M/I Homes Reports 2025 First Quarter Results
Rhea-AI Summary
M/I Homes (NYSE:MHO) reported mixed first quarter 2025 results with several key metrics showing declines. Revenue decreased 7% to $976 million, while homes delivered fell 8% to 1,976 units compared to 2,158 in Q1 2024. Net income declined to $111 million ($3.98 per diluted share) from $138 million ($4.78 per diluted share) year-over-year.
The company maintained a strong gross margin of 25.9% despite challenging market conditions. New contracts decreased 10% to 2,292, with a backlog value of $1.56 billion, down 13% from the previous year. The cancellation rate increased to 10% from 8% year-over-year.
Notable positives include record shareholders' equity reaching $3 billion, a 14% increase, with book value per share of $112. The company expanded to 226 active communities, up from 219 last year, and maintains a strong financial position with $776 million in cash and a negative 3% net debt-to-capital ratio.
Positive
- Record shareholders' equity of $3 billion, up 14% year-over-year
- Strong gross margin of 25.9%
- Solid cash position of $776 million with negative 3% net debt-to-capital ratio
- Increased community count to 226, with planned 5% growth
- Book value per share reached $112, showing strong asset value
Negative
- Revenue declined 7% to $976 million
- Net income decreased 19% to $111 million
- Home deliveries fell 8% to 1,976 units
- New contracts decreased 10% to 2,292
- Cancellation rate increased to 10% from 8%
- Backlog value dropped 13% to $1.56 billion
News Market Reaction
On the day this news was published, MHO declined 3.60%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
2025 First Quarter Highlights:
- Homes delivered decreased
8% to 1,976 from 2,158 - Revenue decreased
7% to$976 million - Pre-tax income decreased
19% to$146 million 15% of revenue - Net income of
$111 million $3.98 $138 million $4.78 - Shareholders' equity reached an all-time record
$3 billion 14% increase from a year ago, with book value per share of$112 - New contracts were 2,292, compared to 2,547 in last year's first quarter
- Repurchased
$50 million - Return on equity of
19%
The Company reported pre-tax income of
Homes delivered in 2025's first quarter decreased
Robert H. Schottenstein, Chief Executive Officer and President, commented, "Our first quarter results were solid despite the many challenges facing the housing industry, including declining consumer confidence. While our new contracts were down
Mr. Schottenstein added, "Though current conditions are choppy, and are likely to continue for the foreseeable future, we remain optimistic about our business and the longer-term outlook for the housing industry. Our balance sheet is the strongest in Company history. We ended the quarter with record net worth of
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 April 2026.
M/I Homes, Inc. is one of the nation's leading homebuilders of single-family homes. The Company has homebuilding operations in
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 including 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 | |||
March 31, | |||
2025 | 2024 | ||
New contracts | 2,292 | 2,547 | |
Average community count | 223 | 216 | |
Cancellation rate | 10 % | 8 % | |
Backlog units | 2,847 | 3,391 | |
Backlog sales value | $ 1,559,251 | $ 1,789,340 | |
Homes delivered | 1,976 | 2,158 | |
Average home closing price | $ 476 | $ 471 | |
Homebuilding revenue: | |||
Housing revenue | $ 940,031 | $ 1,016,513 | |
Land revenue | 4,542 | 3,228 | |
Total homebuilding revenue | $ 944,573 | $ 1,019,741 | |
Financial services revenue | 31,520 | 26,962 | |
Total revenue | $ 976,093 | $ 1,046,703 | |
Cost of sales - operations | 723,310 | 763,360 | |
Gross margin | $ 252,783 | $ 283,343 | |
General and administrative expense | 59,073 | 56,084 | |
Selling expense | 52,786 | 53,940 | |
Operating income | $ 140,924 | $ 173,319 | |
Interest income, net of interest expense | (5,197) | (6,920) | |
Income before income taxes | $ 146,121 | $ 180,239 | |
Provision for income taxes | 34,884 | 42,178 | |
Net income | $ 111,237 | $ 138,061 | |
Earnings per share: | |||
Basic | $ 4.07 | $ 4.92 | |
Diluted | $ 3.98 | $ 4.78 | |
Weighted average shares outstanding: | |||
Basic | 27,314 | 28,052 | |
Diluted | 27,941 | 28,888 | |
M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) | |||
As of | |||
March 31, | |||
2025 | 2024 | ||
Assets: | |||
Total cash, cash equivalents and restricted cash (1) | $ 776,378 | $ 870,162 | |
Mortgage loans held for sale | 238,583 | 235,047 | |
Inventory: | |||
Lots, land and land development | 1,666,045 | 1,448,459 | |
Land held for sale | 3,903 | 136 | |
Homes under construction | 1,342,424 | 1,169,791 | |
Other inventory | 192,333 | 155,779 | |
Total Inventory | $ 3,204,705 | $ 2,774,165 | |
Property and equipment - net | 33,569 | 33,145 | |
Investments in joint venture arrangements | 70,727 | 59,146 | |
Operating lease right-of-use assets | 57,428 | 57,890 | |
Goodwill | 16,400 | 16,400 | |
Deferred income tax asset | 13,451 | 15,313 | |
Other assets | 173,982 | 150,683 | |
Total Assets | $ 4,585,223 | $ 4,211,951 | |
Liabilities: | |||
Debt - Homebuilding Operations: | |||
Senior notes due 2028 - net | $ 397,846 | $ 397,072 | |
Senior notes due 2030 - net | 297,495 | 296,991 | |
Total Debt - Homebuilding Operations | $ 695,341 | $ 694,063 | |
Notes payable bank - financial services operations | 227,957 | 224,321 | |
Total Debt | $ 923,298 | $ 918,384 | |
Accounts payable | 228,909 | 224,972 | |
Operating lease liabilities | 58,960 | 59,163 | |
Other liabilities | 367,722 | 370,647 | |
Total Liabilities | $ 1,578,889 | $ 1,573,166 | |
Shareholders' Equity | 3,006,334 | 2,638,785 | |
Total Liabilities and Shareholders' Equity | $ 4,585,223 | $ 4,211,951 | |
Book value per common share | $ 112.29 | $ 95.09 | |
Homebuilding debt to capital ratio (2) | 19 % | 21 % | |
(1) | Includes |
(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 | |||
March 31, | |||
2025 | 2024 | ||
Cash provided by operating activities | $ 64,887 | $ 115,772 | |
Cash used in investing activities | $ (2,928) | $ (17,108) | |
Cash (used in) provided by financing activities | $ (107,151) | $ 38,694 | |
Land/lot purchases | $ 145,983 | $ 107,660 | |
Land development spending | $ 101,599 | $ 119,367 | |
Land sale revenue | $ 4,542 | $ 3,228 | |
Land sale gross profit | $ 786 | $ 1,313 | |
Financial services pre-tax income | $ 16,106 | $ 12,312 | |
M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) | |||
Three Months Ended | |||
March 31, | |||
2025 | 2024 | ||
Net income | $ 111,237 | $ 138,061 | |
Add: | |||
Provision for income taxes | 34,884 | 42,178 | |
Interest income - net | (8,041) | (9,767) | |
Interest amortized to cost of sales | 6,901 | 8,302 | |
Depreciation and amortization | 4,777 | 4,467 | |
Non-cash charges | 4,200 | 3,539 | |
Adjusted EBITDA | $ 153,958 | $ 186,780 | |
(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 | ||||||
March 31, | ||||||
% | ||||||
Region | 2025 | 2024 | Change | |||
Northern | 1,065 | 1,162 | (8) % | |||
Southern | 1,227 | 1,385 | (11) % | |||
Total | 2,292 | 2,547 | (10) % | |||
HOMES DELIVERED | ||||||
Three Months Ended | ||||||
March 31, | ||||||
% | ||||||
Region | 2025 | 2024 | Change | |||
Northern | 826 | 843 | (2) % | |||
Southern | 1,150 | 1,315 | (13) % | |||
Total | 1,976 | 2,158 | (8) % | |||
BACKLOG | ||||||||||||
March 31, 2025 | March 31, 2024 | |||||||||||
Dollars | Average | Dollars | Average | |||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||
Northern | 1,375 | $ 765 | $ 556,000 | 1,567 | $ 822 | $ 525,000 | ||||||
Southern | 1,472 | $ 795 | $ 540,000 | 1,824 | $ 967 | $ 530,000 | ||||||
Total | 2,847 | $ 1,559 | $ 548,000 | 3,391 | $ 1,789 | $ 528,000 | ||||||
LAND POSITION SUMMARY | ||||||||||||
March 31, 2025 | March 31, 2024 | |||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||
Northern | 6,855 | 9,501 | 16,356 | 7,005 | 9,279 | 16,284 | ||||||
Southern | 18,355 | 16,386 | 34,741 | 16,821 | 14,352 | 31,173 | ||||||
Total | 25,210 | 25,887 | 51,097 | 23,826 | 23,631 | 47,457 | ||||||
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SOURCE M/I Homes, Inc.
FAQ
What was MHO's earnings per share (EPS) for Q1 2025?
How many new home contracts did MHO secure in Q1 2025?
What is MHO's current backlog value as of March 31, 2025?
How much cash does MHO have on its balance sheet?
What was MHO's return on equity in Q1 2025?
