M/I Homes (MHO) Q2 2026 earnings summary

Executive summary

• New contracts reached a record 2,387 in Q2 2026, up 15% year-over-year, while homes delivered fell 6% to 2,206; revenue declined 9% to $1.06–$1.1 billion and net income dropped 35% to $79–$105 million, with diluted EPS at $3.02.

• Financial services segment achieved record Q2 revenue and a 96% capture rate, offsetting some declines in homebuilding.

• Shareholders' equity reached a record $3.2 billion, with book value per share at $128.

• S&P upgraded the credit rating to BB+.

• Repurchased $50–$100.1 million in stock during Q2/first half; $120 million remains authorized.

Financial highlights

• Gross margin for Q2 was 22–22.1%, including $4 million in inventory charges; homebuilding gross margin was 19.7%.

• Pre-tax income for Q2 was $79–$105 million (10% margin), down 35% year-over-year.

• SG&A expenses were 12.6% of revenue, up from 11.3% YoY.

• Adjusted EBITDA for Q2 was $120 million, down from $169 million YoY; adjusted diluted EPS was $3.14.

• Cash at quarter-end was $735.9–$736 million, with no borrowings under the $900 million credit facility.

Outlook and guidance

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

• Plan to grow average community count by about 5% in 2026; more new community openings expected in the second half.

• Remain confident in long-term fundamentals and well-positioned for 2026.

• Focus remains on disciplined cost management, selective use of incentives, and prudent land spending.