M/I Homes Reports 2026 Second Quarter Results
COLUMBUS, Ohio, July 29, 2026 /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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