M/I Homes reported second-quarter 2026 new contracts rose 15% to a record 2,387 from 2,078 a year earlier, even as home deliveries fell 6% to 2,206 from 2,348.
Revenue declined 9% to about $1.1 billion from the prior year’s second quarter. Pre-tax income dropped 35% to $104.6 million from $160.1 million, while net income fell to $79.1 million, or $3.02 per diluted share, from $121.2 million, or $4.42 per diluted share.
The company said the quarter included $4.2 million of pre-tax inventory charges. Gross margin was 22%, and pre-tax margin was 10%.
For the first six months of 2026, pre-tax income fell to $193.7 million from $306.2 million a year earlier. Net income declined to $146.9 million, or $5.57 per diluted share, from $232.5 million, or $8.40 per diluted share. Homes delivered in the first half slipped 5% to 4,120 from 4,324, while new contracts rose 8% to 4,737 from 4,370.
Backlog at June 30 totaled $1.31 billion, down 8% from $1.43 billion a year earlier. Backlog units fell 6% to 2,426 from 2,577, and the average backlog price declined to $538,000 from $553,000.
The cancellation rate improved to 8% from 13% in the second quarter of 2025. The company repurchased $50 million of common stock during the quarter. Shareholders’ equity reached a record $3.2 billion, and book value per share rose to a record $128. Homebuilding debt to capital stood at 18%. The market has reacted to these announcements by moving the company's shares 1.41% to a price of $154.29. If you want to know more, read the company's complete 8-K report here.
