M/I Homes Reports Fourth Quarter and Year-End Results
COLUMBUS, Ohio, Jan. 28, 2026 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for its fourth quarter and year ended December 31, 2025.
2025 Fourth Quarter Results:
- New contracts increased 9% to 1,921
- Homes delivered decreased 4% to 2,301
- Revenue declined 5% to $1.1 billion
- Pre-tax income of $81 million, including charges of $51 million consisting of $40 million of inventory charges and $11 million of certain warranty charges
- Gross margin of 18.1%; 22.6% excluding charges
- Net income of $64 million ($2.39 per diluted share; $3.91 per diluted share excluding charges) compared to $134 million ($4.71 per diluted share) in 2024
- Ended the quarter with 232 communities versus 220 a year ago
- Repurchased $50 million of stock
2025 Full Year Results:
- New contracts decreased 4% to 8,199
- Homes delivered decreased 1% to 8,921
- Revenue decreased 2% to $4.4 billion
- Pre-tax income of $527 million; 12% of revenue; including charges of $59 million consisting of $48 million of inventory charges and $11 million of certain warranty charges
- Net income of $403 million ($14.74 per diluted share; $16.39 per diluted shares excluding charges)
- Shareholders' equity reached an all-time record of $3.2 billion, with book value per share of $123
- Repurchased $202 million of stock
- Return on equity of 13%
- Homebuilding debt to capital ratio of 18%
The Company reported pre-tax income of $80.6 million and net income of $64.0 million ($2.39 per diluted share) in the fourth quarter of 2025. These results include pre-tax charges of $51.2 million ($1.52 per diluted share) consisting of $40.1 million of inventory charges and $11.2 million of certain warranty charges. This compares to pre-tax income of $170.6 million and net income of $133.5 million, or $4.71 per diluted share, for the fourth quarter of 2024, both were fourth quarter records. For the year ended December 31, 2025, pre-tax income was $526.6 million and net income was $402.9 million, or $14.74 per diluted share. These results include charges of $58.9 million ($1.65 per diluted share) consisting of $47.7 million of inventory charges and $11.2 million of certain warranty charges. This compared to pre-tax income of $733.6 million and net income of $563.7 million, or $19.71 per diluted share, for the same period of 2024.
Homes delivered in 2025's fourth quarter were 2,301, a 4% decrease compared to 2,402 deliveries in 2024's fourth quarter. Homes delivered for the twelve months ended December 31, 2025 decreased 1% to 8,921 from 2024's deliveries of 9,055. New contracts for 2025's fourth quarter increased 9% to 1,921 from 1,759 new contracts in 2024's fourth quarter. For 2025, new contracts were 8,199, a 4% decrease from 2024's 8,584 new contracts. Homes in backlog decreased 29% at December 31, 2025 to 1,809 units, with a sales value of $989.9 million, a 29% decrease from last year, while the average sales price in backlog decreased 1% to $547,000. At December 31, 2024, the sales value of the 2,531 homes in backlog was $1.4 billion, with an average sales price of $553,000. M/I Homes had 232 active communities at December 31, 2025 compared to 220 a year ago. The Company's cancellation rate was 10% in 2025's fourth quarter compared to 14% for the prior year's fourth quarter.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "2025 was a very solid year for M/I Homes. Despite the various macro-economic factors impacting new home demand, we were pleased to deliver 8,921 homes for the year, produce $527 million of pretax income, generate a 12% pretax income return, as well as a 13% return on equity. We ended the year in excellent financial condition with record shareholders' equity of $3.2 billion, cash of $689 million, zero borrowings under our $900 million credit facility, a homebuilding debt to capital ratio of 18% and a net debt to capital ratio of zero."
Mr. Schottenstein concluded, "We are extremely proud to announce that 2026 marks our 50th year in business. Over the past 5 decades, M/I Homes has grown to become one of the nation's largest and most respected homebuilders with an unwavering focus on quality, customer service and operating at a high standard. While homebuilding conditions remain somewhat choppy and challenging, we are very confident in the long-term fundamentals of our industry and our ability to deliver strong results."
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 January 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 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, 2024, 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 | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
New contracts | 1,921 | 1,759 | 8,199 | 8,584 | |||
Average community count | 233 | 219 | 229 | 216 | |||
Cancellation rate | 10 % | 14 % | 11 % | 10 % | |||
Backlog units | 1,809 | 2,531 | 1,809 | 2,531 | |||
Backlog sales value | $ 989,930 | $ 1,399,683 | $ 989,930 | $ 1,399,683 | |||
Homes delivered | 2,301 | 2,402 | 8,921 | 9,055 | |||
Average home closing price | $ 484 | $ 490 | $ 479 | $ 483 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ 1,114,750 | $ 1,175,883 | $ 4,274,674 | $ 4,375,829 | |||
Land revenue | 4,711 | 882 | 17,644 | 12,635 | |||
Total homebuilding revenue | $ 1,119,461 | $ 1,176,765 | $ 4,292,318 | $ 4,388,464 | |||
Financial services revenue | 27,844 | 28,512 | 125,463 | 116,206 | |||
Total revenue | $ 1,147,305 | $ 1,205,277 | $ 4,417,781 | $ 4,504,670 | |||
Cost of sales - operations(1) | 899,508 | 908,452 | 3,352,913 | 3,305,781 | |||
Cost of sales - inventory charges | 40,086 | — | 47,669 | — | |||
Gross margin | $ 207,711 | $ 296,825 | $ 1,017,199 | $ 1,198,889 | |||
General and administrative expense | 65,680 | 70,059 | 262,766 | 258,422 | |||
Selling expense | 67,390 | 62,775 | 247,880 | 234,373 | |||
Operating income | $ 74,641 | $ 163,991 | $ 506,553 | $ 706,094 | |||
Interest income, net of interest expense | (5,913) | (6,566) | (20,035) | (27,514) | |||
Income before income taxes | $ 80,554 | $ 170,557 | $ 526,588 | $ 733,608 | |||
Provision for income taxes | 16,583 | 37,088 | 123,647 | 169,883 | |||
Net income | $ 63,971 | $ 133,469 | $ 402,941 | $ 563,725 | |||
Earnings per share: | |||||||
Basic | $ 2.44 | $ 4.85 | $ 15.07 | $ 20.29 | |||
Diluted | $ 2.39 | $ 4.71 | $ 14.74 | $ 19.71 | |||
Weighted average shares outstanding: | |||||||
Basic | 26,241 | 27,538 | 26,730 | 27,777 | |||
Diluted | 26,814 | 28,308 | 27,338 | 28,600 | |||
(1) | Includes $11.2 million of certain warranty charges for the three and twelve months ended December 31, 2025. |
M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) | |||
As of | |||
December 31, | |||
2025 | 2024 | ||
Assets: | |||
Total cash, cash equivalents and restricted cash | $ 689,189 | $ 821,570 | |
Mortgage loans held for sale | 309,100 | 283,540 | |
Inventory: | |||
Lots, land and land development | 1,881,158 | 1,630,190 | |
Land held for sale | 13,599 | 7,699 | |
Homes under construction | 1,282,608 | 1,271,626 | |
Other inventory | 206,576 | 182,347 | |
Total Inventory | $ 3,383,941 | $ 3,091,862 | |
Property and equipment - net | 34,342 | 34,513 | |
Operating lease right-of-use assets | 54,976 | 53,895 | |
Goodwill | 16,400 | 16,400 | |
Investments in joint venture arrangements | 106,299 | 65,334 | |
Deferred income tax asset | 4,508 | 13,451 | |
Other assets | 178,370 | 169,231 | |
Total Assets | $ 4,777,125 | $ 4,549,796 | |
Liabilities: | |||
Debt - Homebuilding Operations: | |||
Senior notes due 2028 - net | 398,427 | 397,653 | |
Senior notes due 2030 - net | 297,873 | 297,369 | |
Total Debt - Homebuilding Operations | $ 696,300 | $ 695,022 | |
Notes payable bank - financial services operations | 276,856 | 286,159 | |
Total Debt | $ 973,156 | $ 981,181 | |
Accounts payable | 181,189 | 198,579 | |
Operating lease liabilities | 56,675 | 55,365 | |
Other liabilities | 399,915 | 374,994 | |
Total Liabilities | $ 1,610,935 | $ 1,610,119 | |
Shareholders' Equity | 3,166,190 | 2,939,677 | |
Total Liabilities and Shareholders' Equity | $ 4,777,125 | $ 4,549,796 | |
Book value per common share | $ 122.90 | $ 108.62 | |
Homebuilding debt / 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 (Dollars in thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Cash (used in) provided by operating activities | $ (8,707) | $ 104,395 | $ 137,349 | $ 179,736 | |||
Cash used in investing activities | $ (29,042) | $ (9,859) | $ (59,740) | $ (54,896) | |||
Cash (used in) provided by financing activities | $ (7,236) | $ 7,114 | $ (209,990) | $ (36,074) | |||
Land/lot purchases | $ 160,583 | $ 107,384 | $ 523,689 | $ 472,937 | |||
Land development spending | $ 223,670 | $ 201,301 | $ 645,597 | $ 645,960 | |||
Land sale revenue | $ 4,711 | $ 882 | $ 17,644 | $ 12,635 | |||
Land sale gross profit | $ 933 | $ 391 | $ 4,196 | $ 3,709 | |||
Financial services pre-tax income | $ 8,476 | $ 10,034 | $ 55,656 | $ 49,682 | |||
M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $ 63,971 | $ 133,469 | $ 402,941 | $ 563,725 | |||
Add: | |||||||
Provision for income taxes | 16,583 | 37,088 | 123,647 | 169,883 | |||
Interest income - net | (9,149) | (10,177) | (33,034) | (40,719) | |||
Interest amortized to cost of sales | 7,412 | 8,181 | 30,191 | 32,053 | |||
Depreciation and amortization | 5,247 | 4,810 | 20,044 | 18,700 | |||
Non-cash charges | 44,443 | 9,709 | 64,667 | 23,808 | |||
Adjusted EBITDA | $ 128,507 | $ 183,080 | $ 608,456 | $ 767,450 | |||
(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 | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
% | % | |||||||||||
Region | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||
Northern | 736 | 707 | 4 % | 3,416 | 3,761 | (9) % | ||||||
Southern | 1,185 | 1,052 | 13 % | 4,783 | 4,823 | (1) % | ||||||
Total | 1,921 | 1,759 | 9 % | 8,199 | 8,584 | (4) % | ||||||
HOMES DELIVERED | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
% | % | |||||||||||
Region | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||
Northern | 981 | 1,064 | (8) % | 3,716 | 3,873 | (4) % | ||||||
Southern | 1,320 | 1,338 | (1) % | 5,205 | 5,182 | — % | ||||||
Total | 2,301 | 2,402 | (4) % | 8,921 | 9,055 | (1) % | ||||||
BACKLOG | ||||||||||||
December 31, 2025 | December 31, 2024 | |||||||||||
Dollars | Average | Dollars | Average | |||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||
Northern | 836 | $ 476 | $ 569,000 | 1,136 | $ 637 | $ 561,000 | ||||||
Southern | 973 | $ 514 | $ 528,000 | 1,395 | $ 763 | $ 547,000 | ||||||
Total | 1,809 | $ 990 | $ 547,000 | 2,531 | $ 1,400 | $ 553,000 | ||||||
LAND POSITION SUMMARY | ||||||||
December 31, 2025 | December 31, 2024 | |||||||
Lots | Lots Under | Lots | Lots Under | |||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||
Northern | 7,528 | 11,590 | 19,118 | 6,546 | 11,076 | 17,622 | ||
Southern | 18,124 | 12,739 | 30,863 | 17,290 | 17,244 | 34,534 | ||
Total | 25,652 | 24,329 | 49,981 | 23,836 | 28,320 | 52,156 | ||
M/I Homes, Inc. and Subsidiaries Non-GAAP Reconciliation (1) (Dollars and shares in thousands, except per share amounts) | |||||||
Three Months Ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Income before income taxes | $ 80,554 | $ 170,557 | $ 526,588 | $ 733,608 | |||
Add: Impairment of inventory and land deposit write-offs | 40,086 | — | 47,669 | — | |||
Add: Certain warranty charges | 11,162 | — | 11,162 | — | |||
Adjusted income before income taxes | $ 131,802 | $ 170,557 | $ 585,419 | $ 733,608 | |||
Net income | $ 63,971 | $ 133,469 | $ 402,941 | $ 563,725 | |||
Add: Impairment of inventory and land deposit write-offs - net of tax | 31,832 | — | 36,476 | — | |||
Add: Certain warranty charges - net of tax | 8,864 | — | 8,541 | — | |||
Adjusted net income | $ 104,667 | $ 133,469 | $ 447,958 | $ 563,725 | |||
Impairment of inventory and land deposit write-offs - net of tax | $ 31,832 | $ — | $ 36,476 | $ — | |||
Certain warranty charges - net of tax | $ 8,864 | $ — | $ 8,541 | $ — | |||
Divided by: Diluted weighted average shares outstanding | 26,814 | 28,308 | 27,338 | 28,600 | |||
Diluted earnings per share related to Impairment of inventory and land deposit write-offs (2) | $ 1.19 | $ — | $ 1.34 | $ 0.01 | |||
Diluted earnings per share related to certain warranty charges (2) | 0.33 | — | 0.31 | — | |||
Add: Diluted earnings per share | 2.39 | 4.71 | 14.74 | 19.71 | |||
Adjusted diluted earnings per share | $ 3.91 | $ 4.71 | $ 16.39 | $ 19.72 | |||
(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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