M/I Homes, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 21 October 2026: press release. The quarter’s numbers.

Key takeaways

Net income and diluted EPS fell: Net income was $66.6 million, or $2.56 per diluted share, against $106.5 million, or $3.92 per diluted share, in the third quarter of 2025. Source
Quarterly new contracts fell 2%: New contracts were 1,861 in the third quarter, against 1,908 a year earlier. The average community count was 240, compared with 234. Source
Backlog sales value down 9%: Backlog sales value was $1.1 billion at September 30, down 9% from a year earlier. The average backlog sales price was $539,000, against $553,000. Source
Gross margin 20.9%, 21.3% excluding charges: Gross margin was $224.5 million, or 20.9% of revenue, against $270.1 million a year earlier. Excluding inventory charges, the margin was 21.3%. Source
Pre-tax income down 38%: Pre-tax income was $86.9 million, including the inventory charges, down 38% from $139.8 million a year earlier. Source
Shareholders' equity and book value rose: Book value per common share was $129.94, against $120.44 a year earlier. Total shareholders' equity was $3,252.6 million. Source

“Notwithstanding these conditions, we produced fairly solid results generating $87 million of pre-tax income, equating to an 8% return.”
Robert H. Schottenstein, Chief Executive Officer and President

Results and earnings

Net income and diluted EPS fell: Net income was $66.6 million, or $2.56 per diluted share, against $106.5 million, or $3.92 per diluted share, in the third quarter of 2025. Source
Total revenue declined 5%: Total revenue was $1,076.1 million, against $1,131.8 million a year earlier, with homebuilding revenue of $1,043.3 million and financial services revenue of $32.7 million. Source
Nine-month pre-tax and net income lower: For the nine months, pre-tax income was $280.6 million and net income was $213.5 million, or $8.14 per diluted share, against $446.0 million and $339.0 million, or $12.32, a year earlier. Source
Adjusted diluted EPS excludes inventory charges: Adjusted diluted EPS, excluding $0.14 per share of inventory charges, was $2.70, against $4.14 a year earlier. The company presents this as a non-GAAP measure. Source
Adjusted EBITDA declined year over year: Adjusted EBITDA was $103.4 million in the quarter, against $156.6 million a year earlier, according to the company's non-GAAP reconciliation. Source

Regional orders, deliveries and backlog

Northern contracts up, Southern down: Northern new contracts rose 1% to 746 in the quarter, while Southern new contracts fell 4% to 1,115. Nine-month contracts rose 4% in Northern and 6% in Southern. Source
Deliveries down in Southern, Northern up: Northern deliveries rose 1% to 949 in the quarter, while Southern deliveries fell 5% to 1,292. Nine-month deliveries fell 5% in Northern and 3% in Southern. Source
Backlog units lower in both regions: At September 30, Northern backlog was 1,031 units at an average sales price of $577,000, and Southern backlog was 1,015 units at $501,000. Both regions were lower in units than a year earlier. Source
Footprint in nine states, 50th year: Homebuilding operations span metro areas in nine states, including Ohio, Indiana, Illinois, Florida and Texas. The company is celebrating its 50th year in business in 2026. Source

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

Demand and cancellations

Quarterly new contracts fell 2%: New contracts were 1,861 in the third quarter, against 1,908 a year earlier. The average community count was 240, compared with 234. Source
Nine-month new contracts rose 5%: Nine-month new contracts rose to 6,598 from 6,278 a year earlier, an increase of 5%. Source
Backlog sales value down 9%: Backlog sales value was $1.1 billion at September 30, down 9% from a year earlier. The average backlog sales price was $539,000, against $553,000. Source
Cancellation rate steady at 12%: Cancellations ran at 12% in the quarter, the same as a year earlier. The nine-month cancellation rate was 10%, against 12%. Source

Margins and inventory charges

Gross margin 20.9%, 21.3% excluding charges: Gross margin was $224.5 million, or 20.9% of revenue, against $270.1 million a year earlier. Excluding inventory charges, the margin was 21.3%. Source
Inventory charges of $4.7 million: Pre-tax inventory charges were $4.7 million, or $0.14 per diluted share, against $7.6 million in the third quarter of 2025. Nine-month charges were $8.9 million. Source
G&A and selling expense rose: General and administrative expense was $76.6 million, up from $70.8 million. Selling expense was $64.6 million, against $64.0 million. Source
Pre-tax income down 38%: Pre-tax income was $86.9 million, including the inventory charges, down 38% from $139.8 million a year earlier. Source

“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.”
Robert H. Schottenstein, Chief Executive Officer and President

Land and community growth

Lot purchases rose, development spending fell: Land and lot purchases were $135.2 million, up from $115.4 million. Land development spending was $154.4 million, down from $181.3 million. Source
Communities rose to 246: The company had 246 communities at September 30, 2026, up from 233 a year earlier. The average community count was 240, against 234. Source
Owned and contracted lots declined: Owned lots were 23,425, down from 24,408. Lots under contract were 25,509, down from 26,217, for 48,934 lots in total against 50,625. Source

Cash, balance sheet and buybacks

Operating cash flow negative in quarter: Cash used in operating activities was $13.3 million in the quarter, against cash provided of $43.4 million a year earlier. Nine-month operating cash provided was $159.2 million. Source
Cash balance lower year over year: Cash, cash equivalents and restricted cash was $620.6 million at September 30, against $734.2 million a year earlier. Source
Homebuilding debt-to-capital held at 18%: The homebuilding debt-to-capital ratio was 18%, the same as a year earlier. Homebuilding debt was $697.3 million. Source
Shareholders' equity and book value rose: Book value per common share was $129.94, against $120.44 a year earlier. Total shareholders' equity was $3,252.6 million. Source
Financing outflows and $50 million buyback: Cash used in financing activities was $68.0 million in the quarter, against $94.2 million a year earlier. The company repurchased $50 million of common stock. Source

Figures management reported

Figure	Reported
New contracts (third quarter) Source	1,861
Homes delivered (third quarter) Source	2,241
Backlog units (September 30) Source	2,046

Risks management discussed

Demand: Management cited higher mortgage interest rates, demand conditions and economic uncertainty as factors in the current market. Source
Operational: Pre-tax inventory charges of $4.7 million were recorded in the quarter, and margin was reported both with and without them. 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 Third Quarter Results

Columbus, Ohio (October 21, 2026) - 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.

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