M/I Homes Reports 2025 Third Quarter Results

Press Release Company Release - 10/22/2025 7:30 AM ET , /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and nine months ended September 30, 2025. 2025 Third Quarter Highlights: Homes delivered increased 1% to 2,296, a third quarter record Revenue declined 1% to $1.1 billion Pre-tax income of $140 million, 12% of revenue, down 26%; includes inventory charges of $7.6 million Net income of $106.5 million ($3.92 per diluted share) versus $145 million ($5.10 per diluted share) New contracts were 1,908, compared to 2,023 in last year's third quarter, a 6% decrease Shareholders' equity reached a record $3.1 billion, an 11% increase from a year ago, with book value per share increasing to a record high of $120 Repurchased $50 million of common stock Received upgrade from Moody's to Ba1 Extended our bank credit facility to 2030, and increased our borrowing capacity to $900 million The Company reported pre-tax income of $139.8 million and net income of $106.5 million ($3.92 per diluted share). Our current quarter results include a pre-tax inventory charge of $7.6 million. This compares to pre-tax income of $188.7 million and net income of $145.4 million, or $5.10 per diluted share, for the third quarter of 2024, both were third quarter records. For the nine months ended September 30, 2025, pre-tax income was $446.0 million and net income was $339.0 million, or $12.32 per diluted share, compared to $563.1 million and $430.3 million, or $14.99 per diluted share, for the same period of 2024, respectively. Homes delivered in 2025's third quarter increased 1% to a third quarter record of 2,296 homes. This compares to 2,271 homes delivered in 2024's third quarter. Homes delivered for the nine months ended September 30, 2025 were 6,620 compared to 2024's deliveries of 6,653. New contracts were 1,908 for the third quarter of 2025 compared to 2,023 in last year's third quarter. For the first nine months of 2025, new contracts were 6,278 compared to 6,825 in 2024. Homes in backlog at September 30, 2025 had a total sales value of $1.21 billion, a 30% decrease from a year ago. Backlog units at September 30, 2025 decreased 31% to 2,189 homes, with a record average sales price of $553,000. At September 30, 2024, backlog sales value was $1.73 billion, with backlog units of 3,174 and an average sales price of $544,000. M/I Homes had 233 communities at September 30, 2025 compared to 217 communities at September 30, 2024. The Company's cancellation rate was 12% in the third quarter of 2025 compared to 10% in the third quarter of 2024. Robert H. Schottenstein, Chief Executive Officer and President, commented, "Despite the continued challenging housing market conditions and uneven demand environment, we had a solid quarter. We produced $140 million of pre-tax income representing 12% of revenue and delivered a third quarter record 2,296 homes. This resulted in a strong return on equity of 16%." Mr. Schottenstein added, "While market conditions remain volatile, we are confident in the long-term fundamentals of the housing industry. Our financial position is excellent, highlighted by Moody's upgrade of our credit rating and the extension of our unsecured credit facility to 2030, with an increased borrowing capacity from $650 million to $900 million. We ended the quarter with zero borrowings under this facility, a homebuilding debt-to-capital ratio of 18%, and a net debt-to-capital ratio of negative 1%. With our strong balance sheet, diverse product offerings, and well-located communities, we are well positioned as we enter the fourth quarter of 2025." 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 2026. M/I Homes, Inc. 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, 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 Nine Months Ended September 30, September 30, 2025 2024 2025 2024 New contracts 1,908 2,023 6,278 6,825 Average community count 234 214 228 215 Cancellation rate 12 % 10 % 12 % 9 % Backlog units 2,189 3,174 2,189 3,174 Backlog sales value $ 1,210,790 $ 1,725,423 $ 1,210,790 $ 1,725,423 Homes delivered 2,296 2,271 6,620 6,653 Average home closing price $ 477 $ 489 $ 477 $ 481 Homebuilding revenue: Housing revenue $ 1,095,418 $ 1,111,389 $ 3,159,924 $ 3,199,946 Land revenue 1,724 1,550 12,933 11,753 Total homebuilding revenue $ 1,097,142 $ 1,112,939 $ 3,172,857 $ 3,211,699 Financial services revenue 34,649 29,970 97,619 87,694 Total revenue $ 1,131,791 $ 1,142,909 $ 3,270,476 $ 3,299,393 Cost of sales - operations 854,122 833,468 2,453,405 2,397,329 Cost of sales - impairment 7,583 — 7,583 — Gross margin $ 270,086 $ 309,441 $ 809,488 $ 902,064 General and administrative expense 70,766 68,285 197,086 188,363 Selling expense 64,049 59,163 180,490 171,598 Operating income $ 135,271 $ 181,993 $ 431,912 $ 542,103 Interest income, net of interest expense (4,548) (6,680) (14,122) (20,948) Income before income taxes $ 139,819 $ 188,673 $ 446,034 $ 563,051 Provision for income taxes 33,329 43,224 107,064 132,795 Net income $ 106,490 $ 145,449 $ 338,970 $ 430,256 Earnings per share: Basic $ 4.01 $ 5.26 $ 12.60 $ 15.45 Diluted $ 3.92 $ 5.10 $ 12.32 $ 14.99 Weighted average shares outstanding: Basic 26,544 27,644 26,895 27,857 Diluted 27,188 28,534 27,513 28,703 M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) As of September 30, 2025 2024 Assets: Total cash, cash equivalents and restricted cash(1) $ 734,174 $ 719,920 Mortgage loans held for sale 239,585 242,812 Inventory: Lots, land and land development 1,743,476 1,558,300 Land held for sale 9,231 3,859 Homes under construction 1,457,843 1,401,260 Other inventory 202,280 169,275 Total Inventory $ 3,412,830 $ 3,132,694 Property and equipment - net 32,668 34,714 Investments in joint venture arrangements 81,514 63,095 Operating lease right-of-use assets 50,322 55,259 Goodwill 16,400 16,400 Deferred income tax asset 13,451 15,313 Other assets 188,600 179,650 Total Assets $ 4,769,544 $ 4,459,857 Liabilities: Debt - Homebuilding Operations: Senior notes due 2028 - net $ 398,233 $ 397,459 Senior notes due 2030 - net 297,747 297,243 Total Debt - Homebuilding Operations $ 695,980 $ 694,702 Notes payable bank - financial services operations 231,979 235,441 Total Debt $ 927,959 $ 930,143 Accounts payable 257,981 256,708 Operating lease liabilities 51,968 56,667 Other liabilities 382,187 370,983 Total Liabilities $ 1,620,095 $ 1,614,501 Shareholders' Equity 3,149,449 2,845,356 Total Liabilities and Shareholders' Equity $ 4,769,544 $ 4,459,857 Book value per common share $ 120.44 $ 104.59 Homebuilding debt to capital ratio(2) 18 % 20 % (1) Includes $0.1 million of restricted cash and cash held in escrow for quarter ended September 30, 2025. (2) 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, 2025 2024 2025 2024 Cash provided by (used in) operating activities $ 43,414 $ (67,942) $ 146,056 $ 75,341 Cash used in investing activities $ (15,452) $ (17,496) $ (30,698) $ (45,037) Cash used in financing activities $ (94,186) $ (32,100) $ (202,754) $ (43,188) Land/lot purchases $ 115,372 $ 138,711 $ 363,106 $ 365,553 Land development spending $ 181,320 $ 180,753 $ 421,927 $ 444,659 Land sale revenue $ 1,724 $ 1,550 $ 12,933 $ 11,753 Land sale gross profit $ 163 $ 72 $ 4,151 $ 3,318 Financial services pre-tax income $ 16,598 $ 12,936 $ 47,180 $ 39,648 M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Net income $ 106,490 $ 145,449 $ 338,970 $ 430,256 Add: Provision for income taxes 33,329 43,224 107,064 132,795 Interest income - net (8,118) (10,089) (23,885) (30,542) Interest amortized to cost of sales 7,651 7,632 22,779 23,872 Depreciation and amortization 5,116 4,816 14,797 13,890 Non-cash charges 12,108 6,750 20,224 14,099 Adjusted EBITDA $ 156,576 $ 197,782 $ 479,949 $ 584,370 (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 2025 2024 Change 2025 2024 Change Northern 742 890 (17) % 2,680 3,054 (12) % Southern 1,166 1,133 3 % 3,598 3,771 (5) % Total 1,908 2,023 (6) % 6,278 6,825 (8) % HOMES DELIVERED Three Months Ended Nine Months Ended September 30, September 30, % % Region 2025 2024 Change 2025 2024 Change Northern 942 1,015 (7) % 2,735 2,809 (3) % Southern 1,354 1,256 8 % 3,885 3,844 1 % Total 2,296 2,271 1 % 6,620 6,653 — % BACKLOG September 30, 2025 September 30, 2024 Dollars Average Dollars Average Region Units (millions) Sales Price Units (millions) Sales Price Northern 1,081 $ 609 $ 563,000 1,493 $ 803 $ 538,000 Southern 1,108 $ 602 $ 544,000 1,681 $ 923 $ 549,000 Total 2,189 $ 1,211 $ 553,000 3,174 $ 1,726 $ 544,000 LAND POSITION SUMMARY September 30, 2025 September 30, 2024 Lots Lots Under Lots Lots Under Region Owned Contract Total Owned Contract Total Northern 7,140 10,843 17,983 6,528 10,885 17,413 Southern 17,268 15,374 32,642 17,114 17,678 34,792 Total 24,408 26,217 50,625 23,642 28,563 52,205 View original content to download multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-2025-third-quarter-results-302590490.html SOURCE M/I Homes, Inc.