M/I Homes (MHO) investor relations material

Executive summary

• Q1 revenue declined 6% year-over-year to $921 million, with net income down 39% to $67.8 million and pre-tax income at $89 million; EPS was $2.55 per diluted share.

• New contracts increased 3% year-over-year to 2,350, while homes delivered fell 3% to 1,914; 50% of Q1 sales were to first-time buyers and 70% were inventory homes.

• Gross margin was 22%, down 390 basis points year-over-year, mainly due to higher incentives and lot costs.

• Book value per share reached a record $125, with shareholders’ equity at $3.2 billion, up 6% year-over-year.

• $50 million of common stock was repurchased during Q1; $170 million remains under board authorization.

Financial highlights

• Average closing price was $459,000, down from $476,000 year-over-year.

• SG&A expenses were 12.7% of revenue, up from 11.5% last year.

• Adjusted EBITDA for Q1 was $99 million, down from $154 million a year ago.

• Cash provided by operating activities was $136 million, up from $65 million year-over-year.

• Homebuilding debt to capital ratio was 18%.

Outlook and guidance

• Management expects macroeconomic challenges, including elevated mortgage rates and affordability constraints, to persist through 2026.

• Average sale price is expected to remain in the upper $400,000s, with some fluctuation due to product mix.

• Community count is projected to grow by about 5% in 2026.

• Management remains optimistic about long-term housing demand and maintaining strong profitability.