COLUMBUS, Ohio, April 22, 2026 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2026.
2026 First Quarter Highlights:
- New contracts increased 3% to 2,350
- Homes delivered decreased 3% to 1,914
- Revenue declined 6% to $921 million
- Gross margin of 22%
- Pre-tax income of $89 million, 10% of revenue, down 39%
- Net income of $68 million ($2.55 per diluted share) versus $111 million ($3.98 per diluted share)
- Shareholders' equity reached a record $3.2 billion, with book value per share increasing to a record $125
- Repurchased $50 million of common stock
- Return on equity of 12%
The Company reported pre-tax income of $89.2 million and net income of $67.8 million ($2.55 per diluted share). This compares to pre-tax income of $146.1 million and net income of $111.2 million, or $3.98 per diluted share, for the first quarter of 2025.
Homes delivered in 2026's first quarter decreased 3% to 1,914 homes. This compares to 1,976 homes delivered in 2025's first quarter. New contracts increased 3% to 2,350 for the first quarter of 2026 compared to 2,292 in last year's first quarter. Homes in backlog at March 31, 2026 had a total sales value of $1.20 billion, a 23% decrease from a year ago. Backlog units at March 31, 2026 decreased 21% to 2,245 homes, with an average sales price of $536,000. At March 31, 2025, backlog sales value was $1.56 billion, with backlog units of 2,847 and an average sales price of $548,000. M/I Homes had 230 communities at March 31, 2026 compared to 226 communities at March 31, 2025. The Company's cancellation rate was 8% in the first quarter of 2026 compared to 10% in the first quarter of 2025.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "In the face of challenging market conditions, we produced very solid first quarter results – led by increased new contracts, gross margins of 22%, pre-tax income of 10%, and a return on equity of 12%. We continue to believe that long-term housing demand is supported by favorable demographic trends and an undersupply of housing. We have a strong financial position with record shareholders' equity of $3.2 billion, cash of $767 million, and no borrowings under our $900 million credit facility. With a strong balance sheet, a diverse product offering, and well-located communities, we believe we are well positioned to continue delivering solid results despite all of the market uncertainty."
The Company will broadcast live its earnings conference call today at 10:30 A.M. Eastern Time. To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the "Investors" section of the site, and select "Listen to the Conference Call." A replay of the call will continue to be available on our website through April 2027.
M/I Homes, Inc., celebrating its 50th year in business in 2026, is one of the nation's leading homebuilders of single-family homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota, Fort Myers/Naples and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina and Nashville, Tennessee.
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "targets," "envisions," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations including changes in trade policy affecting business such as new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties, as more fully discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.
M/I Homes, Inc. and Subsidiaries Summary Statement of Income (unaudited) (Dollars and shares in thousands, except per share amounts) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
New contracts | 2,350 | 2,292 | |
Average community count | 231 | 223 | |
Cancellation rate | 8 % | 10 % | |
Backlog units | 2,245 | 2,847 | |
Backlog sales value | $ 1,204,172 | $ 1,559,251 | |
Homes delivered | 1,914 | 1,976 | |
Average home closing price | $ 459 | $ 476 | |
Homebuilding revenue: | |||
Housing revenue | $ 878,610 | $ 940,031 | |
Land revenue | 10,866 | 4,542 | |
Total homebuilding revenue | $ 889,476 | $ 944,573 | |
Financial services revenue | 31,231 | 31,520 | |
Total revenue | $ 920,707 | $ 976,093 | |
Cost of sales - operations | 718,116 | 723,310 | |
Gross margin | $ 202,591 | $ 252,783 | |
General and administrative expense | 61,186 | 59,073 | |
Selling expense | 55,340 | 52,786 | |
Operating income | $ 86,065 | $ 140,924 | |
Interest income, net of interest expense | (3,105) | (5,197) | |
Income before income taxes | $ 89,170 | $ 146,121 | |
Provision for income taxes | 21,338 | 34,884 | |
Net income | $ 67,832 | $ 111,237 | |
Earnings per share: | |||
Basic | $ 2.61 | $ 4.07 | |
Diluted | $ 2.55 | $ 3.98 | |
Weighted average shares outstanding: | |||
Basic | 26,007 | 27,314 | |
Diluted | 26,562 | 27,941 | |
M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) | |||
As of | |||
March 31, | |||
2026 | 2025 | ||
Assets: | |||
Total cash, cash equivalents and restricted cash | $ 767,416 | $ 776,378 | |
Mortgage loans held for sale | 261,807 | 238,583 | |
Inventory: | |||
Lots, land and land development | 1,866,252 | 1,666,045 | |
Land held for sale | 31,961 | 3,903 | |
Homes under construction | 1,267,202 | 1,342,424 | |
Other inventory | 233,686 | 192,333 | |
Total Inventory | $ 3,399,101 | $ 3,204,705 | |
Property and equipment - net | 31,879 | 33,569 | |
Investments in joint venture arrangements | 68,357 | 70,727 | |
Operating lease right-of-use assets | 53,116 | 57,428 | |
Goodwill | 16,400 | 16,400 | |
Deferred income tax asset | 4,508 | 13,451 | |
Other assets | 185,802 | 173,982 | |
Total Assets | $ 4,788,386 | $ 4,585,223 | |
Liabilities: | |||
Debt - Homebuilding Operations: | |||
Senior notes due 2028 - net | $ 398,620 | $ 397,846 | |
Senior notes due 2030 - net | 297,999 | 297,495 | |
Total Debt - Homebuilding Operations | $ 696,619 | $ 695,341 | |
Notes payable bank - financial services operations | 260,201 | 227,957 | |
Total Debt | $ 956,820 | $ 923,298 | |
Accounts payable | 215,817 | 228,909 | |
Operating lease liabilities | 54,867 | 58,960 | |
Other liabilities | 368,550 | 367,722 | |
Total Liabilities | $ 1,596,054 | $ 1,578,889 | |
Shareholders' Equity | 3,192,332 | 3,006,334 | |
Total Liabilities and Shareholders' Equity | $ 4,788,386 | $ 4,585,223 | |
Book value per common share | $ 124.75 | $ 112.29 | |
Homebuilding debt to capital ratio (1) | 18 % | 19 % | |
(1) | The ratio of homebuilding debt to capital is calculated as the carrying value of our homebuilding debt outstanding divided by the sum of the carrying value of our homebuilding debt outstanding plus shareholders' equity. |
M/I Homes, Inc. and Subsidiaries Selected Supplemental Financial and Operating Data (unaudited) (Dollars in thousands) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
Cash provided by operating activities | $ 135,731 | $ 64,887 | |
Cash provided by (used in) investing activities | $ 5,118 | $ (2,928) | |
Cash used in financing activities | $ (62,622) | $ (107,151) | |
Land/lot purchases | $ 79,240 | $ 145,983 | |
Land development spending | $ 104,363 | $ 101,599 | |
Land sale revenue | $ 10,866 | $ 4,542 | |
Land sale gross profit | $ 2,199 | $ 786 | |
Financial services pre-tax income | $ 14,097 | $ 16,106 | |
M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
Net income | $ 67,832 | $ 111,237 | |
Add: | |||
Provision for income taxes | 21,338 | 34,884 | |
Interest income - net | (5,840) | (8,041) | |
Interest amortized to cost of sales | 6,694 | 6,901 | |
Depreciation and amortization | 5,254 | 4,777 | |
Non-cash charges | 4,185 | 4,200 | |
Adjusted EBITDA | $ 99,463 | $ 153,958 | |
(1) | We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations. |
M/I Homes, Inc. and Subsidiaries Selected Supplemental Financial and Operating Data | ||||||
NEW CONTRACTS | ||||||
Three Months Ended | ||||||
March 31, | ||||||
% | ||||||
Region | 2026 | 2025 | Change | |||
Northern | 1,026 | 1,065 | (4) % | |||
Southern | 1,324 | 1,227 | 8 % | |||
Total | 2,350 | 2,292 | 3 % | |||
HOMES DELIVERED | ||||||
Three Months Ended | ||||||
March 31, | ||||||
% | ||||||
Region | 2026 | 2025 | Change | |||
Northern | 752 | 826 | (9) % | |||
Southern | 1,162 | 1,150 | 1 % | |||
Total | 1,914 | 1,976 | (3) % | |||
BACKLOG | ||||||||||||
March 31, 2026 | March 31, 2025 | |||||||||||
Dollars | Average | Dollars | Average | |||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||
Northern | 1,110 | $ 633 | $ 570,000 | 1,375 | $ 765 | $ 556,000 | ||||||
Southern | 1,135 | $ 571 | $ 503,000 | 1,472 | $ 795 | $ 540,000 | ||||||
Total | 2,245 | $ 1,204 | $ 536,000 | 2,847 | $ 1,559 | $ 548,000 | ||||||
LAND POSITION SUMMARY | ||||||||||||
March 31, 2026 | March 31, 2025 | |||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||
Northern | 6,888 | 12,953 | 19,841 | 6,855 | 9,501 | 16,356 | ||||||
Southern | 17,370 | 12,832 | 30,202 | 18,355 | 16,386 | 34,741 | ||||||
Total | 24,258 | 25,785 | 50,043 | 25,210 | 25,887 | 51,097 | ||||||
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SOURCE M/I Homes, Inc.