MHO earnings analysis
What we found in MHO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 $89.17M, while operating cash flow strengthened to $135.731M and cash on hand increased to $767.416M. Management provided no numeric forward guidance and the filing discloses no material changes to previously disclosed risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Top-line and EPS
- Revenue of $920,707,000 in Q1 2026 fell from $976,093,000 in Q1 2025 (down $55,386,000, ~5.7%), and diluted EPS declined to $2.55 from $3.98 (down $1.43, ~36%).
- Gross margin compression
- Gross profit was $202,591,000 (Revenue $920,707,000 minus land and housing costs $718,116,000), producing a 22.0% gross margin versus 25.9% in Q1 2025 (a 3.9 percentage-point decline).
- Pre-tax income decline
- Income before income taxes was $89,170,000 (9.7% of revenue) in Q1 2026 versus $146,121,000 in Q1 2025 — a decline of $56,951,000 (39%).
- Strong operating cash flow / FCF
- Net cash provided by operating activities was $135,731,000 in Q1 2026 (versus $64,887,000 in Q1 2025); free cash flow (operating cash flow less purchases of property & equipment of $154,000) was approximately $135,577,000.
- Improved liquidity and active buybacks
- Cash, cash equivalents and restricted cash rose to $767,416,000 at March 31, 2026 from $689,189,000 at December 31, 2025 (increase of $78,227,000); the company repurchased $50,066,000 of shares in the quarter and has approximately $170,351,934 available under the Second 2025 Share Repurchase Program (authorized up to $250,000,000).
- Working capital / inventory details
- Inventory increased slightly to $3,399,101,000 at March 31, 2026 from $3,383,941,000 at December 31, 2025 (increase of $15,160,000); mortgage loans held for sale declined to $261,807,000 from $309,100,000 (down $47,293,000).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin and earnings compression
- Gross margin narrowed to 22.0% (gross profit $202,591,000) and diluted EPS fell to $2.55 from $3.98 a year earlier (a ~36% decline), indicating meaningful profitability pressure.
- Material drop in pre-tax income
- Income before income taxes fell to $89,170,000 in Q1 2026 from $146,121,000 in Q1 2025 — a decline of $56,951,000 (39%), signaling operating profitability deterioration.
- Concentration in inventory exposure
- Total inventory remains sizable at $3,399,101,000 as of March 31, 2026; homes under construction not subject to a sales contract had a carrying value of $568,700,000 (2,584 homes) as of March 31, 2026, indicating continued exposure to build/absorption risk.
- Reduction in joint venture investment
- Investment in joint venture arrangements decreased to $68,357,000 at March 31, 2026 from $106,299,000 at December 31, 2025 (a $37,942,000 decrease), driven primarily by $42,000,000 of lot distributions during the quarter.
- Mortgage/financial services exposure
- Mortgage loans held for sale decreased to $261,807,000 at March 31, 2026 from $309,100,000 at December 31, 2025 (down $47,293,000), which can increase sensitivity to interest-rate and servicing valuation swings (fair value losses of $(3,506,000) recorded on mortgage loans held for sale in the quarter).
- No new mitigation in risk factors
- The filing explicitly states 'There have been no material changes to the risk factors disclosed in our 2025 Form 10-K,' meaning previously disclosed risks (e.g., market/affordability, backlog exposure) remain applicable.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.55
- Gross margin
- 22.0%
- Operating margin
- 9.68%
What they said about what is next.
The Form 10-Q and MD&A do not provide numeric forward revenue or EPS guidance. Management did not provide numeric outlook in this filing; the company continues to defer quantitative guidance to earnings releases/calls. Separately, the Board authorized a $250.0M repurchase program (Second 2025 Share Repurchase Program) with ~$170,351,934 remaining as of March 31, 2026.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-Q · July 31, 2024
- M/I Homes reported Q2 revenue of $1,109,781,000 and diluted EPS of $5.12, up versus Q2 2023 revenue of $1,014,013,000 and diluted EPS $4.12. Gross profit expanded (land & housing costs $800,501,000) and the company…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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