M/I Homes Reports 2026 Third Quarter Results

PR Newswire

COLUMBUS, Ohio, Oct. 21, 2026 /PRNewswire/ — M/I Homes, Inc. (NYSE:MHO) announced results for the three and nine months ended September 30, 2026.

M/I Homes, Inc.

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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-2026-third-quarter-results-302914531.html

SOURCE M/I Homes, Inc.

About The Author