M/I Homes reported fourth quarter net income of $64.0 million, or $2.39 per diluted share, down from $133.5 million, or $4.71 per share a year earlier. Revenue for the period declined 5% to $1.1 billion, driven by a 4% decrease in homes delivered to 2,301 units, partially offset by a 9% increase in new contracts to 1,921 homes. Pre-tax income reached $81.0 million, which incorporates $51.0 million of charges—$40.0 million for inventory and $11.0 million for warranty provisions—resulting in a gross margin of 18.1% (22.6% excluding charges). The company repurchased $50.0 million of its common stock during the quarter and expanded its community count to 232 from 220 a year earlier.

For the full year, M/I Homes delivered 8,921 homes, a 1% decrease, on revenue of $4.4 billion, down 2% from the prior year. New contracts totaled 8,199 homes, a 4% decline. Pre-tax income was $527 million, representing 12% of revenue, after charges of $59 million for inventory and warranty adjustments. Net income for 2025 amounted to $403 million, or $14.74 per diluted share, compared with $563.7 million, or $19.71 per share, in 2024. The company repurchased $202 million of stock over the year, returning capital while maintaining a homebuilding debt to capital ratio of 18%.

At December 31, 2025, shareholders’ equity reached a record $3.2 billion, equating to book value of $123 per share. Cash and restricted cash totaled $689 million, with zero borrowings under a $900 million credit facility. Inventory stood at $3.38 billion, including $1.88 billion in land and development, and backlog units decreased 29% to 1,809 homes valued at $989.9 million. The company maintained a cancellation rate of 10% in the fourth quarter, improved from 14% a year ago, and reported a net debt to capital ratio of zero.

CEO Robert H. Schottenstein highlighted that despite macro-economic headwinds, M/I Homes delivered solid operational results, achieving a 12% pretax return and 13% return on equity in 2025. He emphasized the company’s strong liquidity position, record equity base and disciplined capital allocation. As M/I Homes celebrates its 50th year, management reiterated confidence in long-term housing fundamentals and outlined plans to leverage its expanded geographic footprint across 17 metropolitan markets to drive future growth.