- M/I Homes (MHO, Financial) reported a 7% decrease in revenue to $976 million in Q1 2025.
- Net income fell to $111 million, with diluted EPS of $3.98.
- Shareholders' equity reached $3 billion, a 14% increase year-over-year.
M/I Homes, Inc. (MHO) revealed its first quarter 2025 results, reporting mixed outcomes amid challenging market conditions. The company's revenue fell by 7% to $976 million, down from $1.05 billion in the same period last year. This decline was accompanied by an 8% drop in homes delivered, totaling 1,976 units compared to 2,158 units in Q1 2024.
Net income for the period declined to $111 million, translating to earnings per diluted share of $3.98, compared to $138 million, or $4.78 per share, in the previous year. Despite these declines, M/I Homes maintained a robust gross margin of 25.9% and achieved a 19% return on equity, showcasing operational efficiency in a difficult market.
The company experienced a 10% decrease in new contracts to 2,292, with backlog value also dropping by 13% to $1.56 billion. The cancellation rate increased to 10% from last year's 8%, indicating heightened consumer hesitancy. However, the average sales price in backlog rose to $548,000, up from $528,000 the previous year.
In contrast, the company's financial health remains robust, with record shareholders' equity growing by 14% to $3 billion, and a book value of $112 per share. M/I Homes ended the quarter with $776 million in cash and a negative 3% net debt-to-capital ratio, reflecting its strong liquidity position.
M/I Homes expanded its community count to 226, up from 219 a year ago, and plans a 5% growth in communities this year. The strategic expansion underscores the company’s commitment to growth despite the current market uncertainties. The management also demonstrated confidence in the firm's valuation with a $50 million share repurchase during the quarter.
