COLUMBUS, Ohio, Oct. 22, 2025 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and nine months ended September 30, 2025.
2025 Third Quarter Highlights:
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.
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.
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,
2025
2024
New contracts
1,908
2,023
6,278
6,825
Average community count
234
214
228
215
Cancellation rate
12 %
10 %
9 %
Backlog units
2,189
3,174
Backlog sales value
$ 1,210,790
$ 1,725,423
Homes delivered
2,296
2,271
6,620
6,653
Average home closing price
$ 477
$ 489
$ 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
—
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:
26,544
27,644
26,895
27,857
27,188
28,534
27,513
28,703
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)
As of
Assets:
Total cash, cash equivalents and restricted cash(1)
$ 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
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
Book value per common share
$ 120.44
$ 104.59
Homebuilding debt to capital ratio(2)
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.
Selected Supplemental Financial and Operating Data (unaudited)
(Dollars in thousands)
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
Non-GAAP Financial Results (1)
Add:
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
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.
Selected Supplemental Financial and Operating Data
NEW CONTRACTS
%
Region
Change
Northern
742
890
(17) %
2,680
3,054
(12) %
Southern
1,166
1,133
3 %
3,598
3,771
(5) %
Total
(6) %
(8) %
HOMES DELIVERED
942
1,015
(7) %
2,735
2,809
(3) %
1,354
1,256
8 %
3,885
3,844
1 %
— %
BACKLOG
September 30, 2025
September 30, 2024
Dollars
Average
Units
(millions)
Sales Price
1,081
$ 609
$ 563,000
1,493
$ 803
$ 538,000
1,108
$ 602
$ 544,000
1,681
$ 923
$ 549,000
$ 1,211
$ 553,000
$ 1,726
LAND POSITION SUMMARY
Lots
Lots Under
Owned
Contract
7,140
10,843
17,983
6,528
10,885
17,413
17,268
15,374
32,642
17,114
17,678
34,792
24,408
26,217
50,625
23,642
28,563
52,205
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SOURCE M/I Homes, Inc.