Q4 2025 M/I Homes Inc Earnings Call Transcript
Key Points
- M/I Homes Inc (MHO) reported a 9% year-over-year increase in new contracts during the fourth quarter.
- The company achieved a record capture rate of 93% in its financial services segment, contributing to a pretax income of $56 million.
- M/I Homes Inc (MHO) ended the year with a strong balance sheet, including $689 million in cash and no borrowings under its $900 million unsecured revolving credit facility.
- The company maintained a high average credit score of 747 among its buyers, with average down payments of over $90,000 per home.
- M/I Homes Inc (MHO) increased its average community count by 6% in 2025, surpassing its guidance of 5%.
- The company's pretax income decreased by 20% compared to the previous year's record, impacted by $59 million in charges related to inventory and warranty items.
- Gross margins for the full year were 24.4%, down 220 basis points from 2024, primarily due to higher incentives and lot costs.
- Revenue decreased by 5% in the fourth quarter of 2025, with the average closing price dropping by 1% compared to the previous year.
- The Southern Region saw an 11% decrease in owned and controlled lot positions compared to the previous year.
- M/I Homes Inc (MHO) faced challenges in its entry-level communities, leading to impairments primarily in markets like Austin and San Antonio.
Good morning, ladies and gentlemen, and welcome to the M/I Homes fourth quarter and year-end earnings conference call. (Operator Instructions) This call is being recorded on Wednesday, January 28, 2026.
I would now like to turn the conference over to Phil Creek. Please go ahead.
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Thank you, and 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 Fair 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 this
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