M/I HOMES, INC.
For the period ended Jun 30, 2025. Filed Jul 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 25, 2025
MHO$131.60-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0000799292-25-000033
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-25.
0000799292-25-000059
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 143 current paragraphs.
69 unchanged; 49 reworded; 22 added; 13 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
•Revenue increased 5% to $1.16 billion (second quarter record) and decreased 1% to $2.14 billion, respectively
Current report
•Number of homes delivered increased 6% to 2,348 homes (second quarter record) and decreased 1% to 4,324 homes, respectively
Current report
•Income before income taxes decreased 18% to $160.1 million and decreased 18% to $306.2 million, respectively
Current report
•Gross margins decreased 320 basis points to 24.7% and decreased 230 basis points to 25.2%, respectively
Current report
•Net income decreased 17% to $121.2 million and decreased 18% to $232.5 million, respectively
Current report
•New contracts decreased 8% to 2,078 from 2,255 and decreased 9% to 4,370 from 4,802, respectively
Current report
•Shareholders’ equity of $3.1 billion (all time record), a 12% increase from a year ago, with book
Current report
Income before income taxes for the second quarter of 2025 decreased $34.0 million from $194.1 million in the second quarter of 2024 to $160.1 million in 2025. Net income was $121.2 million, or $4.42 per diluted share, in 2025's second quarter, compared to $146.7 million, or $5.12 per diluted share, in 2024's second quarter. Our effective tax rate was 24.3% in 2025’s second quarter compared to 24.4% in 2024. For the first half of 2025, income before income taxes decreased $68.2 million from $374.4 million in the first half of 2024 to $306.2 million in 2025. We achieved net income of $232.5 million, or $8.40 per diluted share, during the six months ended June 30, 2025 compared to net income of $284.8 million, or $9.90 per diluted share, in the six months ended June 30, 2024. Our effective tax rate was 24.1% in 2025's first half compared to 23.9% in the same period in 2024
Current report
For the three months ended June 30, 2025, selling, general and administrative expense increased $8.4 million, and increased as a percentage of revenue from 11.0% in the second quarter of 2024 to 11.3% in the second quarter of 2025. Selling expense increased $5.2 million from 2024's second quarter and increased as a percentage of revenue to 5.5% in 2025's second quarter from 5.3% for the same period in 2024. The dollar increase in selling expense related to a $4.2 million increase in sales and realtor commissions due to the increase in the homes delivered during the period compared to prior year and a $0.9 million increase in costs associated with our sales offices, including compensation-related expenses in the second quarter of 2025. General and administrative expense increased $3.3 million in the second quarter of 2025 compared to second quarter of 2024 and remained consistent as a percentage of revenue at 5.8% in both the second quarter of 2024 and the second quarter of 2025. The dollar increase in general and administrative expense was primarily due to a $1.3 million increase in compensation-related expenses, a $1.0 million increase in land related expenses, a $0.5 million increase in costs associated with information systems and a $0.5 million increase in miscellaneous expenses. For the six months ended June 30, 2025, selling, general and administrative expense increased $10.2 million, and increased as a percentage of revenue from 10.8% in the six months ended June 30, 2024 to 11.4% in the first six months of 2025. Selling expense increased $4.0 million from the first half of 2024 and increased as a percentage of revenue to 5.4% in 2025's first half from 5.2% for the same period in 2024. The dollar increase in selling expense in the second quarter of 2025 related to a $3.6 million increase in costs associated with our sales offices, including compensation-related and advertising expenses, and a $1.1 million increase in realtor commissions offset in part by a $0.7 million decrease in sales commissions. General and administrative expense increased $6.2 million compared to the first half of 2024 and increased as a percentage of revenue from 5.6% in the six months ended June 30, 2024 to 5.9% in the first six months of 2025. The increase in general and administrative expense was primarily due to a $3.5 million increase in compensation-related expenses due to higher average headcount and incentives, a $1.4 million increase in computer costs, a $1.2 million increase in land-related expenses, and a $0.1 million increase in various other expenses.
Current report
The housing market continues to be challenged by persistent macroeconomic challenges including elevated mortgage interest rates, affordability concerns and general economic uncertainties such as tariffs, inflation, job security and recession concerns. Despite these headwinds, we remain optimistic about our business.
Current report
Although we do not believe that tariffs announced by the U.S. and other countries in the first quarter affected our costs during the first half of 2025, we continue to closely monitor the potential impacts of tariffs on our supply chain. In addition, we did not experience any labor disruptions related to immigration enforcement during the first half of 2025. We believe the long-term fundamentals of the housing market remain strong, supported by favorable demographic trends, increasing household formations, and a continued undersupply of both new and resale homes.
Current report
We anticipate that the softer market conditions in the housing market during the first half of 2025 will persist throughout the remainder of the year. We believe that these conditions have weighed on consumer confidence and extended the homebuying decision timeline compared to recent years. In response to these conditions, we are controlling overhead, managing land investments and development expenditures prudently, maintaining pricing discipline, and offering targeted incentives to support overall affordability to support demand, drive order activity, and reduce cancellations. However, the impact that current housing market conditions (including the macroeconomic challenges, tariffs and labor considerations discussed above) will ultimately have on our business remains uncertain and unpredictable. As such, past performance should not be viewed as a reliable indicator of future results in the current housing market environment.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Northern Region. During the first half of 2025, homebuilding revenue in our Northern region increased $25.3 million, from $873.3 million in the first six months of 2024 to $898.6 million in the first six months of 2025. This 3% increase in revenue was primarily the result of a $4.5 million increase in land sale revenue and an increase in the average sales price of homes delivered ($12,000 per home delivered). Operating income in our Northern region increased $5.7 million, from $130.9 million during the first half of 2024 to $136.6 million during the six months ended June 30, 2025. The increase in operating income was primarily the result of a $6.4 million increase in our gross margin offset partially by a $0.7 million increase in selling, general and administrative expense. Our gross margin improved $6.4 million, and our gross margin percentage improved 10 basis points from 22.4% in the first six months of 2024 to 22.5% for the same period in 2025, primarily due to the mix of homes being delivered and the increase in land sales offset, in part, by a $6.7 million increase in incentives offered and $4.9 million increase in lot costs.
Current report
Selling, general and administrative expense increased $0.7 million, from $64.9 million for the six months ended June 30, 2024 to $65.6 million for the six months ended June 30, 2025, and declined 10 basis points as a percentage of revenue to 7.3% in 2025's second quarter from 7.4% in 2024's second quarter. The increase in selling, general and administrative expense was attributable to a $0.4 million increase in selling expense, primarily attributable to a $1.1 million increase in costs associated with our sales offices and models offset in part by a $0.7 million decrease in sales and realtor commissions. The increase in selling, general and administrative expense was also attributable to a $0.3 million increase in general and administrative expense, which was primarily related to computer related expenses and other miscellaneous expenses.
Current report
During the six months ended June 30, 2025, we experienced a 10% decrease in new contracts in our Northern region, from 2,164 in the six months ended June 30, 2024 to 1,938 in the first half of 2025. Homes in backlog decreased 21% from 1,618 at June 30, 2024 to 1,281 homes at June 30, 2025. The decrease in new contracts and homes in backlog was primarily due to decline in buyer urgency. Average sales price in backlog increased to $563,000 at June 30, 2025 compared to $527,000 at June 30, 2024 primarily due to the mix of homes being sold. During the six months ended June 30, 2025, we opened 24 new communities in our Northern region compared to 10 new communities opened during the first half of 2024. Our monthly absorption rate in our Northern region declined to 3.4 per community in the six months ended June 30, 2025 from 3.7 per community in the same period in 2024 as a result of increased community count.
Current report
Southern Region. During the six months ended June 30, 2025, homebuilding revenue in our Southern region decreased $48.4 million from $1.23 billion in the first half of 2024 to $1.18 billion in the first half of 2025. This 4% decrease in homebuilding revenue was the result of a 2% decrease in the average sales price of homes delivered ($7,000 per home delivered) primarily due to the mix of homes delivered and a 2% decrease in the number of homes delivered (57 units). Operating income in our Southern region decreased 31% from $237.6 million in the first half of 2024 to $164.7 million during the six months ended June 30, 2025. This decrease in operating income was the result of a $64.9 million decline in our gross margin and a $8.0 million increase in selling, general, and administrative expense. Our gross margin percentage declined 440 basis points from 27.7% in the six months ended June 30, 2024 to 23.3% in the same period in 2025 primarily due to a decrease in the number of homes delivered that were impacted by a $28.7 million increase in lot costs and an $11.7 increase in incentives offered.
Current report
Selling, general and administrative expense increased $8.0 million from $101.6 million in the first half of 2024 to $109.6 million in the first half of 2025 and increased as a percentage of revenue to 9.3% compared to 8.3% in the first half of 2024. The increase in selling, general and administrative expense was also attributable to a $4.2 million increase in general and administrative expense, which was primarily related to a $1.3 million increase in compensation-related expenses due to our increased headcount, a $1.7 million increase in land-related expenses, and a $1.2 million increase in other miscellaneous expenses. The increase in selling, general and administrative expense was attributable to a $3.8 million increase in selling expense primarily due to a $2.1 million increase related to costs associated with our sales offices, including advertising and compensation and a $1.7 million increase in realtor commissions.
Current report
During the six months ended June 30, 2025, we experienced an 8% decrease in new contracts in our Southern region, from 2,638 in the six months ended June 30, 2024 to 2,432 in the first half of 2025 primarily due to weakened demand compared to prior year. Homes in backlog decreased 28% from 1,804 homes at June 30, 2024 to 1,296 homes at June 30, 2025 due primarily to improved construction cycle times allowing us to deliver homes in backlog at a faster rate compared to last year in addition to increased availability of inventory homes compared to prior year. Average sales price in backlog increased from $538,000 at June 30, 2024 to $543,000 at June 30, 2025 primarily due to the mix of homes delivered. During the six months ended June 30, 2025, we opened 26 communities in our Southern region, compared to opening 28 during the first half of 2024. Our monthly absorption rate in our Southern region declined to 3.1 per community in the first half of 2025 from 3.8 per community in the first half of 2024 as a result of increased community count.
Current report
Financial Services. Revenue from our mortgage and title operations increased 9% from $57.7 million in the first half of 2024 to $63.0 million in the first half of 2025 due to higher margins on loans sold during the period and improved capture rate compared to 2024's first half, proceeds from the sale of mortgage servicing rights, and a 7% increase in the number of loan originations from 3,174 in the first half of 2024 to 3,395 in the first half of 2025, and an increase in the average loan amount from $391,000 in the six months ended June 30, 2024 to $404,000 in the six months ended June 30, 2025.
Current report
Our financial services segment experienced a $3.2 million increase in operating income in the first half of 2025 compared to the same period in 2024, which was primarily due to the increase in revenue discussed above, partially offset by a $2.0 million increase in selling, general and administrative expense compared to the first half of 2024. The increase in selling, general and administrative expense was primarily attributable to a $1.6 million increase in compensation related expenses, a $0.3 million increase in indemnification reserves during the period, and a $0.1 million increase in other miscellaneous expenses.
Current report
Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense decreased $0.4 million from $41.4 million for the six months ended June 30, 2024 to $41.0 million for the six months ended June 30, 2025, primarily due to a $1.7 million decrease in compensation-related expenses, a $0.1 million decrease in advertising expenses, offset in part by a $0.7 million increase in computer-related costs and a $0.7 million increase in miscellaneous expenses incurred during the period.
Removed paragraphs (13)
Previous report
•New contracts declined 10% to 2,292 from 2,547
Previous report
•Revenue decreased 7% to $976.1 million
Previous report
•Number of homes delivered decreased 8% to 1,976 homes
Previous report
•Average sales price increased 1% from $471,000 to $476,000
Previous report
•Gross margins decreased 120 basis points to 25.9%
Previous report
•Income before income taxes decreased 19% to $146.1 million
Previous report
•Net income decreased 19% to $111.2 million
Previous report
•Shareholders’ equity of $3.0 billion (a record high)
Previous report
Income before income taxes for the first quarter of 2025 decreased 19% from $180.2 million in the first quarter of 2024 to $146.1 million in 2025. Net income was $111.2 million, or $3.98 per diluted share, in 2025's first quarter, compared to $138.1 million, or $4.78 per diluted share, in 2024's first quarter. Our effective tax rate was 23.9% in 2025’s first quarter compared to 23.4% in 2024.
Previous report
For the three months ended March 31, 2025, selling, general and administrative expense increased $1.8 million, and increased as a percentage of revenue from 10.5% in the first quarter of 2024 to 11.5% in the first quarter of 2025. Selling expense decreased $1.2 million from 2024's first quarter and increased as a percentage of revenue to 5.4% in 2025's first quarter from 5.2% for the same period in 2024. The dollar decrease in selling expense related to a $3.4 million decrease in sales and realtor commissions due to the decrease in the homes delivered during the period compared to prior year which was partially offset by a $2.2 million increase in costs associated with our sales offices, including compensation-related expenses and advertising initiatives in the first quarter of 2025. General and administrative expense increased $3.0 million in the first quarter of 2025 compared to first quarter of 2024 and also increased as a percentage of revenue from 5.4% in the first quarter of 2024 to 6.1% in first quarter of 2025. The increase in general and administrative expense was primarily due to a $2.7 million increase in compensation-related expenses, a $0.9 million increase in costs associated with information systems offset by a $0.6 million decrease in miscellaneous expenses.
Previous report
We are currently navigating an uncertain environment in the housing market due to challenging macroeconomic conditions, including ongoing elevated mortgage interest rates, housing affordability concerns, and heightened geopolitical uncertainties. Additionally, recently announced changes in U.S. trade policies and other U.S. government administrative changes may produce additional uncertainty and negatively impact the housing market. Despite this uncertain environment and the challenges it presents, we remain optimistic about our business. During the first three months of 2025, tariffs had no impact on our costs. However, we continue to monitor potential impacts of tariffs with our supply chain. Similarly, we did not encounter any labor disruptions due to immigration enforcement during the first quarter of 2025. We believe that long-term housing market drivers are largely positive, including favorable demographic trends, rising household formations, and the undersupply of new and resale homes.
Previous report
However, we expect that the softer market conditions we experienced in the first quarter of 2025 will persist throughout the year. We believe that these conditions have negatively impacted consumer confidence, caused homebuyers to take longer to make purchase decisions and reduced demand at the start of the Spring selling season compared to recent years. We remain sensitive to market conditions and continue to focus on controlling overhead leverage, carefully managing our investment in land and land development spending, and selectively offering homebuyer concessions, such as mortgage interest rate buydowns, to support homebuyers, maximize order activity, and minimize cancellations. The extent to which these factors will continue to impact our business is highly uncertain and unpredictable, and our past performance should not be considered indicative of future results given the uncertainty in the U.S. economy.
Previous report
2024's first quarter. Our monthly absorption rate in our Northern region was 3.8 per community in both the first quarter of 2025 and the first quarter of 2024.
Reworded paragraphs (49)
Previous wording
M/I Homes, Inc. and subsidiaries (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 162,300 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Ft. Myers/Naples, Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee.
Current wording
M/I Homes, Inc. and subsidiaries (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 164,300 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Ft. Myers/Naples, Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee.
Previous wording
Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition. Words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations including changes in trade policy affecting business including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties. See “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as the same may be updated from time to time in our subsequent filings with the SEC, for more information regarding those risk factors.
Current wording
Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition. Words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations including changes in trade policy affecting business such as new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties. See “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as the same may be updated from time to time in our subsequent filings with the SEC, for more information regarding those risk factors.
Previous wording
During the first quarter of 2025, housing market conditions remained subject to challenging macroeconomic conditions. Elevated mortgage interest rates, limited availability of affordable housing and geopolitical uncertainties, including recent trade policies, negatively impacted consumer confidence causing weaker prospective homebuyer demand when compared to the same period of 2024. To address affordability and spur demand, we offered various sales incentives and mortgage interest rate buydowns to homebuyers which negatively impacted our profitability. Within this backdrop, our first quarter performance fell short of 2024’s record levels, but was generally consistent with our expectations. Our results during the first quarter of 2025 in comparison to the first quarter of 2024 were as follows:
Current wording
During the first half of 2025, housing market conditions continued to experience headwinds from challenging macroeconomic conditions, including elevated mortgage interest rates, higher lot costs, limited availability of affordable housing and general economic uncertainty. Due to these uncertainties, we have experienced a decline in buyer urgency despite an increase in traffic. To address affordability and spur demand, we offered various sales incentives and mortgage interest rate buydowns to homebuyers which negatively impacted our profitability despite achieving a second quarter record for homes delivered. Against this backdrop, our performance in the second quarter and the first half of 2025 fell short of the record levels achieved in 2024 but remained generally in line with our expectations. Our results during the second quarter and first half of 2025 in comparison to the second quarter and first half of 2024 were as follows:
Previous wording
•Book value per common share increased to a record high $112 per share; and
Current wording
value per common share increasing to a record high $117 per share
Previous wording
•Homebuilding debt to capital ratio was 19%.
Current wording
•Homebuilding debt to capital was 18% and 20%, respectively
Previous wording
In addition to the results described above, our financial services operations achieved a quarterly record for revenue and strong income before income taxes for the first quarter of 2025, benefiting from higher margins and improved capture rates offset in part by a decrease in loans originated.
Current wording
In addition to the results described above, our financial services operations achieved a quarterly record for revenue and strong income before income taxes for the first half of 2025, benefiting from higher margins, improved capture rate and an increase in loans originated.
Previous wording
Our company-wide absorption pace of sales per community for the first quarter of 2025 declined to 3.4 per month compared to 3.9 per month for the prior year’s first quarter as a result of the macroeconomic conditions described above. We plan to open additional new communities during the remainder of 2025 and increase our average community count by about 5% from 2024.
Current wording
Our company-wide absorption pace of sales per community for the second quarter of 2025 declined to 3.0 per month compared to 3.5 per month for the prior year’s second quarter as a result of the macroeconomic conditions described above. We plan to open additional new communities during the remainder of 2025 and increase our average community count by about 5% from 2024.
Previous wording
During the quarter ended March 31, 2025, our total revenue was $976.1 million, of which $944.6 million was from homebuilding and $31.5 million was from our financial services operations. Revenue from homebuilding decreased 7% in 2025's first quarter compared to the same period in 2024 driven primarily by an 8% decrease in the number of homes delivered (182 units) offset in part by a 1% increase in the average sales price of homes delivered ($5,000 per home delivered). Our revenue and average sales price reflect a $40.0 million reduction for incentives and closing costs in 2025’s first quarter compared to a $24.8 million reduction for incentives and closing costs in 2024’s first quarter. Revenue from our financial services segment increased 17% to an all-time quarterly record $31.5 million in the first quarter of 2025 as a result of higher margins on loans sold and improved capture rates offset in part by a decrease in the number of loans originated during the period compared to the first quarter of 2024.
Current wording
During the quarter ended June 30, 2025, our total revenue was $1.16 billion, of which $1.13 billion was from homebuilding and $31.5 million was from our financial services operations. Revenue from homebuilding increased 5% in 2025's second quarter compared to the same period in 2024 driven primarily by a 6% increase in the number of homes delivered (124 units) offset in part by a 1% decrease in the average sales price of homes delivered ($3,000 per home delivered). Our revenue and average sales price reflect a $47.1 million reduction for incentives and closing costs in 2025’s second quarter compared to a $30.9 million reduction for incentives and closing costs in 2024’s second quarter. Revenue from our financial services segment increased 2% to $31.5 million in the second quarter of 2025 as a result of higher margins on loans sold, improved capture rate and an increase in loans originated during the period compared to the second quarter of 2024. For the first half of 2025, we recorded year-to-date total revenue of $2.14 billion, of which $2.06 billion was from homes delivered and $63.0 million was from our financial services operations. Revenue from homes delivered decreased 1% in the first half of 2025 compared to the same period in 2024 driven primarily by a 1% decrease in the number of homes delivered (58 units) partially offset by a slight increase in the average sales price of homes delivered ($1,000 per home delivered). Our revenue and average sales price reflect an $87.1 million reduction for incentives and closing costs in 2025’s first half compared to a $57.6 million reduction for incentives and closing costs in 2024’s first half. Revenue from our financial services segment increased 9% to $63.0 million in the first half of 2025 compared to the first half of 2024 as a result of an increase in the average loan amount, improved capture rate, higher margins on loans sold during the period and an increase in loans sold during the period.
Previous wording
Total gross margin (total revenue less total land and housing costs) decreased $30.6 million in the first quarter of 2025 compared to the first quarter of 2024 as a result of a $35.1 million decline in the gross margin of our homebuilding operations and a $4.5 million increase in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 170 basis points to 23.4% from 25.1%. The decline in gross margin dollars primarily resulted from the 8% decrease in homes delivered and a $9.8 million increase in interest rate buydowns offered in 2025 compared to 2024. Our homebuilding gross margin may fluctuate from quarter to quarter depending on the mix of communities delivering homes due to the variation in margin between different communities and incentives used to encourage demand due to market conditions. The gross margin of our financial services operations increased $4.5 million in the first quarter of 2025 compared to the first quarter of 2024 as a result of higher margins on loans sold, improved capture rates offset in part by a decrease in the number of loan originations.
Current wording
Total gross margin (total revenue less total land and housing costs) decreased $22.7 million in the second quarter of 2025 compared to the second quarter of 2024 as a result of a $23.3 million decline in the gross margin of our homebuilding operations partially offset by a $0.7 million increase in the gross margin of our financial services operations. Our homebuilding gross margin percentage declined by 320 basis points to 22.6% in the second quarter of 2025 from 25.8% in the second quarter of 2025. The decline in gross margin dollars primarily resulted from the $16.7 million increase in lot costs and a $8.7 million increase in interest rate buydowns offered partially offset by a 6% increase in homes delivered in 2025 compared to 2024. Our homebuilding gross margin may fluctuate from quarter to quarter depending on the mix of communities delivering homes due to the variation in margin between different communities and incentives used to encourage demand due to market conditions. The gross margin of our financial services operations increased $0.7 million in the second quarter of 2025 compared to the second quarter of 2024 as a result of higher margins on loans sold, improved capture rate and an increase in the number of loan originations. Total gross margin decreased $53.2 million in the first half of 2025 compared to the same period in 2024 as a result of a $58.5 million decline in the gross margin of our homebuilding operations offset, in part, by a $5.3 million improvement in the gross margin of our financial services operations. This decrease in the gross margin of our homebuilding operations is primarily due to a 1% decrease in the number of homes delivered, a $33.6 million increase in lot costs and an $18.5 million increase in interest rate buydowns. The gross margin of our financial services operations increased $5.3 million in the first half of 2025 compared to the same period in 2024 as a result of higher margins on loans sold, an increased number of loans sold and an increase in the number of loan originations during the first half of 2025 compared to the first half of 2024.
Previous wording
We opened 27 new communities during the first quarter of 2025 and closed 21 communities. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities as well as underlying lot costs varies from year to year. The mix of communities delivering homes may cause fluctuations in our new contracts, absorption pace and housing gross margin from year to year.
Current wording
We opened 50 new communities during the first half of 2025 and closed 36 communities. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities as well as underlying lot costs varies from year to year. The mix of communities delivering homes may cause fluctuations in our new contracts, absorption pace and housing gross margin from year to year.
Previous wording
We believe that we are well-positioned to manage through these uncertain times. We continue to maintain a healthy backlog, despite a decline from the prior year, with an average sales price that is 4% higher than at the end of the first quarter of 2024. Our strong balance sheet and ample liquidity provide us with the flexibility to manage through these uncertain economic conditions. However, we cannot provide any assurances that our strategic business objectives will remain successful, and we will need to remain agile to effectively address changes in market conditions as they arise.
Current wording
Despite these challenges, we believe we are well-positioned to navigate this period of uncertainty. Our backlog remains healthy—though lower than the prior year—with an average sales price 4% higher than at the end of the first half of 2024. We also believe that our strong balance sheet and ample liquidity provide us with the flexibility to respond effectively to evolving market conditions. Nevertheless, we recognize that continued success will require agility, and we cannot guarantee that our strategic objectives will remain effective as housing market conditions evolve.
Previous wording
During the first three months of 2025, we invested $146.0 million in land acquisitions and $101.6 million in land development compared to $107.7 million and $119.4 million, respectively, during the first three months of 2024. We invested in more land acquisitions in the first quarter of 2025 compared to the first quarter of 2024 as a result of the land supply needs of our divisions. We continue to closely review our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, and we will adjust our land and investment spend accordingly.
Current wording
During the first six months of 2025, we invested $247.7 million in land acquisitions and $240.6 million in land development compared to $226.8 million and $263.9 million, respectively, during the first six months of 2024. We invested in more land acquisitions in the first half of 2025 compared to the first half of 2024 as a result of the land supply needs of our divisions. We continue to closely review our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, and we will adjust our land and investment spend accordingly.
Previous wording
We ended the first quarter of 2025 with approximately 51,100 lots under control, which represents an approximatelysix-year supply of lots based on the past twelve months of homes delivered, including certain lots that we anticipate selling to third parties. This represents an 8% increase from our approximately 47,500 lots under control at the end of last year’s first quarter.
Current wording
We ended the second quarter of 2025 with approximately 50,500 lots under control, which represents an approximately six-year supply of lots based on the past twelve months of homes delivered, including certain lots that we anticipate selling to third parties. This represents an 2% increase from our approximately 49,500 lots under control at the end of last year’s second quarter.
Previous wording
We opened 27 communities and closed 21 communities in the first quarter of 2025, ending the first quarter with 226 active communities, compared to 219 at the end of last year’s first quarter. Although the timing of opening new communities and closing existing communities is subject to substantial variation, we expect to grow our average community count by approximately 5% by the end of 2025.
Current wording
We opened 50 communities and closed 36 communities in the first half of 2025, ending the second quarter with 234 active communities, compared to 211 at the end of last year’s second quarter. Although the timing of opening new communities and closing existing communities is subject to substantial variation, we expect to grow our average community count by approximately 5% by the end of 2025.
Previous wording
The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; and interest (income) expense - net for the three months ended March 31, 2025 and 2024:
Current wording
The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; and interest (income) expense - net for the three and six months ended June 30, 2025 and 2024:
Previous wording
The following table presents, by reportable segment, selected operating and financial information as of and for the three months ended March 31, 2025 and 2024:
Current wording
The following table presents, by reportable segment, selected operating and financial information as of and for the three and six months ended June 30, 2025 and 2024:
Previous wording
The following table sets forth the cancellation rates for each of our homebuilding segments for the three months ended March 31, 2025 and 2024:
Current wording
The following table sets forth the cancellation rates for each of our homebuilding segments for the three and six months ended June 30, 2025 and 2024:
Previous wording
Northern Region. During the three months ended March 31, 2025, revenue in our Northern region increased $1.9 million, from $408.5 million in the first quarter of 2024 to $410.4 million in the first quarter of 2025. This slight increase in revenue was primarily the result of a 2% increase in the average sales price of homes being delivered and the mix of homes being delivered offset in part by a decrease in number of homes delivered. Operating income in our Northern region increased $2.5 million from $58.1 million in the first quarter of 2024 to $60.6 million during the quarter ended March 31, 2025. This increase in operating income was the result of a $2.1 million improvement in our gross margin and a $0.4 million decrease in selling, general and administrative expense. Our gross margin improved $2.1 million to $90.9 million in the first quarter of 2025 from $88.8 million in the first quarter 2024. Our gross margin percentage improved 0.5% to 22.2% from 21.7% in the prior year’s first quarter. These improvements were primarily due to the mix of homes delivered compared to prior year.
Current wording
Northern Region. During the three months ended June 30, 2025, revenue in our Northern region increased $23.5 million, from $464.8 million in the second quarter of 2024 to $488.3 million in the second quarter of 2025. This increase in revenue was primarily the result of a 3% increase in the average sales price of homes being delivered and a 2% increase in number of homes delivered. Operating income in our Northern region increased $3.2 million from $72.8 million in the second quarter of 2024 to $76.0 million during the quarter ended June 30, 2025. This increase in operating income was the result of a $4.3 million improvement in our gross margin, offset in part by a $1.1 million increase in selling, general and administrative expense. Our gross margin improved $4.3 million to $111.3 million in the second quarter of 2025 from $107.0 million in the second quarter of 2024. Our gross margin percentage declined 20 basis points to 22.8% from 23.0% in the prior year’s second quarter primarily due to the $2.5 million increase in lot costs and $2.9 million increase in incentives offered on homes delivered compared to prior year.
Previous wording
Selling, general and administrative expense decreased $0.4 million, from $30.7 million for the quarter ended March 31, 2024 to $30.3 million for the quarter ended March 31, 2025 and declined 10 basis points as a percentage of revenue to 7.4% in 2025's first quarter from 7.5% in 2024's first quarter. The decrease in selling, general and administrative expense was attributable to a $0.3 million decrease in general and administrative expense primarily related to land-related expenses and a$0.1 million decrease in selling expense. The decrease in selling expense was due to a $0.9 million decrease in sales and realtor commissions produced by the lower number of homes delivered offset in part by a $0.8 million increase in costs associated with our sales offices, including compensation and model homes.
Current wording
Selling, general and administrative expense increased $1.1 million, from $34.1 million for the quarter ended June 30, 2024 to $35.2 million for the quarter ended June 30, 2025 and declined 10 basis points as a percentage of revenue to 7.2% in 2025's second quarter from 7.3% in 2024's second quarter. The increase in selling, general and administrative expense was attributable to a $0.7 million increase in general and administrative expense primarily related to land-related expenses and a$0.4 million increase in selling expense. The increase in selling expense was due to a $0.1 million increase in sales and realtor commissions produced by the higher number of homes delivered and a $0.3 million increase in costs associated with our sales offices, including compensation.
Previous wording
During the three months ended March 31, 2025, we experienced an 8% decrease in new contracts in our Northern region from 1,162 in the first quarter of 2024 to 1,065 in the first quarter of 2025. Homes in backlog decreased 12% from 1,567 homes at March 31, 2024 to 1,375 homes at March 31, 2025. The decreases in new contracts and backlog were primarily a result of weakened market demand compared to prior year. Average sales price in backlog increased approximately 6% to $556,000 at March 31, 2025 compared to $525,000 at March 31, 2024 primarily due to the mix of homes being sold. During the three months ended March 31, 2025, we opened 16 new communities in our Northern region compared to opening seven during
Current wording
During the three months ended June 30, 2025, we experienced an 13% decrease in new contracts in our Northern region from 1,002 in the second quarter of 2024 to 873 in the second quarter of 2025. Homes in backlog decreased 21% from 1,618 homes at June 30, 2024 to 1,281 homes at June 30, 2025. The decreases in new contracts and backlog were primarily a result of weakened market demand compared to prior year. Average sales price in backlog increased approximately 7% to $563,000 at June 30, 2025 compared to $527,000 at June 30, 2024 primarily due to the mix of homes being sold. During the three months ended June 30, 2025, we opened 8 new communities in our Northern region compared to opening three during 2024's second quarter. Our monthly absorption rate in our Northern region was 3.0 per community in the second quarter of 2025 compared to 3.5 in the second quarter of 2024 due to a decrease in new contracts.
Previous wording
Southern Region. During the three month period ended March 31, 2025, revenue in our Southern region decreased $77.0 million, from $611.2 million in the first quarter of 2024 to $534.2 million in the first quarter of 2025. This 13% decrease in revenue was the result of a 13% decrease in the number of homes delivered (165 units). Operating income in our Southern region decreased $37.4 million from $117.8 million in the first quarter of 2024 to $80.4 million in the first quarter of 2025. This decrease in operating income was the result of a $37.2 million decline in our gross margin and a $0.2 million increase in selling, general, and administrative expense. Our gross margin declined $37.2 million, due primarily to the decrease in the number of homes delivered during the period and the incentives offered on homes delivered compared to prior year. Our gross margin percentage declined 300 basis points from 27.4% in prior year’s first quarter to 24.4% in the first quarter of 2025, primarily due to the mix of homes being delivered and incentives offered.
Current wording
Southern Region. During the three month period ended June 30, 2025, revenue in our Southern region increased $28.7 million, from $614.2 million in the second quarter of 2024 to $642.9 million in the second quarter of 2025. This 5% increase in revenue was the result of an 8% increase in the number of homes delivered (108 units) offset, in part by a 3% decrease in the average sales price of homes delivered (14,000 per home delivered). Operating income in our Southern region decreased $35.5 million from $119.8 million in the second quarter of 2024 to $84.3 million in the first quarter of 2025. This decrease in operating income was the result of a $27.7 million decline in our gross margin and a $7.8 million increase in selling, general, and administrative expense. Our gross margin declined $27.7 million, due primarily to the decrease in average sales price for homes delivered as a result of increased incentives offered partially offset by an increase in the number of homes delivered compared to prior year. Our gross margin percentage declined 550 basis points from 27.9% in prior year’s second quarter to 22.4% in the second quarter of 2025, primarily due to the mix of homes being delivered, $14.2 million increase in lot costs and $5.5 million increase in incentives offered on homes delivered.
Previous wording
Selling, general and administrative expense increased $0.2 million from $49.7 million in the first quarter of 2024 to $49.9 million in the first quarter of 2025 and increased 120 basis points as a percentage of revenue to 9.3% in the first quarter of 2025 from 8.1% in the first quarter of 2024. This increase in selling, general and administrative expense was primarily attributable to a $1.2 million increase in general and administrative expense, which was due to a $0.5 million increase in compensation-related expenses, a $0.3 million increase in land-related expenses, and a $0.4 million increase in miscellaneous expenses. Selling expense decreased $1.1 million due to a $2.5 million decrease in realtor and sales commissions offset in part by a $1.4 million increase in costs related to our sales office, compensation and models due to an increase in our community count.
Current wording
Selling, general and administrative expense increased $7.8 million from $51.8 million in the second quarter of 2024 to $59.6 million in the second quarter of 2025 and increased 90 basis points as a percentage of revenue to 9.3% in the second quarter of 2025 from 8.4% in the second quarter of 2024. General and administrative expense increased $3.0 million due to a $1.0 million increase in compensation-related expenses, a $1.2 million increase in land-related expenses, and a $0.8 million increase in miscellaneous expenses. Selling expense increased $4.8 million due to a $4.1 million increase in realtor and sales commissions and a $0.7 million increase in costs related to our sales office, including compensation.
Previous wording
During the three months ended March 31, 2025, our new contracts decreased in our Southern region, from 1,385 in the first quarter of 2024 to 1,227 in the first quarter of 2025, which was primarily due to weakened market demand. Homes in backlog decreased by 19% from 1,824 homes at March 31, 2024 to 1,472 homes at March 31, 2025, primarily as a result of weakened demand and a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog increased to $540,000 at March 31, 2025 from $530,000 at March 31, 2024 primarily due to the mix of homes being sold. During the three months ended March 31, 2025, we opened 11 new communities in our Southern region compared to opening 14 communities during 2024's first quarter. Our monthly absorption rate in our Southern region declined to 3.2 per community in the first quarter of 2025 compared to 4.0 per community in the first quarter of 2024 as a result of a decrease in new contracts.
Current wording
During the three months ended June 30, 2025, our new contracts decreased in our Southern region from 1,253 in the second quarter of 2024 to 1,205 in the second quarter of 2025, which was primarily due to weakened market demand. Homes in backlog decreased by 28% from 1,804 homes at June 30, 2024 to 1,296 homes at June 30, 2025, primarily as a result of weakened demand and a shift in demand to inventory homes which offer incentives compared to last year. Average sales price in backlog increased to $543,000 at June 30, 2025 from $538,000 at June 30, 2024 primarily due to the mix of homes being sold. During the three months ended June 30, 2025, we opened 15 new communities in our Southern region compared to opening 14 communities during 2024's second quarter. Our monthly absorption rate in our Southern region declined to 3.1 per community in the second quarter of 2025 compared to 3.5 per community in the second quarter of 2024 as a result of a decrease in new contracts.
Previous wording
Financial Services. Revenue from our mortgage and title operations increased 17% to an all-time quarterly record $31.5 million in the first quarter of 2025 from $27.0 million in the first quarter of 2024 due to higher margins on loans sold and capture rates during the period compared to prior year’s first quarter and a 2% decrease in the number of loan originations from 1,556 in 2024's first quarter to 1,530 in the first quarter of 2025, and an increase in the average loan amount from $386,000 in the quarter ended March 31, 2024 to $406,000 in the quarter ended March 31, 2025.
Current wording
Financial Services. Revenue from our mortgage and title operations increased 2% to $31.5 million (a second quarter record) in the second quarter of 2025 from $30.8 million in the second quarter of 2024 due to higher margins on loans sold and capture rate during the period compared to prior year’s second quarter, a 15% increase in the number of loan originations from 1,618 in 2024's second quarter to 1,865 in the second quarter of 2025, and an increase in the average loan amount from $395,000 in the quarter ended June 30, 2024 to $403,000 in the quarter ended June 30, 2025.
Previous wording
Our financial services segment experienced a $3.6 million increase in operating income in the first quarter of 2025 compared to 2024's first quarter, which was primarily due to the increase in revenue discussed above offset, in part, by a $1.0 million increase in selling, general and administrative expense compared to the first quarter of 2024, which was primarily the result of an increase in compensation-related expenses.
Current wording
Our financial services segment experienced a $0.3 million decrease in operating income in the second quarter of 2025 compared to 2024's second quarter, which was primarily due to a $1.0 million increase in selling, general and administrative expense compared to the second quarter of 2024, which was primarily the result of an increase in compensation-related expenses offset in part by the increase in revenue.
Previous wording
At March 31, 2025, M/I Financial provided financing services in all of our markets. Approximately 92% of our homes delivered during the first quarter of 2025 were financed through M/I Financial, compared to 88% in the first quarter of 2024. Capture rate is influenced by financing availability and competition in the mortgage market and can fluctuate from quarter to quarter.
Current wording
At June 30, 2025, M/I Financial provided financing services in all of our markets. Approximately 92% of our homes delivered during the second quarter of 2025 were financed through M/I Financial, compared to approximately 87% in the second quarter of 2024. Capture rate is influenced by financing availability and competition in the mortgage market and can fluctuate from quarter to quarter.
Previous wording
Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased $1.1 million from $17.8 million for the first quarter of 2024 to $18.9 million for the first quarter of 2025. This increase resulted from a $1.1 million increase in compensation-related expenses.
Current wording
Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense decreased $1.6 million from $23.7 million for the second quarter of 2024 to $22.1 million for the second quarter of 2025. This decrease resulted from a $1.7 million decrease in compensation-related expenses offset in part by miscellaneous expenses.
Previous wording
Interest Income, net of Interest Expense. The Company earned $5.2 million of interest income - net for the three months ended March 31, 2025 compared to $6.9 million for the three months ended March 31, 2024. This decrease was primarily due to a lower average cash balance on hand compared to prior year.
Current wording
Interest Income, net of Interest Expense. The Company earned $4.4 million of interest income - net for the three months ended June 30, 2025 compared to $7.3 million for the three months ended June 30, 2024. This decrease was primarily due to a lower average cash balance on hand compared to prior year.
Previous wording
Income Taxes. Our overall effective tax rate was 23.9% for the three months ended March 31, 2025 and 23.4% for the three months ended March 31, 2024. The increase in the effective tax rate from the three months ended March 31, 2024 was primarily attributable to a $1.2 million decrease in tax benefit from equity compensation in 2025.
Current wording
Income Taxes. Our overall effective tax rate was 24.1% for the six months ended June 30, 2025 and 23.9% for the six months ended June 30, 2024. The increase in the effective rate from the six months ended June 30, 2024 was primarily attributable to a $1.3 million decrease in tax benefit from equity compensation in 2025.
Previous wording
At March 31, 2025, we had $776.4 million of cash, cash equivalents and restricted cash, with approximately $776.1 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $45.3 million decrease in unrestricted cash and cash equivalents from December 31, 2024. This decrease in cash is primarily due to the decline in home deliveries and the timing of land spend compared to prior year offset by a larger beginning of year balance on hand. Our principal uses of cash for the three months ended March 31, 2025 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $50.1 million of our outstanding common shares under the 2025 Share Repurchase Programs (as defined below). In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans, the sale of mortgage servicing rights, excess cash balances, borrowings under our MIF Mortgage Repurchase Facility (as defined below), and other sources of liquidity.
Current wording
At June 30, 2025, we had $800.4 million of cash, cash equivalents and restricted cash, with approximately $800.2 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $21.3 million decrease in unrestricted cash and cash equivalents from December 31, 2024. This decrease in cash is primarily due to the decline in home deliveries and the timing of land spend compared to prior year partially offset by a larger beginning of year balance on hand. Our principal uses of cash for the six months ended June 30, 2025 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $100.2 million of our outstanding common shares under our share repurchase programs. In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans, the sale of mortgage servicing rights, excess cash balances, borrowings under our MIF Mortgage Repurchase Facility (as defined below), and other sources of liquidity.
Previous wording
The Company is a party to two primary credit agreements: (1) a $650 million unsecured revolving credit facility, dated July 18, 2013, as amended (the “Credit Facility”), with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries; and (2) a $300 million mortgage repurchase agreement, dated October 24, 2023, as amended on October 22, 2024 (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower.
Current wording
The Company is a party to two primary credit agreements: (1) a $650 million unsecured revolving credit facility, dated July 18, 2013, as amended (the “Credit Facility”), with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries; and (2) a $300 million mortgage repurchase agreement, dated October 24, 2023, as amended (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower.
Previous wording
As of March 31, 2025, we had outstanding notes payable (consisting primarily of notes payable for our financial services operations, the 2030 Senior Notes and the 2028 Senior Notes) with varying maturities in an aggregate principal amount of $928.0 million, with $228.0 million payable within 12 months. Future interest payments associated with these notes payable totaled $118.9 million as of March 31, 2025, with $31.9 million payable within 12 months.
Current wording
As of June 30, 2025, we had outstanding notes payable (consisting primarily of notes payable for our financial services operations, the 2030 Senior Notes and the 2028 Senior Notes) with varying maturities in an aggregate principal amount of $975.9 million, with $275.9 million payable within 12 months. Future interest payments associated with these notes payable totaled $118.9 million as of June 30, 2025, with $31.9 million payable within 12 months.
Previous wording
As of March 31, 2025, there were no borrowings outstanding and $69.4 million of letters of credit outstanding under our $650 million Credit Facility, leaving $580.6 million available. We expect to continue to manage our balance sheet and liquidity carefully during the remainder of 2025 by managing our spending on land acquisition and development and construction of inventory homes, as well as overhead expenditures, relative to our ongoing volume of home deliveries, and we expect to meet our current and anticipated cash requirements in 2025 from cash receipts, excess cash balances and availability under our credit facilities.
Current wording
As of June 30, 2025, there were no borrowings outstanding and $88.5 million of letters of credit outstanding under our $650 million Credit Facility, leaving $561.5 million available. We expect to continue to manage our balance sheet and liquidity carefully during the remainder of 2025 by managing our spending on land acquisition and development and construction of inventory homes, as well as overhead expenditures, relative to our ongoing volume of home deliveries, and we expect to meet our current and anticipated cash requirements in 2025 from cash receipts, excess cash balances and availability under our credit facilities.
Previous wording
During the first quarter of 2025, we delivered 1,976 homes, started 2,077 homes, ended the quarter with 4,800 homes under construction compared to 4,500 at the end of last year’s first quarter, and spent $146.0 million on land purchases and $101.6 million on land development.
Current wording
During the first half of 2025, we delivered 4,324 homes, started 4,698 homes, ended the quarter with 5,062 homes under construction compared to 5,033 at the end of last year’s second quarter, and spent$247.7 million on land purchases and$240.6 million on land development.
Previous wording
We are actively acquiring and developing lots in our markets to replenish our lot supply and will continue to monitor market conditions and our pace of home sales and deliveries and adjust our land spending accordingly. Pursuant to our land option agreements, as of March 31, 2025, we had a total of 25,887 lots under contract, with an aggregate purchase price of approximately $1.47 billion, to be acquired during the remainder of 2025 through 2031.
Current wording
We are actively acquiring and developing lots in our markets to replenish our lot supply and will continue to monitor market conditions and our pace of home sales and deliveries and adjust our land spending accordingly. Pursuant to our land option agreements, as of June 30, 2025, we had a total of 25,957 lots under contract, with an aggregate purchase price of approximately$1.56 billion, to be acquired during the remainder of 2025 through 2031.
Previous wording
Operating Cash Flow Activities. During the three-month period ended March 31, 2025, we generated $64.9 million of cash from operating activities, compared to generating $115.8 million of cash from operating activities during the first quarter of 2024. The cash provided by operating activities in the first quarter of 2025 was primarily a result of net income of $111.2 million, and an increase of $72.4 million in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans which exceeded mortgage loan originations by $50.5 million, offset, in part, by a $107.3 million increase in inventory purchases, an increase in other assets of $12.5 million, and a decrease in accrued compensation totaling $48.9 million. The cash generated in operating activities during the first quarter of 2024 was primarily a result of net income of $138.1 million, a $15.8 million decrease in inventory purchases due to delays and timing of land purchases and an increase of $54.9 million in accounts payable and other liabilities, offset, in part, payments for mortgage loan originations which exceeded the proceeds from the sale of mortgage loans by $61.6 million and a decrease in accrued compensation totaling $40.0 million.
Current wording
Operating Cash Flow Activities. During the six-month period ended June 30, 2025, we generated $102.6 million of cash from operating activities, compared to generating $143.3 million of cash from operating activities during the first half of 2024. The cash provided by operating activities in the first half of 2025 was primarily a result of net income of $232.5 million, and an increase of $96.7 million in accounts payable, customer deposits and other liabilities, proceeds from the sale of mortgage loans which exceeded mortgage loan originations by $8.1 million, offset, in part, by a $183.6 million increase in inventory purchases, an increase in other assets of $22.0 million, and a decrease in accrued compensation totaling $35.8 million. The cash generated in operating activities during the first half of 2024 was primarily a result of net income of $284.8 million, and an increase of $86.6 million in accounts payable, customer deposits and other liabilities, offset, in part, by a $143.9 million increase in inventory purchases and payments for mortgage loan originations which exceeded the proceeds from the sale of mortgage loans by $54.4 million and a decrease in accrued compensation totaling $25.4 million.
Previous wording
$1.3 million increase in property and equipment, offset, in part, by $6.7 million of proceeds from the sale of a portion of our mortgage servicing rights. The cash used in investing activities during the first quarter of 2024 was primarily a result of a $23.7 million increase in our investment in joint venture arrangements offset, in part, by $6.9 million of proceeds from the sale of a portion of our mortgage servicing rights.
Current wording
Investing Cash Flow Activities. During the first half of 2025, we used $15.2 million of cash in investing activities, compared to using $27.5 million of cash in investing activities during the first half of 2024. The cash used in investing activities in the first half of 2025 was primarily a result of a $18.4 million increase in our investment in joint venture arrangements and a $3.9 million increase in property and equipment, offset, in part, by $7.1 million of proceeds from the sale of a portion of our mortgage servicing rights. The cash used in investing activities during the first half of 2024 was primarily a result of a $29.0 million increase in our investment in joint venture arrangements and a$5.8 million increase in property and equipment, offset, in part, by $7.2 million of proceeds from the sale of a portion of our mortgage servicing rights.
Previous wording
Financing Cash Flow Activities. During the three months ended March 31, 2025, we used $107.2 million of cash in financing activities, compared to generating $38.7 million of cash in financing activities during the first three months of 2024. The cash used in financing activities in 2025 was primarily due to the repurchase of $50.1 million of our outstanding common shares during the first quarter of 2025, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility of $58.2 million offset partially by $1.1 million in proceeds from the exercise of stock options during the first quarter of 2025. The cash provided by financing activities in the first quarter of 2024 was primarily due to proceeds from borrowings (net of repayments) under our M/I Financial credit facility of $58.5 million and $5.5 million in proceeds from the exercise of stock options during the first quarter of 2024, offset partially by the repurchase of $25.3 million of our outstanding common shares during the first quarter of 2024.
Current wording
Financing Cash Flow Activities. During the six months ended June 30, 2025, we used $108.6 million of cash in financing activities, compared to using $11.1 million of cash in financing activities during the first six months of 2024. The cash used in financing activities in 2025 was primarily due to the repurchase of $100.2 million of our outstanding common shares during the first half of 2025, and repayments (net of borrowings) under our MIF Mortgage Repurchase Facility of $10.2 million offset partially by $1.9 million in proceeds from the exercise of stock options during the first half of 2025. The cash used by financing activities in 2024 was primarily due to the repurchase of $75.6 million of our outstanding common shares during the first half of 2024, offset partially by proceeds from borrowings (net of payments) under our MIF Mortgage Repurchase Facility of $56.9 million and $7.5 million in proceeds from the exercise of stock options during the first half of 2024.
Previous wording
On February 11, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company was permitted to purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”), which replaced the 2024 Share Repurchase Program. During the first quarter of 2025, the Company repurchased 0.4 million outstanding common shares for an aggregate purchase price of $50.1 million under the 2025 Share Repurchase Program which was funded with cash on hand. As of March 31, 2025, the Company is authorized to repurchase an additional $199.9 million of outstanding common shares under the 2025 Share Repurchase Program (see Note 12 to our financial statements for more information).
Current wording
On February 11, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company was permitted to purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”), which replaced the 2024 Share Repurchase Program. During the first half of 2025, the Company repurchased 0.9 million outstanding common shares for an aggregate purchase price of $100.2 million under the 2025 Share Repurchase Program which was funded with cash on hand. As of June 30, 2025, the Company is authorized to repurchase an additional $149.8 million of outstanding common shares under the 2025 Share Repurchase Program (see Note 12 to our financial statements for more information).
Previous wording
At both March 31, 2025 and December 31, 2024, our ratio of homebuilding debt to capital was 19%, calculated as the carrying value of our outstanding homebuilding debt (which consists of borrowings under our Credit Facility, our 2030 Senior Notes and our 2028 Senior Notes) divided by the sum of the carrying value of our outstanding homebuilding debt plus shareholders’ equity. We believe that this ratio provides useful information for understanding our financial position and the leverage employed in our operations, and for comparing us with other homebuilders.
Current wording
At June 30, 2025 and December 31, 2024, our ratio of homebuilding debt to capital was 18% and 19%, calculated as the carrying value of our outstanding homebuilding debt (which consists of borrowings under our Credit Facility, our 2030 Senior Notes and our 2028 Senior Notes) divided by the sum of the carrying value of our outstanding homebuilding debt plus shareholders’ equity. We believe that this ratio provides useful information for understanding our financial position and the leverage employed in our operations, and for comparing us with other homebuilders.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Income Taxes. Our overall effective tax rate was 24.3% for the three months ended June 30, 2025 and 24.4% for the three months ended June 30, 2024.
Current report — wording carried from elsewhere
At June 30, 2025, M/I Financial provided financing services in all of our markets. Approximately 92% of our homes delivered during the first half of 2025 were financed through M/I Financial, compared to 88% during the six months ended June 30, 2024. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter.
Current report — wording carried from elsewhere
Interest Income, net of Interest Expense. The Company earned $9.6 million of interest income - net for the six months ended June 30, 2025 compared to $14.3 million for the six months ended June 30, 2024. This decrease was primarily due to a lower average cash balance on hand compared to prior year.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Investing Cash Flow Activities. During the first quarter of 2025, we used $2.9 million of cash in investing activities, compared to using $17.1 million of cash in investing activities during the first quarter of 2024. The cash used in investing activities in the first quarter of 2025 was primarily a result of a $8.3 million increase in our investment in joint venture arrangements and a