M/I Homes Reports 2025 First Quarter Results

Core Insights - The company reported a decrease in pre-tax income and net income for the first quarter of 2025 compared to the same period in 2024, with pre-tax income at $146.1 million and net income at $111.2 million, translating to $3.98 per diluted share [2][4][8]. Financial Performance - Homes delivered decreased by 8% to 1,976 homes from 2,158 homes in the first quarter of 2024 [3][8]. - Revenue fell by 7% to $976 million [8]. - The gross margin was reported at 25.9%, with a pre-tax profit margin of 15% and a return on equity of 19% [4][8]. - The cancellation rate increased to 10% in the first quarter of 2025 from 8% in the same quarter of 2024 [3][8]. Contracts and Backlog - New contracts totaled 2,292, down 10% from 2,547 in the first quarter of 2024 [3][8]. - The backlog at March 31, 2025, had a total sales value of $1.56 billion, a 13% decrease from the previous year, with backlog units down 16% to 2,847 homes [3][8]. Balance Sheet and Cash Position - The company achieved a record net worth of $3 billion, a 14% increase from a year ago, with a book value of $112 per share [5][8]. - The company ended the quarter with $776 million in cash and no borrowings under its $650 million unsecured borrowing line [5][8]. - Homebuilding debt-to-capital ratio stood at 19%, with a net debt-to-capital ratio of negative 3% [5][8]. Operational Highlights - The company operated 226 communities as of March 31, 2025, compared to 219 communities a year earlier, and plans to grow community count by an average of 5% this year [5][8]. - The average sales price of homes in backlog was $548,000, up from $528,000 a year ago [3][8].