Q3 2025 M/I Homes Inc Earnings Call Transcript
Key Points
- M/I Homes Inc (MHO) achieved a strong return on equity of 16% despite challenging market conditions.
- The company closed a record 2,296 homes in the third quarter, marking a 1% increase compared to the previous year.
- M/I Homes Inc (MHO) ended the third quarter with an all-time record $3.1 billion of equity, equating to a book value per share of $120, up 15% from a year ago.
- The mortgage and title operations captured a record 93% of the business in the third quarter, up from 89% last year.
- The company extended its bank credit facility by five years to 2030 and increased the borrowing capacity from $650 million to $900 million, with zero borrowings under this facility.
- Pre-tax income decreased by 26% from last year's record third quarter results.
- Total revenue for the third quarter decreased by 1% to $1.1 billion.
- The gross margin declined by 320 basis points year-over-year, with 60 basis points of the decline due to inventory charges.
- New contracts for the third quarter were down 6% compared to last year, with a cancellation rate of 12%.
- The average closing price in the third quarter decreased by 2% compared to last year's third quarter.
Good morning, ladies and gentlemen, and welcome to the M/I Homes' third-quarter earnings conference call. (Operator Instructions) This call is being recorded on October 22, 2025.
I would now like to turn the conference over to Phil Creek. Please go ahead.
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Thank you for joining us today. On the call with me is Bob Schottenstein, our CEO and President; and Derek Klutch, President of our Mortgage Company. First, to address regulation for our disclosure, we encourage you to ask any questions regarding issues that you consider material during this call, because we are prohibited from discussing significant nonpublic items with you directly.
And as to forward-looking statements, I want to remind everyone that the cautionary language about forward-looking statements contained in today's press release also applies to any comments made during this call. Also, be advised that the company undertakes no obligation to update
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