M/i Homes Stock Earnings Reports

Key points for investors: M/I Homes delivered a solid Q1 2026 despite industry headwinds. Revenue was $921 million and pretax income was $89.2 million (pretax margin ~10%), with GAAP gross margin of 22% (down ~390 bps YoY) and diluted EPS of $2.55 (vs. $3.98 prior year). New contracts increased 3% YoY (up 11% in January, 7% in February, down 6% in March), while closings were 1,914 homes (down 3%). The company reported strong buyer quality (average FICO 747, average down payment 15%), with ~50% of buyers first-time purchasers and Smart Series (entry-level product) contributing ~47% of sales. Mortgage and title pretax income was $14.1 million with a 96% mortgage capture rate. Balance sheet and liquidity remain a major strength: record shareholders' equity of $3.2 billion, book value per share $125 (+11% YoY), $767 million cash, zero borrowings on a $900 million revolver, debt-to-capital ~18% and net debt-to-capital negative 2%. Land position: ~24,200 owned lots (~3-year supply) and ~25,800 controlled lots (total ~50,000, ~5-year supply). Inventory: ~2,584 total homes in field, 740 completed specs. Cash deployment: $50 million of buybacks in Q1 with $170 million remaining authorization; the company has repurchased ~18% of shares over last 4 years. Management emphasized active use of mortgage-rate buydowns to drive sales, continued focus on balancing pace and margin at the community level, and a market-by-market approach to incentives and inventory. Key risks/catalysts: mortgage rate volatility, affordability pressures, geopolitical events (Middle East) and fuel/commodity cost pressures which could affect costs and incentive needs. Management is optimistic on 2026 given strong liquidity, geographic diversification, land position and product mix, but cautions that near-term uncertainty makes precise margin guidance difficult.