Original source text
, /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and six months ended June 30, 2026.
2026 Second Quarter Results:
New contracts increased 15% to 2,387, a second quarter record Homes delivered decreased 6% to 2,206 Revenue declined 9% to $1.1 billion Gross margin of 22% Pre-tax income of $105 million, including inventory charges of $4 million, 10% of revenue, down 35% Net income of $79 million ($3.02 per diluted share) versus $121 million ($4.42 per diluted share) Shareholders' equity reached a record $3.2 billion, with book value per share increasing to a record $128 Repurchased $50 million of common stock Return on equity of 10% Homebuilding debt to capital ratio of 18% The Company reported pre-tax income of $104.6 million and net income of $79.1 million ($3.02 per diluted share). These results include pre-tax inventory charges of $4.2 million ($0.12 per diluted share). This compares to pre-tax income of $160.1 million and net income of $121.2 million, or $4.42 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, pre-tax income was $193.7 million and net income was $146.9 million, or $5.57 per diluted share. This compared to pre-tax income of $306.2 million and net income of $232.5 million, or $8.40 per diluted share, for the same period of 2025.
Homes delivered in 2026's second quarter decreased 6% to 2,206 homes. This compares to 2,348 homes delivered in 2025's second quarter. Homes delivered for the six months ended June 30, 2026 were 4,120 compared to 2025's deliveries of 4,324 for the six months ended June 30, 2025, a decrease of 5%. New contracts increased 15% to a record 2,387 for the second quarter of 2026 compared to 2,078 in last year's second quarter. For the first half of 2026, new contracts were 4,737 compared to 4,370 in 2025, an increase of 8%. Homes in backlog at June 30, 2026 had a total sales value of $1.31 billion, an 8% decrease from a year ago. Backlog units at June 30, 2026 decreased 6% to 2,426 homes, with an average sales price of $538,000. At June 30, 2025, backlog sales value was $1.43 billion, with backlog units of 2,577 and an average sales price of $553,000. M/I Homes had 234 communities at both June 30, 2026 and 2025. The Company's cancellation rate was 8% in the second quarter of 2026 compared to 13% in the second quarter of 2025.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "We delivered solid second quarter results despite continued challenging market conditions. Highlights included a second quarter record of 2,387 new contracts, gross margins of 22%, a pre-tax margin of 10% and a return on equity of 10%."
Mr. Schottenstein added, "Notwithstanding current market conditions, we are confident in the long-term fundamentals of the housing industry and in our ability to navigate this uncertain environment. Our financial condition is excellent, highlighted by S&P's recent upgrade of our credit rating to BB+. We have a very strong balance sheet with record shareholders' equity of $3.2 billion, no borrowings under our $900 million unsecured credit facility, cash of $736 million, a homebuilding debt-to-capital ratio of 18%, and a net debt-to-capital ratio of negative 1%. Given the quality of our geographic footprint, the diversity of our product offering and continued focus on well-located communities, we are well positioned to have a solid 2026."
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 July 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
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
New contracts
2,387
2,078
4,737
4,370
Average community count
232
230
232
227
Cancellation rate
8 %
13 %
8 %
11 %
Backlog units
2,426
2,577
2,426
2,577
Backlog sales value
$ 1,305,248
$ 1,425,138
$ 1,305,248
$ 1,425,138
Homes delivered
2,206
2,348
4,120
4,324
Average home closing price
$ 459
$ 479
$ 459
$ 477
Homebuilding revenue:
Housing revenue
$ 1,011,974
$ 1,124,475
$ 1,890,584
$ 2,064,506
Land revenue
18,948
6,667
29,814
11,209
Total homebuilding revenue
$ 1,030,922
$ 1,131,142
$ 1,920,398
$ 2,075,715
Financial services revenue
32,336
31,450
63,567
62,970
Total revenue
$ 1,063,258
$ 1,162,592
$ 1,983,965
$ 2,138,685
Cost of sales - operations
823,559
875,973
1,541,675
1,599,283
Cost of sales - inventory charges
4,200
—
4,200
—
Gross margin
$ 235,499
$ 286,619
$ 438,090
$ 539,402
General and administrative expense
70,198
67,247
131,384
126,320
Selling expense
64,023
63,655
119,363
116,441
Operating income
$ 101,278
$ 155,717
$ 187,343
$ 296,641
Interest income, net of interest expense
(3,286)
(4,377)
(6,391)
(9,574)
Income before income taxes
$ 104,564
$ 160,094
$ 193,734
$ 306,215
Provision for income taxes
25,496
38,851
46,834
73,735
Net income
$ 79,068
$ 121,243
$ 146,900
$ 232,480
Earnings per share:
Basic
$ 3.08
$ 4.52
$ 5.69
$ 8.59
Diluted
$ 3.02
$ 4.42
$ 5.57
$ 8.40
Weighted average shares outstanding:
Basic
25,667
26,836
25,836
27,074
Diluted
26,193
27,406
26,376
27,673
M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)
As of
June 30,
2026
2025
Assets:
Total cash, cash equivalents and restricted cash
$ 735,941
$ 800,398
Mortgage loans held for sale
258,965
280,867
Inventory:
Lots, land and land development
1,850,007
1,683,930
Land held for sale
40,887
5,005
Homes under construction
1,387,441
1,403,582
Other inventory
226,963
194,089
Total Inventory
$ 3,505,298
$ 3,286,606
Property and equipment - net
34,446
33,749
Investments in joint venture arrangements
62,018
67,466
Operating lease right-of-use assets
51,929
56,403
Goodwill
16,400
16,400
Deferred income tax asset
4,508
13,451
Other assets
186,538
184,699
Total Assets
$ 4,856,043
$ 4,740,039
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2028 - net
$ 398,814
$ 398,040
Senior notes due 2030 - net
298,125
297,621
Total Debt - Homebuilding Operations
$ 696,939
$ 695,661
Notes payable bank - financial services operations
252,366
275,926
Total Debt
$ 949,305
$ 971,587
Accounts payable
244,494
252,476
Operating lease liabilities
53,732
57,997
Other liabilities
381,092
375,843
Total Liabilities
$ 1,628,623
$ 1,657,903
Shareholders' Equity
3,227,420
3,082,136
Total Liabilities and Shareholders' Equity
$ 4,856,043
$ 4,740,039
Book value per common share
$ 127.88
$ 117.01
Homebuilding debt to capital ratio (1)
18 %
18 %
(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
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Cash provided by operating activities
$ 36,806
$ 37,755
$ 172,537
$ 102,642
Cash used in investing activities
$ (11,873)
$ (12,318)
$ (6,755)
$ (15,246)
Cash used in financing activities
$ (56,408)
$ (1,417)
$ (119,030)
$ (108,568)
Land/lot purchases
$ 131,056
$ 101,751
$ 210,296
$ 247,734
Land development spending
$ 154,742
$ 139,008
$ 259,105
$ 240,607
Land sale revenue
$ 18,948
$ 6,667
$ 29,814
$ 11,209
Land sale gross profit
$ 5,491
$ 3,202
$ 7,690
$ 3,988
Financial services pre-tax income
$ 14,423
$ 14,476
$ 28,520
$ 30,582
M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Net income
$ 79,068
$ 121,243
$ 146,900
$ 232,480
Add:
Provision for income taxes
25,496
38,851
46,834
73,735
Interest income - net
(6,156)
(7,726)
(11,996)
(15,767)
Interest amortized to cost of sales
7,952
8,227
14,646
15,128
Depreciation and amortization
5,333
4,904
10,587
9,681
Non-cash charges
8,761
3,916
12,946
8,116
Adjusted EBITDA
$ 120,454
$ 169,415
$ 219,917
$ 323,373
(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
Six Months Ended
June 30,
June 30,
%
%
Region
2026
2025
Change
2026
2025
Change
Northern
1,016
873
16 %
2,042
1,938
5 %
Southern
1,371
1,205
14 %
2,695
2,432
11 %
Total
2,387
2,078
15 %
4,737
4,370
8 %
HOMES DELIVERED
Three Months Ended
Six Months Ended
June 30,
June 30,
%
%
Region
2026
2025
Change
2026
2025
Change
Northern
892
967
(8) %
1,644
1,793
(8) %
Southern
1,314
1,381
(5) %
2,476
2,531
(2) %
Total
2,206
2,348
(6) %
4,120
4,324
(5) %
BACKLOG
June 30, 2026
June 30, 2025
Dollars
Average
Dollars
Average
Region
Units
(millions)
Sales Price
Units
(millions)
Sales Price
Northern
1,234
$ 699
$ 567,000
1,281
$ 721
$ 563,000
Southern
1,192
$ 606
$ 508,000
1,296
$ 704
$ 543,000
Total
2,426
$ 1,305
$ 538,000
2,577
$ 1,425
$ 553,000
LAND POSITION SUMMARY
June 30, 2026
June 30, 2025
Lots
Lots Under
Lots
Lots Under
Region
Owned
Contract
Total
Owned
Contract
Total
Northern
7,138
12,519
19,657
7,104
8,710
15,814
Southern
16,244
13,149
29,393
17,403
17,247
34,650
Total
23,382
25,668
49,050
24,507
25,957
50,464
M/I Homes, Inc. and Subsidiaries
Non-GAAP Reconciliation (1)
(Dollars and shares in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Income before income taxes
$ 104,564
$ 160,094
$ 193,734
$ 306,215
Add: Inventory charges (2)
4,200
—
4,200
—
Adjusted income before income taxes
$ 108,764
$ 160,094
$ 197,934
$ 306,215
Net income
$ 79,068
$ 121,243
$ 146,900
$ 232,480
Add: Inventory charges - net of tax (2)
3,176
—
3,185
—
Adjusted net income
$ 82,244
$ 121,243
$ 150,085
$ 232,480
Inventory charges - net of tax (2)
$ 3,176
$ —
$ 3,185
$ —
Divided by: Diluted weighted average shares outstanding
26,193
27,406
26,376
27,673
Diluted earnings per share related to inventory charges (2)
$ 0.12
$ —
$ 0.12
$ —
Add: Diluted earnings per share
3.02
4.42
5.57
8.40
Adjusted diluted earnings per share
$ 3.14
$ 4.42
$ 5.69
$ 8.40
(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.
(2)
Represents the related charges divided by diluted weighted average shares outstanding during the respective period as presented in the Summary Statement of Income.
SOURCE M/I Homes, Inc.
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