Sekisui House U.S. Reports $8.8 Million Net Loss and 20% Revenue Decline in Q1 2026

Sekisui House U.S., Inc. (formerly M.D.C. Holdings, Inc.) reported a significant decline in financial performance for the first quarter of 2026, with a net loss of $8.8 million compared to a net income of $76.6 million in the same period last year. Total revenues fell to $1.21 billion, down 20% from $1.51 billion in the prior year, primarily driven by a 20% decrease in home sale revenues, which amounted to $1.20 billion. The company's gross margin from home sales also decreased by 280 basis points to 14.9%, attributed to inventory impairments of $4.5 million and increased sales incentives.

The company's financial services segment also experienced a downturn, with revenues dropping 28% to $27.7 million from $38.5 million in the previous year. The pretax income for this segment fell by 62% to $5.5 million, influenced by reduced loan origination volumes and a decrease in home closings. The overall decline in both homebuilding and financial services pretax income reflects the challenging market conditions, including affordability concerns and weak consumer confidence.

In terms of operational developments, Sekisui House U.S. has undergone significant organizational changes, including the acquisition of Woodside Group, Chesmar Homes, and Holt Group Holdings in late 2025 and early 2026. These mergers, classified as common-control transactions, have expanded the company's geographic footprint and operational capacity across several states, including Texas, California, and Arizona. The company has also realigned its homebuilding segments into six reportable regions to enhance operational efficiency.

The company reported a decrease in total assets, which fell to $8.25 billion from $8.56 billion at the end of 2025, largely due to a reduction in cash and cash equivalents. The total homebuilding assets decreased by 4%, reflecting changes in inventory levels and land acquisitions. As of March 31, 2026, the company had 2,171 homes in backlog, representing a 13% decrease from the previous year, with a total backlog value of $1.38 billion.

Looking ahead, Sekisui House U.S. anticipates continued challenges in the housing market, with expectations of soft demand persisting due to macroeconomic uncertainties. However, the company maintains a strong financial position, ending the quarter with $161.7 million in cash and cash equivalents and a debt-to-capital ratio of 23.3%. The management believes that their strategic initiatives and operational adjustments will position the company to navigate the current market conditions effectively.