M/I Homes Inc. (NYSE: MHO) reported second-quarter 2026 results showing a second-quarter record for new sales contracts even as deliveries and profit both declined from a year earlier, according to the company’s earnings press release filed with the Securities and Exchange Commission on July 29, 2026.
The Columbus, Ohio-based homebuilder posted net income of $79.1 million, or $3.02 per diluted share, down from $121.2 million, or $4.42 per share, in the second quarter of 2025. Pre-tax income fell to $104.6 million from $160.1 million, with gross margin compressing to 22% and return on equity at 10% for the quarter.
Record contracts, fewer deliveries
M/I Homes delivered 2,206 homes during the quarter, down 6% from 2,348 a year earlier, at an average closing price of $459,000, down from $479,000. But new sales contracts told a different story: the company signed 2,387 new contracts, up 15% year over year and a second-quarter record for the builder, while its cancellation rate improved sharply to 8% from 13% a year earlier — a sign that buyers who commit to contracts are following through at a much higher rate than in the prior year.
“We delivered solid second quarter results despite continued challenging market conditions,” CEO Robert Schottenstein said in the release. “Highlights included a second quarter record of 2,387 new contracts, gross margins of 22%, a pre-tax margin of 10% and a return on equity of 10%.”
Backlog and balance sheet
Backlog stood at 2,426 homes valued at $1.31 billion as of June 30, 2026, down 6% in units and 8% in dollar value from a year earlier, with an average backlog sales price of $538,000. For the first six months of 2026, net income totaled $146.9 million, or $5.57 per share, on 4,120 deliveries — down from $232.5 million, or $8.40 per share, on 4,324 deliveries in the first half of 2025. New contracts for the six-month period rose 8% to 4,737.
The company’s balance sheet strengthened even as earnings declined: shareholders’ equity reached a record $3.2 billion, and book value per share hit a record $128. M/I Homes ended the quarter with $736 million in cash, an 18% homebuilding debt-to-capital ratio, and repurchased $50 million of its own stock during the period. The builder operated 234 active communities as of quarter-end.
Schottenstein struck a confident tone on the company’s positioning heading into the back half of the year. “Notwithstanding current market conditions, we are confident in the long-term fundamentals of the housing industry and in our ability to navigate this uncertain environment,” he said, adding that “our financial condition is excellent” and that the company is “well positioned to have a solid 2026.”
What it means
Verified facts: M/I Homes posted a second-quarter contract record of 2,387 while deliveries fell 6% and net income dropped by roughly a third from a year earlier, with cancellations improving significantly and book value reaching a record high.
RealtyWire analysis: The combination of record contracts with declining deliveries and profit reflects a builder trading near-term margin for volume in a market where buyers remain price-sensitive — the sharply lower cancellation rate suggests M/I Homes is using incentives and pricing to lock in more committed buyers rather than simply generating contracts that later fall through, a strategy that should support 2026 delivery volume even if it continues to pressure near-term margins.
Related: PulteGroup CEO Calls Housing Market ‘Pretty Good’ Despite 11% Revenue Drop and Construction Backlog Slips to 8.8 Months in June, ABC Reports.
