Accessibility StatementSkip Navigation COLUMBUS, Ohio, Sept. 12, 2025 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announces the following Webcast: If you are unable to participate during the live webcast, the call will be archived on the Web site http://www.mihomes.com. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+Newsrooms &Influencers 9k+Digital MediaOutlets 270k+JournalistsOpted In GET STARTED Also from this source M/I Homes Reports 2025 Second Quarter Results M/I Homes, Inc. (NYSE:MHO) ann ...

M/I Homes (MHO) ended the recent trading session at $152.96, demonstrating a -2.71% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%. Shares of the homebuilder witnessed a gain of 21.35% over the previous month, beating the performance of the Construction sector with its gain of 4.79%, and the S&P 500's gain of 1.85%.Analysts and invest ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on M/I Homes (MHO), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5]. Brokerage Recommendations - M/I Homes has an average brokerage recommendation (ABR) of 1.80, indicating a position between Strong Buy and Buy, with 80% of the recommendations being Strong Buy from five brokerage firms [2][5]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies suggest brokerage recommendations often fail to guide investors effectively [5][10]. Analyst Bias - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This bias can mislead investors, as the recommendations may not accurately reflect the actual price trajectory of a stock [7][10]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimates, while the ABR may not always be up-to-date [9][13]. Current Earnings Estimates for M/I Homes - The Zacks Consensus Estimate for M/I Homes has declined by 2.2% over the past month to $16.62, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. - This decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for M/I Homes, suggesting caution despite the favorable ABR [15].

Group 1 - The home builder stocks are experiencing a bearish to bullish reversal, indicating volatility in the market [1] - M/I Homes (MHO) earnings report is highlighted as a significant focus within the upcoming batch of home builder earnings [1] - The blog "One-Twenty Two" by Dr. Duru provides unique perspectives on financial markets, challenging conventional wisdom [1] Group 2 - Dr. Duru has extensive experience in various financial crises, enhancing his understanding of market behavior [1] - The blog covers a wide range of topics including stocks, options, currencies, and Bitcoin, utilizing both technical and fundamental analysis [1] - Dr. Duru's educational background includes a B.S. in Mechanical Engineering and a Ph.D. in Engineering-Economic Systems [1]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides the basic filing information for the M/I Homes, Inc. Form 10-Q for the quarterly period ended June 30, 2025 [FORM 10-Q Details](index=1&type=section&id=FORM%2010-Q%20Details) This section provides the basic filing information for the M/I Homes, Inc. Form 10-Q for the quarterly period ended June 30, 2025, including registrant details, exchange listings, and filer status - Registrant: **M/I HOMES, INC.**, incorporated in Ohio, IRS Employer ID **31-1210837**, located at 4131 Worth Avenue, Suite 500, Columbus, Ohio 43219[2](index=2&type=chunk) Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Shares, par value $.01 | MHO | New York Stock Exchange | - Filer Status: **Large accelerated filer**[5](index=5&type=chunk) - Shares Outstanding: **26,390,709 common shares** as of July 23, 2025[6](index=6&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20M%2FI%20Homes%2C%20Inc.%20and%20Subsidiaries%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of M/I Homes, Inc. and its subsidiaries for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of income, shareholders' equity, and cash flows, along with detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) Total assets increased to **$4.74 billion** at June 30, 2025, from **$4.55 billion** at December 31, 2024, primarily due to increased inventory, while total liabilities and shareholders' equity also grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | |---|---|---| | Total Assets | $4,740,039 | $4,549,796 | | Total Liabilities | $1,657,903 | $1,610,119 | | Total Shareholders' Equity | $3,082,136 | $2,939,677 | | Cash, cash equivalents and restricted cash | $800,398 | $821,570 | | Inventory | $3,286,606 | $3,091,862 | [Unaudited Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) For Q2 2025, revenue increased by **4.8%** to **$1.16 billion**, but net income decreased by **17.4%** to **$121.2 million**, with diluted EPS falling to **$4.42** Condensed Consolidated Statements of Income Highlights (in thousands, except per common share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Revenue | $1,162,592 | $1,109,781 | $2,138,685 | $2,156,484 | | Total costs and expenses | $1,002,498 | $915,642 | $1,832,470 | $1,782,106 | | Income before income taxes | $160,094 | $194,139 | $306,215 | $374,378 | | Net income | $121,243 | $146,746 | $232,480 | $284,807 | | Diluted EPS | $4.42 | $5.12 | $8.40 | $9.90 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Shareholders' equity increased to **$3.08 billion** at June 30, 2025, from **$2.94 billion** at December 31, 2024, driven by net income, partially offset by share repurchases Shareholders' Equity Changes (in thousands) | Metric | Balance at Dec 31, 2024 | Net Income (6M 2025) | Repurchase of Common Shares (6M 2025) | Balance at Jun 30, 2025 | |---|---|---|---|---| | Total Shareholders' Equity | $2,939,677 | $232,480 | $(100,199) | $3,082,136 | - Repurchased **882,000 common shares** for **$100.2 million** during the six months ended June 30, 2025[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Net cash provided by operating activities decreased to **$102.6 million** for H1 2025, primarily due to increased inventory purchases and decreased accrued compensation, while financing activities used significantly more cash due to increased share repurchases Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | |---|---|---| | Net cash provided by operating activities | $102,642 | $143,283 | | Net cash used in investing activities | $(15,246) | $(27,541) | | Net cash used in financing activities | $(108,568) | $(11,088) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(21,172) | $104,654 | | Cash, cash equivalents and restricted cash balance at end of period | $800,398 | $837,458 | - Operating cash flow decreased due to **$183.6 million increase in inventory purchases** and **$35.8 million decrease in accrued compensation** in H1 2025[15](index=15&type=chunk) - Financing cash flow significantly impacted by **$100.2 million in common share repurchases** in H1 2025 (vs. $75.6 million in H1 2024) and net repayments of **$10.2 million in bank borrowings** (vs. $56.9 million net proceeds in H1 2024)[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements, covering significant accounting policies, inventory valuation, joint ventures, fair value measurements, guarantees, commitments, debt, earnings per share, income taxes, business segments, share repurchase programs, and revenue recognition [NOTE 1. Basis of Presentation](index=8&type=section&id=NOTE%201.%20Basis%20of%20Presentation) The financial statements are prepared in accordance with SEC rules for interim financial information and GAAP, requiring management estimates, with no significant changes to critical accounting policies in Q2 2025 - Financial statements prepared under SEC rules for interim information and GAAP, requiring management estimates[17](index=17&type=chunk) - **ASU 2023-07 (Segment Reporting)** is effective and applied retrospectively; **ASU 2023-09 (Income Taxes)** and **ASU 2024-03 (Expense Disaggregation)** are being evaluated for future impact[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - No significant changes to accounting policies in Q2 2025 compared to 2024 Form 10-K[22](index=22&type=chunk) [NOTE 2. Inventory and Capitalized Interest](index=9&type=section&id=NOTE%202.%20Inventory%20and%20Capitalized%20Interest) Inventory increased to **$3.29 billion** at June 30, 2025, from **$3.09 billion** at December 31, 2024, primarily in single-family lots and homes under construction, with capitalized interest remaining consistent at **$17.9 million** for H1 2025 Inventory Summary (in thousands) | Category | June 30, 2025 | December 31, 2024 | |---|---|---| | Single-family lots, land and land development costs | $1,683,930 | $1,630,190 | | Land held for sale | $5,005 | $7,699 | | Homes under construction | $1,403,582 | $1,271,626 | | Model homes and furnishings - at cost | $94,865 | $88,216 | | Community development district infrastructure | $9,867 | $12,839 | | Land purchase deposits | $76,771 | $69,483 | | Consolidated inventory not owned | $12,586 | $11,809 | | Total inventory | $3,286,606 | $3,091,862 | - Homes under construction not subject to sales contract: **2,726 homes** (**$585.9 million** carrying value) at June 30, 2025, up from 2,502 homes (**$551.3 million**) at December 31, 2024[25](index=25&type=chunk) Capitalized Interest Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Capitalized interest, beginning of period | $38,022 | $32,792 | $35,953 | $32,144 | | Interest capitalized to inventory | $8,947 | $9,004 | $17,917 | $17,954 | | Capitalized interest charged to land and housing costs and expenses | $(8,227) | $(7,938) | $(15,128) | $(16,240) | | Capitalized interest, end of period | $38,742 | $33,858 | $38,742 | $33,858 | | Interest incurred - net | $4,570 | $1,656 | $8,343 | $3,686 | [NOTE 3. Investment in Joint Venture Arrangements](index=10&type=section&id=NOTE%203.%20Investment%20in%20Joint%20Venture%20Arrangements) The Company's investment in joint venture arrangements increased by **$2.2 million** to **$67.5 million** at June 30, 2025, primarily due to cash contributions offset by lot distributions Investment in Joint Venture Arrangements (in thousands) | Metric | June 30, 2025 | December 31, 2024 | |---|---|---| | Total Investment in Joint Venture Arrangements | $67,466 | $65,334 | | Investment in JODAs | $59,100 | $59,300 | | Investment in LLCs | $8,400 | $6,000 | - Increase of **$2.2 million** in joint venture investments during H1 2025, driven by **$18.4 million cash contributions** offset by **$16.2 million lot distributions**[30](index=30&type=chunk) - No losses or income from LLCs during the three and six months ended June 30, 2025 or 2024[33](index=33&type=chunk) [NOTE 4. Fair Value Measurements](index=11&type=section&id=NOTE%204.%20Fair%20Value%20Measurements) The Company measures mortgage loans held for sale and interest rate lock commitments (IRLCs) at fair value, recognizing a total gain of **$1.6 million** from these instruments for the six months ended June 30, 2025 - Mortgage loans held for sale and IRLCs are measured at fair value on a recurring basis, using **Level 2 and Level 3 inputs**[39](index=39&type=chunk)[42](index=42&type=chunk) Gain (Loss) Recognized on Fair Value Measurements (in thousands) | Description | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Mortgage loans held for sale | $5,544 | $(623) | $5,452 | $(3,471) | | Forward sales of mortgage-backed securities | $(3,701) | $1,647 | $(9,144) | $8,888 | | Interest rate lock commitments | $1,404 | $(1,322) | $4,621 | $(2,179) | | Whole loan contracts | $1,235 | $843 | $644 | $(49) | | Total gain (loss) recognized | $4,482 | $545 | $1,573 | $3,189 | - No impairment charges recorded on inventory or investments in unconsolidated joint ventures during the three and six months ended June 30, 2025 and 2024[52](index=52&type=chunk)[53](index=53&type=chunk) [NOTE 5. Guarantees and Indemnifications](index=14&type=section&id=NOTE%205.%20Guarantees%20and%20Indemnifications) M/I Financial provides limited-life guarantees on loans sold to third-party purchasers, covering approximately **$738.3 million** in loans as of June 30, 2025, with a recorded liability of **$1.0 million** for these guarantees - Loans covered by limited-life guarantees decreased to **$738.3 million** at June 30, 2025, from **$936.0 million** at December 31, 2024, due to a change in investor mix and purchase terms[62](index=62&type=chunk) - Liability for guarantees totaled **$1.0 million** at June 30, 2025, compared to **$1.3 million** at December 31, 2024[65](index=65&type=chunk) [NOTE 6. Commitments and Contingencies](index=15&type=section&id=NOTE%206.%20Commitments%20and%20Contingencies) The Company maintains warranty reserves of **$35.2 million**, has outstanding completion bonds and standby letters of credit totaling **$536.6 million**, and land option/contingent purchase agreements of approximately **$1.56 billion**, with a legal expense reserve of **$1.4 million** Warranty Reserves Activity (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Warranty reserves, beginning of period | $35,043 | $32,263 | $36,219 | $31,980 | | Warranty expense on homes delivered | $6,288 | $5,904 | $11,549 | $11,503 | | Changes in estimates for pre-existing warranties | $45 | $580 | $(54) | $605 | | Settlements made during the period | $(6,144) | $(5,686) | $(12,482) | $(11,027) | | Warranty reserves, end of period | $35,232 | $33,061 | $35,232 | $33,061 | - Outstanding completion bonds and standby letters of credit: **$536.6 million** at June 30, 2025[70](index=70&type=chunk) - Land option and contingent purchase agreements: approximately **$1.56 billion** at June 30, 2025[71](index=71&type=chunk) - Legal expense reserve: **$1.4 million** at June 30, 2025, up from $1.2 million at December 31, 2024[72](index=72&type=chunk) [NOTE 7. Goodwill](index=16&type=section&id=NOTE%207.%20Goodwill) Goodwill of **$16.4 million**, from the 2018 Pinnacle Homes acquisition, remained unchanged at June 30, 2025, with no impairment recorded - Goodwill balance: **$16.4 million** at June 30, 2025, unchanged from December 31, 2024[73](index=73&type=chunk) - No goodwill impairment recorded in Q4 2024 or at June 30, 2025[74](index=74&type=chunk) [NOTE 8. Debt](index=17&type=section&id=NOTE%208.%20Debt) The Company maintains a **$650 million** unsecured revolving Credit Facility with **$561.5 million** available, a **$300 million** MIF Mortgage Repurchase Facility with **$275.9 million** outstanding, and Senior Notes totaling **$700 million**, all in compliance with covenants as of June 30, 2025 - Credit Facility: **$650 million** unsecured revolving credit facility, maturing December 9, 2026; **$561.5 million available** at June 30, 2025 (no borrowings, $88.5 million letters of credit outstanding)[75](index=75&type=chunk)[76](index=76&type=chunk) - MIF Mortgage Repurchase Facility: **$300 million** maximum borrowing availability, expiring October 21, 2025; **$275.9 million outstanding** at June 30, 2025[79](index=79&type=chunk)[80](index=80&type=chunk) - Senior Notes: **$300 million of 3.95% notes due 2030** and **$400 million of 4.95% notes due 2028** outstanding[81](index=81&type=chunk)[82](index=82&type=chunk) - All financial covenants for Credit Facility, 2030 Senior Notes, and 2028 Senior Notes were in compliance at June 30, 2025[75](index=75&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Restricted payments basket for 2028 Senior Notes was **$904.3 million** at June 30, 2025, up from $900.2 million at December 31, 2024[86](index=86&type=chunk) [NOTE 9. Earnings Per Common Share](index=19&type=section&id=NOTE%209.%20Earnings%20Per%20Common%20Share) Diluted earnings per common share decreased to **$4.42** for Q2 2025 and **$8.40** for H1 2025, reflecting a decline in net income Earnings Per Common Share (in thousands, except per common share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Net income | $121,243 | $146,746 | $232,480 | $284,807 | | Basic weighted average shares outstanding | 26,836 | 27,878 | 27,074 | 27,965 | | Diluted weighted average shares outstanding | 27,406 | 28,668 | 27,673 | 28,777 | | Basic EPS | $4.52 | $5.26 | $8.59 | $10.18 | | Diluted EPS | $4.42 | $5.12 | $8.40 | $9.90 | [NOTE 10. Income Taxes](index=19&type=section&id=NOTE%2010.%20Income%20Taxes) The effective tax rate for Q2 2025 was **24.3%** and for H1 2025 was **24.1%**, with a **$1.7 million** tax benefit from energy efficient homes credit in H1 2025 Effective Tax Rates | Period | Effective Tax Rate 2025 | Effective Tax Rate 2024 | |---|---|---| | Three Months Ended June 30 | 24.3% | 24.4% | | Six Months Ended June 30 | 24.1% | 23.9% | - Recognized **$1.7 million tax benefit** for energy efficient homes credit in H1 2025, up from $1.3 million in H1 2024[88](index=88&type=chunk) - The One Big Beautiful Bill Act (OBBBA) accelerated the termination date of the energy efficient homes credit to June 30, 2026[88](index=88&type=chunk) [NOTE 11. Business Segments](index=20&type=section&id=NOTE%2011.%20Business%20Segments) Northern homebuilding revenue increased by **5.1%** to **$488.3 million** in Q2 2025, while Southern homebuilding revenue increased by **4.7%** to **$642.9 million**, but Southern operating income decreased by **29.6%** due to lower gross margins Segment Revenue (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Northern homebuilding | $488,250 | $464,781 | $898,627 | $873,301 | | Southern homebuilding | $642,892 | $614,238 | $1,177,088 | $1,225,459 | | Financial services | $31,450 | $30,762 | $62,970 | $57,724 | | Total revenue | $1,162,592 | $1,109,781 | $2,138,685 | $2,156,484 | Segment Operating Income (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Northern homebuilding | $76,014 | $72,821 | $136,606 | $130,882 | | Southern homebuilding | $84,300 | $119,750 | $164,731 | $237,593 | | Financial services | $17,542 | $17,883 | $36,309 | $33,070 | | Total operating income | $155,717 | $186,791 | $296,641 | $360,110 | Total Assets by Segment (in thousands) | Segment | June 30, 2025 | December 31, 2024 | |---|---|---| | Northern | $1,145,236 | $1,091,643 | | Southern | $2,406,481 | $2,235,590 | | Financial Services | $377,271 | $370,558 | | Corporate and Unallocated | $811,051 | $852,005 | | Total assets | $4,740,039 | $4,549,796 | [NOTE 12. Share Repurchase Program](index=22&type=section&id=NOTE%2012.%20Share%20Repurchase%20Program) A new **$250 million** share repurchase program was approved in February 2025, under which the Company repurchased **0.5 million shares** for **$50.1 million** in Q2 2025, leaving **$149.8 million** available - New **$250 million share repurchase program** approved on February 11, 2025, replacing the 2024 program[99](index=99&type=chunk) - Repurchased **0.5 million common shares** for **$50.1 million** in Q2 2025[101](index=101&type=chunk) - **$149.8 million** remained available for repurchases under the 2025 Share Repurchase Program as of June 30, 2025[101](index=101&type=chunk) [NOTE 13. Revenue Recognition](index=22&type=section&id=NOTE%2013.%20Revenue%20Recognition) Revenue from home and land sales is recognized at closing, while financial services revenue is recognized upon sale of mortgage loans/servicing rights or rendering of title services Revenue Disaggregated by Source (in thousands) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Housing | $1,124,475 | $1,072,044 | $2,064,506 | $2,088,557 | | Land sales | $6,667 | $6,975 | $11,209 | $10,203 | | Financial services | $31,450 | $30,762 | $62,970 | $57,724 | | Total revenue | $1,162,592 | $1,109,781 | $2,138,685 | $2,156,484 | - Homebuilding operations accounted for **97% of total revenues** for both three and six months ended June 30, 2025 and 2024[110](index=110&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of the Company's financial performance and condition, highlighting the impact of macroeconomic challenges, results by homebuilding regions and financial services, critical accounting estimates, and strategic objectives for 2025 - Company is one of the nation's leading builders of single-family homes, having sold over **164,300 homes** since 1976[111](index=111&type=chunk) - Housing market faces headwinds from elevated mortgage interest rates, higher lot costs, limited affordable housing, and economic uncertainty, leading to decreased buyer urgency[118](index=118&type=chunk) Key Financial and Operational Highlights (Q2 and H1 2025 vs. 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | H1 2025 | H1 2024 | Change (YoY) | |---|---|---|---|---|---|---| | Revenue | $1.16B | $1.11B | +5% | $2.14B | $2.16B | -1% | | Homes Delivered | 2,348 | 2,224 | +6% | 4,324 | 4,382 | -1% | | Income Before Taxes | $160.1M | $194.1M | -18% | $306.2M | $374.4M | -18% | | Gross Margins | 24.7% | 27.9% | -320 bps | 25.2% | 27.5% | -230 bps | | Net Income | $121.2M | $146.7M | -17% | $232.5M | $284.8M | -18% | | New Contracts | 2,078 | 2,255 | -8% | 4,370 | 4,802 | -9% | | Shareholders' Equity | $3.1B | $2.74B | +12% | $3.1B | $2.74B | +12% | | Book Value per Share | $117 | $100 | +17% | $117 | $100 | +17% | | Homebuilding Debt to Capital | 18% | 20% | -200 bps | 18% | 20% | -200 bps | - Financial services achieved record quarterly revenue and strong H1 income, benefiting from higher margins, improved capture rate, and increased loan originations[119](index=119&type=chunk) - Company-wide absorption pace declined to **3.0 sales per community per month** in Q2 2025 compared to 3.5 in Q2 2024[120](index=120&type=chunk) - Strategic objectives for remainder of 2025 include promoting sales with incentives, managing land spend and inventory, controlling construction cycle times, opening new communities, managing overhead, maintaining a strong balance sheet, and emphasizing customer service, product quality, and premier locations[131](index=131&type=chunk) - Ended Q2 2025 with approximately **50,500 lots under control** (a six-year supply), a **2% increase** from Q2 2024[132](index=132&type=chunk) - Opened **50 new communities** and closed 36 in H1 2025, ending Q2 with **234 active communities** (up from 211 YoY); expects **5% growth in average community count** by end of 2025[133](index=133&type=chunk) [Overview](index=24&type=section&id=Overview) M/I Homes, Inc. is a leading single-family homebuilder operating in 16 markets, with this section introducing key topics of the Management's Discussion and Analysis, including forward-looking statements, critical accounting estimates, results of operations, liquidity, capital resources, and the impact of interest rates and inflation - M/I Homes, Inc. is a leading builder of single-family homes, having sold over **164,300 homes** since 1976[111](index=111&type=chunk) - The Company operates homebuilding operations in **16 markets** across Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee[111](index=111&type=chunk) [Application of Critical Accounting Estimates and Policies](index=25&type=section&id=Application%20of%20Critical%20Accounting%20Estimates%20and%20Policies) The preparation of financial statements requires management to make estimates and assumptions in accordance with GAAP, with no significant changes to critical accounting policies made during Q2 2025 - Financial statements require management estimates and assumptions based on historical experience and other reasonable factors[115](index=115&type=chunk) - No significant changes to critical accounting policies in Q2 2025 compared to the 2024 Form 10-K[116](index=116&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) The Company's Q2 2025 revenue increased **5%** to **$1.16 billion**, driven by a **6%** increase in homes delivered, despite an **18%** decrease in income before taxes and net income due to lower gross margins and increased incentives Key Financial and Operational Highlights (Q2 and H1 2025 vs. 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | H1 2025 | H1 2024 | Change (YoY) | |---|---|---|---|---|---|---| | Revenue | $1.16B | $1.11B | +5% | $2.14B | $2.16B | -1% | | Homes Delivered | 2,348 | 2,224 | +6% | 4,324 | 4,382 | -1% | | Income Before Taxes | $160.1M | $194.1M | -18% | $306.2M | $374.4M | -18% | | Gross Margins | 24.7% | 27.9% | -320 bps | 25.2% | 27.5% | -230 bps | | Net Income | $121.2M | $146.7M | -17% | $232.5M | $284.8M | -18% | | New Contracts | 2,078 | 2,255 | -8% | 4,370 | 4,802 | -9% | - Homebuilding gross margin percentage declined by **320 basis points** to **22.6%** in Q2 2025, primarily due to a **$16.7 million increase in lot costs** and an **$8.7 million increase in interest rate buydowns**[122](index=122&type=chunk) - Financial services revenue increased **2%** in Q2 2025 to a record **$31.5 million**, driven by higher margins, improved capture rate, and a **15% increase in loan originations**[151](index=151&type=chunk) Cancellation Rates by Region | Region | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | |---|---|---|---|---| | Northern | 10.7 % | 9.3 % | 9.1 % | 8.2 % | | Southern | 14.0 % | 10.2 % | 12.9 % | 9.7 % | | Total | 12.7 % | 9.8 % | 11.3 % | 9.0 % | - Northern region revenue increased **5%** in Q2 2025, driven by a **3% increase in average sales price** and a **2% increase in homes delivered**; operating income increased **4.4%**[144](index=144&type=chunk) - Southern region revenue increased **5%** in Q2 2025 due to an **8% increase in homes delivered**, but operating income decreased **29.6%** due to a **550 basis points decline in gross margin** (to 22.4%) from increased lot costs and incentives[148](index=148&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Discussion%20of%20Our%20Liquidity%20and%20Capital%20Resources) Cash, cash equivalents, and restricted cash decreased by **$21.3 million** to **$800.4 million** at June 30, 2025, primarily due to lower home deliveries and land spend timing, with key uses of cash including land acquisitions, land development, and share repurchases - Cash, cash equivalents and restricted cash decreased by **$21.3 million** to **$800.4 million** at June 30, 2025, from December 31, 2024[168](index=168&type=chunk) - Principal uses of cash in H1 2025: **$247.7 million in land acquisitions**, **$240.6 million in land development**, and **$100.2 million in common share repurchases**[168](index=168&type=chunk)[172](index=172&type=chunk)[177](index=177&type=chunk) - Credit Facility: **$650 million**, **$561.5 million available** at June 30, 2025 (no borrowings, $88.5 million letters of credit outstanding)[171](index=171&type=chunk) - MIF Mortgage Repurchase Facility: **$300 million**, **$275.9 million outstanding** at June 30, 2025[170](index=170&type=chunk) - Homebuilding debt to capital ratio: **18%** at June 30, 2025 (vs. 19% at Dec 31, 2024)[180](index=180&type=chunk) Credit Facility Covenants Compliance (as of June 30, 2025, in millions) | Financial Covenant | Requirement | Actual | |---|---|---| | Consolidated Tangible Net Worth | ≥ $1,901.2 | $2,989.5 | | Leverage Ratio | ≤ 0.60 | — | | Interest Coverage Ratio | ≥ 1.5 to 1.0 | 21.73 to 1.0 | | Investments in Unrestricted Subsidiaries and Joint Ventures | ≤ $896.8 | $8.8 | | Unsold Housing Units and Model Homes | ≤ 3,149 | 1,922 | MIF Mortgage Repurchase Facility Covenants Compliance (as of June 30, 2025, in millions) | Financial Covenant | Requirement | Actual | |---|---|---| | Leverage Ratio | ≤ 12.0 to 1.0 | 7.26 to 1.0 | | Liquidity | ≥ $10.0 | $58.5 | | Adjusted Net Income | > $0.0 | $29.2 | | Tangible Net Worth | ≥ $25.0 | $43.5 | [Impact of Interest Rates and Inflation](index=41&type=section&id=Impact%20of%20Interest%20Rates%20and%20Inflation) The Company's business is significantly affected by interest rates and inflation, with the annual inflation rate at **2.7%** in June 2025 and mortgage rates remaining elevated between **6% and 7%**, leading to the use of interest rate buydowns - Annual inflation rate (CPI) was **2.7%** in June 2025, down from 3.0% in June 2024[209](index=209&type=chunk) - Mortgage interest rates hover between **6% and 7%**, comparable to prior year, making it difficult for homebuyers[210](index=210&type=chunk) - Company offers interest rate buydowns to address elevated rates and spur demand, which may reduce margins[210](index=210&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk stems from interest rate fluctuations, which it hedges using derivative instruments like Forward Sales of Mortgage-Backed Securities (FMBSs) and Whole Loan Contracts, recognizing a total gain of **$1.6 million** from these instruments for H1 2025 - Primary market risk is from interest rate fluctuations affecting revolving credit facilities and mortgage loan origination[212](index=212&type=chunk) - Uses FMBSs and Whole Loan Contracts to hedge interest rate risk for IRLCs and Mortgage Loans Held for Sale[215](index=215&type=chunk)[216](index=216&type=chunk) Notional Amounts of Financial Instruments (in thousands) | Description | June 30, 2025 | December 31, 2024 | |---|---|---| | Whole loan contracts and related committed IRLCs | $1,012 | $— | | Uncommitted IRLCs | $317,593 | $215,696 | | FMBSs related to uncommitted IRLCs | $372,000 | $228,000 | | Whole loan contracts and related mortgage loans held for sale | $16,841 | $17,667 | | FMBSs related to mortgage loans held for sale | $258,000 | $252,000 | | Mortgage loans held for sale covered by FMBSs | $267,599 | $276,140 | Gain (Loss) Recognized on Financial Instruments (in thousands) | Description | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Mortgage loans held for sale | $5,544 | $(623) | $5,452 | $(3,471) | | Forward sales of mortgage-backed securities | $(3,701) | $1,647 | $(9,144) | $8,888 | | Interest rate lock commitments | $1,404 | $(1,322) | $4,621 | $(2,179) | | Whole loan contracts | $1,235 | $843 | $644 | $(49) | | Total gain (loss) recognized | $4,482 | $545 | $1,573 | $3,189 | [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were **effective** as of June 30, 2025[220](index=220&type=chunk) - No material changes in internal control over financial reporting during Q2 2025[221](index=221&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding the Company's legal proceedings is incorporated by reference from Note 6 to the Condensed Consolidated Financial Statements - Legal proceedings are discussed in **Note 6** to the Company's Consolidated Financial Statements[222](index=222&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The Company's business is subject to various risks and uncertainties, which are consistent with those disclosed in the 2024 Form 10-K, with no material changes reported in this quarterly filing - No material changes to the risk factors disclosed in the 2024 Form 10-K[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not have any unregistered sales of equity securities, but repurchased **460,000 common shares** for **$50.1 million** in Q2 2025 under its 2025 Share Repurchase Program, leaving **$149.8 million** available - No unregistered sales of equity securities[224](index=224&type=chunk) Common Shares Purchased (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Common Share | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | |---|---|---|---| | April 1, 2025 - April 30, 2025 | 40,000 | $105.17 | $195,738,273 | | May 1, 2025 - May 31, 2025 | 420,000 | $109.37 | $149,801,549 | | June 1, 2025 - June 30, 2025 | — | $— | $149,801,549 | | Quarter ended June 30, 2025 | 460,000 | $109.01 | $149,801,549 | - The 2025 Share Repurchase Program, authorized for up to **$250 million**, replaced the 2024 program[225](index=225&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities during the period - No defaults upon senior securities[228](index=228&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures - No mine safety disclosures[229](index=229&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q2 2025[229](index=229&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including an amendment to a master repurchase agreement, a list of subsidiary guarantors, and various certifications by the CEO and CFO, along with XBRL documents Key Exhibits Filed | Exhibit Number | Description | |---|---| | 10.1 | Amendment No. 3 to Master Repurchase Agreement between M/I Financial, LLC and JPMorgan Chase Bank, National Association, dated July 1, 2025 | | 22 | List of Subsidiary Guarantors | | 31.1, 31.2 | Certifications by Robert H. Schottenstein (CEO) and Phillip G. Creek (CFO) pursuant to Sarbanes-Oxley Act Section 302 | | 32.1, 32.2 | Certifications by Robert H. Schottenstein (CEO) and Phillip G. Creek (CFO) pursuant to Sarbanes-Oxley Act Section 906 | | 101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF | XBRL Instance Document and Taxonomy Extensions | | 104 | Cover Page Interactive Data File | [Signatures](index=48&type=section&id=Signatures) [Signatures](index=48&type=section&id=Signatures) The report is signed by Robert H. Schottenstein, Chairman, Chief Executive Officer and President, and Ann Marie W. Hunker, Vice President, Chief Accounting Officer and Controller, on July 25, 2025 - Report signed by Robert H. Schottenstein (Chairman, CEO and President) and Ann Marie W. Hunker (VP, Chief Accounting Officer and Controller) on July 25, 2025[233](index=233&type=chunk)

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $1.2 billion, a 5% increase year-over-year [6][10] - Pre-tax income decreased by 18% to $160.1 million, largely due to a decline in gross margins to 25% [6][10] - Gross margins were reported at 25%, down from 28% a year ago [3][13] - Return on equity was 17%, with a pretax income return of 14% [3][14] Business Line Data and Key Metrics Changes - New contracts for the second quarter were down 8% year-over-year, with a monthly sale pace of three homes per community [4][11] - The company closed a record 2,348 homes in the second quarter, a 6% increase compared to the previous year [5][12] - The average closing price for the second quarter was $479,000, a 1% decrease from the previous year [13] Market Data and Key Metrics Changes - New contracts in the Northern Region decreased by 13%, while the Southern Region saw a decrease of 4% [8] - Deliveries in the Southern Region increased by 8%, while Northern Region deliveries increased by 2% [8] - 59% of deliveries came from the Southern Region, with 41% from the Northern Region [8] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy downs to drive traffic and sales [4][5] - The long-term fundamentals of the housing industry are viewed as sound, with expectations of benefiting from undersupply and growing household formations [5] - The company aims to grow its community count by about 5% from 2024 [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business despite challenging macroeconomic conditions, citing a strong balance sheet and quality communities [10] - There is a belief that many potential buyers are waiting for better rate environments and improved consumer sentiment [5] - The company remains well-positioned for growth, with a strong land position and community count [10][18] Other Important Information - The company ended the quarter with a record $3.1 billion in equity, a 17% increase year-over-year [10] - The cancellation rate for the quarter was 13%, with 51% of sales to first-time buyers [11] - The company repurchased $50 million of its stock during the quarter, with $150 million remaining under the current authorization [19] Q&A Session Summary Question: Commentary on market trends by price point and geography - Management noted volatility in the market, with Midwest markets outperforming the Carolinas slightly [24][31] Question: Insights on margin normalization and headwinds - Management indicated that margins may level off but could face pressure from higher rates and tariffs [36][40] Question: Order trends and June performance - There was a noticeable uptick in traffic in June, attributed to improved buyer sentiment [42][44] Question: Operational comments on Southern markets - Management confirmed that Texas margins are currently better than Florida, despite some normalization [52] Question: New home inventory levels - Management acknowledged an increase in spec homes, which are critical for performance in the current rate environment [56] Question: Future growth plans in Northern markets - Management expressed bullishness about growth opportunities in the Midwest and plans to invest further in those markets [84][86] Question: SG&A expenses outlook - SG&A expenses are expected to continue increasing due to higher headcount and community count growth [88][89] Question: Backlog margins and mortgage rates - Margins in the backlog are slightly down, with no significant changes in incentives noted [90][91]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $1.2 billion, a 5% increase year-over-year [7] - Pre-tax income decreased by 18% to $160.1 million, largely due to a decline in gross margins to 25% [7][14] - Gross margins were reported at 25%, down from 28% a year ago, and return on equity was 17% [4][10] - Earnings per diluted share decreased to $4.42 from $5.12, a 14% decline [15] Business Line Data and Key Metrics Changes - New contracts for the second quarter decreased by 8% year-over-year, with a monthly sale pace of three homes per community [5][12] - The company closed a record 2,348 homes in the second quarter, a 6% increase compared to the previous year [6][7] - The average closing price for the second quarter was $479,000, a 1% decrease from the previous year [14] Market Data and Key Metrics Changes - New contracts in the Northern Region decreased by 13%, while the Southern Region saw a decrease of 4% [8] - Deliveries in the Southern Region increased by 8%, while Northern Region deliveries increased by 2% [8] - 59% of deliveries came from the Southern Region, with 41% from the Northern Region [8] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy downs to drive traffic and sales despite their impact on profitability [5][6] - The company is optimistic about long-term fundamentals in the housing market due to undersupply and growing household formations [6][10] - The company aims to grow its community count by about 5% from 2024, ending the second quarter with 234 communities [7][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges due to higher interest rates affecting consumer confidence [5][6] - The company remains optimistic about its business, citing a strong balance sheet and quality land position [10] - Management noted that while conditions are challenging, they are not as severe as in past downturns, with a current assessment of the market at a "C to C+" level [32] Other Important Information - The company ended the quarter with $3.1 billion in equity, a 17% increase year-over-year, and a debt to capital ratio of 18% [10] - The company has a total of 50,500 owned and controlled lots, equating to about a five to six year supply [9][10] - The company repurchased $50 million of its stock during the quarter, with $150 million remaining under its current authorization [20] Q&A Session Summary Question: Commentary on market trends by geography and price point - Management noted volatility in the market, with Midwest markets outperforming the Carolinas slightly, and mixed conditions in Florida [25][26] Question: Insights on margin normalization and headwinds - Management indicated that margins may level off but could face pressure from higher rates and tariffs [39][42] Question: Order trends and incentives - Management observed an uptick in traffic in June, attributing it to organic demand rather than increased incentives [44][66] Question: Operational comments on Southern markets - Management confirmed that Texas margins are currently better than Florida, but both have seen some normalization [55] Question: Inventory levels and demand - Management stated that while new home inventory is up, their ability to offer rate buy downs gives them a competitive edge over existing homes [58] Question: Future growth plans in Northern markets - Management expressed bullishness about growth opportunities in the Midwest and plans to invest further in those markets [88][89]

Core Insights - M/I Homes reported $1.16 billion in revenue for the quarter ended June 2025, a year-over-year increase of 4.8% [1] - The earnings per share (EPS) for the same period was $4.42, down from $5.12 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.12 billion by 4.24%, while the EPS fell short of the consensus estimate of $4.43 by 0.23% [1] Financial Performance Metrics - Average home closing price was $479 thousand, slightly below the average estimate of $479.99 thousand [4] - Total homes delivered were 2,348, surpassing the average estimate of 2,213 [4] - New contracts totaled 2,078, which was below the estimated average of 2,200 [4] - The average sales price of homes in backlog was $553 thousand, exceeding the average estimate of $547.64 thousand [4] - The number of active communities was 230, above the average estimate of 227 [4] - Aggregate sales value of homes in backlog was $1.43 billion, lower than the average estimate of $1.55 billion [4] - Homes in backlog numbered 2,577, compared to the estimated average of 2,835 [4] - Financial services revenue was $31.45 million, exceeding the average estimate of $28.5 million, representing a year-over-year change of +2.2% [4] - Homebuilding revenue was $1.12 billion, above the estimated average of $1.06 billion, reflecting a year-over-year increase of +4.9% [4] Stock Performance - Shares of M/I Homes returned +10% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - M/I Homes reported quarterly earnings of $4.42 per share, slightly missing the Zacks Consensus Estimate of $4.43 per share, and down from $5.12 per share a year ago, representing an earnings surprise of -0.23% [1] - The company posted revenues of $1.16 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 4.24%, and up from $1.11 billion year-over-year [2] - M/I Homes has surpassed consensus revenue estimates three times over the last four quarters, while it has only exceeded EPS estimates once in the same period [2] Group 2 - The stock has underperformed the market, losing about 7.2% since the beginning of the year, compared to the S&P 500's gain of 7.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $4.19 on revenues of $1.1 billion, and for the current fiscal year, it is $17.00 on revenues of $4.36 billion [7] Group 3 - The Zacks Industry Rank indicates that the Building Products - Home Builders sector is currently in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - The estimate revisions trend for M/I Homes was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

[Financial & Operational Highlights](index=1&type=section&id=2025%20Second%20Quarter%20Highlights) M/I Homes reported decreased Q2 2025 profitability despite record revenue and increased home deliveries, as new contracts and backlog value declined Q2 2025 Profitability Overview | Metric | Q2 2025 ($) | Q2 2024 ($) | | :--- | :--- | :--- | | Pre-tax Income | $160.1 million | $194.1 million | | Net Income | $121.2 million | $146.7 million | | Diluted EPS | $4.42 | $5.12 | Q2 2025 Operational Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue ($) | $1.2 billion | - | +5% | | Homes Delivered (Units) | 2,348 | 2,224 | +6% | | New Contracts (Units) | 2,078 | 2,255 | -8% | | Backlog Value ($) | $1.43 billion | $1.82 billion | -22% | | Backlog Units (Units) | 2,577 | 3,422 | -25% | | Cancellation Rate (%) | 13% | 10% | +3 p.p. | - Shareholders' equity reached a record **$3.1 billion**, a **12%** increase from a year ago, with book value per share at **$117**[7](index=7&type=chunk) - The company repurchased **$50 million** of its common stock during the second quarter[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management acknowledged challenging market conditions but expressed confidence in industry fundamentals, highlighting a strong balance sheet and strategic investment plans - Management described market conditions as "choppy and challenging" but remains confident due to strong housing industry fundamentals and the company's ability to navigate the environment[6](index=6&type=chunk) - The company maintains a very strong balance sheet with **$800 million** in cash, zero borrowings under its **$650 million** credit facility, and a homebuilding debt-to-capital ratio of **18%**[6](index=6&type=chunk)[8](index=8&type=chunk) - M/I Homes is strategically investing in operations and is on track to grow its average community count by approximately **5%** in 2025[8](index=8&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) Financial statements show increased Q2 revenue but decreased operating income, with a robust balance sheet and lower cash from operations [Summary Statement of Income](index=3&type=section&id=Summary%20Statement%20of%20Income) Q2 2025 total revenue increased, but net income decreased due to lower gross margin and higher SG&A, with diluted EPS declining Q2 Ended June 30 | Metric (Q2 Ended June 30) | 2025 ($ Millions) | 2024 ($ Millions) | | :--- | :--- | :--- | | Total Revenue | $1,162.6 | $1,109.8 | | Gross Margin | $286.6 | $309.3 | | Operating Income | $155.7 | $186.8 | | Net Income | $121.2 | $146.7 | | Diluted EPS ($) | $4.42 | $5.12 | Six Months Ended June 30 | Metric (Six Months Ended June 30) | 2025 ($ Millions) | 2024 ($ Millions) | | :--- | :--- | :--- | | Total Revenue | $2,138.7 | $2,156.5 | | Net Income | $232.5 | $284.8 | | Diluted EPS ($) | $8.40 | $9.90 | [Summary Balance Sheet](index=4&type=section&id=Summary%20Balance%20Sheet) As of June 30, 2025, the balance sheet shows strong total assets and shareholders' equity, with increased inventory and an improved debt-to-capital ratio As of June 30 | Metric (As of June 30) | 2025 ($ Millions) | 2024 ($ Millions) | | :--- | :--- | :--- | | Total Cash & Equivalents | $800.4 | $837.5 | | Total Inventory | $3,286.6 | $2,938.5 | | Total Assets | $4,740.0 | $4,340.1 | | Total Debt - Homebuilding | $695.7 | $694.4 | | Shareholders' Equity | $3,082.1 | $2,741.1 | | Book Value per Share ($) | $117.01 | $100.03 | - The homebuilding debt-to-capital ratio improved from **20%** to **18%** year-over-year[15](index=15&type=chunk)[16](index=16&type=chunk) [Supplemental Financial and Operating Data](index=5&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) For H1 2025, cash from operating activities decreased, while land/lot purchases increased, and financial services pre-tax income showed growth Six Months Ended June 30 | Metric (Six Months Ended June 30) | 2025 ($ Millions) | 2024 ($ Millions) | | :--- | :--- | :--- | | Cash from Operating Activities | $102.6 | $143.3 | | Land/lot purchases | $247.7 | $226.8 | | Land development spending | $240.6 | $263.9 | | Financial services pre-tax income | $30.6 | $26.7 | [Non-GAAP Financial Results](index=5&type=section&id=Non-GAAP%20Financial%20Results) Adjusted EBITDA, a non-GAAP measure, declined for both Q2 and the six-month period in 2025, reflecting an overall decrease in profitability Adjusted EBITDA | Period | 2025 ($ Millions) | 2024 ($ Millions) | | :--- | :--- | :--- | | Q2 Adjusted EBITDA | $169.4 | $199.8 | | H1 Adjusted EBITDA | $323.4 | $386.6 | [Regional Operating Performance](index=6&type=section&id=Regional%20Operating%20Performance) New contracts declined in both regions in Q2 2025, while homes delivered increased, but backlog units and value significantly decreased year-over-year - New contracts declined in both regions for Q2 and H1 2025, with the Northern region showing a larger percentage drop (**13%** in Q2, **10%** in H1)[22](index=22&type=chunk) - Backlog units at June 30, 2025, decreased by **21%** in the Northern region and **28%** in the Southern region compared to the prior year, however, the average sales price in backlog increased in both regions[22](index=22&type=chunk) Total Lots by Region | Region | Total Lots 2025 (Units) | Total Lots 2024 (Units) | Change (%) | | :--- | :--- | :--- | :--- | | Northern | 15,814 | 17,034 | -7% | | Southern | 34,650 | 32,418 | +7% | | **Total** | **50,464** | **49,452** | **+2%** | [Company Information and Forward-Looking Statements](index=2&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) M/I Homes is a leading national homebuilder operating across multiple US regions, and will host a conference call, cautioning on forward-looking statements and associated risks - M/I Homes is one of the nation's leading homebuilders of single-family homes with operations in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee[9](index=9&type=chunk) - The company will host a live conference call to discuss earnings and warns that statements in the release are forward-looking and subject to risks detailed in its Form 10-K[8](index=8&type=chunk)[10](index=10&type=chunk)