M/I Homes Reports Fourth Quarter and Year-End Results

Press Release Company Release - 1/28/2026 7:30 AM ET , /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 1,921Homes delivered decreased 4% to 2,301Revenue declined 5% to $1.1 billionPre-tax income of $81 million, including charges of $51 million consisting of $40 million of inventory charges and $11 million of certain warranty chargesGross margin of 18.1%; 22.6% excluding chargesNet 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 2024Ended the quarter with 232 communities versus 220 a year agoRepurchased $50 million of stock 2025 Full Year Results: New contracts decreased 4% to 8,199Homes delivered decreased 1% to 8,921Revenue decreased 2% to $4.4 billionPre-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 chargesNet 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 $123Repurchased $202 million of stockReturn 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-fourth-quarter-and-year-end-results-302671742.html SOURCE M/I Homes, Inc.