financial services unconsolidated entities and other, net 1,684   842   842  100%Financial services profit 5,327   5,611   (284) (5 )%Commissions and other sales costs (91,805)  (108,830)  (17,025) (16 )%General and administrative expenses (52,380)  (55,183)  (2,803) (5 )%Interest expense (2,187)  —   2,187  N/AOther income, net 7,472   10,853   (3,381) (31 )%Earnings before income taxes 120,564   193,060   (72,496) (38 )%Provision for income taxes (29,934)  (46,181)  (16,247) (35 )%Net earnings$90,630  $146,879  $(56,249) (38 )%        Earnings per common share:       Basic    Change $
or shares Change %Earnings per common share$1.38  $2.06  $(0.68) (33 )%Weighted average shares outstanding 65,787   71,456   (5,669) (8 )%Diluted       Earnings per common share$1.37  $2.04  $(0.67) (33 )%Weighted average shares outstanding 66,131   71,900   (5,769) (8 )%          Six Months Ended June 30,  2026   2025  Change $ Change %Homebuilding:       Home closing revenue$2,495,733  $2,957,813  $(462,080) (16 )%Land closing revenue 22,081   23,698   (1,617) (7 )%Total closing revenue 2,517,814   2,981,511   (463,697) (16 )%Cost of home closings (2,048,322)  (2,320,835)  (272,513) (12 )%Cost of land closings (21,826)  (21,252)  574  3%Total cost of closings (2,070,148)  (2,342,087)  (271,939) (12 )%Home closing gross profit 447,411   636,978   (189,567) (30 )%Land closing gross profit 255   2,446   (2,191) (90 )%Total closing gross profit 447,666   639,424   (191,758) (30 )%Financial Services:       Revenue 14,069   16,507   (2,438) (15 )%Expense (7,764)  (8,848)  (1,084) (12 )%Earnings from financial services unconsolidated entities and other, net 2,515   1,515   1,000  66%Financial services profit 8,820   9,174   (354) (4 )%Commissions and other sales costs (171,277)  (203,550)  (32,273) (16 )%General and administrative expenses (103,782)  (112,180)  (8,398) (7 )%Interest expense (2,774)  —   2,774  N/AOther income, net 14,435   20,351   (5,916) (29 )%Earnings before income taxes 193,088   353,219   (160,131) (45 )%Provision for income taxes (47,149)  (83,534)  (36,385) (44 )%Net earnings$145,939  $269,685  $(123,746) (46 )%        Earnings per common share:       Basic    Change $
or shares Change %Earnings per common share$2.19  $3.76  $(1.57) (42 )%Weighted average shares outstanding 66,573   71,684   (5,111) (7 )%Diluted       Earnings per common share$2.18  $3.73  $(1.55) (42 )%Weighted average shares outstanding 66,934   72,246   (5,312) (7 )%  Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
  June 30,
2026 December 31,
2025Assets:   Cash and cash equivalents$807,267 $775,157Other receivables 304,098  306,956Real estate(1) 5,891,978  5,987,120Deposits on real estate under option or contract 168,977  174,170Investments in unconsolidated entities 59,423  57,268Property and equipment, net 46,085  46,647Deferred tax asset, net 47,064  53,293Prepaids, other assets and goodwill 230,041  221,676Total assets$7,554,933 $7,622,287Liabilities:   Accounts payable$215,737 $200,679Accrued and other liabilities 423,865  387,698Home sale deposits 10,017  9,213Loans payable and other borrowings 39,535  24,328Senior and convertible senior notes, net 1,807,842  1,804,726Total liabilities 2,496,996  2,426,644Stockholders' Equity:   Preferred stock —  —Common stock, par value $0.01. Authorized 125,000,000 shares; 65,174,093 and 68,168,923 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 652  682Additional paid-in capital —  —Retained earnings 5,057,285  5,194,961Total stockholders’ equity 5,057,937  5,195,643Total liabilities and stockholders’ equity$7,554,933 $7,622,287(1)Real estate – Allocated costs:

   Homes completed and under construction$1,891,356 $2,069,548Finished home sites and home sites under development 3,922,515  3,917,572Consolidated real estate not owned 78,107  —Total real estate$5,891,978 $5,987,120  Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
  Six Months Ended June 30,  2026   2025 Cash flows from operating activities:   Net earnings$145,939  $269,685 Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities:   Depreciation and amortization 11,451   12,612 Real estate and land impairments 6,009   — Write-off of terminated land deals 1,649   5,638 Stock-based compensation 11,682   9,922 Equity in earnings from unconsolidated entities (2,085)  (2,164)Distribution of earnings from unconsolidated entities 2,027   2,116 Other 6,173   2,189 Changes in assets and liabilities:   Decrease/(increase) in real estate 132,331   (224,617)Decrease/(increase) in deposits on real estate under option or contract 2,625   (30,415)Increase in other receivables, prepaids and other assets (3,101)  (43,264)Decrease in accounts payable and accrued and other liabilities (24,723)  (21,013)Increase/(decrease) in home sale deposits 804   (9,564)Net cash provided by/(used in) operating activities 290,781   (28,875)Cash flows from investing activities:   Investments in unconsolidated entities (15,583)  (9,377)Purchases of property and equipment (9,876)  (12,359)Proceeds from sales of property and equipment 190   126 Maturities/sales of investments and securities —   750 Payments to purchase investments and securities —   (750)Net cash used in investing activities (25,269)  (21,610)Cash flows from financing activities:   Repayment of loans payable and other borrowings (48)  (11,213)Proceeds from issuance of senior notes —   497,195 Payment of debt issuance costs —   (5,106)Proceeds from liabilities related to consolidated real estate not owned 59,947   — Dividends paid (63,301)  (61,484)Repurchase of shares (230,000)  (89,999)Net cash (used in)/provided by financing activities (233,402)  329,393 Net increase in cash and cash equivalents 32,110   278,908 Beginning cash and cash equivalents 775,157   651,555 Ending cash and cash equivalents$807,267  $930,463  Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)

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 UtahCentral: Tennessee and TexasEast: Alabama, Florida, Georgia, Mississippi, North Carolina and South Carolina    Three Months Ended June 30, 2026 2025 Homes Value Homes ValueHomes Closed:       West Region825 $400,755 1,165 $549,205Central Region1,308  446,726 1,374  480,425East Region1,592  540,430 1,631  586,079Total3,725 $1,387,911 4,170 $1,615,709Homes Ordered:       West Region762 $391,197 1,001 $484,756Central Region1,259  439,882 1,298  475,275East Region1,554  545,259 1,615  587,407Total3,575 $1,376,338 3,914 $1,547,438  Six Months Ended June 30, 2026 2025 Homes Value Homes ValueHomes Closed:       West Region1,511 $736,938 2,163  1,028,841Central Region2,416  823,026 2,561  892,962East Region2,765  935,769 2,862  1,036,010Total6,692 $2,495,733 7,586 $2,957,813Homes Ordered:       West Region1,660 $835,490 2,094  1,024,350Central Region2,575  897,181 2,663  964,435East Region3,004  1,044,107 3,033  1,116,830Total7,239  2,776,778 7,790  3,105,615  At June 30, 2026 2025 Homes Value Homes ValueOrder Backlog:       West Region334 $173,220 366 $182,308Central Region616  218,725 583  220,889East Region765  269,961 799  292,279Total1,715 $661,906 1,748 $695,476  Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Ending Average Ending Average Ending Average Ending AverageActive               West Region89 88.5 85 85.0 89 86.6 85 87.0Central Region99 103.0 85 83.5 99 106.1 85 85.6East Region152 151.0 142 132.5 152 147.7 142 125.2Total340 342.5 312 301.0 340 340.4 312 297.8  Meritage Homes Corporation and Subsidiaries
Supplement and Non-GAAP information
(Unaudited)Supplemental Information (Dollars in thousands):

  Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Depreciation and amortization$6,078  $6,663  $11,451  $12,612         Summary of Capitalized Interest:       Capitalized interest, beginning of period$84,464  $57,107  $77,064  $53,678 Interest incurred 20,114   19,995   40,119   34,709 Interest expensed (2,187)  —   (2,774)  — Interest amortized to cost of home and land closings (15,654)  (13,288)  (27,672)  (24,573)Capitalized interest, end of period$86,737  $63,814  $86,737  $63,814 
Reconciliation of Non-GAAP Information (Dollars in thousands):

This press release includes comments and discussion about our operating results that reflect certain adjustments, including to home closing gross profit, home closing gross margin, earnings before income taxes, net earnings, diluted earnings per common share, and debt-to-capital ratios. These are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operating results and may be helpful in comparing our company with other companies in the homebuilding and other industries to the extent they provide similar information. We encourage investors to understand the methods used by other companies to calculate these non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures.

 Home Closing Gross Profit and Home Closing Gross Margin Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Home closing gross profit$253,613  $341,328  $447,411  $636,978 Home closing gross margin 18.3%  21.1%  17.9%  21.5%        Add: Real estate-related impairments 3,582   —   6,009   — Add: Write-off of terminated land deals 276   4,205   1,649   5,638 Adjusted home closing gross profit$257,471  $345,533  $455,069  $642,616 Adjusted home closing gross margin 18.6%  21.4%  18.2%  21.7% Earnings before income taxes, Net earnings and Diluted earnings per common share Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Earnings before income taxes$120,564  $193,060  $193,088  $353,219         Add: Real estate-related impairments 3,582   —   6,039   — Add: Write-off of terminated land deals 276   4,205   1,649   5,638 Adjusted earnings before income taxes$124,422  $197,265  $200,776  $358,857 Incremental tax rate 24.6%  24.1%  24.7%  24.3%Adjusted provision for income tax (30,883)  (47,194)  (49,048)  (84,904)Adjusted net earnings 93,539   150,071   151,728   273,953         Diluted earnings per common share$1.37  $2.04  $2.18  $3.73 Adjusted diluted earnings per common share$1.42  $2.09  $2.27  $3.79  Debt-to-Capital Ratios June 30, 2026 December 31, 2025Senior and convertible senior notes, net and loans payable and other borrowings$1,847,377  $1,829,054 Stockholders' equity 5,057,937   5,195,643 Total capital$6,905,314  $7,024,697 Debt-to-capital 26.8%  26.0%    Senior and convertible senior notes, net and loans payable and other borrowings$1,847,377  $1,829,054 Less: cash and cash equivalents (807,267)  (775,157)Net debt$1,040,110  $1,053,897 Stockholders’ equity 5,057,937   5,195,643 Total net capital$6,098,047  $6,249,540 Net debt-to-capital 17.1%  16.9% About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 210,000 homes in its 41-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our full year 2026 projected home closing volume, home closing revenue and community count growth.

Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; shortages in the availability and cost of subcontract labor; legislation related to tariffs; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; the adverse effect of slow absorption rates; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; sustainability matters and disclosures; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2025 and our subsequent Form 10-Qs under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

Contacts:Emily Tadano, VP Investor Relations and External Communications (480) 515-8979 (office) [email protected]

SCOTTSDALE, Ariz., March 12, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth largest public homebuilder in the U.S., plans to release the Company's first quarter 2026 results on Wednesday, April 22, 2026 after the market closes. Management will host a conference call to discuss the results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, April 23, 2026.

To participate in the conference call, please go to Meritage’s Investor Relations page to register for and access the live webcast. Alternatively, dial in to 1-800-445-7795 U.S. toll free or 1-785-424-1699 and reference the conference code MTHQ126 with the operator. A replay will be available on the Investor Relations page.

About Meritage Homes Corporation

Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Meritage has delivered over 210,000 homes in its 40-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.

For more information, visit www.meritagehomes.com.

Contacts: Emily Tadano, VP Investor Relations and External Communications
(480) 515-8979 (office)
[email protected]

Meritage Homes (MTH - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on April 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis homebuilder is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -39.1%.

Revenues are expected to be $1.21 billion, down 10.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.37% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Meritage?For Meritage, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.52%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Meritage will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Meritage would post earnings of $1.55 per share when it actually produced earnings of $1.67, delivering a surprise of +7.74%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Meritage appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

For the quarter ended March 2026, Meritage Homes (MTH - Free Report) reported revenue of $1.12 billion, down 17.7% over the same period last year. EPS came in at $0.82, compared to $1.69 in the year-ago quarter.

The reported revenue represents a surprise of -7.59% over the Zacks Consensus Estimate of $1.21 billion. With the consensus EPS estimate being $1.01, the EPS surprise was -18.97%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Meritage performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Home Closing Revenue - Average sales price - Total: $373.00 versus $374.97 estimated by nine analysts on average.Homes ordered - Total: 3,664 versus the nine-analyst average estimate of 3,969.Homes closed - Total: 2,967 compared to the 3,203 average estimate based on eight analysts.Order Backlog - Total: 1,865 compared to the 1,978 average estimate based on eight analysts.Order Backlog - Average sales price - Total: $381.00 versus the seven-analyst average estimate of $379.85.Order Backlog Value - Total: $711.47 million versus the six-analyst average estimate of $750.82 million.Active Communities - Ending - Total: 345 versus the five-analyst average estimate of 339.Homes Ordered Value - Total: $1.4 billion versus $1.5 billion estimated by five analysts on average.Revenue- Home closing: $1.11 billion versus the nine-analyst average estimate of $1.2 billion. The reported number represents a year-over-year change of -17.5%.Revenue- Land closing: $9.36 million compared to the $9.98 million average estimate based on nine analysts. The reported number represents a change of -39.3% year over year.Revenue- Total closing revenue (Homebuilding): $1.12 billion versus $1.21 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -17.7% change.Revenue- Financial Services: $6.29 million compared to the $6.88 million average estimate based on seven analysts. The reported number represents a change of -11.3% year over year.View all Key Company Metrics for Meritage here>>>

Shares of Meritage have returned +14% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Meritage Homes Corporation (MTH) Q1 2026 Earnings Call Transcript

On April 29, 2026, Meritage Homes Corp MTH shares fell 3.4% to a current price of $67.02. The stock has experienced a 52-week range between $58.03 and $84.74, indicating some volatility in its recent performance.

GF Value™ verdict: MTH is currently priced at $67.02, which is 2.8% below the GF Value™ estimate of $68.92.GF Score™: MTH has a strong GF Score™ of 87/100, suggesting solid fundamentals and potential for long-term returns.Most notable signal: Insiders sold $4.9 million worth of shares in the last three months, indicating a lack of buying interest from company executives. Is MTH Overvalued or Undervalued? Meritage Homes Corp MTH currently trades at $67.02, which is slightly below the GF Value™ of $68.92, implying that the stock is undervalued by approximately 2.8%. This provides a modest margin of safety for potential investors looking for value opportunities. The GF Valuation label indicates that MTH is fairly valued, suggesting that while it may not be significantly undervalued, it presents a reasonable opportunity based on its intrinsic value assessment. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The current price being beneath the GF Value™ indicates a potential opportunity for investors, but it is essential to consider the broader context, including financial strength and insider activity, which may raise concerns about the stock's future performance. With insiders selling shares recently, there could be underlying issues that need to be evaluated further.

How Does MTH's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.3x 6.9x Forward P/E 12.8x N/A Currently, MTH's P/E (TTM) is 12.3x, which is 79% above its 5-year median P/E of 6.9x. The forward P/E is slightly higher at 12.8x. This indicates that MTH is trading above its historical valuation levels, which raises questions about its current valuation in relation to its past performance. This P/E analysis aligns with the GF Value™ verdict, suggesting that while MTH is undervalued based on the GF Value™, it is trading at a historically high valuation multiple, which could indicate potential risks moving forward.

What Does MTH's GF Score™ Tell Us? Metric Rating GF Score™ 87 Financial Strength 8/10 Profitability 8/10 Growth 6/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 87/100 reflects strong fundamentals across several dimensions, particularly in Financial Strength (8/10) and Profitability (8/10). The Valuation rank is notably high at 9/10, indicating that the stock is relatively favorable in terms of its valuation metrics. However, the Growth rank at 6/10 suggests that while MTH has solid profitability and financial strength, its growth potential may not be as robust compared to peers. This combination of scores highlights that MTH is fundamentally strong, yet growth may be an area to watch.

What Are Insiders Doing with MTH Stock? In the past three months, insiders sold $4.9 million worth of shares with no reported purchases. This pattern of selling by insiders can raise concerns for potential investors as it may indicate a lack of confidence in the company's future prospects or a desire to liquidate personal holdings. The absence of insider buying further amplifies these concerns, suggesting that insiders may not see immediate value in holding onto their shares at current prices.

What This Means for Investors Based on the GF Value™ analysis, Meritage Homes Corp MTH is currently fairly valued with a slight undervaluation of 2.8%. However, the elevated P/E ratio relative to historical averages and recent insider selling may present risks that investors should consider before making any decisions regarding the stock.

For the complete analysis, visit the Meritage Homes Corp MTH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is MTH's GF Score™?

MTH has a GF Score™ of 87/100, indicating strong fundamentals and the potential for higher long-term returns based on historical data.

Is MTH overvalued or undervalued?

MTH is currently undervalued by 2.8% according to GF Value™, suggesting a potential buying opportunity, although caution is advised due to other factors.

What is MTH's P/E ratio?

MTH's current P/E (TTM) is 12.3x, which is significantly above its 5-year median of 6.9x, indicating that it is trading at a historically high valuation level.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Meritage Homes' earnings outlook fell again after its Q1 release, landing it a Zacks Rank #5 (Strong Sell).The U.S. homebuilder's recent downward revisions are part of industry-wide setbacks. Meritage Homes Corporation (MTH - Free Report)  is a U.S. homebuilding giant that’s suffering alongside the slowing housing market, dragged down by high mortgage rates, inflation, and more.

MTH’s downward earnings per share (EPS) revisions since its first quarter release on April 22 earn the homebuilder a Zacks Rank #5 (Strong Sell).

Time for Investors to Stay Away from MTH Stock?Meritage Homes is the fifth-largest public homebuilder in the U.S., based on homes closed in 2025. The company specializes in building energy-efficient, affordable entry-level and first move-up homes.

Meritage Homes operates in 12 states mostly across the Sun Belt and Southeast: Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.

The homebuilder went on a massive run from 2011 until 2022, as did most of the industry. MTH and its peers road the post-financial crisis economic and Wall Street boom that was capped off by 20% average sales growth between 2020 and 2022.

Image Source: Zacks Investment Research

The wild Covid-driven housing boom created a massive pull forward across the home-buying market. The market benefited from a buyer-friendly low-interest and mortgage rate environment. The housing market has cooled significantly since then as home prices soar and mortgage rates remain elevated. The average 30-year fixed rate mortgage hovers at around 6.37% righ now vs. between 2.65% and 4% from early 2020 to early 2022.

MTH said its first quarter was dented by a severe winter storm in January, geopolitical tensions in Iran, higher mortgage rates, and softer consumer sentiment. Meritage has been forced to utilize more incentives to move homes, which hurts margins.

Meritage Homes is projected to see its revenue fall 6% YoY, following an 8% decline last year. Meanwhile, its adjusted earnings are expected to sink another 29% YoY in 2026, after tanking in 2025.

Its FY26 Zacks consensus EPS estimate has fallen 14% since its late April release, with its 2027 estimate 12% lower. These recent downward revisions earn the stock a Zacks Rank #5 (Strong Sell), and extend a larger downturn over the past year.

Image Source: Zacks Investment Research

MTH shares have climbed 400% in the past 15 years to lag the S&P 500’s 500% and its industry’s 430%. The stock is down 9% over the last 12 months while the benchmark has climbed 30%. The ongoing macroeconomic headwinds, from inflation and higher mortgage rates, are likely to keep weighing on Meritage Homes in the short term.

Investors might want to stay away from Meritage Homes for now since the housing market remains under stress and the broader stock market has surged to fresh highs. Plus, it Building Products-Home Builders segment is in the bottom 7% of 250 Zacks industries. That said, the homebuilder’s long-term outlook likely remains intact given the need for more housing inventory in the U.S. 

Meritage Homes Corporation (MTH) Shareholder/Analyst Call Prepared Remarks Transcript

A month has gone by since the last earnings report for Meritage Homes (MTH - Free Report) . Shares have lost about 8.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Meritage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Meritage Homes Q1 Earnings & Sales Miss Estimates, New Orders Down Y/YMeritage Homes reported weaker results for the first quarter of 2026, with adjusted earnings and total closing revenues missing the Zacks Consensus Estimate. Also, on a year-over-year basis, both metrics declined.

Meritage Homes reported weaker quarterly results as affordability pressures and heavier financing incentives weighed on profitability. Management said the quarter began with a severe winter storm that disrupted selling activity in several markets. As demand began to recover, consumer sentiment weakened again as geopolitical events pushed mortgage rates higher and lifted inflation concerns.

In this environment, Meritage Homes leaned further into financing incentives to keep buyers engaged. The strategy helped drive a healthy flow of intra-quarter deliveries, but it also pressured profitability as incentives reduced price realization and limited operating leverage on a lower revenue base.

MTH’s Earnings & Revenue DiscussionAdjusted earnings were 82 cents per share, down 51.5% from $1.69 a year ago, and missed the Zacks Consensus Estimate of $1.01 by 18.8%.

Total revenues (including Total Closing revenues and Financial Services revenues) were $1.123 billion, down 17.7% year over year.

Segment Details of MTH’s Quarterly ReleaseHomebuilding: Total home closing revenues were $1.117 billion, down 17.7% from $1.358 billion in the prior-year quarter and missed the consensus call of $1.21 billion by about 7.6%.

Under the Homebuilding umbrella, home closing revenues declined 17.5% year over year to $1.108 billion, reflecting lower closing volume and a softer pricing environment. Land closing revenues totaled $9.4 million, down 39.3% from $15.4 million a year ago.

Financial Services: Segment revenues declined 11.3% year over year to $6.3 million.

Meritage Homes’ Closings Fell With Lower ASPsHome closings totaled 2,967 units, down 13% from the year-ago period, reflecting the tougher selling environment and a more incentive-driven market. Home closing revenues declined 17% year over year to $1.1 billion, with the company pointing to both lower deliveries and pricing pressure.

Pricing also moved lower. Average sales price on closings slipped 5% year over year to $373,000, which management tied to increased incentive utilization and geographic mix, with a shift toward lower-ASP markets. Meritage Homes emphasized its “closing-ready” operating model, noting that nearly 70% of first-quarter deliveries came from intra-quarter orders, driving a backlog conversion rate of 254%.

MTH’s Orders Softened as Absorption SlowedTotal home orders fell 5.5% year over year to 3,664 units. In dollars, home order value declined 10.1% to $1.4 billion, as average absorption pace declined to 3.6 sales per month from 4.4 in the prior-year quarter. The company attributed the slower start to the spring season partly to a severe winter storm in January, followed by a broader confidence hit as geopolitical events pushed rates higher during the quarter.

Even with softer absorption, Meritage Homes grew its footprint. Ending community count rose 19% year over year to a company record 345 communities, and management expects full-year community count to increase 5%-10%, positioning the company to drive volume more through store growth than higher per-community absorptions in the near term.

Quarter-end backlog totaled 1,865 units, down 6.9% from the year-ago quarter. Backlog value decreased 12.4% year over year to $711.5 million.

MTH’s Margins Compressed Despite Direct Cost SavingsHome closing gross margin contracted 450 basis points year over year to 17.5%. Management cited greater incentive utilization, higher lot costs and reduced leverage on lower revenue as key drivers, partially offset by improved direct costs, lower compensation expense and faster cycle times. Adjusted home closing gross margin was 17.8%, down 430 bps year over year.

SG&A as a percentage of home closing revenues increased 50 basis points to 11.8%, reflecting lost leverage and higher technology costs.

Meritage Homes’ Capital Returns Stayed AggressiveMeritage Homes ended the quarter with $767 million in cash and cash equivalents, down from $775 million at year-end 2025. The company’s debt-to-capital stood at 26.6%, while net debt-to-capital was 17.4%. Management said it remained focused on balance sheet preservation in an uncertain macro backdrop while staying disciplined on land investment timing.

Shareholder returns were a prominent feature of the quarter. The company repurchased $130 million of stock and paid $32 million in dividends, and the quarterly dividend was raised 12% year over year to 48 cents per share. Meritage Homes also reported $384 million remaining under its repurchase authorization as of March 31, 2026.

MTH’s Guidance Reset Reflects Cautious Demand ViewBased on current market conditions, Meritage Homes updated its outlook for full-year 2026 home closing volume and revenues to be at or within 5% of full-year 2025 results. For the second quarter, the company guided to home closings of 3,650–3,900 units (down from 4,170 units reported in the prior-year quarter) and revenues of $1.37–$1.47 billion (down from $1.62 billion reported in the prior-year quarter).

Profitability guidance suggested modest near-term stabilization. Management expects home closing gross margin of around 18% (down from 21.1% reported in the prior-year quarter) and diluted EPS in the range of $1.18–$1.46 (down from $2.04 reported in the prior-year quarter). Executives reiterated that capturing demand in the current environment requires elevated incentives, while longer-term margin targets remain tied to normalized rates and improved operating leverage.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -14.21% due to these changes.

VGM ScoresAt this time, Meritage has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Meritage has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.