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.
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,
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
