M/I Homes reported a 9% year-over-year increase in new contracts for Q4 2025 to 1,921 homes, while deliveries declined 4% to 2,301 units. Total revenue for the quarter fell 5% to approximately $1.1 billion, driven by lower closings and a slight dip in average home closing price to $484,000. Gross margin contracted to 18.1%, but widened to 22.6% on an adjusted basis after excluding $40 million of inventory charges and $11 million of warranty charges. Pre-tax income reached $81 million, resulting in net income of $64 million, or $2.39 per diluted share, compared with $134 million, or $4.71 per share, in the same period last year. The company repurchased $50 million of its common stock during the quarter and ended December with 232 active communities, up from 220 a year earlier.

For the full year 2025, new contracts declined 4% to 8,199 homes and deliveries edged down 1% to 8,921 units. Consolidated revenue decreased 2% to $4.4 billion, while adjusted gross margin held steady near 23% after $48 million of inventory charges and $11 million of warranty costs. Pre-tax income totaled $527 million, or 12% of revenue, leading to net income of $403 million, or $14.74 per diluted share. Shareholders’ equity climbed to a record $3.2 billion, boosting book value per share to $123. The company returned $202 million to investors through share repurchases and delivered a 13% return on equity for the year.

M/I Homes ended 2025 with $689 million in cash and zero borrowings under its $900 million credit facility, resulting in a homebuilding debt-to-capital ratio of 18% and net debt-to-capital of zero. Inventory on the balance sheet totaled $3.38 billion, including $1.88 billion of lots and land under development. Mortgage loans held for sale stood at $309 million. Deferred tax assets of $4.5 million and joint venture investments of $106 million provided additional liquidity buffers. The company’s cancellation rate improved to 10% in Q4 from 14% a year ago, while backlog units contracted 29% to 1,809 homes valued at $990 million, reflecting disciplined order pacing.

Robert H. Schottenstein, CEO, described 2025 as a “very solid year” despite challenging macroeconomic factors, citing delivery of nearly 9,000 homes, a 12% pretax income return and record shareholders’ equity. He highlighted the company’s strong liquidity, zero net debt and disciplined cost controls. Looking ahead to its 50th anniversary in 2026, management reiterated confidence in long-term housing fundamentals, an unwavering focus on quality and customer service, and plans to leverage its diversified geographic footprint across 16 markets to drive sustainable growth.