M/I Homes navigates revenue dip with record shareholders' equity in Q1

M/I Homes (NYSE:MHO) announced financial results for the first quarter ended March 31, 2026, reflecting a period of consolidation within the residential construction sector.

While the company faced a contraction in top-line revenue and backlog units compared to the prior year, its emphasis on financial discipline resulted in a record level of shareholders' equity and a significantly strengthened book value per share.

For the quarter, total revenue reached $920.7 million, representing a 6% decrease from the first quarter of 2025.

Pre-tax income for the period was $89.2 million, or 10% of total revenue, which marked a 39% decline year-over-year as the company navigated higher operating costs and a shift in delivery timing.

Net income for the quarter totaled $67.8 million, resulting in diluted earnings per share of $2.55.

Operational metrics signaled a cooling in near-term demand, with backlog units falling 21% to 2,245 homes.

The total sales value of the backlog decreased 23% to $1.20 billion, reflecting broader market trends toward more cautious buyer sentiment and the impact of fluctuating interest rates.

Despite the operational headwinds, M/I Homes reported significant gains in its underlying financial position.

Shareholders' equity reached a record $3.19 billion, a milestone that drove book value per share up to $124.75.

The company also maintained a high level of liquidity, ending the quarter with $767 million in cash and zero borrowings under its $900 million revolving credit facility.