M/I Homes Reports Q1 2026 Revenue Decline to $920.7 Million

M/I Homes, Inc. reported its financial results for the first quarter of 2026, revealing a revenue of $920.7 million, a decrease of 5.7% from $976.1 million in the same period last year. The decline in revenue was attributed to a 3% drop in the number of homes delivered, totaling 1,914, and a 4% decrease in the average sales price of homes. Net income for the quarter was $67.8 million, or $2.55 per diluted share, down from $111.2 million, or $3.98 per diluted share, in the prior year. The company's income before income taxes also fell significantly, decreasing 39% to $89.2 million.

In terms of operational metrics, M/I Homes experienced a 3% increase in new contracts, totaling 2,350, compared to 2,292 in the first quarter of 2025. However, the overall profitability was impacted by increased sales incentives and higher lot costs, which contributed to a gross margin decline of 390 basis points to 22.0%. The company’s selling, general, and administrative expenses rose to 12.7% of revenue, up from 11.5% in the previous year, reflecting increased costs associated with sales offices and realtor commissions.

M/I Homes continued to expand its geographic footprint, opening 22 new communities while closing 24, resulting in a total of 230 active communities at the end of the quarter. The company reported a solid backlog of homes, although it was lower than the previous year, with an average sales price approximately 2% lower than at the end of the first quarter of 2025. The company’s inventory as of March 31, 2026, stood at $3.4 billion, with cash and cash equivalents increasing to $767.4 million, up from $689.2 million at the end of 2025.

Strategically, M/I Homes is focused on managing its land investments and development spending while maintaining pricing discipline. The company has also implemented sales incentives, including mortgage interest rate buydowns, to stimulate demand amid challenging market conditions characterized by elevated mortgage rates and affordability constraints. The company’s financial services segment reported a slight decrease in revenue to $31.2 million, attributed to lower margins on loans sold, despite an increase in loan originations.

Looking ahead, M/I Homes remains cautiously optimistic about the long-term fundamentals of the housing market, supported by favorable demographic trends and a sustained undersupply of homes. The company plans to continue executing its strategies to navigate the current economic environment, including managing overhead costs and selectively offering incentives to enhance affordability and support demand.