M/I Homes, Inc. (MHO)

M/I Homes, Inc. stock has been impacted by challenging third-quarter 2025 results, missing earnings estimates by 10% with $3.92 EPS, and its revenue declined 1% year-over-year to $1.1 billion. Net income also dropped by 27% to $106.5 million, and new contracts decreased by 6% to 1,908, signaling softer demand. The cancellation rate in the third quarter of 2025 was 12%, up from 10% in the same period of 2024. Earlier in 2025, the company's Q1 earnings also missed estimates, and revenue decreased by 7% compared to the previous year. In Q2 2025, while revenue increased by 5% and homes delivered by 6%, pre-tax income decreased by 18%, and new contracts saw an 8% decrease. Despite these challenges, M/I Homes has approved a $250 million share repurchase program, extended its bank credit facility to 2030, increased its borrowing capacity to $900 million, and received an upgrade from Moody's to Ba1 in Q3 2025. The stock price experienced a decline of 0.98% between January 8, 2025, and January 7, 2026. As of October 24, 2025, MHO was down 10.70% over the past 30 days and 19.01% over the past 12 months.

M/I Homes experiences demand seasonality, benefiting from favorable trends in November and December. The spring selling season in Q1 2025 was described as "okay," with uneven demand. Mortgage rate buydowns have been necessary to stimulate sales, with 54% of buyers using this incentive in Q1 2025. The company remains optimistic about long-term prospects due to an undersupply of homes and growing household formations.

M/I Homes, Inc. is an American construction company focused on designing, constructing, and selling single-family homes and townhomes. It operates in the Consumer Discretionary sector, specifically in Residential Construction and Homebuilding. The company caters to various homebuyers and acquires land for development. Through its Financial Services segment, it originates and sells mortgages and provides title insurance and closing services. Founded in 1976, it is headquartered in Columbus, Ohio.

M/I Homes, Inc. operates across the Midwest, Mid-Atlantic, and Southern regions, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, Tennessee, and the District of Columbia. The Southern division accounts for nearly 60% of its total sales, while the Northern division contributes 37.8%.

M/I Homes maintains a brand reputation centered on building quality homes in desirable locations and fostering lasting customer relationships. The company's core values emphasize quality, integrity, and exceptional service. In 2024, the company achieved record revenue of $4.5 billion and delivered 9,055 homes. Earnings misses and challenging housing market conditions could implicitly affect public perception and investor confidence.

Institutional investors heavily dominate M/I Homes, Inc.'s ownership, holding 95.07% of shares as of March/April 2025. Major holders include BlackRock, Inc. (18.68%) and The Vanguard Group, Inc. (9.93%). Robert H. Schottenstein, the CEO, directly owns 2.26% of shares, and the Schottenstein family retains an estimated 15-20% controlling stake through trusts.