M/I Homes(US:MHO)2026-01-28 12:51Financial Performance - In Q4 2025, M/I Homes reported a pre-tax income of $80.6 million and a net income of $64.0 million, down from $170.6 million and $133.5 million respectively in Q4 2024[5]. - For the full year 2025, pre-tax income was $526.6 million, a decrease of 28% from $733.6 million in 2024, with net income at $402.9 million compared to $563.7 million in 2024[5]. - Total revenue for 2025 was $4.4 billion, a decrease of 2% from $4.5 billion in 2024[6]. - For the three months ended December 31, 2025, net income was $63,971,000, a decrease of 52% compared to $133,469,000 for the same period in 2024[21]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $608,456,000, down 20.7% from $767,450,000 in 2024[21]. - Adjusted net income for the twelve months ended December 31, 2025, was $447,958,000, a decrease from $563,725,000 in 2024[25]. Contracts and Deliveries - New contracts in Q4 2025 increased by 9% to 1,921, while homes delivered decreased by 4% to 2,301 compared to Q4 2024[6]. - New contracts for the three months ended December 31, 2025, totaled 1,921 homes, representing a 9% increase from 1,759 homes in the same period of 2024[23]. - Homes delivered in the three months ended December 31, 2025, were 2,301, a decrease of 4% from 2,402 homes delivered in the same period of 2024[23]. Backlog and Inventory - Homes in backlog decreased by 29% to 1,809 units, with a sales value of $989.9 million, down from $1.4 billion in 2024[7]. - The total backlog as of December 31, 2025, was 1,809 units with an average sales price of $547,000, compared to 2,531 units with an average sales price of $553,000 as of December 31, 2024[23]. Shareholder and Equity Information - Shareholders' equity reached a record $3.2 billion, with a book value per share of $123, and a return on equity of 13%[8]. - M/I Homes repurchased $50 million of stock in Q4 2025 and $202 million for the full year[6]. Operational Metrics - The company ended 2025 with 232 active communities, an increase from 220 in 2024, and a cancellation rate of 10% in Q4 2025, down from 14% in Q4 2024[7]. - The average sales price in backlog decreased by 1% to $547,000 compared to $553,000 in 2024[7]. - Cash used in operating activities for the three months ended December 31, 2025, was $(8,707,000), compared to cash provided of $104,395,000 in the same period of 2024[19]. - Land purchases for the twelve months ended December 31, 2025, amounted to $523,689,000, an increase from $472,937,000 in 2024[19]. - Financial services pre-tax income for the twelve months ended December 31, 2025, was $55,656,000, up from $49,682,000 in 2024[19]. - The company reported a total of 25,652 lots owned and 24,329 lots under contract as of December 31, 2025, compared to 23,836 lots owned and 28,320 lots under contract as of December 31, 2024[23]. Debt and Financial Health - The company maintained a homebuilding debt to capital ratio of 18% and zero borrowings under its $900 million credit facility[8].