M/I Homes, Inc. (NYSE: MHO), the Columbus, Ohio-based homebuilder marking its 50th anniversary in 2026, reported results for the three and nine months ended September 30, 2026. Third-quarter revenue was $1.076 billion, down 5% from $1.132 billion a year earlier. Net income was $66.6 million, or $2.56 per diluted share, against $106.5 million, or $3.92 per share, in the third quarter of 2025.
Pre-tax income for the quarter was $86.9 million, down 38% from $139.8 million, a decline the company tied in part to $4.7 million of pre-tax inventory charges taken in the quarter, against $8.9 million for the first nine months. Gross margin was 20.9% as reported and 21.3% excluding the inventory charges.
New contracts for the quarter fell 2% to 1,861 and homes delivered fell 2% to 2,241, at an average closing price of $460,000, with a cancellation rate of 12%. For the nine months, homes delivered fell 4% to 6,361 while new contracts rose 5% to 6,598, against 6,620 and 6,278, respectively, a year earlier.
The company's backlog stood at 2,046 homes at September 30, 2026, down 7% from a year earlier, with a sales value of $1.103 billion, down 9%, and an average sales price of $539,000. M/I Homes operated 246 communities at quarter-end, up from 233 a year earlier.
The company reported shareholders' equity of $3.3 billion and book value of $130 per share, both company records, along with $621 million of cash and equivalents, a homebuilding debt-to-capital ratio of 18%, a net debt-to-capital ratio of 2%, and zero borrowings outstanding on its $900 million credit facility. M/I Homes repurchased $50 million of its shares during the quarter.
For the nine months ended September 30, 2026, pre-tax income was $280.6 million, against $446.0 million a year earlier, and net income was $213.5 million, or $8.14 per diluted share, against $339.0 million, or $12.32 per share, in the first nine months of 2025.
Chief executive Robert H. Schottenstein said the quarter's results 'reflect increasingly difficult market conditions, including higher mortgage interest rates, weaker demand and growing economic uncertainty,' adding that the company is 'well positioned to manage through this current cycle given the strength of our balance sheet, low debt levels, diverse product offerings and well-located communities.'
The company said it will hold a conference call on October 21, 2026 at 10:30 a.m. ET to discuss the results. The release includes no forward guidance for the fourth quarter or full year beyond the comments attributed to Schottenstein.