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
News Market Reaction
On the day this news was published, MHO declined 6.14%, reflecting a notable negative market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $242M from the company's valuation, bringing the market cap to $3.70B at that time.
Data tracked by StockTitan Argus on the day of publication.
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, down26% ; includes inventory charges of$7.6 million - Net income of
$106.5 million $3.92 $145 million $5.10 - 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 11% increase from a year ago, with book value per share increasing to a record high of$120 - Repurchased
$50 million - 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
Homes delivered in 2025's third quarter increased
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
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
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
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.
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M/I Homes, Inc. and Subsidiaries Summary Statement of Income (unaudited) (Dollars and shares in thousands, except per share amounts) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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New contracts |
1,908 |
|
2,023 |
|
6,278 |
|
6,825 |
|
Average community count |
234 |
|
214 |
|
228 |
|
215 |
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Cancellation rate |
12 % |
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10 % |
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12 % |
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9 % |
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Backlog units |
2,189 |
|
3,174 |
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2,189 |
|
3,174 |
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Backlog sales value |
$ 1,210,790 |
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$ 1,725,423 |
|
$ 1,210,790 |
|
$ 1,725,423 |
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Homes delivered |
2,296 |
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2,271 |
|
6,620 |
|
6,653 |
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Average home closing price |
$ 477 |
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$ 489 |
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$ 477 |
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$ 481 |
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Homebuilding revenue: |
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Housing revenue |
$ 1,095,418 |
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$ 1,111,389 |
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$ 3,159,924 |
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$ 3,199,946 |
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Land revenue |
1,724 |
|
1,550 |
|
12,933 |
|
11,753 |
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Total homebuilding revenue |
$ 1,097,142 |
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$ 1,112,939 |
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$ 3,172,857 |
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$ 3,211,699 |
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Financial services revenue |
34,649 |
|
29,970 |
|
97,619 |
|
87,694 |
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Total revenue |
$ 1,131,791 |
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$ 1,142,909 |
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$ 3,270,476 |
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$ 3,299,393 |
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Cost of sales - operations |
854,122 |
|
833,468 |
|
2,453,405 |
|
2,397,329 |
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Cost of sales - impairment |
7,583 |
|
— |
|
7,583 |
|
— |
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Gross margin |
$ 270,086 |
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$ 309,441 |
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$ 809,488 |
|
$ 902,064 |
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General and administrative expense |
70,766 |
|
68,285 |
|
197,086 |
|
188,363 |
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Selling expense |
64,049 |
|
59,163 |
|
180,490 |
|
171,598 |
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Operating income |
$ 135,271 |
|
$ 181,993 |
|
$ 431,912 |
|
$ 542,103 |
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Interest income, net of interest expense |
(4,548) |
|
(6,680) |
|
(14,122) |
|
(20,948) |
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Income before income taxes |
$ 139,819 |
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$ 188,673 |
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$ 446,034 |
|
$ 563,051 |
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Provision for income taxes |
33,329 |
|
43,224 |
|
107,064 |
|
132,795 |
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Net income |
$ 106,490 |
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$ 145,449 |
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$ 338,970 |
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$ 430,256 |
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Earnings per share: |
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Basic |
$ 4.01 |
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$ 5.26 |
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$ 12.60 |
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$ 15.45 |
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Diluted |
$ 3.92 |
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$ 5.10 |
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$ 12.32 |
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$ 14.99 |
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Weighted average shares outstanding: |
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Basic |
26,544 |
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27,644 |
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26,895 |
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27,857 |
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Diluted |
27,188 |
|
28,534 |
|
27,513 |
|
28,703 |
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M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) |
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As of |
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September 30, |
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2025 |
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2024 |
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Assets: |
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Total cash, cash equivalents and restricted cash (1) |
$ 734,174 |
|
$ 719,920 |
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Mortgage loans held for sale |
239,585 |
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242,812 |
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Inventory: |
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Lots, land and land development |
1,743,476 |
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1,558,300 |
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Land held for sale |
9,231 |
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3,859 |
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Homes under construction |
1,457,843 |
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1,401,260 |
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Other inventory |
202,280 |
|
169,275 |
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Total Inventory |
$ 3,412,830 |
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$ 3,132,694 |
|
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Property and equipment - net |
32,668 |
|
34,714 |
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Investments in joint venture arrangements |
81,514 |
|
63,095 |
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Operating lease right-of-use assets |
50,322 |
|
55,259 |
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Goodwill |
16,400 |
|
16,400 |
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Deferred income tax asset |
13,451 |
|
15,313 |
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Other assets |
188,600 |
|
179,650 |
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Total Assets |
$ 4,769,544 |
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$ 4,459,857 |
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Liabilities: |
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Debt - Homebuilding Operations: |
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Senior notes due 2028 - net |
$ 398,233 |
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$ 397,459 |
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Senior notes due 2030 - net |
297,747 |
|
297,243 |
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Total Debt - Homebuilding Operations |
$ 695,980 |
|
$ 694,702 |
|
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|
|
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Notes payable bank - financial services operations |
231,979 |
|
235,441 |
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Total Debt |
$ 927,959 |
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$ 930,143 |
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Accounts payable |
257,981 |
|
256,708 |
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Operating lease liabilities |
51,968 |
|
56,667 |
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Other liabilities |
382,187 |
|
370,983 |
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Total Liabilities |
$ 1,620,095 |
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$ 1,614,501 |
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Shareholders' Equity |
3,149,449 |
|
2,845,356 |
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Total Liabilities and Shareholders' Equity |
$ 4,769,544 |
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$ 4,459,857 |
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Book value per common share |
$ 120.44 |
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$ 104.59 |
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Homebuilding debt to capital ratio (2) |
18 % |
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20 % |
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(1) |
Includes |
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(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. |
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M/I Homes, Inc. and Subsidiaries Selected Supplemental Financial and Operating Data (unaudited) (Dollars in thousands) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Cash provided by (used in) operating activities |
$ 43,414 |
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$ (67,942) |
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$ 146,056 |
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$ 75,341 |
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Cash used in investing activities |
$ (15,452) |
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$ (17,496) |
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$ (30,698) |
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$ (45,037) |
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Cash used in financing activities |
$ (94,186) |
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$ (32,100) |
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$ (202,754) |
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$ (43,188) |
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Land/lot purchases |
$ 115,372 |
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$ 138,711 |
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$ 363,106 |
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$ 365,553 |
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Land development spending |
$ 181,320 |
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$ 180,753 |
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$ 421,927 |
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$ 444,659 |
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Land sale revenue |
$ 1,724 |
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$ 1,550 |
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$ 12,933 |
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$ 11,753 |
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Land sale gross profit |
$ 163 |
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$ 72 |
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$ 4,151 |
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$ 3,318 |
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Financial services pre-tax income |
$ 16,598 |
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$ 12,936 |
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$ 47,180 |
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$ 39,648 |
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M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Net income |
$ 106,490 |
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$ 145,449 |
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$ 338,970 |
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$ 430,256 |
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Add: |
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Provision for income taxes |
33,329 |
|
43,224 |
|
107,064 |
|
132,795 |
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Interest income - net |
(8,118) |
|
(10,089) |
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(23,885) |
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(30,542) |
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Interest amortized to cost of sales |
7,651 |
|
7,632 |
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22,779 |
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23,872 |
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Depreciation and amortization |
5,116 |
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4,816 |
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14,797 |
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13,890 |
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Non-cash charges |
12,108 |
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6,750 |
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20,224 |
|
14,099 |
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Adjusted EBITDA |
$ 156,576 |
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$ 197,782 |
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$ 479,949 |
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$ 584,370 |
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(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. |
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M/I Homes, Inc. and Subsidiaries Selected Supplemental Financial and Operating Data |
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NEW CONTRACTS |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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% |
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% |
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Region |
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2025 |
|
2024 |
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Change |
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2025 |
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2024 |
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Change |
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Northern |
|
742 |
|
890 |
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(17) % |
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|
2,680 |
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3,054 |
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(12) % |
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Southern |
|
1,166 |
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1,133 |
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3 % |
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|
3,598 |
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3,771 |
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(5) % |
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Total |
|
1,908 |
|
2,023 |
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(6) % |
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|
6,278 |
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6,825 |
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(8) % |
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HOMES DELIVERED |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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% |
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% |
|
Region |
|
2025 |
|
2024 |
|
Change |
|
|
2025 |
|
2024 |
|
Change |
|
Northern |
|
942 |
|
1,015 |
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(7) % |
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|
2,735 |
|
2,809 |
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(3) % |
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Southern |
|
1,354 |
|
1,256 |
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8 % |
|
|
3,885 |
|
3,844 |
|
1 % |
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Total |
|
2,296 |
|
2,271 |
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1 % |
|
|
6,620 |
|
6,653 |
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— % |
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BACKLOG |
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September 30, 2025 |
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September 30, 2024 |
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Dollars |
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Average |
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Dollars |
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Average |
|
Region |
|
Units |
|
(millions) |
|
Sales Price |
|
|
Units |
|
(millions) |
|
Sales Price |
|
Northern |
|
1,081 |
|
$ 609 |
|
$ 563,000 |
|
|
1,493 |
|
$ 803 |
|
$ 538,000 |
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Southern |
|
1,108 |
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$ 602 |
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$ 544,000 |
|
|
1,681 |
|
$ 923 |
|
$ 549,000 |
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Total |
|
2,189 |
|
$ 1,211 |
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$ 553,000 |
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|
3,174 |
|
$ 1,726 |
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$ 544,000 |
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LAND POSITION SUMMARY |
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September 30, 2025 |
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September 30, 2024 |
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Lots |
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Lots Under |
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Lots |
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Lots Under |
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Region |
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Owned |
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Contract |
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Total |
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Owned |
|
Contract |
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Total |
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Northern |
|
7,140 |
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10,843 |
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17,983 |
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|
6,528 |
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10,885 |
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17,413 |
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Southern |
|
17,268 |
|
15,374 |
|
32,642 |
|
|
17,114 |
|
17,678 |
|
34,792 |
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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?
How many homes did M/I Homes (MHO) deliver in Q3 2025 and is that a record?
Why did M/I Homes (MHO) pre‑tax income fall in Q3 2025?
How much did M/I Homes (MHO) repurchase and what is its credit status as of Oct 22, 2025?
What changed in M/I Homes (MHO) backlog as of Sept 30, 2025?
What is M/I Homes (MHO) balance sheet position and debt capacity after Q3 2025?
