MH
MHO
MHO M/I Homes (MHO) Q1 FY26 earnings call
M/I Homes delivered a solid first quarter, achieving a 3% increase in new contracts and maintaining a strong balance sheet despite a challenging market environment. The company effectively leveraged mortgage rate buydowns and a diverse product offering to balance sales pace and margins, navigating headwinds from affordability concerns and geopolitical uncertainty. While revenue and profit metrics saw year-over-year declines, the company's strategic land position and operational focus contributed to robust returns on equity and pretax income.
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MHO operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Homes closed | 1,914During the quarter, we closed 1,914 homes a 3% decrease compared to a year ago.Source: earnings call transcript | 2,206We closed 2,206 homes in the quarter, down 6% compared to a year ago.Source: earnings call transcript | 2,241During the quarter, we closed 2,241 homes a 2% decrease compared to a year ago.Source: earnings call transcript | +1.6% |
| Homes sold | 2,350We sold 2,350 homes during the quarter.Source: earnings call transcript | 2,387For the second quarter, we sold a second quarter record 2,387 homes, 15% better than last year.Source: earnings call transcript | 1,861For the quarter, we sold 1,861 homes 2% less than a year ago.Source: earnings call transcript | -22% |
| Average buyer credit score | 747We continue to see high-quality buyers in terms of creditworthiness with average credit scores of 747 and an average down payment of 15%.Source: earnings call transcript | 748We continue to see quality buyers for the most part, in terms of creditworthiness with average credit scores of 748 and an average down payment of about 15%.Source: earnings call transcript | 748We continue to see quality buyers in terms of creditworthiness with average credit scores of 748 and average down payments over 16%.Source: earnings call transcript | 0% |
| Owned lots | ~24.2KCompany-wide, we own approximately 24,200 lots, which is slightly less than a 3-year supply.Source: earnings call transcript | ~23.5KCompany-wide, we own approximately 23,500 lots, which is roughly a 2.5-year supply.Source: earnings call transcript | ~23.4KCompany-wide, we own on our books approximately 23,400 lots which is roughly a 2.5-year supply.Source: earnings call transcript | — |
| Controlled lots | ~25.8KIn addition, we control approximately 25,800 lots via option contracts, which results in a total of roughly 50,000 owned and controlled lots equating to about a 5-year supply.Source: earnings call transcript | ~25.7KIn addition, we control approximately 25,700 lots via option contracts, resulting in a total of slightly more than 49,000 owned and controlled lots, which equates to about a 5-year supply.Source: earnings call transcript | ~25.6KIn addition, we control approximately 25,600 lots via option contracts resulting in a total of roughly 49,000 owned and controlled lots equating to about a 5-year supply.Source: earnings call transcript | — |
| Owned and controlled lots | ~50KIn addition, we control approximately 25,800 lots via option contracts, which results in a total of roughly 50,000 owned and controlled lots equating to about a 5-year supply.Source: earnings call transcript | 49K+In addition, we control approximately 25,700 lots via option contracts, resulting in a total of slightly more than 49,000 owned and controlled lots, which equates to about a 5-year supply.Source: earnings call transcript | ~49KIn addition, we control approximately 25,600 lots via option contracts resulting in a total of roughly 49,000 owned and controlled lots equating to about a 5-year supply.Source: earnings call transcript | — |
| Cancellation rate | 8%Our cancellation rate for the quarter was 8%.Source: earnings call transcript | 8%Our sales were up 13% in April, up 23% in May and up 9% in June, and our cancellation rate for the second quarter was 8%.Source: earnings call transcript | 12%They were up 15% in July, down 6% in August and down 16% in September and our cancellation rate for the quarter was 12%.Source: earnings call transcript | +4 pt |
| Communities closed | 24During the quarter, we opened 22 new communities while closing 24.Source: earnings call transcript | 23During the quarter, we opened 27 new communities while closing 23.Source: earnings call transcript | 15During the quarter, we opened 27 new communities while closing 15, we currently estimate that our 2026 year-end community count will be about 5% higher than last year.Source: earnings call transcript | -34.8% |
| Homes in the field | 4,600And as of March 31, we had 4,600 homes in the field versus 4,800 homes in the field a year ago.Source: earnings call transcript | 5,100And at June 30, we had 5,100 homes in the field, flat versus a year ago.Source: earnings call transcript | 5,200As of 9/30, we had 5,200 homes in the field versus 5,000 homes in the field a year ago and our construction cost and cycle time were flat in the third quarter compared to the second quarter.Source: earnings call transcript | +2% |
| Average loan to value | 85%Average loan to value on our first mortgages for the quarter was 85% compared to 83% in 2025's first quarter, 66% of the loans closed in the quarter were conventional and 34% FHA/VA, compared to 57% and 43%, respectively, for 2025's first quarter.Source: earnings call transcript | 85%The average loan-to-value on our first mortgages for the second quarter was 85% compared to 83% in 2025's second quarter.Source: earnings call transcript | 84%The average loan to value on our first mortgages for the third quarter was 84%, consistent with 2025's third quarter.Source: earnings call transcript | -1 pt |
| Average mortgage amount | $401KOur average mortgage amount decreased to $401,000 in 2026 this first quarter compared to $406,000 last year.Source: earnings call transcript | $405KOur average mortgage amount increased to $405,000 in 2026 second quarter compared to $403,000 last year.Source: earnings call transcript | $403KOur average mortgage amount decreased to $403,000 in 2026, 3rd quarter compared to $406,000 last year.Source: earnings call transcript | -0.5% |
| Loans originated | 1,579Loans originated increased to 1,579 loans, which was up 3% from last year, while the volume of loans sold increased by 1%.Source: earnings call transcript | 1,817Loans originated decreased to 1,817, which was down 3% from last year, while the volume of loans sold increased by 6%.Source: earnings call transcript | 1,835Loans originated decreased to 1,835 loans, which was down 1% from last year, while the volume of loans sold decreased by 5%.Source: earnings call transcript | +1% |
| Mortgage capture rate | 96%Finally, our mortgage operation captured 96% of our business in the first quarter, up from 92% last year.Source: earnings call transcript | 96%Our mortgage company had a terrific and very strong second quarter, capturing a record 96% of our business.Source: earnings call transcript | 96%Our mortgage company's capture rate for the quarter was 96%.Source: earnings call transcript | 0 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.