M/I Homes Reports 2026 Third Quarter Results

Nine-month cancellations improved to 10% from 12%, while third-quarter cancellations remained unchanged at 12%.

Rhea-AI Summary

M/I Homes (MHO) reported third-quarter 2026 net income of $66.6 million, down from the same quarter a year earlier. Diluted earnings fell to $2.56 from $3.92, while revenue declined 5% to $1.1 billion. Pre-tax income fell 38% to $87 million, including inventory charges of $5 million. Gross margin was 20.9%.

New contracts declined 2% to 1,861 and deliveries fell 2% to 2,241. At September 30, backlog totaled 2,046 homes, down 7%, with sales value down 9% to $1.1 billion. M/I Homes cited higher mortgage rates, weaker demand and economic uncertainty. Shareholders' equity reached a record $3.3 billion, and the company repurchased $50 million of stock. Its $900 million unsecured credit facility had no borrowings.

For the first nine months, net income fell to $213.5 million from $339.0 million, although new contracts increased 5% to 6,598.

12 points · 0 major

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0 major · 26 points

How the balance works

Positive

• Moderate pointCommon stock repurchases returned $50 million to shareholders during the third quarter. 1.6% of market cap
• Moderate pointShareholders' equity reached a record $3.3 billion at September 30, 2026.
• Moderate pointNine-month new contracts increased 5% to 6,598 from 6,278 in 2025.
• Moderate pointNine-month operating cash flow increased to $159.218 million from $146.056 million.
• Minor pointBook value per common share increased to $129.94 from $120.44 a year earlier.

7 minor points

• Minor pointThe $900 million unsecured credit facility had no borrowings outstanding.
• Minor pointNine-month cancellations improved to 10% from 12% in 2025.
• Minor pointThird-quarter inventory charges decreased to $4.723 million from $7.583 million a year earlier.
• Minor pointNorthern third-quarter new contracts increased 1% to 746; nine-month contracts rose 4% to 2,788.
• Minor pointSouthern nine-month new contracts increased 6% to 3,810 from 3,598.
• Minor pointNorthern third-quarter deliveries increased 1% to 949 from 942.
• Minor pointLand-sale gross profit increased to $2.304 million quarterly and $9.994 million year to date, versus $0.163 million and $4.151 million.

Negative

• Moderate pointThird-quarter revenue declined 5% to $1.1 billion from the same quarter in 2025.
• Moderate pointThird-quarter net income fell to $66.6 million from $106.5 million; diluted EPS declined to $2.56 from $3.92.
• Moderate pointThird-quarter gross profit fell to $224.477 million from $270.086 million; gross margin was 20.9%.
• Moderate pointThird-quarter new contracts decreased 2% to 1,861 from 1,908.
• Moderate pointBacklog units declined 7% to 2,046; sales value fell 9% to $1.1 billion year over year.
• Moderate pointThird-quarter operating cash flow turned negative at $13.319 million used, versus $43.414 million generated a year earlier.

20 minor points

• Minor pointThird-quarter pre-tax income declined 38% to $87 million from the same quarter in 2025.
• Minor pointThird-quarter operating income declined to $83.298 million from $135.271 million a year earlier.
• Minor pointThird-quarter deliveries decreased 2% to 2,241 from 2,296.
• Minor pointBacklog average sales price declined to $539,000 from $553,000 at September 30, 2025.
• Minor pointAverage closing price declined to $460,000 quarterly and $459,000 year to date, versus $477,000 for both prior-year periods.
• Minor pointCash, cash equivalents and restricted cash declined to $620.595 million from $734.174 million a year earlier.
• Minor pointNine-month revenue declined to $3.060034 billion from $3.270476 billion in 2025.
• Minor pointNine-month net income fell to $213.5 million from $339.0 million; diluted EPS declined to $8.14 from $12.32.
• Minor pointNine-month pre-tax income declined to $280.6 million from $446.0 million in 2025.
• Minor pointNine-month deliveries decreased 4% to 6,361 from 6,620.
• Minor pointNine-month inventory charges increased to $8.923 million from $7.583 million in 2025.
• Minor pointNine-month gross profit declined to $662.567 million from $809.488 million.
• Minor pointNine-month operating income declined to $270.641 million from $431.912 million.
• Minor pointGeneral and administrative expense increased to $76.568 million quarterly and $207.952 million year to date, versus $70.766 million and $197.086 million.
• Minor pointSelling expense increased to $64.611 million quarterly and $183.974 million year to date, versus $64.049 million and $180.490 million.
• Minor pointFinancial services pre-tax income fell to $13.432 million quarterly and $41.952 million year to date, versus $16.598 million and $47.180 million.
• Minor pointSouthern third-quarter new contracts declined 4% to 1,115 from 1,166.
• Minor pointSouthern deliveries fell 5% to 1,292 quarterly and 3% to 3,768 year to date.
• Minor pointNorthern nine-month deliveries declined 5% to 2,593 from 2,735.
• Minor pointMarket conditions worsened, with M/I Homes citing higher mortgage rates and weaker demand.

News Explained

M/I Homes used $13,319 thousand in operating cash during the third quarter, versus $43,414 thousand generated a year earlier, while reporting $620,595 thousand of cash, cash equivalents and restricted cash at September 30.

Key Figures

Revenue: $1.076B, down 5% Net income: $66.6M vs. $106.5M, down 38% Diluted EPS: $2.56 vs. $3.92 +5 more

Revenue

$1.076B, down 5%

Q3 2026

Net income

$66.6M vs. $106.5M, down 38%

Q3 2026 vs. Q3 2025

Diluted EPS

$2.56 vs. $3.92

Q3 2026 vs. Q3 2025

Gross margin

20.9%; 21.3% excluding inventory charges

Q3 2026

New contracts

1,861, down 2%

Q3 2026

Homes delivered

2,241, down 2%

Q3 2026

Backlog sales value

$1.1B, down 9%

At September 30, 2026 vs. a year earlier

Shareholders' equity

$3.3B, record

Q3 2026

Historical Context

1 past event · Latest: Jul 29

1 event

1. Jul 29

   Earnings report

   24h Move

   +1.5%

   Q2 revenue, deliveries and net income declined while new contracts rose 15%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

unsecured credit facility, forward-looking statements

2 terms

unsecured credit facility financial

"no borrowings under our $900 million unsecured credit facility"

A revolving or term borrowing arrangement that lets a company draw cash up to an agreed limit without pledging specific assets as collateral; lenders rely on the borrower’s creditworthiness, covenants and interest rate rather than a security interest in property. Think of it like an unsecured line of credit a business can tap when needed. Investors watch these facilities because they affect a company’s available liquidity, borrowing cost and the priority of claims if the company faces financial distress.

forward-looking statements regulatory

"Certain statements in this press release are forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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

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.

 

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SOURCE M/I Homes, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were M/I Homes' third-quarter 2026 earnings?

M/I Homes earned $66.6 million, or $2.56 per diluted share, in the third quarter of 2026, compared with $106.5 million, or $3.92 per diluted share, a year earlier. Results included pre-tax inventory charges of $4.7 million, equivalent to $0.14 per diluted share.

How did M/I Homes' orders and backlog change in the third quarter of 2026?

New contracts decreased 2% to 1,861, while backlog at September 30, 2026 declined 7% to 2,046 homes. Backlog sales value decreased 9% to $1.1 billion, and its average sales price was $539,000, compared with $553,000 a year earlier.

What were M/I Homes' debt-to-capital ratios at September 30, 2026?

M/I Homes reported a homebuilding debt-to-capital ratio of 18% and a net debt-to-capital ratio of 2%. The homebuilding ratio was unchanged from September 30, 2025. It measures homebuilding debt against the combined carrying value of that debt and shareholders' equity.