Core Insights - M/I Homes reported a revenue of $976.09 million for the quarter ended March 2025, reflecting a year-over-year decline of 6.8% and an EPS of $3.98, down from $4.78 a year ago, with a revenue surprise of -12.92% compared to the Zacks Consensus Estimate of $1.12 billion and an EPS surprise of -4.33% against the consensus estimate of $4.16 [1] Financial Performance - Homes in backlog totaled 2,847, slightly below the average estimate of 2,910 from two analysts [4] - The number of active communities was 223, compared to the average estimate of 224 [4] - New contracts totaled 2,292, which was lower than the average estimate of 2,599 [4] - The average sales price of homes in backlog was $548 thousand, slightly above the average estimate of $547.03 thousand [4] - The average home closing price was $476 thousand, below the average estimate of $489.71 thousand [4] - The aggregate sales value of homes in backlog was $1.56 billion, compared to the estimated $1.59 billion [4] - Homes delivered totaled 1,976, which was lower than the average estimate of 2,221 [4] - Financial services revenue was $31.52 million, slightly above the average estimate of $31.40 million, representing a year-over-year increase of 16.9% [4] - Homebuilding revenue was $940.03 million, below the average estimate of $1.09 billion, reflecting a year-over-year decline of 7.5% [4] Market Performance - Shares of M/I Homes have returned -7.4% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

M/I Homes (MHO) came out with quarterly earnings of $3.98 per share, missing the Zacks Consensus Estimate of $4.16 per share. This compares to earnings of $4.78 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -4.33%. A quarter ago, it was expected that this homebuilder would post earnings of $4.83 per share when it actually produced earnings of $4.71, delivering a surprise of -2.48%. Over the last four quarters, the company ...

Financial Performance - The Company reported pre-tax income of $146.1 million, a 19% decrease from $180.2 million in Q1 2024, and net income of $111.2 million ($3.98 per diluted share), down from $138.1 million ($4.78 per diluted share) in the same period last year [4][8]. - The Company achieved a gross margin of 25.9% and a pre-tax profit margin of 15% [6][8]. - Shareholders' equity reached a record $3 billion, a 14% increase from the previous year, with a book value of $112 per share [7][8]. - Financial services pre-tax income increased to $16.1 million from $12.3 million in Q1 2024 [19][20]. - The Company repurchased $50 million of common stock during the quarter [8]. Sales and Deliveries - Homes delivered decreased by 8% to 1,976 homes compared to 2,158 homes in Q1 2024, while new contracts fell by 10% to 2,292 from 2,547 [5][8]. - Total new contracts decreased by 10% from 2,547 in Q1 2024 to 2,292 in Q1 2025 [23]. - Homes delivered fell by 8% from 2,158 in Q1 2024 to 1,976 in Q1 2025 [23]. - The cancellation rate increased to 10% in Q1 2025 from 8% in Q1 2024 [5][8]. Backlog and Sales Value - The backlog sales value at March 31, 2025, was $1.56 billion, a 13% decrease from $1.79 billion a year ago, with backlog units down 16% to 2,847 homes [5][8]. - The backlog increased to 2,847 units valued at $1,559 million, with an average sales price of $548,000, compared to 3,391 units valued at $1,789 million and an average sales price of $528,000 in Q1 2024 [23]. Regional Performance - Northern region's new contracts decreased by 8% from 1,162 in Q1 2024 to 1,065 in Q1 2025 [23]. - Southern region's homes delivered dropped by 13% from 1,315 in Q1 2024 to 1,150 in Q1 2025 [23]. - Northern region's average sales price for backlog increased from $525,000 in Q1 2024 to $556,000 in Q1 2025 [23]. - Southern region's average sales price for backlog increased from $530,000 in Q1 2024 to $540,000 in Q1 2025 [23]. Land Position - Total land position increased from 47,457 lots in Q1 2024 to 51,097 lots in Q1 2025 [23]. - Total lots owned increased from 23,826 in Q1 2024 to 25,210 in Q1 2025 [23]. - Total lots under contract rose from 23,631 in Q1 2024 to 25,887 in Q1 2025 [23]. Community Growth - M/I Homes plans to grow its community count by an average of 5% this year, with 226 active communities as of March 31, 2025 [7][8].

Core Insights - The company reported a decrease in pre-tax income and net income for the first quarter of 2025 compared to the same period in 2024, with pre-tax income at $146.1 million and net income at $111.2 million, translating to $3.98 per diluted share [2][4][8]. Financial Performance - Homes delivered decreased by 8% to 1,976 homes from 2,158 homes in the first quarter of 2024 [3][8]. - Revenue fell by 7% to $976 million [8]. - The gross margin was reported at 25.9%, with a pre-tax profit margin of 15% and a return on equity of 19% [4][8]. - The cancellation rate increased to 10% in the first quarter of 2025 from 8% in the same quarter of 2024 [3][8]. Contracts and Backlog - New contracts totaled 2,292, down 10% from 2,547 in the first quarter of 2024 [3][8]. - The backlog at March 31, 2025, had a total sales value of $1.56 billion, a 13% decrease from the previous year, with backlog units down 16% to 2,847 homes [3][8]. Balance Sheet and Cash Position - The company achieved a record net worth of $3 billion, a 14% increase from a year ago, with a book value of $112 per share [5][8]. - The company ended the quarter with $776 million in cash and no borrowings under its $650 million unsecured borrowing line [5][8]. - Homebuilding debt-to-capital ratio stood at 19%, with a net debt-to-capital ratio of negative 3% [5][8]. Operational Highlights - The company operated 226 communities as of March 31, 2025, compared to 219 communities a year earlier, and plans to grow community count by an average of 5% this year [5][8]. - The average sales price of homes in backlog was $548,000, up from $528,000 a year ago [3][8].

Core Viewpoint - Analysts forecast a quarterly earnings per share (EPS) of $4.16 for M/I Homes, indicating a year-over-year decline of 13%, while revenues are expected to reach $1.12 billion, reflecting a 7.1% increase compared to the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts predict 'Revenue - Financial services revenue' to be $31.40 million, a year-over-year increase of 16.5% [4] - The forecast for 'Revenue - Homebuilding revenue - Housing revenue' is $1.09 billion, indicating a 7% year-over-year change [4] - The 'Average home closing price' is expected to reach $489.71 thousand, up from $471 thousand in the same quarter last year [4] Homes Delivered and Contracts - The estimated 'Homes delivered - Total' is 2,221, compared to 2,158 in the same quarter last year [5] - Analysts expect 'New contracts - Total' to be 2,599, an increase from 2,547 year-over-year [5] Backlog and Active Communities - The 'Average sales price of homes in backlog - Total Homebuilding Regions' is projected at $547.03 thousand, up from $528 thousand in the same quarter last year [6] - The consensus for 'Number of active communities (Average community count)' is 224, compared to 216 in the previous year [6] Aggregate Sales and Backlog - The consensus estimate for 'Aggregate sales value of homes in backlog - Total Homebuilding Regions' is $1.59 billion, down from $1.79 billion in the same quarter last year [7] - Analysts suggest 'Homes in backlog' will likely reach 2,910, compared to 3,391 year-over-year [7] Stock Performance - Over the past month, M/I Homes shares have declined by 11.1%, while the Zacks S&P 500 composite has decreased by 6.3% [7]

Company Overview - M/I Homes (MHO) closed at $106.52, with a slight increase of +0.23% from the previous day, underperforming the S&P 500 which gained 1.81% [1] - Over the past month, M/I Homes shares have decreased by 7.45%, slightly outperforming the Construction sector's decline of 7.59% but lagging behind the S&P 500's loss of 6.14% [1] Upcoming Financial Results - M/I Homes is set to announce its earnings on April 23, 2025, with projected earnings of $4.16 per share, indicating a year-over-year decline of 12.97% [2] - The Zacks Consensus Estimate for revenue is $1.12 billion, reflecting a year-over-year increase of 7.09% [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $18.44 per share, representing a decline of 6.44%, while revenue is expected to be $4.78 billion, an increase of 6.04% from the prior year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates for M/I Homes are crucial for investors, as they indicate shifts in near-term business trends, with positive changes suggesting analyst optimism [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks M/I Homes at 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [5] Valuation Metrics - M/I Homes is trading at a Forward P/E ratio of 5.76, which is below the industry average Forward P/E of 7 [6] - The Building Products - Home Builders industry, part of the Construction sector, holds a Zacks Industry Rank of 213, placing it in the bottom 15% of over 250 industries [6]

Core Points - Friedrich K.M. Böhm, an independent member of M/I Homes' Board of Directors since 1994, will retire upon the expiration of his term and will not seek re-election at the 2025 Annual Meeting of Shareholders [1][2] - Mr. Böhm has served over 30 years on the Board, including roles as Lead Director and Chair of the Audit and Compensation Committees, contributing significantly to the company's success [2] Company Overview - M/I Homes, Inc. is recognized as one of the leading homebuilders in the United States, specializing in single-family homes [2] - The company operates in multiple regions, including Columbus and Cincinnati in Ohio, Indianapolis in Indiana, Chicago in Illinois, Minneapolis/St. Paul in Minnesota, Detroit in Michigan, various cities in Florida, Texas, North Carolina, and Nashville in Tennessee [2]

Company Announcement - M/I Homes, Inc. will host a webcast to announce its first quarter earnings on April 23, 2025, at 10:30 AM Eastern Time [1] - The earnings report is expected to be released before the market opens on the same day [1] Company Overview - M/I Homes, Inc. is recognized as one of the leading homebuilders in the United States, specializing in single-family homes [2] - The company operates in multiple regions including Columbus and Cincinnati in Ohio, Indianapolis in Indiana, Chicago in Illinois, Minneapolis/St. Paul in Minnesota, Detroit in Michigan, various locations in Florida, Texas, North Carolina, and Nashville in Tennessee [2]

Core Viewpoint - M/I Homes is experiencing a mixed performance in the stock market, with a recent decline while showing resilience compared to the broader construction sector and S&P 500 [1][2] Company Performance - M/I Homes' stock closed at $121.10, reflecting a -0.39% change from the previous day, underperforming the S&P 500 which gained 0.55% [1] - Over the past month, M/I Homes shares have increased by 1.25%, contrasting with the Construction sector's decline of 8.2% and the S&P 500's loss of 5.56% [1] Upcoming Earnings - The upcoming earnings report for M/I Homes is anticipated, with projected earnings per share (EPS) of $4.16, indicating a 12.97% decrease year-over-year [2] - Revenue is expected to reach $1.12 billion, reflecting a 7.09% growth compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $18.44 per share and revenue at $4.67 billion, representing changes of -6.44% and +3.61% respectively from the previous year [3] - Recent analyst estimate revisions suggest a positive outlook for M/I Homes' business and profitability [3] Valuation Metrics - M/I Homes is currently trading at a Forward P/E ratio of 6.59, which is lower than the industry average of 8.16, indicating a potential discount [6] - The Building Products - Home Builders industry, to which M/I Homes belongs, ranks in the bottom 10% of all industries according to the Zacks Industry Rank [6] Analyst Ratings - M/I Homes holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate remaining unchanged over the past month [5] - The Zacks Rank system has a historical track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5]

Financial Performance - In 2024, the company achieved record homes delivered, revenue of $4.50 billion, and net income of $563.7 million, reflecting a 12% increase in revenue and homes delivered compared to 2023[183][186][187]. - Total revenue increased 12% to $4.5 billion in 2024, an all-time record for the company[190]. - Homes delivered increased 12% to 9,055, marking an all-time record for the company[190]. - Pre-tax income rose 21% to $733.6 million, representing 16.3% of revenue, also an all-time record[190]. - Income before income taxes rose 21% from $607.3 million in 2023 to $733.6 million in 2024[186]. - The effective tax rate was 23.2% in 2024, slightly down from 23.4% in 2023[186]. - Shareholders' equity increased 17% to $2.9 billion, reaching an all-time record high for the company[190]. - The company ended 2024 with strong cash flow and liquidity, maintaining low leverage[183]. - The company ended 2024 with $821.6 million in cash, an increase of $88.9 million in unrestricted cash and cash equivalents from December 31, 2023[225]. - The ratio of homebuilding debt to capital improved from 22% in 2023 to 19% in 2024, indicating a stronger financial position[239]. - The Company reported a leverage ratio of 0.01, well below the maximum allowed ratio of 0.60[246]. - The Interest Coverage Ratio stood at 23.74 to 1.0, significantly above the minimum requirement of 1.5 to 1.0[246]. - The Company had $4,388.5 million in revenues for the year ended December 31, 2024, with a net income of $524.8 million[262]. Sales and Contracts - New contracts increased by 8% in 2024, driven by improved homebuyer demand and the introduction of mortgage interest rate buydowns[183]. - The company-wide absorption pace of sales per community was consistent at 3.3 per month, with plans to increase the average community count by approximately 5% in 2025[185]. - Homes delivered in the Southern region increased by 5%, from 4,943 units in 2023 to 5,182 units in 2024[213]. - In 2024, the company experienced a 4% increase in new contracts in the Southern region, rising from 4,616 in 2023 to 4,823 in 2024, attributed to an increase in average communities from 101 to 121[216]. - The backlog decreased by 20% from 1,754 homes at December 31, 2023, to 1,395 homes at December 31, 2024, due to improved construction cycle times[216]. Homebuilding Operations - The company's gross margin reached a record 26.6%, a 130 basis point improvement from 2023, due to enhanced construction cycle times[183]. - Gross margin for homebuilding operations improved by $157.6 million, with gross margin percentage increasing by 120 basis points to 24.7%[188]. - Selling, general and administrative expenses increased by $61.1 million, rising to 10.9% of revenue from 10.7% in 2023[190]. - The average sales price of homes delivered remained at $483,000, with 943 units delivered in 2024[187]. - The average sales price in backlog increased to $547,000 at December 31, 2024, up from $520,000 at December 31, 2023[216]. Regional Performance - Homebuilding revenue in the Northern region rose by $376.1 million, a 25% increase from $1.52 billion in 2023 to $1.90 billion in 2024[210]. - Homes delivered in the Northern region increased by 22%, from 3,169 units in 2023 to 3,873 units in 2024[210]. - Average sales price of homes delivered in the Northern region increased by $11,000, from $479,000 in 2023 to $490,000 in 2024[210]. - Total homebuilding revenue across both regions increased from $3.91 billion in 2023 to $4.38 billion in 2024, a 11.8% increase[210]. - Operating income in the Northern region increased by $104.8 million, from $176.3 million in 2023 to $281.1 million in 2024[210]. - Selling, general and administrative expenses in the Southern region increased by $22.5 million, from $189.9 million in 2023 to $212.4 million in 2024[215]. Financial Services - Financial services operations reported a $14.7 million increase in operating income in 2024, attributed to a rise in closings and average loan amounts[184]. - Revenue from financial services increased by 24% to $116.2 million in 2024, driven by an increase in loans closed and sold[187]. - The number of loans originated in Financial Services increased from 5,395 in 2023 to 6,731 in 2024, a 24.7% increase[206]. - Revenue from mortgage and title operations increased by $22.4 million, or 24%, from $93.8 million in 2023 to $116.2 million in 2024, driven by an increase in loan originations from 5,395 to 6,731[217]. - Approximately 89% of homes delivered in 2024 were financed through M/I Financial, compared to 83% in 2023[219]. Land and Development - The company invested $472.9 million in land acquisitions and $646.0 million in land development during 2024[192]. - The company ended 2024 with approximately 52,200 lots under control, a 14% increase from 45,700 lots at the end of 2023[193]. - The average community count increased by 7% to 220 active communities at the end of 2024[190]. - The company had 28,320 lots under contract with an aggregate purchase price of approximately $1.4 billion, to be acquired from 2025 through 2031[230]. Market Conditions and Expectations - The company expects some margin compression in 2025 compared to 2024 levels due to current market conditions[191]. - The annual inflation rate in the U.S. was 2.9% in December 2024, slightly down from 3.4% in December 2023[268]. - The Company plans to offer mortgage interest rate buydowns in 2025 to improve affordability for potential homebuyers[269]. Debt and Financial Instruments - The Company issued $300.0 million aggregate principal amount of 3.95% Senior Notes due 2030 and $400.0 million aggregate principal amount of 4.95% Senior Notes due 2028, both of which are fully guaranteed by its subsidiaries[254][255]. - The total assets of the Company as of December 31, 2024, were $4,169.9 million, with total liabilities of $1,284.0 million[261]. - As of December 31, 2024, the company had uncommitted interest rate lock commitments (IRLCs) totaling $215.7 million, an increase of 23.8% from $174.3 million in 2023[275]. - The company reported forward sales of mortgage-backed securities (FMBSs) related to uncommitted IRLCs amounting to $228.0 million, up from $174.0 million in 2023, reflecting a 30.9% increase[275]. - Mortgage loans held for sale increased to $283.5 million in 2024 from $176.3 million in 2023, representing a growth of 60.7%[275]. - The company experienced a loss of $6.7 million on mortgage loans held for sale in 2024, compared to a gain of $6.7 million in 2023[275]. - Interest rate lock commitments resulted in a loss of $3.1 million in 2024, down from a gain of $2.8 million in 2023[275]. - The company’s total financial instruments notional amounts increased significantly, with a total of $286.2 million in liabilities as of December 31, 2024[277]. - The company's long-term fixed-rate debt totaled $700.0 million, with a weighted average interest rate of 4.52%[278]. - Short-term variable-rate debt stood at $286.2 million, with a weighted average interest rate of 6.19%[278].