M/I Homes, Inc. (NYSE: MHO) reported first‑quarter 2026 results on April 22, 2026, with revenue of $920.7 million, a 6% year‑over‑year decline, and net income of $67.8 million. Diluted earnings per share were $2.55, beating the consensus estimate of $2.51 by $0.04. The earnings beat was driven by disciplined cost management and a favorable mix of higher‑margin home sales that offset the revenue decline.
The company delivered 1,914 homes in the quarter, a 3% drop from 1,976 homes in Q1 2025, while new contracts rose 3% to 2,350. Backlog sales value fell 23% to $1.20 billion and backlog units decreased 21% to 2,245 homes, reflecting softer demand and a shift toward lower‑priced, incentive‑heavy transactions.
Gross margin contracted to 22% from 26% in the same quarter last year, a 4‑percentage‑point decline. The compression was largely due to lower average selling prices and increased incentive spending, which eroded the company’s pricing power in a competitive market.
The financial services segment generated $14.1 million in pretax income on $31.2 million in revenue, a 45% pretax margin, down from $16.1 million pretax income in Q1 2025. The decline reflects reduced loan volume and higher interest rates, which squeezed the segment’s profitability.
M/I Homes’ balance sheet remains strong, with $3.2 billion in shareholders’ equity, $767 million in cash, and no debt under its $900 million credit facility, positioning the company to weather continued affordability pressures while pursuing new community development.
Management guided for Q2 EPS of $3.98 and full‑year revenue of $4.45 billion, with a full‑year EPS projection of $14.09. The guidance signals confidence in maintaining profitability despite near‑term headwinds and a focus on new contract growth.
Market reaction was muted, with the stock falling 1.8% in pre‑market trading. Investors focused on the revenue miss and backlog decline, which outweighed the modest EPS beat and new‑contract upside.
Robert H. Schottenstein, Chief Executive Officer and President, said, "In the face of challenging market conditions, we produced very solid first quarter results – led by increased new contracts, gross margins of 22%, pre‑tax income of 10%, and a return on equity of 12%."
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