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M/I Homes ( MHO ) has recently released its Q3 2025 earnings report. For the fourth consecutive quarter, the company has missed earnings expectations. The stock price has dropped by 5% since the release of these results. In myI am a freelancer with a business education who loves to discover new ideas for long and short term investments."Stop hoping for a promotion that's not coming. Instead, start a business at which you want to work." Sallie KrawcheckAnalyst’s Disclosure:I/we have no stock, option or simil ...

Financial Performance - Total revenue for Q3 2025 was $1.13 billion, with homebuilding revenue at $1.10 billion, reflecting a 1% decrease compared to Q3 2024[124] - Net income for Q3 2025 was $106.5 million, or $3.92 per diluted share, down 27% from $145.4 million, or $5.10 per diluted share, in Q3 2024[124] - Income before income taxes decreased by 26% to $139.8 million in Q3 2025, and by 21% to $446.0 million for the nine months[124] - Total revenue for Q3 2025 was $1,131.8 million, a slight decrease from $1,142.9 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $3,270.5 million, down from $3,299.4 million in the same period of 2024[138] - The operating income for Q3 2025 was $135.3 million, compared to $182.0 million in Q3 2024, and for the nine months ended September 30, 2025, it was $431.9 million, down from $542.1 million in the same period of 2024[138] Home Deliveries and Contracts - Homes delivered in Q3 2025 reached a record of 2,296 units, a 1% increase from the previous year, while total homes delivered for the nine months was 6,620, a slight decrease[126] - New contracts decreased by 6% to 1,908 in Q3 2025, and by 8% to 6,278 for the nine months[126] - The company’s backlog remains healthy, with an average sales price 2% higher than at the end of Q3 2024[132] Margins and Costs - Gross margin percentage for homebuilding operations declined by 360 basis points to 21.5% in Q3 2025, primarily due to a decrease in average sales price and increased lot costs[125] - The effective tax rate increased to 23.8% in Q3 2025 from 22.9% in Q3 2024[124] Regional Performance - In the Northern region, homes delivered decreased by 7% from 1,015 in Q3 2024 to 942 in Q3 2025, while average sales price increased by 6% to $517,000[150] - The Southern region experienced a 1% decrease in revenue from $614.4 million in Q3 2024 to $609.2 million in Q3 2025, attributed to an 8% decrease in average sales price[154] - Operating income in the Northern region increased by $1.9 million to $77.4 million in Q3 2025, driven by a $1.6 million improvement in gross margin[150] - The Southern region's operating income decreased by $51.2 million to $62.9 million in Q3 2025, primarily due to a $45.6 million decline in gross margin[154] Financial Services - Financial services segment revenue increased by 16% to $34.6 million in Q3 2025, driven by higher margins and an increase in loan originations[124] - Revenue from mortgage and title operations increased 16% to $34.6 million in Q3 2025 from $30.0 million in Q3 2024, driven by higher margins and a 9% increase in loan originations[157] - Financial services originated 1,848 loans valued at $749.8 million in Q3 2025, an increase from 1,695 loans valued at $683.1 million in Q3 2024[145] Shareholder Equity and Investments - Shareholders' equity reached a record high of $3.1 billion, an 11% increase from the previous year, with book value per share at $120[126] - The company invested $363.1 million in land acquisitions and $421.9 million in land development during the nine months ended September 30, 2025, compared to $365.6 million and $444.7 million in the same period of 2024[134] Debt and Liquidity - The company had $734.2 million in cash and cash equivalents as of September 30, 2025, a decrease of $87.4 million from December 31, 2024, primarily due to timing of land spend and decline in home deliveries[176] - As of September 30, 2025, the company's homebuilding debt to capital ratio was 18%, down from 19% at the end of 2024, indicating improved leverage management[190] - The company had $2.47 billion available for additional senior debt under its Credit Facility as of September 30, 2025, with no borrowings outstanding[193] Market Conditions and Strategies - The company anticipates mortgage rates moving closer to 6%, which could improve affordability and stimulate buyer activity[131] - The company is taking proactive measures to manage overhead and land investments to support affordability and stimulate demand[130] - M/I Homes, Inc. plans to offer interest rate buydowns to potential homebuyers to address elevated mortgage interest rates, which currently range between 6% and 7%[220] Other Financial Metrics - Total assets as of September 30, 2025, were $4,769.5 million, an increase from $4,549.8 million at December 31, 2024[140] - The total liabilities as of September 30, 2025, were $1,338,213 thousand, compared to $1,284,004 thousand as of December 31, 2024[212] - The company maintained a Consolidated Tangible Net Worth of $3,052.9 million, significantly above the required minimum of $2,139.4 million as of September 30, 2025[198]

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Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results, with a pre-tax income percentage of 12% of revenue and gross margins of 24% [3][4] - Total revenue for the third quarter decreased by 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's average of $489,000 [4][11] - Earnings per diluted share decreased to $3.92 from $5.10 last year, with a book value per share of $120, up 15% from a year ago [13][8] Business Line Data and Key Metrics Changes - The company closed a record 2,296 homes in the third quarter, a 1% increase compared to the previous year, but sold 1,908 homes, down 6% from 2024's third quarter [4][11] - The Smart Series, the most affordable line of homes, comprised about 52% of total sales, up from about 50% a year ago [5] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from $12.9 million in the previous year, with revenue increasing 16% to a record $34.6 million [15][16] Market Data and Key Metrics Changes - New contracts in the northern region decreased by 17%, while new contracts in the southern region increased by 3% compared to last year's third quarter [7] - Deliveries in the southern region increased by 8%, while deliveries in the northern region decreased by 7% from a year ago, with 59% of deliveries coming from the southern region [7] - The company ended the quarter with 233 communities, a 7% increase from 217 a year ago, with the northern region up 9% and the southern region up 6% [10] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy-downs to incentivize sales and drive traffic, which has been a significant factor in maintaining sales performance [3][24] - The company remains optimistic about the business, believing the industry will benefit from the undersupply of homes and growing household formations [9] - The company aims to grow its community count by about 5% from 2023, with a strong land position and a total of approximately 50,700 owned and controlled lots [8][9] Management's Comments on Operating Environment and Future Outlook - Management described the current housing market conditions as "just okay," with challenges in demand and market conditions [3] - The management expressed confidence in the company's strong balance sheet and liquidity, which provides flexibility as market conditions evolve [9] - The management noted that while there are pressures on margins, they believe they are closer to the bottom than before, with expectations for community count growth in 2026 [42][89] Other Important Information - The company ended the quarter with an all-time record $3.1 billion of equity, resulting in a strong debt-to-capital ratio of 18%, down from 20% last year [8] - The company spent $115 million on land purchases and $181 million on land development during the third quarter [18] - The company has repurchased 15% of its outstanding shares since the start of 2022, with $100 million remaining under the current board authorization [18] Q&A Session Summary Question: Discussion on orders and seasonality - Management acknowledged the unpredictable market conditions and emphasized the importance of driving traffic through mortgage rate buy-downs [22][24] Question: Gross margin trends in different regions - Management noted that demand and margins are holding up better in Orlando compared to Tampa and Sarasota, with varying performance across Texas [27][28] Question: Comments on government discussions regarding housing - Management stated they have not had discussions with the administration but noted the importance of addressing local zoning regulations to improve housing affordability [36][37] Question: Insights on gross and SG&A margins - Management indicated that they are closer to the bottom on margins and discussed the pressures from higher land costs and the need for careful management of selling expenses [42][45] Question: Regional order growth trends - Management expressed satisfaction with the performance in the Midwest markets, despite some challenges in Florida and Texas [54][56] Question: Thoughts on M&A opportunities - Management stated there are no current plans for M&A but would consider opportunities that align with their growth strategy [82][83] Question: Community count growth expectations for 2026 - Management confirmed expectations for community count growth next year, aiming for a 5% to 10% increase annually [89][90]

Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results, with a pre-tax income percentage of 12% of revenue and gross margins of 24% [3][4] - Total revenue for the third quarter decreased by 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's average of $489,000 [4][11] - Earnings per diluted share decreased to $3.92 from $5.10 last year, with a book value per share of $120, up 15% from a year ago [13][8] Business Line Data and Key Metrics Changes - The company closed a record 2,296 homes in the third quarter, a 1% increase compared to the previous year, but sold 1,908 homes, down 6% from 2,023 homes sold in the same quarter last year [4][11] - The Smart Series, the most affordable line of homes, comprised about 52% of total sales, up from 50% a year ago [5] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from $12.9 million in the previous year, with revenue increasing 16% to a record $34.6 million [15][16] Market Data and Key Metrics Changes - New contracts in the northern region decreased by 17%, while new contracts in the southern region increased by 3% compared to last year's third quarter [7] - Deliveries in the southern region increased by 8%, while deliveries in the northern region decreased by 7% from a year ago, with 59% of deliveries coming from the southern region [7] - The company ended the quarter with 233 communities, up 7% from 217 a year ago, with a community count growth estimate of about 5% for 2025 [10][11] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy-downs to incentivize sales and drive traffic, which has been a significant factor in maintaining sales performance [3][24] - The company remains optimistic about the business, believing the industry will benefit from the undersupply of homes and growing household formations [9] - The company is focused on maintaining a strong balance sheet and liquidity while selectively repurchasing shares [18][66] Management's Comments on Operating Environment and Future Outlook - Management described the current housing market conditions as "just okay," with ongoing challenges in demand and market volatility [3][24] - The company expects strong full-year results in specific markets such as Columbus, Chicago, Dallas, and Minneapolis, despite some regional challenges [7][56] - Management highlighted the importance of local zoning regulations as a significant impediment to housing affordability and volume levels [37] Other Important Information - The company ended the quarter with an all-time record $3.1 billion of equity and a debt-to-capital ratio of 18%, down from 20% last year [8][9] - The company spent $297 million on land purchases and development during the quarter, with a focus on maintaining a strong land position [17][18] Q&A Session Summary Question: Discussion on orders and seasonality - Management acknowledged the unpredictable market conditions and emphasized the importance of using mortgage rate buy-downs to drive sales [22][24] Question: Gross margin trends in different regions - Management noted that demand and margins vary significantly across different markets, with Orlando performing better than Tampa and Sarasota [27][28] Question: Comments on administration discussions regarding home builders - Management stated they have not had discussions with the administration but are aware of ongoing conversations about improving housing affordability [36][37] Question: Insights on gross and SG&A margins - Management indicated that margins are stabilizing, with pressures from higher land costs and increased sales commissions [42][45] Question: Regional order growth trends - Management expressed satisfaction with the performance in the Midwest, particularly in Columbus and Chicago, despite some challenges in Florida and Texas [54][56] Question: Thoughts on M&A opportunities - Management stated there are no current M&A plans but would consider opportunities that align with their growth strategy [82][83] Question: Community count growth for 2026 - Management expects community count growth next year, targeting a 5% to 10% increase annually [89][90]

Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results, with a pre-tax income percentage of 12% of revenue and gross margins of 24% [3][4] - Total revenue decreased 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's third quarter average closing price of $489,000 [4][10] - Earnings per diluted share decreased to $3.92 from $5.10 last year, with a book value per share of $120, up 15% from a year ago [12][7] Business Line Data and Key Metrics Changes - The company closed a record 2,296 homes in the third quarter, a 1% increase compared to a year ago, but sold 1,908 homes, down 6% from 2023's third quarter [4][10] - The Smart Series, the most affordable line of homes, comprised about 52% of total sales compared to about 50% a year ago [5] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from $12.9 million in 2024's third quarter, with revenue increasing 16% to a record $34.6 million [13][14] Market Data and Key Metrics Changes - New contracts in the northern region decreased by 17%, while new contracts in the southern region increased by 3% compared to last year's third quarter [6] - Deliveries in the southern region increased by 8%, while deliveries in the northern region decreased by 7% from a year ago, with 59% of deliveries coming from the southern region [6] - The company ended the quarter with 233 communities, up 7% from 217 a year ago, with the northern region up 9% and the southern region up 6% [9] Company Strategy and Development Direction - The company remains optimistic about its business, believing the industry will benefit from the undersupply of homes and growing household formations [8] - The company plans to grow its community count by about 5% from 2023, with a strong land position and a total of 50,700 owned and controlled lots, equating to about a five to six-year supply [7][6] - The company is focused on maintaining a strong balance sheet and liquidity while selectively buying back shares [16][51] Management's Comments on Operating Environment and Future Outlook - Management described the current housing market conditions as "just okay," with continued challenges in demand and market conditions [3] - The company is using mortgage rate buy-downs to incentivize sales and drive traffic, which has been a significant factor in the decline of gross margins [4][21] - Management expressed confidence in the strength of their markets, particularly in Columbus, Chicago, Dallas, Minneapolis, and Orlando, expecting strong full-year results in these areas [6][8] Other Important Information - The company ended the quarter with an all-time record $3.1 billion of equity, a debt-to-capital ratio of 18%, and a net debt-to-capital ratio of negative 1% [7][8] - The company spent $115 million on land purchases and $181 million on land development during the third quarter [16] Q&A Session Summary Question: Can you talk about orders and the use of incentives? - Management noted that the market is unpredictable, and they are using selective mortgage rate buy-downs to drive traffic and sales, which has been the primary driver for sales [20][21] Question: Can you comment on gross margin trends in the South? - Management indicated that demand and margins are holding up better in Orlando compared to Tampa and Sarasota, with Texas markets experiencing some struggles [25][26] Question: Have you had discussions with the administration regarding housing? - Management stated they have not had discussions but are aware of the ongoing conversations about improving housing affordability and the impact of local zoning regulations [30][31] Question: What are the expectations for gross margins going forward? - Management believes they are closer to the bottom of margin pressures, with potential for stabilization if costs for mortgage rate buy-downs decrease [34][35] Question: Is there any inclination towards M&A? - Management indicated there is nothing on the horizon but would consider opportunities that make sense within their existing markets [62] Question: What are the expectations for community count growth in 2026? - Management expects community count growth next year, targeting a 5% to 10% increase annually [64][65]

Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results [3] - Pre-tax income percentage was 12% of revenue, with gross margins at 24% and a return on equity of 16% [4] - Total revenue decreased 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's average [5][14] - Earnings per diluted share decreased to $3.92 from $5.10 last year [16] - The company ended the quarter with a record $3.1 billion of equity, equating to a book value per share of $120, up 15% from a year ago [10] Business Line Data and Key Metrics Changes - Closed a record 2,296 homes in the third quarter, a 1% increase compared to a year ago [5] - Sales of the Smart Series homes comprised about 52% of total sales, up from 50% a year ago [6] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from the previous year [17] Market Data and Key Metrics Changes - New contracts in the Northern Region decreased by 17%, while new contracts in the Southern Region increased by 3% compared to last year's third quarter [7] - Deliveries in the Southern Region increased by 8%, while deliveries in the Northern Region decreased by 7% from a year ago [7] - 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 incentivize sales and drive traffic [4][28] - The company remains optimistic about the business, believing the industry will benefit from the undersupply of homes and growing household formations [11] - The company is focused on maintaining a strong balance sheet and liquidity while selectively repurchasing shares [20][76] Management's Comments on Operating Environment and Future Outlook - Management described the housing market conditions as "just okay," with ongoing challenges in demand [4] - The company expects strong full-year results in specific markets such as Columbus, Chicago, Dallas, and Minneapolis [8] - Management noted that local zoning regulations remain a significant impediment to improving affordability and volume levels in housing [45] Other Important Information - The company ended the quarter with zero borrowings under its $900 million unsecured line and over $700 million in cash, resulting in a strong debt to capital ratio of 18% [10] - The company has repurchased 15% of its outstanding shares since the start of 2022 [20] Q&A Session Summary Question: Discussion on orders and incentives - Management acknowledged the unpredictable market conditions and emphasized the importance of using mortgage rate buy downs to drive sales [24][25] Question: Gross margin trends in different regions - Management noted that demand and margins vary significantly across different markets, with Orlando performing better than other areas in Florida [33][35] Question: Comments on recent administration discussions regarding homebuilders - Management stated they have not had discussions with the administration but welcomed conversations about improving housing affordability [44][45] Question: Insights on gross margins and future expectations - Management indicated that they are closer to the bottom of margin pressures and expect some stabilization moving forward [49][50] Question: Regional order growth trends - Management expressed satisfaction with the performance in the Midwest markets, despite some challenges in Florida and Texas [60][62] Question: Thoughts on potential M&A activity - Management stated there are no current plans for M&A but would consider opportunities that align with their growth strategy [95][96] Question: Community count growth expectations - Management confirmed expectations for community count growth in the upcoming year, targeting a 5% to 10% increase [99]

Core Insights - M/I Homes reported quarterly earnings of $4.14 per share, missing the Zacks Consensus Estimate of $4.37 per share, and down from $5.1 per share a year ago, representing an earnings surprise of -5.26% [1] - The company posted revenues of $1.13 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.11%, and down from $1.14 billion year-over-year [2] - M/I Homes shares have increased by approximately 5.5% since the beginning of the year, compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The earnings outlook for M/I Homes is mixed, with the current consensus EPS estimate for the coming quarter at $4.11 on revenues of $1.13 billion, and for the current fiscal year at $17.25 on revenues of $4.46 billion [7] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Building Products - Home Builders industry is currently in the bottom 17% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Third Quarter 2025 Key Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Key%20Financial%20Highlights) M/I Homes reported a decrease in pre-tax income and net income for Q3 2025 compared to Q3 2024, with an inventory charge impacting results, yet achieved a record in homes delivered and increased shareholders' equity and book value per share | Metric | Q3 2025 | Q3 2024 | Change (%) | | :----------------------- | :------ | :------ | :--------- | | Pre-tax Income | $139.8M | $188.7M | -25.9% | | Net Income | $106.5M | $145.4M | -26.8% | | Diluted EPS | $3.92 | $5.10 | -23.1% | | Revenue | $1.1B | $1.11B | -1.0% | | Inventory Charge (pre-tax) | $7.6M | $0 | N/A | | Shareholders' Equity | $3.1B | $2.8B | +10.7% | | Book Value Per Share | $120 | $104.59 | +14.7% | [Third Quarter 2025 Key Operational Highlights](index=1&type=section&id=Third%20Quarter%202025%20Key%20Operational%20Highlights) Operational performance in Q3 2025 showed a record in homes delivered, but new contracts and backlog units decreased year-over-year, reflecting a challenging market despite community count expansion | Metric | Q3 2025 | Q3 2024 | Change (%) | | :------------------- | :------ | :------ | :--------- | | Homes Delivered | 2,296 | 2,271 | +1% | | New Contracts | 1,908 | 2,023 | -6% | | Backlog Units | 2,189 | 3,174 | -31% | | Backlog Sales Value | $1.21B | $1.73B | -30% | | Average Sales Price (Backlog) | $553,000 | $544,000 | +1.7% | | Communities | 233 | 217 | +7.4% | | Cancellation Rate | 12% | 10% | +2 ppts | [CEO Commentary & Strategic Position](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Position) CEO Robert H. Schottenstein acknowledged challenging housing market conditions but highlighted a solid quarter with strong pre-tax income and return on equity, expressing confidence in long-term housing fundamentals and an excellent financial position - CEO Robert H. Schottenstein noted a solid quarter despite challenging housing market conditions, achieving **$140 million of pre-tax income** (12% of revenue) and a **16% return on equity**[5](index=5&type=chunk) - The company's financial position is strong, evidenced by a Moody's credit rating upgrade to **Ba1** and the extension of its unsecured credit facility to 2030, increasing borrowing capacity from **$650 million to $900 million**, with **zero borrowings** at quarter-end[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - M/I Homes ended the quarter with a homebuilding debt-to-capital ratio of **18%** and a net debt-to-capital ratio of **negative 1%**, positioning it well for the fourth quarter of 2025[7](index=7&type=chunk) [Company Overview & Investor Relations](index=2&type=section&id=Company%20Overview%20%26%20Investor%20Relations) M/I Homes, Inc. is a leading single-family homebuilder operating in multiple states across the Midwest, South, and Southeast US, providing investor contact information and details on its earnings conference call - M/I Homes, Inc. is a leading homebuilder with operations in **16 markets** across Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee[8](index=8&type=chunk) - An earnings conference call was broadcast live on October 22, 2025, with a replay available on the company's website through October 2026[7](index=7&type=chunk) [Summary Statement of Income (Unaudited)](index=3&type=section&id=Summary%20Statement%20of%20Income%20(Unaudited)) [Three Months Ended September 30, 2025 vs 2024](index=3&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025%20vs%202024) For the third quarter of 2025, M/I Homes experienced a slight decrease in total revenue, primarily due to lower housing revenue, with gross margin and operating income declining, impacted by an impairment charge, leading to significant reductions in net income and diluted EPS | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | New contracts | 1,908 | 2,023 | -5.7% | | Homes delivered | 2,296 | 2,271 | +1.1% | | Total revenue | $1,131,791 | $1,142,909 | -1.0% | | Cost of sales - operations | $854,122 | $833,468 | +2.5% | | Cost of sales - impairment | $7,583 | — | N/A | | Gross margin | $270,086 | $309,441 | -12.7% | | Operating income | $135,271 | $181,993 | -25.7% | | Income before income taxes | $139,819 | $188,673 | -25.9% | | Net income | $106,490 | $145,449 | -26.8% | | Diluted EPS | $3.92 | $5.10 | -23.1% | [Nine Months Ended September 30, 2025 vs 2024](index=3&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025%20vs%202024) For the first nine months of 2025, total revenue slightly decreased, while cost of sales increased, leading to a lower gross margin, with operating income, income before income taxes, net income, and diluted EPS all seeing declines compared to the same period in 2024 | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :--------- | | New contracts | 6,278 | 6,825 | -8.0% | | Homes delivered | 6,620 | 6,653 | -0.5% | | Total revenue | $3,270,476 | $3,299,393 | -0.9% | | Cost of sales - operations | $2,453,405 | $2,397,329 | +2.3% | | Cost of sales - impairment | $7,583 | — | N/A | | Gross margin | $809,488 | $902,064 | -10.2% | | Operating income | $431,912 | $542,103 | -20.3% | | Income before income taxes | $446,034 | $563,051 | -20.8% | | Net income | $338,970 | $430,256 | -21.3% | | Diluted EPS | $12.32 | $14.99 | -17.8% | [Summary Balance Sheet and Other Information (Unaudited)](index=4&type=section&id=Summary%20Balance%20Sheet%20and%20Other%20Information%20(Unaudited)) [Assets Overview](index=4&type=section&id=Assets%20Overview) As of September 30, 2025, M/I Homes reported an increase in total assets, driven primarily by a significant rise in total inventory, particularly in lots, land, and land development, and homes under construction, with cash and cash equivalents also seeing a modest increase | Asset Category | Sep 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Total cash, cash equivalents and restricted cash | $734,174 | $719,920 | +2.0% | | Mortgage loans held for sale | $239,585 | $242,812 | -1.3% | | Total Inventory | $3,412,830 | $3,132,694 | +8.9% | | Lots, land and land development | $1,743,476 | $1,558,300 | +11.9% | | Homes under construction | $1,457,843 | $1,401,260 | +4.0% | | Total Assets | $4,769,544 | $4,459,857 | +6.9% | [Liabilities and Shareholders' Equity](index=4&type=section&id=Liabilities%20and%20Shareholders'%20Equity) Total liabilities remained relatively stable year-over-year, with a slight decrease in total debt, while shareholders' equity significantly increased, contributing to a stronger capital base | Liability/Equity Category | Sep 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Total Debt - Homebuilding Operations | $695,980 | $694,702 | +0.2% | | Total Debt | $927,959 | $930,143 | -0.2% | | Total Liabilities | $1,620,095 | $1,614,501 | +0.3% | | Shareholders' Equity | $3,149,449 | $2,845,356 | +10.7% | | Total Liabilities and Shareholders' Equity | $4,769,544 | $4,459,857 | +6.9% | [Key Financial Ratios](index=4&type=section&id=Key%20Financial%20Ratios) The company improved its homebuilding debt to capital ratio and increased its book value per common share, reflecting a stronger financial structure | Ratio | Sep 30, 2025 | Sep 30, 2024 | Change (ppts) | | :-------------------------- | :----------- | :----------- | :------------ | | Book value per common share | $120.44 | $104.59 | +15.2% | | Homebuilding debt to capital ratio | 18% | 20% | -2 ppts | [Selected Supplemental Financial and Operating Data (Unaudited)](index=5&type=section&id=Selected%20Supplemental%20Financial%20and%20Operating%20Data%20(Unaudited)) [Cash Flow Activities](index=5&type=section&id=Cash%20Flow%20Activities) In Q3 2025, M/I Homes generated positive cash flow from operating activities, a significant improvement from a net outflow in Q3 2024, though cash used in financing activities increased substantially | Cash Flow Activity | Q3 2025 (in thousands) | Q3 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (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 and Lot Activity](index=5&type=section&id=Land%20and%20Lot%20Activity) Land/lot purchases decreased in Q3 2025 compared to the prior year, while land development spending remained relatively stable, and land sale revenue and gross profit increased | Land Activity | Q3 2025 (in thousands) | Q3 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :---------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | 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](index=5&type=section&id=Financial%20Services%20Pre-Tax%20Income) Pre-tax income from financial services showed a healthy increase for both the three and nine months ended September 30, 2025, indicating strong performance in this segment | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Financial services pre-tax income | $16,598 | $12,936 | $47,180 | $39,648 | [Non-GAAP Financial Results (Unaudited)](index=5&type=section&id=Non-GAAP%20Financial%20Results%20(Unaudited)) [Adjusted EBITDA Reconciliation](index=5&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, decreased for both the three and nine months ended September 30, 2025, reflecting the decline in net income, despite adjustments for taxes, interest, depreciation, and non-cash charges | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Net income | $106,490 | $145,449 | $338,970 | $430,256 | | Provision for income taxes | $33,329 | $43,224 | $107,064 | $132,795 | | 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 | [Regional Operating Data](index=6&type=section&id=Regional%20Operating%20Data) [New Contracts by Region](index=6&type=section&id=New%20Contracts%20by%20Region) New contracts decreased overall in Q3 2025 and YTD 2025, primarily driven by a significant decline in the Northern region, while the Southern region saw a modest increase in Q3 | Region | Q3 2025 | Q3 2024 | Q3 Change (%) | YTD 2025 | YTD 2024 | YTD Change (%) | | :------- | :------ | :------ | :------------ | :------- | :------- | :------------- | | Northern | 742 | 890 | (17)% | 2,680 | 3,054 | (12)% | | Southern | 1,166 | 1,133 | 3% | 3,598 | 3,771 | (5)% | | Total | 1,908 | 2,023 | (6)% | 6,278 | 6,825 | (8)% | [Homes Delivered by Region](index=6&type=section&id=Homes%20Delivered%20by%20Region) Total homes delivered increased slightly in Q3 2025, with the Southern region showing growth, offsetting a decline in the Northern region, while year-to-date deliveries remained flat | Region | Q3 2025 | Q3 2024 | Q3 Change (%) | YTD 2025 | YTD 2024 | YTD Change (%) | | :------- | :------ | :------ | :------------ | :------- | :------- | :------------- | | Northern | 942 | 1,015 | (7)% | 2,735 | 2,809 | (3)% | | Southern | 1,354 | 1,256 | 8% | 3,885 | 3,844 | 1% | | Total | 2,296 | 2,271 | 1% | 6,620 | 6,653 | —% | [Backlog by Region](index=6&type=section&id=Backlog%20by%20Region) Backlog units and sales value decreased significantly across both Northern and Southern regions as of September 30, 2025, compared to the prior year, although the average sales price per unit increased | Region | Sep 30, 2025 Units | Sep 30, 2025 Sales Value (millions) | Sep 30, 2025 Avg Sales Price | Sep 30, 2024 Units | Sep 30, 2024 Sales Value (millions) | Sep 30, 2024 Avg Sales Price | | :------- | :----------------- | :---------------------------------- | :--------------------------- | :----------------- | :---------------------------------- | :--------------------------- | | Northern | 1,081 | $609 | $563,000 | 1,493 | $803 | $538,000 | | Southern | 1,108 | $602 | $544,000 | 1,681 | $923 | $549,000 | | Total | 2,189 | $1,211 | $553,000 | 3,174 | $1,726 | $544,000 | [Land Position Summary by Region](index=6&type=section&id=Land%20Position%20Summary%20by%20Region) M/I Homes' total land position, including owned and under contract lots, slightly decreased year-over-year, with the Northern region seeing an increase in total lots while the Southern region experienced a decrease | Region | Sep 30, 2025 Owned Lots | Sep 30, 2025 Lots Under Contract | Sep 30, 2025 Total Lots | Sep 30, 2024 Owned Lots | Sep 30, 2024 Lots Under Contract | Sep 30, 2024 Total Lots | | :------- | :---------------------- | :------------------------------- | :---------------------- | :---------------------- | :------------------------------- | :---------------------- | | Northern | 7,140 | 10,843 | 17,983 | 6,528 | 10,885 | 17,413 |\ | Southern | 17,268 | 15,374 | 32,642 | 17,114 | 17,678 | 34,792 | | Total | 24,408 | 26,217 | 50,625 | 23,642 | 28,563 | 52,205 | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) [Disclaimer on Forward-Looking Statements](index=2&type=section&id=Disclaimer%20on%20Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially due to various risks and uncertainties, and the company disclaims any duty to publicly update these statements - The press release includes forward-looking statements subject to risks and uncertainties, such as economic environment, interest rates, resource availability, competition, and governmental regulations[9](index=9&type=chunk) - Actual results may differ materially from expectations, and the company undertakes no duty to publicly update these statements[9](index=9&type=chunk)