M/I Homes (MHO) Q1 2026 Earnings Transcript

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Wed, April 22, 2026 astatine 12:28 PM CDT 34 min read

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Wednesday, April 22, 2026 astatine 10:30 a.m. ET

• Chairman, President, and Chief Executive Officer — Robert H. Schottenstein

• Executive Vice President, Chief Financial Officer, and Treasurer — Phillip G. Creek

• President, M/I Financial — Derek R. Klutch

Robert Schottenstein: Thanks, Phil. Good morning, everyone, and convey you for joining america today. We had a precise coagulated archetypal quarter, highlighted by revenues of $921 million, pretax income of $89 cardinal and a beardown pretax income instrumentality of 10%. Clearly, during the quarter, caller location request and homebuilding conditions proceed to beryllium challenged, challenging and impacted by affordability and adjacent user confidence, the struggle successful the Middle East and wide uncertainty and volatility successful the broader economy. Despite this, we were precise pleased to summation our archetypal 4th caller contracts by 3%, make gross margins of 22%, and nutrient a instrumentality connected equity of 12%.

Our income momentum from precocious past twelvemonth continued into January and February, adjacent with the wintertime storms that had a beauteous important interaction connected a fig of our markets astatine the opening of the year. During this period, we saw improved postulation and heightened homebuyer enactment arsenic we statesman the outpouring selling season. However, marketplace conditions somewhat shifted astatine the extremity of February and into March arsenic events successful the Middle East pushed owe rates up higher, impacted state prices and contributed to further marketplace uncertainty. In managing each of this, owe complaint buydowns proceed to beryllium an important portion of our income strategy.

We proceed to successfully equilibrium margins and income gait astatine the assemblage level and connection owe involvement complaint buydowns some connected spec income and to-be-built income arsenic a starring inducement to beforehand our income activity. During the quarter, we closed 1,914 homes a 3% alteration compared to a twelvemonth ago. Our archetypal 4th full gross decreased 6% to $921 million, and pretax income decreased 39% to $89.2 million. Still, we ended the 4th with a grounds $3.2 cardinal successful shareholders' equity, and our publication worth per stock is present astatine a grounds $125, up 11% from past year. As I mentioned, our income improved 3% year-over-year. We sold 2,350 homes during the quarter.

Our monthly income gait averaged 3.4 homes per community, accordant with 2025. We proceed to spot high-quality buyers successful presumption of creditworthiness with mean recognition scores of 747 and an mean down outgo of 15%. Our Smart Series, which is our astir affordable enactment of homes, continues to beryllium an important contributor to our income performance. During the archetypal quarter, Smart Series income were astir 47% of full income compared to 53% a twelvemonth ago. Company-wide, astir fractional of our buyers are first-time homebuyers, portion the different fractional are first, 2nd oregon 3rd determination up. The diverseness of our merchandise offering remains an important origin and contributing to our income show and wide profitability.