M/I Homes Reports 2025 Third Quarter Results

Rhea-AI Summary

M/I Homes (NYSE: MHO) reported results for the three and nine months ended September 30, 2025. Q3 revenue was $1.132 billion, down 1% year‑over‑year, with pre‑tax income of $139.8 million (12% of revenue) and net income of $106.5 million, or $3.92 diluted. Homes delivered were a third‑quarter record of 2,296. New contracts declined 6% to 1,908. Backlog units fell 31% to 2,189 with backlog sales value down 30% to $1.21 billion; average backlog sales price rose to $553,000. Shareholders' equity and book value per share reached records of $3.15 billion and $120.44. The company repurchased $50 million of stock, received a Moody's upgrade to Ba1, and extended its unsecured credit facility to 2030 with $900 million capacity.

Positive

• Shareholders' equity +11% to $3.15 billion (record)
• Book value per share increased to $120.44 (record)
• Repurchased $50 million of common stock
• Moody's rating upgraded to Ba1
• Unsecured credit facility extended to 2030 and capacity increased to $900 million
• Record Q3 homes delivered: 2,296 units

Negative

• Backlog units -31% to 2,189 homes
• Backlog sales value -30% to $1.21 billion
• Pre-tax income -26% year‑over‑year to $139.8 million (includes $7.6M inventory charge)
• Net income -27% year‑over‑year to $106.5 million ($3.92 diluted)
• Total revenue down 1% to $1.132 billion

Insights

Senior Housing Analyst

Mixed quarter: operational strength and balance-sheet improvements offset weaker profitability and backlog declines.

The company sold a record 2,296 homes in the quarter and grew shareholders' equity to a record $3.15 billion, lifting book value per share to a record $120.44. Revenue held near prior levels at about $1.13 billion, while pre-tax income fell to $139.8 million or 12% of revenue, which includes a $7.6 million inventory charge. Management also returned capital via a $50 million buyback and secured a stronger liquidity position with Moody's upgrade to Ba1 and a reworked unsecured credit facility extended to 2030 with $900 million capacity.

Performance depends on demand and cancellations: backlog units fell 31% to 2,189 and backlog sales value declined about 30% year-over-year despite a record average backlog price of $553,000. Cancellation rates ticked up to 12%, and gross margin compressed relative to year-ago levels. Watch operating cash conversion and cancellation trends closely because they will determine whether the balance-sheet strength sustains through softer sales volumes.

Near-term monitors include quarterly orders and backlog recovery over the next 12 months, any additional inventory or impairment charges, and utilization of the expanded credit facility. Key milestones to track are sequential new-contract trends and cancellation rates in the upcoming quarter, plus whether the company sustains its return of capital while preserving liquidity.

COLUMBUS, Ohio, Oct. 22, 2025 /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

 

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SOURCE M/I Homes, Inc.

FAQ

What were M/I Homes (MHO) Q3 2025 revenue and net income?

Q3 2025 revenue was $1.132 billion and net income was $106.5 million, or $3.92 per diluted share.

How many homes did M/I Homes (MHO) deliver in Q3 2025 and is that a record?

M/I Homes delivered 2,296 homes in Q3 2025, a third‑quarter record.

Why did M/I Homes (MHO) pre‑tax income fall in Q3 2025?

Pre‑tax income declined to $139.8 million, down 26% year‑over‑year, and includes a $7.6 million pre‑tax inventory charge.

How much did M/I Homes (MHO) repurchase and what is its credit status as of Oct 22, 2025?

The company repurchased $50 million of common stock and received a Moody's upgrade to Ba1.

What changed in M/I Homes (MHO) backlog as of Sept 30, 2025?

Backlog units fell 31% to 2,189 and backlog sales value declined 30% to $1.21 billion; average backlog sales price rose to $553,000.

What is M/I Homes (MHO) balance sheet position and debt capacity after Q3 2025?

Shareholders' equity reached $3.15 billion, book value per share $120.44, and the unsecured credit facility was extended to 2030 with $900 million capacity and zero borrowings under it at quarter end.