M/I Homes, Inc. (NYSE: MHO) reported financial results for the three and nine months ended September 30, 2026. The company announced that revenue declined 5% to $1.1 billion for the third quarter of 2026, compared to $1.13 billion in the prior year's third quarter. This decrease was driven by a 2% drop in new contracts to 1,861 units and a 2% reduction in homes delivered to 2,241 units.
Despite the revenue decline, the company reported a net income of $66.6 million, or $2.56 per diluted share, for the third quarter of 2026. This figure includes pre-tax inventory charges of $4.7 million ($0.14 per diluted share). For the same period in 2025, the company reported net income of $106.5 million, or $3.92 per diluted share. For the nine months ended September 30, 2026, net income was $213.5 million, or $8.14 per diluted share, compared to $339.0 million, or $12.32 per diluted share, for the first nine months of 2025.
M/I Homes reported a gross margin of 20.9% for the third quarter of 2026. Excluding inventory charges, the gross margin was 21.3%. The company also reported a pre-tax income of $86.9 million for the third quarter of 2026, representing an 8% return. The company's cancellation rate remained stable at 12% for both the third quarter of 2026 and 2025.
The company's backlog as of September 30, 2026, totaled 2,046 homes with a total sales value of $1.1 billion. This represents a 9% decrease in sales value from a year ago and a 7% decrease in units. The average sales price of homes in backlog was $539,000, down from $553,000 in the prior year.
M/I Homes reported shareholders' equity reached a record $3.3 billion, with book value per share increasing to a record $130. The company also repurchased $50 million of common stock during the third quarter of 2026. The company's homebuilding debt to capital ratio was 18%, and it held $621 million in cash as of September 30, 2026.
Robert H. Schottenstein, Chief Executive Officer and President, commented on the results, noting increasingly difficult market conditions, including higher mortgage interest rates and weaker demand. He stated that the company remains confident in the long-term fundamentals of the housing industry and highlighted the strength of its balance sheet.
