M/I HOMES, INC. (MHO) FY2025 10-K Annual Report

Filed: Feb 13, 2026
Industrials
Operative BuildersSEC EDGAR

M/I HOMES, INC. (MHO) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 13, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

M/I HOMES, INC. FY2025 10-K Analysis

Business Overview

  • Core business: design, construct, market, and sell single-family homes and townhomes, plus ancillary mortgage and title services
  • New emphasis on inventory homes with 68% of 2025 deliveries as inventory, up from 60% in 2024, supporting Ready Now Homes program for faster closings
  • Strategic focus on affordability via “Smart Series” homes, now 52% of 2025 sales, targeting entry-level and move-down buyers with multi-family expansions
  • Backlog declined to 1,809 homes ($989.9M) at 2025 year-end from 2,531 homes ($1.4B) in 2024, reflecting lower demand and increased inventory home sales
  • Celebrated 50th year in business in 2026, reinforcing brand trust during challenging housing market with elevated mortgage rates and affordability concerns

Management Discussion & Analysis

  • Revenue $4.29B, net income $369M, net income declined $160.8M YoY, home deliveries 8,921 units down from prior year
  • Operating margin impacted by increased land and housing costs of $3.35B and SG&A of $452M, net income margin approx. 8.6% on $4.29B revenue
  • Best segment: Homebuilding with $4.29B revenue; financial services had weighted borrowings $725M at 5.37% interest
  • Cash from operations $137.3M vs $179.7M in 2024, used $210M in financing primarily for $202M buybacks, invested $59.7M in investing activities
  • 2026 outlook: Expect continued share repurchases, cautious land spending, offering mortgage interest rate buydown incentives amid high mortgage rates and inflation risks

Risk Factors

  • Regulatory risk: Warranty claims in Florida—$11.2M warranty charges for attic ventilation issues in two Florida communities impacting reserves
  • Macroeconomic threat: Elevated mortgage rates contributed to 4% decrease in new contracts and 2% revenue decline to $4.4B in 2025
  • Operational vulnerability: Inventory impairment charges totaled $47.7M in 2025 including $30.9M in Southern region, affecting margins and costs
  • Competitive risk: Increased realtor commissions rose $8.9M in 2025 due to higher competition for homebuyers and larger community count
  • Financial risk: Homebuilding debt-to-capital ratio improved to 18% in 2025 but slower absorption pace declined to 3.0 homes/month from 3.3 in 2024

M/I HOMES, INC. FY2025 Key Financial Metrics
XBRL

Revenue

$4.4B

-1.9% YoY

Net Income

$403M

-28.5% YoY

Operating Margin

11.5%

-421bp YoY

Net Margin

9.1%

-339bp YoY

ROE

12.7%

-645bp YoY

Total Assets

$4.8B

+5.0% YoY

EPS (Diluted)

$14.74

-25.2% YoY

Operating Cash Flow

$137M

-23.6% YoY

Source: XBRL data from M/I HOMES, INC. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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