M/I Homes, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. The quarter’s numbers.

Key takeaways

Net income fell on lower revenue: Net income was $79.1 million, or $3.02 per diluted share, against $121.2 million, or $4.42, a year earlier. Total revenue was $1.06 billion, down 9%. Source
Pre-tax income down 35 percent: Pre-tax income was $104.6 million, down 35% from $160.1 million, and includes $4.2 million of inventory charges. Source
Second-quarter contracts set a record: New contracts rose 15% to 2,387, which the company describes as a second quarter record. Six-month new contracts were 4,737, up 8% from 4,370. Source
Backlog value down 8 percent: Backlog sales value was $1.31 billion at June 30, down 8%. Backlog units decreased 6%, and the average backlog price was $538,000 against $553,000. Source
Gross margin held at 22 percent: Gross margin was 22% of revenue, including the inventory charges, with gross margin dollars of $235.5 million against $286.6 million a year earlier. Source
Inventory charges recorded in quarter: The company recorded $4.2 million of pre-tax inventory charges, equal to $0.12 per diluted share after tax. The prior-year quarter had no inventory charges. Source
Equity and book value at records: Shareholders' equity was a record $3.2 billion. Book value per share was $127.88, against $117.01 a year earlier. Return on equity was 10%. Source

“We delivered solid second quarter results despite continued challenging market conditions. Highlights included a second quarter record of 2,387 new contracts, gross margins of 22%, a pre-tax margin of 10% and a return on equity of 10%.”
Robert H. Schottenstein, Chief Executive Officer and President

What changed from last quarter

New: S&P upgraded the company's credit rating to BB+, which management cited as part of its financial condition. Source

Second quarter results and growth

Net income fell on lower revenue: Net income was $79.1 million, or $3.02 per diluted share, against $121.2 million, or $4.42, a year earlier. Total revenue was $1.06 billion, down 9%. Source
Pre-tax income down 35 percent: Pre-tax income was $104.6 million, down 35% from $160.1 million, and includes $4.2 million of inventory charges. Source
Adjusted EPS excludes inventory charges: Adjusted diluted EPS, a non-GAAP measure that excludes the inventory charges, was $3.14. Adjusted net income was $82.2 million for the quarter. Source
Six-month earnings declined: For the first half, pre-tax income was $193.7 million and net income $146.9 million, or $5.57 per diluted share, against $8.40 per diluted share a year earlier. Source
Adjusted EBITDA declined: Adjusted EBITDA was $120.5 million in the quarter, against $169.4 million a year earlier, according to the company's non-GAAP reconciliation. Source

Segments and regional performance

Northern contracts rose 16 percent: Northern new contracts rose 16% to 1,016 in the quarter, while Northern homes delivered fell 8% to 892. Northern six-month contracts rose 5%. Source
Southern contracts and deliveries: Southern new contracts rose 14% to 1,371, and Southern homes delivered fell 5% to 1,314. Six-month Southern contracts rose 11%. Source
Regional backlog prices differ: Northern backlog was 1,234 homes worth $699 million at an average $567,000. Southern backlog was 1,192 homes worth $606 million at an average $508,000. Source

“Notwithstanding current market conditions, we are confident in the long-term fundamentals of the housing industry and in our ability to navigate this uncertain environment.”
Robert H. Schottenstein, Chief Executive Officer and President

Demand, contracts and backlog

Second-quarter contracts set a record: New contracts rose 15% to 2,387, which the company describes as a second quarter record. Six-month new contracts were 4,737, up 8% from 4,370. Source
Cancellations fell to 8 percent: The cancellation rate was 8% in the second quarter, down from 13% a year earlier. The six-month rate was 8%, against 11% a year earlier. Source
Backlog value down 8 percent: Backlog sales value was $1.31 billion at June 30, down 8%. Backlog units decreased 6%, and the average backlog price was $538,000 against $553,000. Source
Backlog rose from March: Backlog sales value rose from $1.20 billion at March 31 to $1.31 billion at June 30. Backlog units rose from 2,245 at March 31. Source

Margins, costs and pricing

Gross margin held at 22 percent: Gross margin was 22% of revenue, including the inventory charges, with gross margin dollars of $235.5 million against $286.6 million a year earlier. Source
Inventory charges recorded in quarter: The company recorded $4.2 million of pre-tax inventory charges, equal to $0.12 per diluted share after tax. The prior-year quarter had no inventory charges. Source
Average closing price declined: Average home closing price was $459 thousand, down from $479 thousand a year earlier. The six-month average was $459 thousand, against $477 thousand. Source
Overhead expenses rose: General and administrative expense rose to $70.2 million from $67.2 million. Selling expense rose to $64.0 million from $63.7 million. Source
Operating income fell: Operating income was $101.3 million, down from $155.7 million a year earlier. Six-month operating income was $187.3 million, against $296.6 million. Source

“Given the quality of our geographic footprint, the diversity of our product offering and continued focus on well-located communities, we are well positioned to have a solid 2026.”
Robert H. Schottenstein, Chief Executive Officer and President

Land and lot investment

Lot purchases rose in quarter: Land and lot purchases were $131.1 million in the second quarter, up from $101.8 million. Land development spending was $154.7 million, up from $139.0 million. Source
Total controlled lots declined: Owned lots were 23,382 at June 30, 2026, down from 24,507. Total lots, including those under contract, were 49,050, down from 50,464. Source
Northern lots grew, Southern fell: Northern total lots rose to 19,657 from 15,814 a year earlier. Southern total lots fell to 29,393 from 34,650. Source

Balance sheet and debt

Equity and book value at records: Shareholders' equity was a record $3.2 billion. Book value per share was $127.88, against $117.01 a year earlier. Return on equity was 10%. Source
Cash and undrawn credit facility: Cash was $736 million at June 30, 2026. The company had no borrowings under its $900 million unsecured credit facility. Source
Leverage ratios unchanged: Homebuilding debt to capital was 18%, the same as a year earlier. Net debt to capital was negative 1%. Homebuilding debt totaled $696.9 million. Source
Operating cash flow rose for half: Operating cash flow was $36.8 million in the quarter and $172.5 million for the six months, against $102.6 million for the first half of 2025. Source

Capital returns and credit rating

Stock repurchases of $50 million: The company repurchased $50 million of common stock in the quarter, the same amount reported for the first quarter of 2026. Source
Financing outflow rose in quarter: Cash used in financing activities was $56.4 million in the quarter, against $1.4 million a year earlier. Six-month financing use was $119.0 million. Source
S&P raised credit rating: Management said S&P recently upgraded the company's credit rating to BB+, and cited the upgrade as part of its financial condition. Source

Financial services and land sales

Financial services revenue edged up: Financial services revenue was $32.3 million, up from $31.5 million. Financial services pre-tax income was $14.4 million, against $14.5 million a year earlier. Source
Land sale gross profit rose: Land sale revenue was $18.9 million and land sale gross profit was $5.5 million, up from $6.7 million and $3.2 million a year earlier. Source

Figures management reported

Figure	Reported
New contracts (second quarter) Source	2,387
Homes delivered (second quarter) Source	2,206
Backlog units at June 30 Source	2,426
Communities at June 30 Source	234
Cancellation rate (second quarter) Source	8%

Risks management discussed

Demand: Management cited continued challenging market conditions as the backdrop for the second quarter results. Source
External: Management said the company expects to navigate an uncertain environment, while stating confidence in long-term housing fundamentals. 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

2026 Second Quarter Results

Columbus, Ohio (July 29, 2026) - M/I Homes, Inc. (NYSE:MHO) announced results for the three and six months ended June 30, 2026.

2026 Second Quarter Results:

New contracts increased 15% to 2,387, a second quarter record
Homes delivered decreased 6% to 2,206
Revenue declined 9% to $1.1 billion
Gross margin of 22%
Pre-tax income of $105 million, including inventory charges of $4 million, 10% of revenue, down 35%
Net income of $79 million ($3.02 per diluted share) versus $121 million ($4.42 per diluted share)
Shareholders’ equity reached a record $3.2 billion, with book value per share increasing to a record $128
Repurchased $50 million of common stock
Return on equity of 10%
Homebuilding debt to capital ratio of 18%

The Company reported pre-tax income of $104.6 million and net income of $79.1 million ($3.02 per diluted share). These results include pre-tax inventory charges of $4.2 million ($0.12 per diluted share). This compares to pre-tax income of $160.1 million and net income of $121.2 million, or $4.42 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, pre-tax income was $193.7 million and net income was $146.9 million, or $5.57 per diluted share. This compared to pre-tax income of $306.2 million and net income of $232.5 million, or $8.40 per diluted share, for the same period of 2025.

Homes delivered in 2026's second quarter decreased 6% to 2,206 homes. This compares to 2,348 homes delivered in 2025’s second quarter. Homes delivered for the six months ended June 30, 2026 were 4,120 compared to 2025’s deliveries of 4,324 for the six months ended June 30, 2025, a decrease of 5%. New contracts increased 15% to a record 2,387 for the second quarter of 2026 compared to 2,078 in last year’s second quarter. For the first half of 2026, new contracts were 4,737 compared to 4,370 in 2025, an increase of 8%. Homes in backlog at June 30, 2026 had a total sales value of $1.31 billion, an 8% decrease from a year ago. Backlog units at June 30, 2026 decreased 6% to 2,426 homes, with an average sales price of $538,000. At June 30, 2025, backlog sales value was $1.43 billion, with backlog units of 2,577 and an average sales price of $553,000. M/I Homes had 234 communities at both June 30, 2026 and 2025. The Company's cancellation rate was 8% in the second quarter of 2026 compared to 13% in the second quarter of 2025.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “We delivered solid second quarter results despite continued challenging market conditions. Highlights included a second quarter record of 2,387 new contracts, gross margins of 22%, a pre-tax margin of 10% and a return on equity of 10%.”

Mr. Schottenstein added, “Notwithstanding current market conditions, we are confident in the long-term fundamentals of the housing industry and in our ability to navigate this uncertain environment. Our financial condition is excellent, highlighted by S&P’s recent upgrade of our credit rating to BB+. We have a very strong balance sheet with record shareholders’ equity of $3.2 billion, no borrowings under our $900 million unsecured credit facility, cash of $736 million, a homebuilding debt-to-capital ratio of 18%, and a net debt-to-capital ratio of negative 1%. Given the quality of our geographic footprint, the diversity of our product offering and continued focus on well-located communities, we are well positioned to have a solid 2026.”

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 July 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.

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, 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.

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