Sekisui House Reports 49% Decline in Net Income for Q2 2026

Sekisui House U.S., Inc. (formerly M.D.C. Holdings, Inc.) reported a significant decline in financial performance for the second quarter of 2026, with net income falling to $29.7 million, a 49% decrease from $58.1 million in the same period last year. The company's total revenues for the quarter were $1.34 billion, down 23% from $1.75 billion in the prior year, primarily due to a 23% drop in home sale revenues, which amounted to $1.34 billion compared to $1.75 billion in the previous year. The decrease in profitability was attributed to a combination of reduced sales absorption rates and increased selling, general, and administrative expenses, which rose to 14.3% of revenues from 11.7% a year earlier.

In the first half of 2026, Sekisui House reported a net income of $20.9 million, an 84% decline from $134.6 million in the same period of 2025. The homebuilding segment's pretax income plummeted by 91% to $11.4 million, driven by a 22% decrease in home sale revenues and a 290 basis point increase in selling, general, and administrative expenses as a percentage of revenue. The financial services segment also experienced a 50% drop in pretax income, reflecting decreased loan origination volumes and lower interest income due to reduced cash and short-term investments.

Operationally, the company has undergone significant changes, including the integration of Woodside Group, Chesmar Homes, and Holt Group Holdings, which were acquired in late 2025 and early 2026. This consolidation has expanded Sekisui House's geographic footprint and operational capacity across several states, including Texas, California, and Arizona. The total assets of the company decreased to $8.27 billion as of June 30, 2026, down from $8.56 billion at the end of 2025, largely due to a reduction in inventories and cash reserves.

The company reported a total of 2,266 homes in backlog with a total value of $1.46 billion, reflecting a 3% increase in the number of homes and a 10% increase in dollar value compared to the previous year. However, the average selling price of homes in backlog increased, indicating a shift towards higher-priced communities. The overall market conditions remain challenging, with ongoing affordability concerns and weak consumer confidence impacting sales.

Looking ahead, Sekisui House anticipates continued challenges in the housing market, particularly with respect to sales absorption rates. Despite these challenges, the company maintains a strong financial position, ending the quarter with $171.5 million in cash and cash equivalents and a debt-to-capital ratio of 23.3%. The management believes that their strategic positioning and operational adjustments will enable them to navigate the current market conditions effectively.