Operating margins have compressed significantly from 16.8% in 2024Q2 to 9.3% in 2026Q1, reflecting the impact of aggressive pricing incentives on profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 4.36B | 4.42B | 4.5B | 4.03B | 4.13B | 3.75B | 3.05B | 2.5B | 2.29B | 1.96B | 1.69B | 1.42B | 1.22B | 1.04B | 761.9M | 566.42M | 616.38M | 569.95M | 607.66M | 1.02B | 1.36B | 1.35B | 1.17B | 1.07B | 1.03B | 976.77M | 935.04M | 852.4M | 739.6M | 614M | 577.2M |
| Revenue Growth % | -1.48% | -1.93% | 11.83% | -2.5% | 10.29% | 22.97% | 21.86% | 9.34% | 16.53% | 16% | 19.24% | 16.72% | 17.21% | 36.08% | 34.51% | -8.1% | 8.15% | -6.21% | -40.22% | -25.22% | 0.86% | 14.73% | 9.82% | 3.54% | 5.76% | 4.46% | 9.69% | 15.25% | 20.46% | 6.38% | 9.36% |
| Cost of Goods Sold | 3.39B | 3.4B | 3.31B | 3.01B | 3.09B | 2.84B | 2.36B | 2.01B | 1.84B | 1.57B | 1.36B | 1.12B | 962.45M | 830.31M | 614.04M | 489.12M | 511.41M | 550.41M | 685.46M | 832.6M | 1.01B | 1.01B | 875.61M | 796.73M | 783.75M | 755.21M | 733.94M | 665.7M | 586.7M | 493M | 466.7M |
| COGS % of Revenue | - | 76.97% | 73.39% | 74.84% | 74.73% | 75.74% | 77.52% | 80.22% | 80.59% | 79.96% | 80.54% | 78.84% | 79.2% | 80.09% | 80.59% | 86.35% | 82.97% | 96.57% | 112.8% | 81.91% | 74.64% | 74.76% | 74.54% | 74.49% | 75.87% | 77.32% | 78.49% | 78.1% | 79.33% | 80.29% | 80.86% |
| Gross Profit | 969.67M | 1.02B | 1.2B | 1.01B | 1.04B | 908.91M | 684.78M | 494.56M | 443.77M | 393.27M | 329.15M | 300.09M | 252.73M | 206.47M | 147.86M | 77.3M | 104.97M | 19.54M | -77.81M | 183.86M | 344.77M | 340.12M | 299.02M | 272.84M | 249.27M | 221.55M | 201.09M | 186.7M | 152.9M | 121M | 110.5M |
| Gross Margin % | 22.23% | 23.03% | 26.61% | 25.16% | 25.27% | 24.26% | 22.48% | 19.78% | 19.41% | 20.04% | 19.46% | 21.16% | 20.8% | 19.91% | 19.41% | 13.65% | 17.03% | 3.43% | -12.8% | 18.09% | 25.36% | 25.24% | 25.46% | 25.51% | 24.13% | 22.68% | 21.51% | 21.9% | 20.67% | 19.71% | 19.14% |
| Gross Profit Growth % | - | -15.15% | 18.29% | -2.9% | 14.84% | 32.73% | 38.46% | 11.44% | 12.84% | 19.48% | 9.68% | 18.74% | 22.41% | 39.64% | 91.28% | -26.36% | 437.23% | 125.11% | -142.32% | -46.67% | 1.37% | 13.75% | 9.6% | 9.45% | 12.51% | 10.17% | 7.71% | 22.11% | 26.36% | 9.5% | 13.22% |
| Operating Expenses | 515.25M | 510.65M | 492.8M | 431.71M | 406.39M | 390.62M | 684.78M | 302.34M | 280.61M | 254.61M | 220.41M | 188.3M | 169.98M | 147.78M | 119.03M | 96.2M | 102.04M | 103.12M | 131.68M | 171.02M | 196.66M | 164.59M | 139.38M | 128.1M | 126.26M | 120.34M | 110.18M | 103.6M | 93.2M | 79.8M | 74.3M |
| OpEx % of Revenue | - | 11.56% | 10.94% | 10.72% | 9.84% | 10.43% | 22.48% | 12.09% | 12.27% | 12.98% | 13.03% | 13.28% | 13.99% | 14.25% | 15.62% | 16.98% | 16.56% | 18.09% | 21.67% | 16.83% | 14.47% | 12.21% | 11.87% | 11.98% | 12.22% | 12.32% | 11.78% | 12.15% | 12.6% | 13% | 12.87% |
| Selling, General & Admin | 515.31M | 510.65M | 492.8M | 431.71M | 406.39M | 390.62M | 357.08M | 302.34M | 280.61M | 254.61M | 220.41M | 188.3M | 169.98M | 147.78M | 119.03M | 96.2M | 102.04M | 103.12M | 131.68M | 171.02M | 196.66M | 164.59M | 139.38M | 128.1M | 126.26M | 120.34M | 108.05M | 101.4M | 91.4M | 78.2M | 72.9M |
| SG&A % of Revenue | - | 11.56% | 10.94% | 10.72% | 9.84% | 10.43% | 11.72% | 12.09% | 12.27% | 12.98% | 13.03% | 13.28% | 13.99% | 14.25% | 15.62% | 16.98% | 16.56% | 18.09% | 21.67% | 16.83% | 14.47% | 12.21% | 11.87% | 11.98% | 12.22% | 12.32% | 11.56% | 11.9% | 12.36% | 12.74% | 12.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -67K | 0 | 0 | 0 | 0 | 0 | 327.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 941K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.12M | 2.2M | 1.8M | 1.6M | 1.4M |
| Operating Income | 454.42M | 506.55M | 706.29M | 581.83M | 637.45M | 518.3M | 0 | 192.22M | 163.16M | 146.34M | 112.73M | 115.43M | 86.21M | 64.5M | 32.33M | -18.9M | -9.61M | -83.58M | -209.48M | 12.84M | 148.12M | 175.53M | 159.64M | 144.74M | 123.01M | 101.21M | 90.92M | 83.1M | 59.7M | 41.2M | 36.2M |
| Operating Margin % | 10.42% | 11.47% | 15.68% | 14.44% | 15.43% | 13.84% | - | 7.69% | 7.14% | 7.46% | 6.67% | 8.14% | 7.09% | 6.22% | 4.24% | -3.34% | -1.56% | -14.66% | -34.47% | 1.26% | 10.9% | 13.03% | 13.59% | 13.53% | 11.91% | 10.36% | 9.72% | 9.75% | 8.07% | 6.71% | 6.27% |
| Operating Income Growth % | - | -28.28% | 21.39% | -8.73% | 22.99% | - | -100% | 17.81% | 11.49% | 29.81% | -2.34% | 33.89% | 33.66% | 99.49% | 271.1% | -96.62% | 88.5% | 60.1% | -1730.97% | -91.33% | -15.62% | 9.96% | 10.3% | 17.66% | 21.54% | 11.32% | 9.41% | 39.2% | 44.9% | 13.81% | 18.3% |
| EBITDA | 470.52M | 526.6M | 721.74M | 596.32M | 652.06M | 532.63M | 334.79M | 205.46M | 174.9M | 157.04M | 122.94M | 123.05M | 92.16M | 69.47M | 38.7M | -11.32M | -1.85M | -75.71M | -201.73M | 20.84M | 154.85M | 180.03M | 162.09M | 147.12M | 125.25M | 103.22M | 93.04M | 85.3M | 61.5M | 42.8M | 37.6M |
| EBITDA Margin % | 10.79% | 11.92% | 16.02% | 14.8% | 15.78% | 14.22% | 10.99% | 8.22% | 7.65% | 8% | 7.27% | 8.68% | 7.58% | 6.7% | 5.08% | -2% | -0.3% | -13.28% | -33.2% | 2.05% | 11.39% | 13.36% | 13.8% | 13.76% | 12.12% | 10.57% | 9.95% | 10.01% | 8.32% | 6.97% | 6.51% |
| EBITDA Growth % | -31.14% | -27.04% | 21.03% | -8.55% | 22.42% | 59.09% | 62.95% | 17.47% | 11.37% | 27.74% | -0.09% | 33.52% | 32.66% | 79.53% | 441.74% | -510.4% | 97.55% | 62.47% | -1068.12% | -86.54% | -13.99% | 11.07% | 10.17% | 17.46% | 21.34% | 10.94% | 9.07% | 38.7% | 43.69% | 13.83% | 16.05% |
| D&A (Non-Cash Add-back) | 16.1M | 20.04M | 15.45M | 14.49M | 14.61M | 14.33M | 15.06M | 13.24M | 11.74M | 10.7M | 10.2M | 7.62M | 5.95M | 4.97M | 6.36M | 7.57M | 7.76M | 7.87M | 7.75M | 7.99M | 6.73M | 4.5M | 2.45M | 2.38M | 2.24M | 2.01M | 2.12M | 2.2M | 1.8M | 1.6M | 1.4M |
| EBIT | 543.53M | 546.62M | 733.61M | 607.28M | 637.45M | 518.3M | 319.73M | 187.4M | 170.85M | 143.58M | 110.62M | 113.82M | 83.72M | 57.27M | 28.83M | -18.9M | -17.99M | -84.52M | -203.93M | -135.53M | 128.31M | 175.53M | 159.64M | 139.93M | 117.44M | 101.21M | 90.92M | 83.1M | 59.7M | 41.2M | 36.2M |
| Net Interest Income | -78.27M | -20.04M | 27.51M | 20.02M | -2.25M | -2.16M | -9.68M | -21.38M | -20.48M | -18.87M | -17.6M | -17.52M | -13.37M | -15.94M | -16.07M | -15.01M | -9.41M | -8.47M | -11.2M | -15.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 3.1M | 0 | 0 | 20.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 81.38M | 20.04M | -27.51M | 0 | 2.25M | 2.16M | 9.68M | 21.38M | 20.48M | 18.87M | 17.6M | 17.52M | 13.37M | 15.94M | 16.07M | 15.01M | 9.41M | 8.47M | 11.2M | 15.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 15.21M | 20.04M | 27.32M | 25.45M | -2.24M | -9.18M | 310.04M | -26.19M | -21.87M | -23.26M | -20.95M | -28.5M | -16.48M | -23.16M | -19.57M | -15.01M | -17.79M | -30.88M | -5.64M | -163.72M | -88M | -14.11M | -8.34M | -9.64M | -8.24M | -16.17M | -18.35M | -14.3M | -13.1M | -11.8M | -13.1M |
| Pretax Income | 469.64M | 526.59M | 733.61M | 607.28M | 635.21M | 509.11M | 310.04M | 166.03M | 141.29M | 120.32M | 91.78M | 86.93M | 69.74M | 41.34M | 12.76M | -33.9M | -27.4M | -92.99M | -215.12M | -150.88M | 60.12M | 161.43M | 151.3M | 135.1M | 109.2M | 85.04M | 72.56M | 68.8M | 46.6M | 29.4M | 23.1M |
| Pretax Margin % | 10.77% | 11.92% | 16.29% | 15.08% | 15.38% | 13.59% | 10.18% | 6.64% | 6.18% | 6.13% | 5.43% | 6.13% | 5.74% | 3.99% | 1.67% | -5.99% | -4.45% | -16.32% | -35.4% | -14.84% | 4.42% | 11.98% | 12.88% | 12.63% | 10.57% | 8.71% | 7.76% | 8.07% | 6.3% | 4.79% | 4% |
| Income Tax | 110.1M | 123.65M | 169.88M | 141.91M | 144.54M | 112.25M | 70.17M | 38.44M | 33.63M | 48.24M | 35.18M | 35.17M | 18.95M | -110.09M | -588K | -25K | -1.14M | -30.88M | 30.29M | -58.4M | 21.24M | 60.64M | 59.76M | 53.37M | 42.59M | 32.44M | 28.12M | 27.2M | 18.9M | 12M | 9M |
| Effective Tax Rate % | 23.44% | 23.48% | 23.16% | 23.37% | 22.76% | 22.05% | 22.63% | 23.15% | 23.8% | 40.09% | 38.32% | 40.45% | 27.17% | -266.33% | -4.61% | 0.07% | 4.14% | 33.21% | -14.08% | 38.7% | 35.34% | 37.57% | 39.5% | 39.5% | 39% | 38.15% | 38.75% | 39.53% | 40.56% | 40.82% | 38.96% |
| Net Income | 359.54M | 402.94M | 563.73M | 465.37M | 490.66M | 396.87M | 239.87M | 127.59M | 107.66M | 72.08M | 56.61M | 51.76M | 50.79M | 151.42M | 13.35M | -33.88M | -26.27M | -62.11M | -245.45M | -128.13M | 38.88M | 100.78M | 91.53M | 81.73M | 66.61M | 55.28M | 44.44M | 41.6M | 27.7M | 17.4M | 12.8M |
| Net Margin % | 8.24% | 9.12% | 12.51% | 11.55% | 11.88% | 10.59% | 7.87% | 5.1% | 4.71% | 3.67% | 3.35% | 3.65% | 4.18% | 14.61% | 1.75% | -5.98% | -4.26% | -10.9% | -40.39% | -12.61% | 2.86% | 7.48% | 7.79% | 7.64% | 6.45% | 5.66% | 4.75% | 4.88% | 3.75% | 2.83% | 2.22% |
| Net Income Growth % | -33.03% | -28.52% | 21.14% | -5.16% | 23.63% | 65.45% | 88.01% | 18.51% | 49.36% | 27.33% | 9.36% | 1.92% | -66.46% | 1034.51% | 139.4% | -28.96% | 57.7% | 74.7% | -91.57% | -429.58% | -61.43% | 10.11% | 12% | 22.7% | 20.49% | 24.39% | 6.84% | 50.18% | 59.2% | 35.94% | 29.29% |
| Net Income (Continuing) | 359.54M | 402.94M | 563.73M | 465.37M | 490.66M | 396.87M | 239.87M | 127.59M | 107.66M | 72.08M | 56.61M | 51.76M | 50.79M | 151.42M | 13.35M | -33.88M | -26.27M | -62.11M | -245.41M | -92.48M | 29.3M | 100.78M | 91.53M | 81.73M | 66.61M | 52.6M | 44.44M | 41.6M | 27.7M | 17.4M | 14.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 13.54 | 14.74 | 19.71 | 16.21 | 17.24 | 13.28 | 8.23 | 4.48 | 3.69 | 2.26 | 1.84 | 1.68 | 1.65 | 5.24 | 0.67 | -1.81 | -1.42 | -3.71 | -17.51 | -9.17 | 2.74 | 6.93 | 6.35 | 5.51 | 4.30 | 3.60 | 2.76 | 2.34 | 1.63 | 1.07 | 0.73 |
| EPS Growth % | -29.77% | -25.22% | 21.59% | -5.97% | 29.82% | 61.36% | 83.71% | 21.41% | 63.27% | 22.83% | 9.52% | 1.82% | -68.51% | 682.09% | 137.02% | -27.46% | 61.73% | 78.81% | -90.95% | -434.67% | -60.46% | 9.13% | 15.25% | 28.14% | 19.44% | 30.43% | 17.95% | 43.56% | 52.34% | 46.58% | 160.71% |
| EPS (Basic) | - | 15.07 | 20.29 | 16.76 | 17.60 | 13.64 | 8.38 | 4.58 | 3.81 | 2.57 | 2.10 | 1.91 | 1.88 | 6.11 | 0.68 | -1.81 | -1.42 | -3.71 | -17.51 | -9.17 | 2.78 | 7.05 | 6.49 | 5.66 | 4.41 | 3.67 | 2.82 | 2.38 | 1.65 | 1.08 | 0.73 |
| Diluted Shares Outstanding | 26.56M | 27.34M | 28.6M | 28.72M | 28.46M | 29.88M | 29.15M | 28.48M | 29.18M | 30.69M | 30.12M | 30.05M | 29.91M | 28.76M | 19.89M | 18.7M | 18.52M | 16.73M | 14.02M | 13.98M | 14.17M | 14.54M | 14.41M | 14.82M | 15.51M | 15.37M | 16.11M | 17.77M | 16.98M | 16.3M | 17.6M |
| Basic Shares Outstanding | 26.01M | 26.73M | 27.78M | 27.77M | 27.88M | 29.09M | 28.61M | 27.85M | 28.22M | 25.77M | 24.67M | 24.57M | 24.46M | 23.82M | 19.65M | 18.7M | 18.52M | 16.73M | 14.02M | 13.98M | 13.97M | 14.3M | 14.11M | 14.43M | 15.1M | 15.08M | 15.77M | 17.52M | 16.79M | 16.22M | 17.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 3.64% | 1.42% | 1.54% | 1.77% | 2.27% | 2.73% | 3.59% | 4.33% | 4.69% | - | - |
Margin compression from incentives
As indicated by recent quarterly filings, MHO's revenue growth has shifted into negative territory, with the most recent period showing a 5.4% year-over-year decline, reflecting the broader challenges in maintaining volume amid a high-interest-rate environment that continues to dampen consumer demand for new residential construction.
The transition from positive growth in early 2024 to consistent contraction suggests that the company is struggling to maintain its previous sales velocity. Investors should monitor whether this deceleration is a temporary reaction to mortgage rate volatility or a more structural shift in the company's ability to move inventory in its core Midwest and Southern markets.
According to the company's reported financial statements, gross margins have experienced a notable contraction, falling from a peak of 27.8% in 2024Q2 to 22.0% in 2026Q1, highlighting the impact of aggressive mortgage rate buy-downs and sales incentives required to sustain absorption in a difficult market.
The erosion of gross margin suggests that MHO is sacrificing profitability to maintain its closing volume, a common but unsustainable tactic in the current housing cycle. This trend warrants further investigation into whether the company can stabilize these margins without further eroding its bottom-line performance.
Based on the provided income statement data, MHO's operating margin has compressed significantly from 16.8% in 2024Q2 to 9.3% in 2026Q1, demonstrating that the company is failing to achieve the necessary operating leverage to offset the decline in gross profit and rising overhead costs.
The inability to scale SG&A efficiently as revenue declines suggests that the company's fixed cost structure is becoming a burden on profitability. Analysts should consider whether management can implement sufficient cost-discipline measures to protect operating income if the current revenue contraction persists into future quarters.
As reported in recent filings, EPS has seen a sharp decline, dropping from $5.12 in 2024Q2 to $2.55 in 2026Q1, a trend that appears driven by both top-line weakness and the direct impact of margin-dilutive financial incentives on the company's net income generation.
The significant drop in EPS suggests that the company's profitability is highly sensitive to the costs associated with its 'closing engine' and mortgage buy-downs. Investors should be cautious, as the quality of these earnings may be compromised by the necessity of these non-recurring or variable-cost incentives to drive sales.
While management maintains a conservative balance sheet, the recent pivot toward spec home starts, as noted in recent context flags, introduces significant inventory risk that could lead to further margin compression if the company is forced to discount unsold units to maintain liquidity in a softening market.
Short-term observers may focus on the potential for inventory write-downs if the current absorption rates fail to recover. The reliance on spec building appears to be a double-edged sword that could exacerbate losses if the housing market experiences a more pronounced downturn than currently anticipated.
Quick answers to the most common questions about buying MHO stock.
For fiscal year 2025, M/I Homes, Inc. (MHO) reported total revenue of $4.42B. This represents a 665.4% increase compared to $577.2M in 1996.
M/I Homes, Inc. (MHO) is profitable, generating $402.9M in net income for the fiscal year ending 2025 with a net profit margin of 9.1%.
M/I Homes, Inc. (MHO) reported an operating income of $506.6M, resulting in an operating profit margin of 11.5%. This margin reflects the operational efficiency of the business before interest and taxes.
M/I Homes, Inc. (MHO) generated $1.02B in gross profit for the year, representing a gross profit margin of 23.0%. This demonstrates the company's core pricing power and production efficiency.