M/I Homes Reports 9% Revenue Decline and 35% Drop in Net Income for Q2 2026

M/I Homes, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $1.06 billion, down 9% from $1.16 billion in the same period last year. The company's net income also decreased by 35% to $79.1 million, or $3.02 per diluted share, compared to $121.2 million, or $4.42 per diluted share, in the prior year. For the first half of 2026, revenue fell to $1.98 billion from $2.14 billion, while net income decreased to $146.9 million from $232.5 million. The decline in revenue and profitability was attributed to a combination of higher lot costs, increased sales incentives, and a decrease in the number of homes delivered.

In terms of operational metrics, M/I Homes experienced a 6% decrease in homes delivered during the second quarter, totaling 2,206 homes, while new contracts increased by 15% to a record 2,387. The average sales price of homes delivered decreased by approximately $20,000, reflecting the impact of sales incentives aimed at improving affordability in a challenging housing market characterized by elevated mortgage interest rates and inflation. The company’s gross margin also contracted, decreasing to 22.1% from 24.7% in the previous year.

M/I Homes has been actively managing its inventory and land acquisition strategies, ending the second quarter with approximately 49,100 lots under control, a slight decrease from 50,500 lots at the same time last year. The company opened 49 new communities and closed 47 during the first half of 2026, maintaining a total of 234 active communities. The company plans to increase its average community count by about 5% from 2025, reflecting its commitment to expanding its market presence.

The company’s financial services segment reported a 3% increase in revenue to $32.3 million, driven by improved margins on loans sold and a higher capture rate of 96%, up from 92% in the prior year. M/I Homes continues to focus on managing its overhead and land acquisition costs while offering targeted sales incentives to stimulate demand. The company ended the second quarter with $735.9 million in cash and cash equivalents, a $46.5 million increase from the end of 2025, providing a solid liquidity position to navigate the current market challenges.

Looking ahead, M/I Homes remains cautious about the macroeconomic environment, which includes ongoing inflationary pressures and elevated mortgage rates. The company is focused on executing strategies to enhance affordability and support demand, including disciplined cost management and selective use of sales incentives. Despite the challenges, M/I Homes believes that the long-term fundamentals of the housing market remain favorable, driven by demographic trends and an undersupply of homes, particularly in the affordable segment.