M/I Homes (MHO) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.076B, down 5% YoY; net income fell 38% to $66.6M and diluted EPS was $2.56 vs. $3.92 amid affordability pressures and higher incentives.

• Net contracts declined 2% to 1,861 and deliveries fell 2% to 2,241; 9M contracts rose 5% to 6,598 while deliveries fell 4% to 6,361.

• Record equity of $3.25B, $620.6M in cash and low leverage supported management’s confidence in navigating the cycle.

Financial highlights

• Q3 income before taxes was $86.9M vs. $139.8M; operating income was $83.3M vs. $135.3M YoY.

• Gross margin was 20.9%, down 300 bps YoY, or 21.3% excluding $4.7M of inventory charges; incentives and closing-cost reductions were $73.2M vs. $53.5M.

• Homebuilding revenue fell 5%, reflecting a 4% lower average delivered-home price and 2% fewer deliveries.

• Adjusted diluted EPS was $2.70 vs. $4.14; adjusted EBITDA was $103.4M vs. $156.6M in Q3.

• 9M revenue was $3.060B, net income $213.5M and diluted EPS $8.14; 9M gross margin was 21.7%.

Outlook and guidance

• Year-end community count is expected to be ~5% above 2025; longer-term community growth goal is 5%–10% annually.

• Priorities include targeted incentives, inventory management, disciplined land and overhead spending, liquidity and low leverage; land spending will track sales and delivery pace.

• No material strategy changes were planned; selective move-up mix shifts were underway in two to four markets.

• Starts were reduced somewhat, with hiring and expenses to be monitored as demand remained the primary constraint on growth.