M/I Homes, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 22 October 2025: press release. The quarter’s numbers.

Key takeaways

Record third-quarter homes delivered: Homes delivered rose 1% to 2,296, a third quarter record, from 2,271 a year earlier. Nine-month deliveries were 6,620 versus 6,653. Source
Revenue and pre-tax income declined: Revenue was $1.1 billion, down 1%. Pre-tax income was $139.8 million, 12% of revenue, down 26% from $188.7 million a year earlier. Source
New contracts fell 6%: New contracts were 1,908 in the third quarter, down from 2,023. Nine-month new contracts were 6,278 versus 6,825, down 8%. Source
Backlog value down 30%: Backlog sales value was $1.21 billion, down 30% from a year ago. Backlog units were 2,189, down 31%, at a record average sales price of $553,000. Source
Cancellation rate rose to 12%: The cancellation rate was 12% in the third quarter, up from 10%. The nine-month rate was 12% versus 9%. Source
Inventory charge of $7.6 million: Current-quarter results include a pre-tax inventory charge of $7.6 million, shown as cost of sales impairment. Nine-month impairment was the same amount. Source

“Despite the continued challenging housing market conditions and uneven demand environment, we had a solid quarter.”
Robert H. Schottenstein, Chief Executive Officer and President

What changed from last quarter

New: Moody's upgraded the company's credit rating to Ba1, cited with the credit facility extension. Source
New: The bank credit facility was extended to 2030 and borrowing capacity raised to $900 million. Source

Results and growth drivers

Record third-quarter homes delivered: Homes delivered rose 1% to 2,296, a third quarter record, from 2,271 a year earlier. Nine-month deliveries were 6,620 versus 6,653. Source
Revenue and pre-tax income declined: Revenue was $1.1 billion, down 1%. Pre-tax income was $139.8 million, 12% of revenue, down 26% from $188.7 million a year earlier. Source
Net income and EPS declined: Net income was $106.5 million, or $3.92 per diluted share, versus $145.4 million, or $5.10. Nine-month diluted EPS was $12.32 versus $14.99. Source
Financial services earnings rose: Financial services pre-tax income was $16.6 million versus $12.9 million. Financial services revenue was $34.6 million versus $30.0 million. Source
Adjusted EBITDA declined: Adjusted EBITDA was $156.6 million versus $197.8 million a year earlier. Nine-month Adjusted EBITDA was $479.9 million versus $584.4 million. Source

Segments and regions

Northern contracts fell, Southern rose: Northern new contracts were 742, down 17%. Southern new contracts were 1,166, up 3%. Nine-month Northern contracts were down 12%, Southern down 5%. Source
Southern deliveries rose, Northern fell: Southern deliveries rose 8% to 1,354 homes. Northern deliveries fell 7% to 942 homes in the quarter. Source

“While market conditions remain volatile, we are confident in the long-term fundamentals of the housing industry.”
Robert H. Schottenstein, Chief Executive Officer and President

Orders, backlog and cancellations

New contracts fell 6%: New contracts were 1,908 in the third quarter, down from 2,023. Nine-month new contracts were 6,278 versus 6,825, down 8%. Source
Backlog value down 30%: Backlog sales value was $1.21 billion, down 30% from a year ago. Backlog units were 2,189, down 31%, at a record average sales price of $553,000. Source
Cancellation rate rose to 12%: The cancellation rate was 12% in the third quarter, up from 10%. The nine-month rate was 12% versus 9%. Source
Backlog units by region: Northern backlog was 1,081 units, $609 million, at an average $563,000. Southern backlog was 1,108 units, $602 million, at $544,000. Source

Margins, costs and pricing

Inventory charge of $7.6 million: Current-quarter results include a pre-tax inventory charge of $7.6 million, shown as cost of sales impairment. Nine-month impairment was the same amount. Source
Gross margin dollars declined: Gross margin was $270.1 million versus $309.4 million. Average home closing price was $477,000 versus $489,000 a year earlier. Source
Selling and admin costs rose: General and administrative expense was $70.8 million versus $68.3 million. Selling expense was $64.0 million versus $59.2 million. Source

“With our strong balance sheet, diverse product offerings, and well-located communities, we are well positioned as we enter the fourth quarter of 2025.”
Robert H. Schottenstein, Chief Executive Officer and President

Land and community growth

Communities up to 233: M/I Homes had 233 communities at September 30, 2025, compared to 217 at September 30, 2024. Source
Land and lot spending down: Land and lot purchases were $115.4 million versus $138.7 million. Land development spending was $181.3 million versus $180.8 million. Source
Owned and contracted lot position: Total lots were 50,625 at September 30, 2025, of which 24,408 were owned and 26,217 under contract, versus 52,205 a year earlier. Source

Capital, cash and returns

Operating cash flow turned positive: Operating activities provided $43.4 million in the quarter, versus $67.9 million used a year earlier. Nine-month operating cash was $146.1 million. Source
Equity rose and buybacks continued: Shareholders’ equity was $3.1 billion, an 11% increase, with book value per share at $120.44. The company repurchased $50 million of common stock. Source
Debt-to-capital ratio stayed at 18%: Homebuilding debt-to-capital was 18%, and net debt-to-capital was negative 1%. No borrowings were outstanding under the facility at quarter end. Source

Figures management reported

Figure	Reported
Homes delivered Source	2,296
New contracts Source	1,908
Backlog units Source	2,189
Backlog sales value Source	$1.21 billion
Communities Source	233
Cancellation rate Source	12%

Risks management discussed

Demand: Management cited challenging housing market conditions and an uneven demand environment. Source
External: Management described market conditions as volatile. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

M/I Homes Reports

2025 Third Quarter Results

Columbus, Ohio (October 22, 2025) - 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.

Forward-looking statements notice

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.

Contact M/I Homes, Inc.

Ann Marie W. Hunker, Vice President, Chief Accounting Officer and Controller, (614) 418-8225

Mark Kirkendall, Vice President, Treasurer, (614) 418-8021

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	$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	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

(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