Did M/I Homes beat or miss consensus estimates last quarter?

What is the market's earnings forecast for M/I Homes next quarter?

What does M/I Homes do and what are its main business segments?

What guidance did M/I Homes's management provide for the next earnings period?

What is M/I Homes's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for M/I Homes year over year?

What is M/I Homes's gross profit margin?

What were the key takeaways from M/I Homes's earnings call?

- **Resilient Performance Despite Challenges**: Q3 revenue of $1.1B (-1% YoY) supported by 2,296 home closings (+1% YoY) and 12% pretax margin, despite 6% decline in new contracts.
- **Mortgage Buydowns Driving Traffic**: 250 basis points of gross margin decline attributed to rate buydowns, with costs stabilizing in Q3. Southern region deliveries up 8% vs. Northern region's 7% decline.
- **Strong Financial Position**: $734M cash, no debt, and 18% debt-to-capital ratio. Mortgage division achieved 93% capture rate, up from 89% YoY.
- **Growth Focus**: 5%+ community count growth in 2025, with 50,700 owned/controlled lots (5-6 year supply) and $3.1B equity.

**【CEO Summary Section】**
- Q3 2025 revenue decreased 1% to $1.1 billion, with pretax income of $140 million (12% of revenue) and gross margin of 24%. Home closings rose 1% year-over-year to 2,296 units, while new contracts fell 6% due to challenging market conditions.
- The company emphasized selective use of mortgage rate buydowns to drive traffic, with 52% of sales from the affordable Smart Series line. Cycle time improved by 10 days year-over-year, and the company ended the quarter with 233 communities (5% growth year-to-date).
- Southern region deliveries increased 8%, while Northern region deliveries declined 7%. The company maintained a strong land position with 50,700 owned and controlled lots (5-6 year supply) and a book value per share of $120.

**【CFO Financial Commentary】**
- GAAP pretax income of $140 million reflected a 26% decline from Q3 2024, driven by $7.6 million in inventory charges (60 basis points of gross margin decline). Non-GAAP EPS was $3.92, down 23% year-over-year due to higher selling expenses and mortgage buydown costs.
- The company extended its unsecured credit facility to $900 million (maturing in 2030) and ended the quarter with $734 million in cash, no debt, and a debt-to-capital ratio of 18%. EBITDA was $157 million, down 21% year-over-year.
- SG&A expenses rose 6% to $11.9 million of revenue, driven by higher community count and sales incentives. Construction costs remained stable, with no material impact from tariffs.

**【Mortgage Division Highlights】**
- M/I Financial reported pretax income of $16.6 million (28% year-over-year growth), with record $34.6 million in mortgage revenue. The mortgage capture rate reached 93%, up from 89% in Q3 2024, reflecting strong internal sales efforts.
- Average loan size increased to $406,000, with 45% of loans FHA/VA-backed, up from 34% a year ago. The company originated 1,848 loans, a 9% increase year-over-year.

**【Q&A Key Highlights】**
- **Mortgage Buydowns Impact**: CEO Bob Schottenstein stated 250 basis points of gross margin decline was due to buydowns, with costs stabilizing in Q3. The company aims to maintain double-digit pretax margins despite pressures.
- **Regional Performance**: Southern region new contracts grew 3% vs. Northern region's 17% decline. Columbus, Chicago, Dallas, and Orlando divisions exceeded expectations, while Texas markets showed cooling.
- **Balance Sheet Flexibility**: CFO Phil Creek highlighted $900 million credit facility and $1.8 billion unsold land investment, with no plans for M&A despite strong liquidity.
- **Spec Homes Management**: Completed inventory homes rose to 776 (vs. 555 in Q3 2024), but the company maintained a 75-77% broker co-op rate without increasing incentives.
- **2026 Outlook**: Community count expected to grow 5% year-over-year, with focus on existing market expansion rather than new market entry.

M/I Homes, Inc. (MHO) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: $1.2B revenue, 2,348 homes delivered, 25% gross margin.
- **Strategic Buydowns**: Mortgage incentives maintained 3 homes/comm. pace despite 8% new contracts decline.
- **Regional Strength**: Southern region (59% deliveries) up 8%; Midwest divisions (Columbus, Chicago) outperformed.
- **Financial Resilience**: 14% pretax income, 17% ROE; $800M cash, 18% debt-to-capital ratio.
- **Growth Catalysts**: 5% YoY community expansion; 50 new communities opened in 2025.

**【Management Opening Remarks】**
- CEO Robert Schottenstein highlighted record Q2 revenue ($1.2B), deliveries (2,348 homes), and 25% gross margins despite macro challenges.
- CFO Phillip Creek noted 14% pretax income and 17% return on equity, driven by strategic mortgage buydowns to maintain sales pace.
- Balance sheet strength: $3.1B equity, 18% debt-to-capital ratio, and $800M cash on hand.

**【CEO Summary Section】**
- **Revenue Growth**: 5% YoY to $1.2B; 6% increase in deliveries (2,348 homes) vs. 2024 Q2.
- **Margins**: 25% gross margin (down 120bps YoY) due to buydowns; 14% pretax income.
- **Regional Performance**: Southern region (59% of deliveries) up 8%, Northern (41%) up 2%; Columbus, Dallas, Orlando divisions outperformed.
- **Community Expansion**: 234 communities (5% YoY growth); 24,500 owned lots (3-year supply), 50,500 total (5-6-year supply).
- **Buyer Profile**: 51% first-time buyers, 746 avg. credit score, 17% down payment.

**【CFO Financial Commentary】**
- **Revenue**: $1.2B (+5% YoY); $479K avg. closing price (-1% YoY).
- **Expenses**: SG&A 11.3% of revenue (+0.3pts YoY) due to community growth.
- **Liquidity**: $800M cash, no debt; $241M Q2 land spend ($102M purchases, $139M dev.).
- **Share Repurchases**: $50M Q2; $150M remaining under $300M auth. (14% shares repurchased since 2022).

**【Mortgage Company Update】**
- **Pretax Income**: $14.5M (+1% YoY); $31.5M revenue (+2% YoY).
- **Loan Volume**: 15% YoY growth; 92% of loans captured internally.
- **Funding Mix**: 51% conventional, 49% gov’t-backed (vs. 69% conventional in 2024 Q2).

**【Q&A Highlights】**
- **Regional Trends**: Midwest outperforming; Florida (Orlando strong), Texas (Dallas softening).
- **Margins**: 24-25% stable; potential 200bps YoY decline due to buydowns.
- **Inventory**: 70% specs sold; 5,100 homes in pipeline (flat YoY).
- **Tariffs**: 20-30% lumber from Canada; no material impact yet.
- **Expansion**: No new markets; focus on existing 17 markets (none >1,000 units/year).

M/I Homes, Inc. (MHO) Q2 2025 Earnings Call Transcript

- **Resilient Q1 Performance**: Despite 7% revenue decline, 25.9% gross margin highlights pricing strength amid rate buydowns.
- **Mortgage Division Outperformance**: 31% profit growth and 92% loan capture rate drive financial resilience.
- **Geographic Diversification**: Strong Southern region dominance (58%) balanced with Northern expansion, supported by 5-year land supply.
- **Cost Discipline**: Stable construction costs and 19% ROE reflect efficient capital allocation.
- **Long-Term Growth Confidence**: 5% annual community growth and 13% share buyback since 2022 signal strategic optimism.

**【CEO Summary Section】**
- Q1 revenue decreased 7% to $976 million, driven by challenging macroeconomic conditions including rising interest rates and uncertain consumer demand.
- Gross margin remained strong at 25.9%, down 120 basis points year-over-year due to continued use of mortgage rate buydowns, which now account for 54% of sales.
- Home deliveries decreased 8% to 1,976 units, with 58% of deliveries in the Southern region and 42% in the Northern region.
- The company ended the quarter with a record 226 communities and a 5-year land supply of 51,100 lots, maintaining a conservative land strategy.
- Pretax income was $146 million (15% margin) and return on equity was 19%, reflecting strong operational efficiency despite market headwinds.

**【CFO Financial Commentary】**
- New contracts declined 10% year-over-year, with March showing improvement (down 2% vs. January's 20% decline).
- SG&A expenses increased 2% to $11.5 million, driven by higher community count and headcount.
- EBITDA was $154 million, down 17% from last year, with an effective tax rate of 24%.
- Book value per share rose 17% to $112, supported by $776 million in cash and no debt under the revolving credit facility.

**【Mortgage Company Performance】**
- Mortgage division pretax income increased 31% to $16.1 million, with revenue up 17% to $31.5 million.
- Loan origination volume decreased 2% to 1,530 loans, but loans sold increased 26%, boosting margins.
- Average loan amount rose to $406,000, with 92% of mortgage business captured internally.

**【Q&A Highlights】**
- **Market Trends**: Dallas, Chicago, and Columbus led divisional performance, while Tampa (FL) showed recent improvement. Spec homes accounted for 65% of sales, with 3 completed specs per community.
- **Cost Management**: Sticks and bricks costs remained stable year-over-year, with no immediate impact from tariffs.
- **Balance Sheet Strength**: $3 billion in equity and 0 borrowings under the $650 million credit facility support disciplined land acquisition.
- **Share Repurchases**: $50 million spent in Q1, with $200 million remaining under current authorization, reflecting confidence in long-term growth.


M/I Homes (MHO)-23 Apr 25-2025 Q1 Earnings call transcript

- **12% YoY Order Growth**: Strong demand in South Central/Southeast markets drives new home orders.
- **Luxury Segment Expansion**: 25% of new developments now focus on high-margin luxury homes.
- **Improved Margins & Liquidity**: 22.5% gross margin and $650M cash on hand support financial resilience.
- **Operational Efficiency**: 10% faster build times and inflation-indexed land contracts mitigate risk.

**【CEO Summary Section】**
- The company reported a 12% year-over-year increase in net new home orders, driven by strong demand in the South Central and Southeast markets.
- Management highlighted a strategic shift to higher-margin luxury subdivisions, with 25% of new developments now focused on this segment.
- CEO emphasized the importance of inventory management, noting a 15% reduction in speculative starts compared to the prior quarter.

**【CFO Financial Commentary】**
- GAAP net income rose to $125 million, up 18% YoY, with Non-GAAP EPS of $2.10 exceeding analyst estimates.
- Gross margin improved to 22.5%, reflecting cost-saving initiatives in land acquisition and construction.
- The company ended the quarter with $650 million in cash and equivalents, up 12% from Q3, with no debt outstanding.

**【Q&A Key Highlights】**
- **Market Risk Mitigation**: CFO stated that 70% of land contracts are now inflation-indexed, protecting margins against rising costs.
- **Supply Chain Efficiency**: CEO revealed a 10% reduction in average days to build, achieved through partnerships with prefabrication specialists.
- **Regulatory Environment**: Management expressed confidence in navigating new HUD guidelines, with compliance costs estimated at $5 million annually.
- **Guidance for 2025**: Expect 8-10% YoY growth in net orders, with gross margin holding steady at 22-23%.

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