M/I Homes Reports 2026 Third Quarter Results
COLUMBUS, Ohio, Oct. 21, 2026 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three and nine months ended September 30, 2026.
2026 Third Quarter Results:
- New contracts decreased 2% to 1,861
- Homes delivered decreased 2% to 2,241
- Revenue declined 5% to $1.1 billion
- Gross margin of 20.9%; 21.3% excluding inventory charges
- Pre-tax income of $87 million, including inventory charges of $5 million, down 38%
- Net income of $67 million ($2.56 per diluted share) versus $107 million ($3.92 per diluted share)
- Shareholders' equity reached a record $3.3 billion, with book value per share increasing to a record $130
- Repurchased $50 million of common stock
- Homebuilding debt to capital ratio of 18%
The Company reported pre-tax income of $86.9 million and net income of $66.6 million ($2.56 per diluted share). These results include pre-tax inventory charges of $4.7 million ($0.14 per diluted share). This compares to pre-tax income of $139.8 million and net income of $106.5 million, or $3.92 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, pre-tax income was $280.6 million and net income was $213.5 million, or $8.14 per diluted share. This compared to pre-tax income of $446.0 million and net income of $339.0 million, or $12.32 per diluted share, for the same period of 2025.
Homes delivered in 2026's third quarter decreased 2% to 2,241 homes. This compares to 2,296 homes delivered in 2025's third quarter. Homes delivered for the nine months ended September 30, 2026 were 6,361 compared to 2025's deliveries of 6,620 for the nine months ended September 30, 2025, a decrease of 4%. New contracts decreased 2% to 1,861 for the third quarter of 2026 compared to 1,908 in last year's third quarter. For the first nine months of 2026, new contracts were 6,598 compared to 6,278 in 2025, an increase of 5%. Homes in backlog at September 30, 2026 had a total sales value of $1.1 billion, a 9% decrease from a year ago. Backlog units at September 30, 2026 decreased 7% to 2,046 homes, with an average sales price of $539,000. At September 30, 2025, backlog sales value was $1.2 billion, with backlog units of 2,189 and an average sales price of $553,000. M/I Homes had 246 communities at September 30, 2026 compared to 233 communities at September 30, 2025. The Company's cancellation rate was 12% in both the third quarter of 2026 and 2025.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "Our third quarter results reflect increasingly difficult market conditions, including higher mortgage interest rates, weaker demand and growing economic uncertainty. Notwithstanding these conditions, we produced fairly solid results generating $87 million of pre-tax income, equating to an 8% return. Despite the current conditions, we remain confident in the long-term fundamentals of the housing industry. Our financial condition is excellent, is highlighted by a very strong balance sheet with record shareholders' equity of $3.3 billion, no borrowings under our $900 million unsecured credit facility, cash of $621 million, a homebuilding debt-to-capital ratio of 18%, and a net debt-to-capital ratio of 2%. We are well positioned to manage through this current cycle given the strength of our balance sheet, low debt levels, diverse product offerings and well-located communities."
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 October 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 | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
New contracts | 1,861 | 1,908 | 6,598 | 6,278 | |||
Average community count | 240 | 234 | 236 | 228 | |||
Cancellation rate | 12 % | 12 % | 10 % | 12 % | |||
Backlog units | 2,046 | 2,189 | 2,046 | 2,189 | |||
Backlog sales value | $1,103,044 | $1,210,790 | $1,103,044 | $1,210,790 | |||
Homes delivered | 2,241 | 2,296 | 6,361 | 6,620 | |||
Average home closing price | $ 460 | $ 477 | $ 459 | $ 477 | |||
Homebuilding revenue: | |||||||
Housing revenue | $1,031,362 | $1,095,418 | $2,921,946 | $3,159,924 | |||
Land revenue | 11,963 | 1,724 | 41,777 | 12,933 | |||
Total homebuilding revenue | $1,043,325 | $1,097,142 | $2,963,723 | $3,172,857 | |||
Financial services revenue | 32,744 | 34,649 | 96,311 | 97,619 | |||
Total revenue | $1,076,069 | $1,131,791 | $3,060,034 | $3,270,476 | |||
Cost of sales - operations | 846,869 | 854,122 | 2,388,544 | 2,453,405 | |||
Cost of sales - inventory charges | 4,723 | 7,583 | 8,923 | 7,583 | |||
Gross margin | $ 224,477 | $ 270,086 | $ 662,567 | $ 809,488 | |||
General and administrative expense | 76,568 | 70,766 | 207,952 | 197,086 | |||
Selling expense | 64,611 | 64,049 | 183,974 | 180,490 | |||
Operating income | $ 83,298 | $ 135,271 | $ 270,641 | $ 431,912 | |||
Interest income, net of interest expense | (3,578) | (4,548) | (9,969) | (14,122) | |||
Income before income taxes | $ 86,876 | $ 139,819 | $ 280,610 | $ 446,034 | |||
Provision for income taxes | 20,323 | 33,329 | 67,157 | 107,064 | |||
Net income | $ 66,553 | $ 106,490 | $ 213,453 | $ 338,970 | |||
Earnings per share: | |||||||
Basic | $ 2.62 | $ 4.01 | $ 8.31 | $ 12.60 | |||
Diluted | $ 2.56 | $ 3.92 | $ 8.14 | $ 12.32 | |||
Weighted average shares outstanding: | |||||||
Basic | 25,431 | 26,544 | 25,699 | 26,895 | |||
Diluted | 25,949 | 27,188 | 26,233 | 27,513 | |||
M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts)
| |||
As of | |||
September 30, | |||
2026 | 2025 | ||
Assets: | |||
Total cash, cash equivalents and restricted cash | $ 620,595 | $ 734,174 | |
Mortgage loans held for sale | 232,575 | 239,585 | |
Inventory: | |||
Lots, land and land development | 1,846,926 | 1,743,476 | |
Land held for sale | 37,867 | 9,231 | |
Homes under construction | 1,488,266 | 1,457,843 | |
Other inventory | 227,589 | 202,280 | |
Total Inventory | $ 3,600,648 | $ 3,412,830 | |
Property and equipment - net | 34,884 | 32,668 | |
Investments in joint venture arrangements | 87,167 | 81,514 | |
Operating lease right-of-use assets | 49,793 | 50,322 | |
Goodwill | 16,400 | 16,400 | |
Deferred income tax asset | 4,508 | 13,451 | |
Other assets | 213,595 | 188,600 | |
Total Assets | $ 4,860,165 | $ 4,769,544 | |
Liabilities: | |||
Debt - Homebuilding Operations: | |||
Senior notes due 2028 - net | $ 399,007 | $ 398,233 | |
Senior notes due 2030 - net | 298,251 | 297,747 | |
Total Debt - Homebuilding Operations | $ 697,258 | $ 695,980 | |
Notes payable bank - financial services operations | 230,424 | 231,979 | |
Total Debt | $ 927,682 | $ 927,959 | |
Accounts payable | 229,132 | 257,981 | |
Operating lease liabilities | 51,637 | 51,968 | |
Other liabilities | 399,147 | 382,187 | |
Total Liabilities | $ 1,607,598 | $ 1,620,095 | |
Shareholders' Equity | 3,252,567 | 3,149,449 | |
Total Liabilities and Shareholders' Equity | $ 4,860,165 | $ 4,769,544 | |
Book value per common share | $ 129.94 | $ 120.44 | |
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 | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Cash (used in) provided by operating activities | $ (13,319) | $ 43,414 | $ 159,218 | $ 146,056 | |||
Cash used in investing activities | $ (34,013) | $ (15,452) | $ (40,768) | $ (30,698) | |||
Cash used in financing activities | $ (68,014) | $ (94,186) | $ (187,044) | $ (202,754) | |||
Land/lot purchases | $ 135,209 | $ 115,372 | $ 345,505 | $ 363,106 | |||
Land development spending | $ 154,418 | $ 181,320 | $ 413,523 | $ 421,927 | |||
Land sale revenue | $ 11,963 | $ 1,724 | $ 41,777 | $ 12,933 | |||
Land sale gross profit | $ 2,304 | $ 163 | $ 9,994 | $ 4,151 | |||
Financial services pre-tax income | $ 13,432 | $ 16,598 | $ 41,952 | $ 47,180 | |||
M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net income | $ 66,553 | $ 106,490 | $ 213,453 | $ 338,970 | |||
Add: | |||||||
Provision for income taxes | 20,323 | 33,329 | 67,157 | 107,064 | |||
Interest income - net | (6,484) | (8,118) | (18,480) | (23,885) | |||
Interest amortized to cost of sales | 7,915 | 7,651 | 22,561 | 22,779 | |||
Depreciation and amortization | 5,775 | 5,116 | 16,362 | 14,797 | |||
Non-cash charges | 9,357 | 12,108 | 22,303 | 20,224 | |||
Adjusted EBITDA | $ 103,439 | $ 156,576 | $ 323,356 | $ 479,949 | |||
(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 | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
% | % | ||||||||||||
Region | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||
Northern | 746 | 742 | 1 % | 2,788 | 2,680 | 4 % | |||||||
Southern | 1,115 | 1,166 | (4) % | 3,810 | 3,598 | 6 % | |||||||
Total | 1,861 | 1,908 | (2) % | 6,598 | 6,278 | 5 % | |||||||
HOMES DELIVERED | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
% | % | ||||||||||||
Region | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||
Northern | 949 | 942 | 1 % | 2,593 | 2,735 | (5) % | |||||||
Southern | 1,292 | 1,354 | (5) % | 3,768 | 3,885 | (3) % | |||||||
Total | 2,241 | 2,296 | (2) % | 6,361 | 6,620 | (4) % | |||||||
BACKLOG | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Dollars | Average | Dollars | Average | |||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||
Northern | 1,031 | $ 595 | $ 577,000 | 1,081 | $ 609 | $ 563,000 | ||||||
Southern | 1,015 | $ 508 | $ 501,000 | 1,108 | $ 602 | $ 544,000 | ||||||
Total | 2,046 | $ 1,103 | $ 539,000 | 2,189 | $ 1,211 | $ 553,000 | ||||||
LAND POSITION SUMMARY | ||||||||
September 30, 2026 | September 30, 2025 | |||||||
Lots | Lots Under | Lots | Lots Under | |||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||
Northern | 6,880 | 13,396 | 20,276 | 7,140 | 10,843 | 17,983 | ||
Southern | 16,545 | 12,113 | 28,658 | 17,268 | 15,374 | 32,642 | ||
Total | 23,425 | 25,509 | 48,934 | 24,408 | 26,217 | 50,625 | ||
M/I Homes, Inc. and Subsidiaries Non-GAAP Reconciliation (1) (Dollars and shares in thousands, except per share amounts)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Income before income taxes | $ 86,876 | $ 139,819 | $ 280,610 | $ 446,034 | |||
Add: Inventory charges (2) | 4,723 | 7,583 | 8,923 | 7,583 | |||
Adjusted income before income taxes | $ 91,599 | $ 147,402 | $ 289,533 | $ 453,617 | |||
Net income | $ 66,553 | $ 106,490 | $ 213,453 | $ 338,970 | |||
Add: Inventory charges - net of tax (2) | 3,618 | 5,991 | 6,788 | 5,991 | |||
Adjusted net income | $ 70,171 | $ 112,481 | $ 220,241 | $ 344,961 | |||
Inventory charges - net of tax (2) | $ 3,618 | $ 5,991 | $ 6,788 | $ 5,991 | |||
Divided by: Diluted weighted average shares outstanding | 25,949 | 27,188 | 26,233 | 27,513 | |||
Diluted earnings per share related to inventory charges (2) | $ 0.14 | $ 0.22 | $ 0.26 | $ 0.22 | |||
Add: Diluted earnings per share | 2.56 | 3.92 | 8.14 | 12.32 | |||
Adjusted diluted earnings per share | $ 2.70 | $ 4.14 | $ 8.40 | $ 12.54 | |||
(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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