MHO · M/I Homes, Inc.

M/I Homes, Inc. reported a challenging first quarter of 2026, characterized by declining volumes and profitability amidst a difficult market environment. Total revenue fell 6% to $921 million, driven by a 3% decrease in home deliveries to 1,914 units and a lower average closing price of $459,000 compared to $476,000 in the prior year period. The decline in revenue, coupled with cost pressures, impacted profitability significantly. Pre-tax income dropped 39% to $89 million, resulting in a pre-tax margin of 10% and a return on equity of 12%. Gross margin for the quarter stood at 22%. Despite the operational headwinds, the company demonstrated financial resilience. Shareholders' equity reached a record $3.2 billion, pushing book value per share to a record $125. The balance sheet remains robust with $767 million in cash and no borrowings under the $900 million credit facility. The company also returned capital to shareholders through $50 million in stock repurchases. Operationally, new contracts increased 3% to 2,350 units, indicating some demand stability, although the cancellation rate improved to 8% from 10%. The backlog decreased 21% in units and 23% in value to $1.20 billion, suggesting potential revenue pressure in upcoming quarters. Management highlighted favorable long-term demographic trends and an undersupply of housing as supportive factors, while acknowledging current market uncertainty.