M/I Homes Reports 2025 Second Quarter Results

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M/I Homes (NYSE:MHO) reported mixed second quarter 2025 results with record revenue and deliveries but declining profits. Revenue increased 5% to $1.2 billion, with homes delivered up 6% to 2,348 units. However, net income decreased to $121 million ($4.42 per diluted share) compared to $147 million ($5.12 per diluted share) in Q2 2024.

The company maintained strong financial health with shareholders' equity reaching $3.1 billion, a 12% year-over-year increase, and book value per share of $117. New contracts declined 8% to 2,078, while the cancellation rate increased to 13% from 10% last year. The company's balance sheet showed strength with $800 million in cash and an 18% homebuilding debt-to-capital ratio.

Positive

• Record Q2 revenue of $1.2 billion, up 5% year-over-year
• Record Q2 home deliveries of 2,348 units, increasing 6%
• Strong gross margins of 25%
• Robust balance sheet with $800 million cash position
• Low homebuilding debt-to-capital ratio of 18%
• Book value per share increased to $117, up from $100.03 year-over-year
• Community count grew to 234 from 211 year-over-year

Negative

• Net income declined 17% to $121 million from $147 million year-over-year
• New contracts decreased 8% to 2,078 units
• Cancellation rate increased to 13% from 10% year-over-year
• Backlog value decreased 22% to $1.43 billion
• Backlog units declined 25% to 2,577 homes

COLUMBUS, Ohio, July 23, 2025 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three and six months ended June 30, 2025.

2025 Second Quarter Highlights:

• Record second quarter revenue and homes delivered
• Revenue increased 5% to $1.2 billion
• Homes delivered increased 6% to 2,348
• Pre-tax income decreased 18% to $160 million, 14% of revenue
• Net income of $121 million ($4.42 per diluted share) versus $147 million ($5.12 per diluted share)
• Shareholders' equity reached a record $3.1 billion, a 12% increase from a year ago, book value per share of $117
• New contracts were 2,078, compared to 2,255 in last year's second quarter, an 8% decrease
• Repurchased $50 million of common stock
• Return on equity of 17%

The Company reported pre-tax income of $160.1 million and net income of $121.2 million ($4.42 per diluted share) for the second quarter of 2025. This compares to pre-tax income of $194.1 million and net income of $146.7 million, or $5.12 per diluted share, for the second quarter of 2024. For the six months ended June 30, 2025, the Company reported pre-tax income of $306.2 million and net income of $232.5 million, or $8.40 per diluted share, compared to $374.4 million and $284.8 million, or $9.90 per diluted share, for the same period of 2024, respectively.

Homes delivered in 2025's second quarter increased 6% to 2,348 homes, a second quarter record. This compares to 2,224 homes delivered in 2024's second quarter. Homes delivered for the six months ended June 30, 2025 decreased 1% to 4,324 from deliveries of 4,382 for the six months ended June 30, 2024. New contracts were 2,078 for the second quarter of 2025, an 8% decrease compared to 2,255 in last year's second quarter. For the first half of 2025, new contracts were 4,370, a 9% decrease compared to 4,802 in the first half of 2024. Homes in backlog at June 30, 2025 had a total sales value of $1.43 billion, a 22% decrease from a year ago. Backlog units at June 30, 2025 decreased 25% to 2,577 homes, with an average sales price of $553,000. At June 30, 2024, backlog sales value was $1.82 billion, with backlog units of 3,422 and an average sales price of $533,000. M/I Homes had a record 234 communities at June 30, 2025 compared to 211 communities at June 30, 2024. The Company's cancellation rate was 13% in the second quarter of 2025 compared to 10% in the second quarter of 2024.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We delivered solid second quarter results, despite continued challenging market conditions. Our results are highlighted by new second quarter records in revenue and homes delivered, strong gross margins of 25%, 14% pre-tax income and 17% return on equity."

Mr. Schottenstein added, "Although market conditions remain choppy and challenging, we are confident in the underlying fundamentals of the housing industry and our ability to navigate through this uncertain environment. Our balance sheet remains very strong, with zero borrowings under our $650 million unsecured credit facility, a cash position of $800 million, homebuilding debt-to-capital of 18%, and a net debt-to-capital ratio of negative 3%. We continue to strategically invest in our operations and are on track to grow our average community count by approximately 5% this year."

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 remain available on our website through July 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				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
New contracts	2,078		2,255		4,370		4,802
Average community count	230		215		227		214
Cancellation rate	13 %		10 %		11 %		9 %
Backlog units	2,577		3,422		2,577		3,422
Backlog sales value	$  1,425,138		$  1,822,686		$  1,425,138		$  1,822,686
Homes delivered	2,348		2,224		4,324		4,382
Average home closing price	$            479		$            482		$            477		$            477
Homebuilding revenue:
Housing revenue	$  1,124,475		$  1,072,044		$  2,064,506		$  2,088,557
Land revenue	6,667		6,975		11,209		10,203
Total homebuilding revenue	$  1,131,142		$  1,079,019		$  2,075,715		$  2,098,760
Financial services revenue	31,450		30,762		62,970		57,724
Total revenue	$  1,162,592		$  1,109,781		$  2,138,685		$  2,156,484
Cost of sales - operations	875,973		800,501		1,599,283		1,563,861
Gross margin	$    286,619		$    309,280		$    539,402		$    592,623
General and administrative expense	67,247		63,994		126,320		120,078
Selling expense	63,655		58,495		116,441		112,435
Operating income	$   155,717		$    186,791		$   296,641		$    360,110
Interest income, net of interest expense	(4,377)		(7,348)		(9,574)		(14,268)
Income before income taxes	$   160,094		$    194,139		$   306,215		$   374,378
Provision for income taxes	38,851		47,393		73,735		89,571
Net income	$   121,243		$    146,746		$   232,480		$   284,807
Earnings per share:
Basic	$         4.52		$         5.26		$         8.59		$       10.18
Diluted	$         4.42		$         5.12		$         8.40		$         9.90
Weighted average shares outstanding:
Basic	26,836		27,878		27,074		27,965
Diluted	27,406		28,668		27,673		28,777

 

M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts)
	As of
	June 30,
	2025		2024
Assets:
Total cash, cash equivalents and restricted cash (1)	$      800,398		$      837,458
Mortgage loans held for sale	280,867		227,254
Inventory:
Lots, land and land development	1,683,930		1,467,961
Land held for sale	5,005		4,235
Homes under construction	1,403,582		1,306,650
Other inventory	194,089		159,618
Total Inventory	$  3,286,606		$  2,938,464
Property and equipment - net	33,749		36,438
Investments in joint venture arrangements	67,466		46,180
Operating lease right-of-use assets	56,403		56,697
Goodwill	16,400		16,400
Deferred income tax asset	13,451		15,313
Other assets	184,699		165,866
Total Assets	$  4,740,039		$  4,340,070
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2028 - net	$     398,040		$     397,266
Senior notes due 2030 - net	297,621		297,117
Total Debt - Homebuilding Operations	$     695,661		$     694,383
Notes payable bank - financial services operations	275,926		222,792
Total Debt	$     971,587		$     917,175
Accounts payable	252,476		278,859
Operating lease liabilities	57,997		58,043
Other liabilities	375,843		344,876
Total Liabilities	$  1,657,903		$  1,598,953
Shareholders' Equity	3,082,136		2,741,117
Total Liabilities and Shareholders' Equity	$  4,740,039		$  4,340,070
Book value per common share	$       117.01		$       100.03
Homebuilding debt to capital ratio (2)	18 %		20 %

(1)	Includes $0.2 million of restricted cash and cash held in escrow for both quarters ended June 30, 2025 and 2024.
(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				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Cash provided by operating activities	$         37,755		$          27,511		$       102,642		$       143,283
Cash used in investing activities	$        (12,318)		$        (10,433)		$        (15,246)		$        (27,541)
Cash used in by financing activities	$          (1,417)		$        (49,782)		$      (108,568)		$        (11,088)
Land/lot purchases	$       101,751		$       119,182		$       247,734		$       226,842
Land development spending	$       139,008		$       144,539		$       240,607		$       263,906
Land sale revenue	$           6,667		$           6,975		$         11,209		$         10,203
Land sale gross profit	$           3,202		$           1,933		$           3,988		$           3,246
Financial services pre-tax income	$         14,476		$         14,400		$         30,582		$         26,712

 

M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Net income	$       121,243		$       146,746		$       232,480		$       284,807
Add:
Provision for income taxes	38,851		47,393		73,735		89,571
Interest income - net	(7,726)		(10,686)		(15,767)		(20,453)
Interest amortized to cost of sales	8,227		7,938		15,128		16,240
Depreciation and amortization	4,904		4,607		9,681		9,074
Non-cash charges	3,916		3,810		8,116		7,349
Adjusted EBITDA	$       169,415		$       199,808		$       323,373		$       386,588

(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							Six Months Ended
		June 30,							June 30,
						%							%
Region		2025		2024		Change			2025		2024		Change
Northern		873		1,002		(13) %			1,938		2,164		(10) %
Southern		1,205		1,253		(4) %			2,432		2,638		(8) %
Total		2,078		2,255		(8) %			4,370		4,802		(9) %
	HOMES DELIVERED
		Three Months Ended							Six Months Ended
		June 30,							June 30,
						%							%
Region		2025		2024		Change			2025		2024		Change
Northern		967		951		2 %			1,793		1,794		— %
Southern		1,381		1,273		8 %			2,531		2,588		(2) %
Total		2,348		2,224		6 %			4,324		4,382		(1) %

 

	BACKLOG
	June 30, 2025							June 30, 2024
			Dollars		Average					Dollars		Average
Region	Units		(millions)		Sales Price			Units		(millions)		Sales Price
Northern	1,281		$            721		$    563,000			1,618		$           853		$   527,000
Southern	1,296		$            704		$    543,000			1,804		$           970		$   538,000
Total	2,577		$        1,425		$    553,000			3,422		$        1,823		$   533,000
	LAND POSITION SUMMARY
	June 30, 2025							June 30, 2024
	Lots		Lots Under					Lots		Lots Under
Region	Owned		Contract		Total			Owned		Contract		Total
Northern	7,104		8,710		15,814			6,784		10,250		17,034
Southern	17,403		17,247		34,650			16,520		15,898		32,418
Total	24,507		25,957		50,464			23,304		26,148		49,452

 

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SOURCE M/I Homes, Inc.

FAQ

What were M/I Homes (MHO) key financial results for Q2 2025?

M/I Homes reported revenue of $1.2 billion (up 5%), delivered 2,348 homes (up 6%), and achieved net income of $121 million ($4.42 per share) compared to $147 million ($5.12 per share) in Q2 2024.

How did M/I Homes (MHO) new contracts and backlog perform in Q2 2025?

New contracts decreased 8% to 2,078 units, while backlog value declined 22% to $1.43 billion with 2,577 homes in backlog at quarter end.

What is M/I Homes (MHO) current financial position?

The company has $800 million in cash, zero borrowings under its $650 million credit facility, and a homebuilding debt-to-capital ratio of 18%.

How many communities does M/I Homes (MHO) operate as of Q2 2025?

M/I Homes reached a record 234 communities as of June 30, 2025, compared to 211 communities a year ago, with plans to grow community count by approximately 5% this year.

What was M/I Homes (MHO) cancellation rate in Q2 2025?

The cancellation rate was 13% in Q2 2025, an increase from 10% in Q2 2024.