10-Q · April 24, 2026
M/I Homes reported Q1 2026 revenue of $920.707M and diluted EPS of $2.55, modest misses to consensus with clear margin compression versus the prior year. Gross margin narrowed to 22.0% and income before taxes fell to…
Earnings analysis · 10-Q
MHO earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
M/I Homes reported a weak third quarter, with revenue down 5% to $1.076 billion, gross margin down 300 basis points to 20.9%, and diluted EPS down to $2.56 from $3.92. Southern operations accounted for most of the…
Read full summary
M/I Homes reported a weak third quarter, with revenue down 5% to $1.076 billion, gross margin down 300 basis points to 20.9%, and diluted EPS down to $2.56 from $3.92. Southern operations accounted for most of the deterioration, while higher mortgage rates, incentives, inventory charges and lower backlog created continued earnings risk. Liquidity and leverage remained strong, with $620.6 million of cash, $808.9 million of revolver availability and 18% homebuilding debt to capital, but management expects elevated rates and challenging market conditions to persist into 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.56
- Segment
- Northern homebuilding revenue was $483.3 million versus $487.9 million year over year; operating income was $58.2 million versus $77.4 million.
- Segment
- Southern homebuilding revenue was $560.0 million versus $609.2 million year over year; operating income was $36.1 million versus $62.9 million.
- Segment
- Financial services revenue was $32.7 million versus $34.6 million year over year; operating income was $16.0 million versus $20.0 million.
What stood out
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Revenue and EPS declined materially
Third-quarter revenue was $1.076 billion, down 5% from $1.132 billion a year earlier but up from $1.06 billion in the prior quarter. Diluted EPS was $2.56 versus $3.92 year over year and $3.02 in 2026 Q2.
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Margins compressed sharply
Gross margin was 20.9%, down 300 basis points year over year and approximately 120 basis points from 22.1% in Q2. Operating margin was approximately 7.7%, versus 11.9% a year earlier and 9.5% in Q2.
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Southern region drove earnings pressure
Northern revenue declined 1% to $483.3 million and operating income fell 25% to $58.2 million. Southern revenue declined 8% to $560.0 million and operating income fell 43% to $36.1 million, reflecting weaker pricing, incentives and delivery volume.
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Balance sheet remains well capitalized
Liquidity remained substantial, with cash, cash equivalents and restricted cash of $620.6 million and $808.9 million of net availability under the homebuilding revolver. Homebuilding debt to capital remained 18%, and the company reported no borrowings under the $900 million Credit Facility.
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Operating cash flow improved
Operating cash flow was $159.2 million for the first nine months, up from $146.1 million in the prior-year period. Capital expenditures were $9.2 million, while investments in joint ventures used $41.0 million of cash.
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Repurchases and capture rate supported
The company repurchased 1.1 million shares for $150.2 million during the first nine months, with $206.7 million remaining under the repurchase authorization. Financial-services capture rate improved to 96% from 93% year over year.
What to watch
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Mortgage rates and affordability
Management said mortgage rates exceeded 7% at quarter-end and may remain elevated through the remainder of 2026 and into 2027. The company increased sales-incentive and closing-cost reductions to $73.2 million in Q3 from $53.5 million a year earlier, pressuring pricing and margins.
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Inventory and warranty charges
The company recorded $4.7 million of inventory charges in Q3, including $4.1 million in the Southern region, versus $7.6 million companywide a year earlier. It also recorded $1.7 million of unusual warranty charges in two Florida communities.
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Backlog and demand deterioration
Third-quarter backlog declined to 2,046 homes from 2,189 homes year over year, while aggregate backlog value declined to $1.103 billion from $1.211 billion. Southern backlog fell 8% to 1,015 homes and its absorption rate declined to 2.6 from 2.9 per community.
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Higher speculative inventory
Inventory increased to $3.601 billion from $3.384 billion at December 31, 2025, including 3,242 homes under construction without a sales contract versus 2,779 at year-end. The filing states there were no material changes to the risk factors in the 2025 Form 10-K.
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Financial-services earnings pressure
Financial-services revenue declined 5% to $32.7 million and operating income declined to $16.0 million from $20.0 million. The segment also had $230.4 million of borrowings at September 30, 2026, exposing it to financing and interest-rate risk.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects mortgage rates above 7% and related market challenges may persist through the remainder of 2026 and into 2027; it expects year-end community count to be approximately 5% higher than 2025.
Earlier filings 4
10-K · February 13, 2026
M/I Homes (MHO) positions itself as a value- and design-focused single-family homebuilder with vertically integrated mortgage and title services; homebuilding represented 97% of consolidated revenue in 2025.…
10-Q · October 24, 2025
M/I Homes reported Q3 revenue of $1,131,791 (thousands) and diluted EPS of $3.92, both below the prior-year quarter. Gross/operating profitability is compressed (land & housing costs rose and an inventory impairment of…
10-Q · November 1, 2024
M/I Homes reported Q3 revenue of $1,142,909,000 (up $96,538,000 or 9.2% vs. Q3 2023) and diluted EPS of $5.10 (up $0.28 or 5.8% vs. Q3 2023). Gross profit (revenue less land and housing costs of $833,468,000) implies a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.