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What changed in M/I HOMES, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of M/I HOMES, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+287 added−288 removedSource: 10-K (2026-02-13) vs 10-K (2025-02-14)

Top changes in M/I HOMES, INC.'s 2025 10-K

287 paragraphs added · 288 removed · 229 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

58 edited+8 added−24 removed69 unchanged
Biggest changeOur use of sales incentives and mortgage interest rate buydowns in 2025 will depend on, among other things, market dynamics, including mortgage interest rates and overall housing affordability, as well as community-specific considerations, including the size and construction stage of the backlog, sales pace and lots remaining available for sale.
Biggest changeWhile affordability challenges persist, supply chain and labor conditions were stable in 2025. We expect favorable demographic trends to benefit the housing industry over the long-term. Our use of incentives and rate buydowns in 2026 will depend on market factors such as mortgage rates and overall affordability, and community-specific considerations including backlog size, sales pace, competition, and lot availability.
Our financial services operations compete with other mortgage lenders to arrange financing for homebuyers. Principal competitive factors include pricing, mortgage loan terms, underwriting criteria, interest rates, customer service and other features of mortgage loan products available to the consumer.
Our financial services operations compete with other mortgage lenders to arrange financing for homebuyers. Principal competitive factors include pricing, mortgage loan terms, underwriting criteria, mortgage interest rates, customer service and other features of mortgage loan products available to the consumer.
We provide our homebuyers with the following products, programs and services which we believe differentiate our brand: (1) homes with high quality construction located in attractive areas and desirable communities that are supported by our 10-year transferable structural warranty; (2) our Whole Home Building Standards, which are designed to deliver features and benefits that satisfy the buyer’s expectation for a better-built home, including a more eco-friendly and energy efficient home that we believe will generally save our customers up to 30% on their energy costs compared to a home that is built to minimum code requirements; (3) our onsite and online Design Studios and Design Consultants that assist our homebuyers in selecting product and design options; (4) fully furnished model homes and highly-trained sales consultants to build the buyer’s confidence and enhance the quality of the homebuying experience; (5) our mortgage financing programs that we offer through M/I Financial, including competitive fixed-rate and adjustable-rate loans and, in certain cases, interest rate buydown incentives; (6) our Ready Now Homes program which offers homebuyers the opportunity to close on certain new homes in 90 days or less; and (7) our unwavering focus on customer care and customer satisfaction.
We provide our homebuyers with the following products, programs and services which we believe differentiate our brand: (1) homes with high quality construction located in attractive areas and desirable communities that are supported by our 10-year transferable structural warranty; (2) our Whole Home Building Standards, which are designed to deliver features and benefits that satisfy the buyer’s expectation for a better-built home, including a more eco-friendly and energy efficient home that we believe will save our customers up to 30% on their energy costs compared to a home that is built to minimum code requirements; (3) our onsite and online Design Studios and Design Consultants that assist our homebuyers in selecting product and design options; (4) fully furnished model homes and highly-trained sales consultants to build the buyer’s confidence and enhance the quality of the homebuying experience; (5) our mortgage financing programs that we offer through M/I Financial, including competitive fixed-rate and adjustable-rate loans and, in certain cases, mortgage interest rate buydown incentives; (6) our Ready Now Homes program which offers homebuyers the opportunity to close on certain new homes in 90 days or less; and (7) our unwavering focus on customer care and customer satisfaction.
Corporate Operations Our corporate operations and home office are located in Columbus, Ohio, where we perform the following functions at a centralized level: • establish strategy, goals and operating policies; • ensure brand integrity and consistency across all local and regional communications; • monitor and manage the performance of our operations; 10 • allocate capital resources; • provide financing and perform all cash management functions for the Company, and maintain our relationship with lenders; • maintain centralized information and communication systems; and • maintain centralized financial reporting, internal audit functions, and risk management.
Corporate Operations Our corporate operations and home office are located in Columbus, Ohio, where we perform the following functions at a centralized level: • establish strategy, goals and operating policies; • ensure brand integrity and consistency across all local and regional communications; • monitor and manage the performance of our operations; • allocate capital resources; • provide financing and perform all cash management functions for the Company, and maintain our relationship with lenders; • maintain centralized information and communication systems; and • maintain centralized financial reporting, internal audit functions, and risk management.
Our goal is to maintain an approximate three to five-year supply of lots, including lots controlled under option contracts and purchase agreements, which we believe provides an appropriate horizon for addressing regulatory matters and land development and the subsequent build-out of the homes in each community, and allows us to manage our business plan for future home deliveries.
Our goal is to 8 maintain an approximate three to five-year supply of lots, including lots controlled under option contracts and purchase agreements, which we believe provides an appropriate horizon for addressing regulatory matters and land development and the subsequent build-out of the homes in each community, and allows us to manage our business plan for future home deliveries.
Our “Smart Series” is market specific and intended to offer buyers excellent value, desirable locations, and pre-selected packages of upgraded finishes and appliances. The “Smart Series” targets 7 entry-level and move-down buyers and focuses significant attention on affordability, livability and design flexibility. We continue to increase our multi-family Smart Series offerings in several of our divisions.
Our “Smart Series” is market specific and intended to offer buyers excellent value, desirable locations, and pre-selected packages of upgraded finishes and appliances. The “Smart Series” targets entry-level and move-down buyers and focuses significant attention on affordability, livability and design flexibility. We continue to increase our multi-family Smart Series offerings in several of our divisions.
With respect to title services, the Company’s title subsidiaries work closely with our homebuilding divisions so that we are able to provide an organized and efficient home delivery process. 6 We also build inventory homes in most of our communities to offer homebuyers the opportunity to close on certain new homes in 90 days or less.
With respect to title services, the Company’s title subsidiaries work closely with our homebuilding divisions so that we are able to provide an organized and efficient home delivery process. We also build inventory homes in most of our communities to offer homebuyers the opportunity to close on certain new homes in 90 days or less.
We remain focused on improvements in supply chain and labor market conditions that could impact our ability to maintain production times. We construct inventory homes to facilitate delivery of homes on an immediate-need basis under our Ready Now Homes program and to provide presentation of new products.
We remain focused on improvements in supply chain and labor market conditions that could impact our ability to maintain production times. 7 We construct inventory homes to facilitate delivery of homes on an immediate-need basis under our Ready Now Homes program and to provide presentation of new products.
For joint venture arrangements where a special purpose entity is established to 9 own the property, we enter into limited liability company or similar arrangements (“LLCs”) with the other partners. Further details relating to our joint venture arrangements are included in Note 6 to our Consolidated Financial Statements.
For joint venture arrangements where a special purpose entity is established to own the property, we enter into limited liability company or similar arrangements (“LLCs”) with the other partners. Further details relating to our joint venture arrangements are included in Note 6 to our Consolidated Financial Statements.
We generally employ subcontractors to install site improvements and construct homes. The construction of each home is supervised by a personal Construction Manager who reports to an Area Production Manager, both of whom are employees of the Company. Our personal Construction Managers manage the scheduling and construction process.
We generally employ subcontractors to install site improvements and construct homes. The construction of each home is supervised by a personal Construction Manager who reports to an Area Construction Manager, both of whom are employees of the Company. Our personal Construction Managers manage the scheduling and construction process.
These regulations increase the cost to produce and market our homes and, in some instances, delay our ability to develop and finish lots and can present a similar challenge for the timely delivery of finished lots to us by outside developers.
These regulations increase 10 the cost to produce and market our homes and, in some instances, delay our ability to develop and finish lots and can present a similar challenge for the timely delivery of finished lots to us by outside developers.
Ending backlog represents the number of homes in backlog from the previous period plus the number of net new contracts (new contracts for homes less cancellations) generated during the current period minus the number of homes delivered during the current period. The backlog at any given 8 time will be affected by cancellations.
Ending backlog represents the number of homes in backlog from the previous period plus the number of net new contracts (new contracts for homes less cancellations) generated during the current period minus the number of homes delivered during the current period. The backlog at any given time will be affected by cancellations.
These plans (primarily ranch and main floor master bedroom type plans) focus on move-down buyers, are smaller in size, and feature outdoor living potential, fewer bedrooms, and improved community amenities. Our homebuilding divisions often share successful floor plans with other divisions, when appropriate. We continue to look for opportunities to develop more multi-family communities.
These plans (primarily ranch and main floor primary bedroom type plans) focus on move-down buyers, are smaller in size, and feature outdoor living potential, fewer bedrooms, and improved community amenities. Our homebuilding divisions often share successful floor plans with other divisions, when appropriate. We continue to look for opportunities to develop more multi-family communities.
We may also experience extended timelines for receiving required approvals from municipalities or other government agencies that can delay our anticipated development and construction activities in our communities. During 2024, we experienced delays in receiving governmental and municipality approvals in certain of our community locations, and we may experience a similar level of delays in 2025.
We may also experience extended timelines for receiving required approvals from municipalities or other government agencies that can delay our anticipated development and construction activities in our communities. During 2025, we experienced delays in receiving governmental and municipality approvals in certain of our community locations, and we may experience a similar level of delays in 2026.
Our website also includes printable versions of our Corporate Governance Guidelines, our Code of Business Conduct and Ethics, and the charters for each of our Audit, Compensation, and Nominating and Governance Committees. The contents of our website are not incorporated by reference in, or otherwise made a part of, this Annual Report on Form 10-K. 13
Our website also includes printable versions of our Corporate Governance Guidelines, 11 our Code of Business Conduct and Ethics, and the charters for each of our Audit, Compensation, and Nominating and Governance Committees. The contents of our website are not incorporated by reference in, or otherwise made a part of, this Annual Report on Form 10-K. 12
We offer homes ranging from a base sales price of approximately $190,000 to $1,010,000 and believe that this range of price points allows us to appeal to and attract a wide range of buyers.
We offer homes ranging from a base sales price of approximately $190,000 to $1,250,000 and believe that this range of price points allows us to appeal to and attract a wide range of buyers.
In some cases where commercial and office developments are in less demand, we see potential to rezone to a higher density multi-family solution. As affordability remains a key driver of sales, our “Smart Series” has remained important and represented approximately 52% of our total sales for the year ended December 31, 2024.
In some cases where commercial and office developments are in less demand, we see potential to rezone to a higher density multi-family solution. As affordability remains a key driver of sales, our “Smart Series” has remained important and represented approximately 52% of our total homes sold for the year ended December 31, 2025.
The incentives we offered on inventory homes in 2024 were based on community level market conditions and we may decide to discontinue such incentives in 2025 depending on how market conditions evolve. Backlog We sell our homes under standard purchase contracts, which generally require a homebuyer deposit at the time of signing the contract.
The incentives we offered on inventory homes in 2025 were based on community level market conditions and we may decide to change or discontinue such incentives in 2026 depending on how market conditions evolve. Backlog We sell our homes under standard purchase contracts, which generally require a homebuyer deposit at the time of signing the contract.
We believe our communities have attractive entrances with distinctive signage and landscaping and that our attention to community detail avoids a “development” appearance and gives each community a diversified neighborhood appearance. We offer homes ranging from a base sales price of approximately $190,000 to $1,010,000 and from approximately 1,000 to 5,500 square feet.
We believe our communities have attractive entrances with distinctive signage and landscaping and that our attention to community detail avoids a “development” appearance and gives each community a diversified neighborhood appearance. 6 We offer homes ranging from a base sales price of approximately $190,000 to $1,250,000 and from approximately 1,100 to 5,500 square feet.
Future economic and homebuilding industry conditions and the demand for homes are subject to continued uncertainty due to numerous factors, including the impacts of mortgage availability, inflation, interest rate increases, increasing labor and supply costs, and supply chain disruptions and labor shortages. These factors are highly uncertain and outside our control.
Future economic and homebuilding industry conditions and the demand for homes are subject to continued uncertainty due to numerous factors, including the impacts of mortgage availability, inflation, elevated mortgage interest rates, increasing labor and supply costs, and supply chain disruptions and labor shortages. These factors are highly uncertain and outside our control.
We regularly review the plans offered in each of our divisions to ensure that our home designs are still relevant and appropriate for that particular market. Across all of our divisions, we currently offer over 500 different floor plans designed to reflect current lifestyles and design trends.
We regularly review the plans offered in each of our divisions to ensure that our home designs are still relevant and appropriate for that particular market. Across all of our divisions, we currently offer about 600 different floor plans designed to reflect current lifestyles and design trends.
In 2024, we developed over 80% of our lots internally, primarily due to a lack of availability of developed lots in desirable locations in our markets. Raw land that requires development generally remains more available.
In 2025, we developed over 80% of our lots internally, primarily due to a lack of available developed lots in desirable locations in our markets. Raw land that requires development generally remains more available.
Our financial services operations support our homebuilding operations by providing mortgage loans and title services to the customers of our homebuilding operations and are reported as an independent segment. Our homebuilding operations comprise the most significant portion of our business, representing 97% and 98% of consolidated revenue in 2024 and 2023, respectively.
Our financial services operations support our homebuilding operations by providing mortgage loans and title services to the customers of our homebuilding operations and are reported as an independent segment. Our homebuilding operations comprise the most significant portion of our business, representing 97% of consolidated revenue in 2025 and 2024.
Of the total number of homes closed in 2024 and 2023, 60% and 57%, respectively, were inventory homes which include both homes started as inventory homes and homes that started under a contract that were later cancelled and became inventory homes as a result.
Of the total number of homes closed in 2025 and 2024, 68% and 60%, respectively, were inventory homes which include both homes started as inventory homes and homes that started under a contract that were later cancelled and became inventory homes as a result.
In situations where we believe targeted returns are no longer likely to be achieved, we may choose to terminate certain land purchase contracts which may result in write-offs of deposits and/or pre-acquisition costs.
In situations where we believe targeted returns are no longer likely to be achieved, we may choose to terminate certain land purchase contracts which may result in write-offs of deposits and/or pre-acquisition costs. During 2025, we recorded $11.8 million in write-offs of land deposits and pre-acquisition costs.
The Home Builder’s Limited Warranty covers construction defects for a statutory period based on geographic market and state law (currently ranging from four to ten years for the states in which the Company operates) and includes a mandatory arbitration clause.
The Company offers both a transferable limited warranty program (“Home Builder’s Limited Warranty”) and a transferable structural limited warranty. The Home Builder’s Limited Warranty covers construction defects for a statutory period based on geographic market and state law (currently ranging from four to ten years for the states in which the Company operates) and includes a mandatory arbitration clause.
As a result, we can provide no assurance that the positive trends reflected in our financial and operating metrics in 2024 will continue in 2025. 5 Sales and Marketing We focus our marketing efforts on first-time and move-up homebuyers, including home designs targeted to first-time, multi-generational and empty-nester homebuyers. We market and sell our homes under the M/I Homes brand.
As a result, we can provide no assurance that the positive trends reflected in our financial and operating metrics in 2025 will continue in 2026. Sales and Marketing We focus our marketing efforts on first-time, move-up and empty-nester homebuyers with targeted home designs for each homebuyer. We market and sell our homes under the M/I Homes brand.
We pay our employees competitively and offer a comprehensive set of benefits to full-time employees, including a 401(k) Profit Sharing Plan to help employees plan for retirement, which we believe are competitive with others in our industry.
We pay our employees competitively and offer a comprehensive set of benefits to full-time employees, including a 401(k) Profit Sharing Plan to help employees plan for retirement, which we believe are competitive with others in our industry. We prioritize employee development and seek to align career aspirations with suitable opportunities.
As of December 31, 2023, we had a total of 3,002 homes in backlog, with an aggregate sales value of $1.6 billion. Homes included in year-end backlog are typically included in homes delivered in the subsequent year.
As of December 31, 2024, we had a total of 2,531 homes in backlog with an aggregate sales value of $1.4 billion. Homes included in year-end backlog are typically included in homes delivered in the subsequent year.
As of December 31, 2024, we had a total of 2,531 homes in backlog with an aggregate sales value of $1.4 billion, in various stages of completion, including homes that are under contract but for which construction had not yet begun.
As of December 31, 2025, we had a total of 1,809 homes in backlog with an aggregate sales value of $989.9 million, in various stages of completion, including homes that are under contract but for which construction had not yet begun.
Item 1. BUSINESS General M/I Homes, Inc. and subsidiaries is one of the nation’s leading builders of single-family homes. The Company commenced homebuilding activities in 1976. Since that time, the Company has sold over 160,000 homes.
Item 1. BUSINESS General M/I Homes, Inc. and subsidiaries is one of the nation’s leading builders of single-family homes. The Company commenced homebuilding activities in 1976 marking 2026 as our 50th year in business. Since that time, the Company has sold over 168,200 homes.
Financial Services We sell our homes to customers who generally finance their purchases through mortgages. M/I Financial provides our customers with competitive financing and coordinates and expedites the loan origination transaction through the steps of loan application, loan approval, and closing and title services. M/I Financial provides financing services in all of our housing markets.
M/I Financial provides our customers with competitive financing and coordinates and expedites the loan origination transaction through the steps of loan application, loan approval, and closing and title services. M/I Financial provides financing services in all of our housing markets.
Although we centralize certain functions (such as accounting, human resources, legal, land purchase approval, and risk management) to benefit from economies of scale, our local management, generally under the direction of an Area President and supervised by a Region President, exercises considerable autonomy in identifying land acquisition opportunities, developing and implementing product and sales strategies, and controlling costs. 4 Industry Overview and Current Market Conditions During 2024, housing market conditions remained relatively healthy despite elevated inflation and mortgage interest rates.
Although we centralize certain functions (such as accounting, human resources, legal, land purchase approval, and risk management) to benefit from economies of scale, our local management, generally under the direction of an Area President and supervised by a Region President, exercises considerable autonomy in identifying land acquisition opportunities, developing and implementing product and sales strategies, and controlling costs.
By offering energy-efficient homes to our customers, we enable our homebuyers to save on their energy costs (the second largest cost of home ownership) compared to a home that is built to minimum code requirements, while also contributing to the reduction of greenhouse gas emissions and potential climate change impacts.
By offering energy-efficient homes to our customers, we enable our homebuyers to save on their energy costs (the second largest cost of home ownership) compared to a home that is built to minimum code requirements.
Our financial services operations accounted for 3% and 2% of our consolidated revenues in 2024 and 2023, respectively. See the “Financial Services” section below for additional information regarding our financial services operations. Our principal executive offices are located at 4131 Worth Avenue, Suite 500, Columbus, Ohio 43219.
Our financial services operations accounted for 3% of our consolidated revenues in 2025 and 2024. See the “Financial Services” section below for additional information regarding our financial services operations. Our principal executive offices are located at 4131 Worth Avenue, Suite 500, Columbus, Ohio 43219. The telephone number of our corporate headquarters is (614) 418-8000 and our website address is www.mihomes.com.
Our warranty expense was approximately 0.7%, 0.6% and 0.7% of total housing revenue in 2024, 2023 and 2022, respectively. Land Acquisition and Development We continuously evaluate land acquisition opportunities in the normal course of our homebuilding business, and we focus on both replenishing our lot positions and adding to our lot positions in key submarkets to expand our market share.
Land Acquisition and Development We continuously evaluate land acquisition opportunities in the normal course of our homebuilding business, and we focus on both replenishing our lot positions and adding to our lot positions in key submarkets to expand our market share.
Business Strategy We are focused on maximizing profitability, continuing to expand our market share through our more affordable and move-up product designs and being selective in land and land development investment opportunities.
However, we cannot guarantee the success of our strategic objectives and may adjust our approach as market conditions evolve. 4 Business Strategy We are focused on maximizing profitability, continuing to expand our market share through our more affordable and move-up product designs and being selective in land and land development investment opportunities.
We use independent RESNET-Certified Raters and the HERS (Home Energy Rating System) Index, the national standard for energy efficiency, to measure the performance of our homes, including insulation, ventilation, air tightness, and the heating and cooling system.
We use the HERS (Home Energy Rating System) Index, the national standard for energy efficiency, to measure the performance of our homes, including insulation, ventilation, air tightness, and the heating and cooling system. To further enhance the homebuying process, we operate Design Studios in most of our markets.
We are currently offering homes for sale in 220 communities and operating within 17 markets located in ten states. Our average sales price of homes delivered during 2024 was $483,000, and the average sales price of our homes in backlog at December 31, 2024 was $553,000.
As of December 31, 2025, we offered homes for sale in 232 communities located in ten states and operated within 17 markets. Our average sales price of homes delivered during 2025 was $479,000, and the average sales price of our homes in backlog at December 31, 2025 was $547,000.
Our company-employed sales consultants are trained and prepared to meet the buyer’s expectations and build the buyer’s confidence by fully explaining the features and benefits of our homes, helping each buyer determine which home best suits the buyer’s needs, explaining the construction process, and assisting the buyer in choosing the best financing option.
We believe these models showcase our homes at their maximum livability and potential and provide ideas and inspiration for our customers to incorporate desirable design options into their new home. 5 Our company-employed sales consultants are trained and prepared to meet the buyer’s expectations and build the buyer’s confidence by fully explaining the features and benefits of our homes, helping each buyer determine which home best suits the buyer’s needs, explaining the construction process, and assisting the buyer in choosing the best financing option.
Environmental costs and accruals were not material to our operations, cash flows or financial position in 2024, 2023 or 2022. Our homebuilding operations are also subject to various local, state and federal statutes, ordinances, rules and regulations concerning building, zoning, design, construction, sales, consumer protection and similar matters.
Our homebuilding operations are also subject to various local, state and federal statutes, ordinances, rules and regulations concerning building, zoning, design, construction, sales, consumer protection and similar matters.
The decrease in backlog compared to prior year is due to more inventory homes being sold in the fourth quarter of 2024 due to the sales incentives, such as mortgage rate buydowns we offered.
The decrease in backlog compared to prior year is primarily attributable to a decrease in new contracts driven by lower homebuyer demand and more inventory homes being both sold and delivered in the fourth quarter of 2025 due to the sales incentives, such as mortgage interest rate buydowns we offered on inventory homes.
Our subcontractors perform pursuant to written agreements that require them to comply with all applicable laws and labor practices, follow local building codes and permits, and meet performance, warranty, and insurance requirements.
Our subcontractors perform pursuant to written agreements that require them to comply with all applicable laws and labor practices, follow local building codes and permits, and meet performance, warranty, and insurance requirements. The agreements generally specify a fixed price for labor and materials and provide price protection for a majority of the higher-cost phases of construction for homes under construction.
Warranty We provide certain warranties in connection with our homes and also perform inspections with the buyer of each home immediately prior to delivery and as needed after a home is delivered. The Company offers both a transferable limited warranty program (“Home Builder’s Limited Warranty”) and a transferable structural limited warranty.
Homes sold and delivered in the same quarter represented 40% and 28% of the total homes delivered in the fourth quarter of 2025 and 2024, respectively. Warranty We provide certain warranties in connection with our homes and also perform inspections with the buyer of each home immediately prior to delivery and as needed after a home is delivered.
Consistent with our focus on improving long-term financial results, we expect to continue to emphasize the following strategic business objectives in 2025: • promote sales where necessary through interest rate buydowns and/or other incentives; • managing our land spend and inventory levels; • managing our construction cycle times; • opening new communities; • managing overhead spend; • maintaining a strong balance sheet and liquidity levels; and • emphasizing customer service, product quality and design, and premier locations.
Consistent with our focus on improving long-term financial results, we expect to continue to emphasize the following strategic business objectives in 2026: • employ incentives to promote sales; • manage inventory home levels to meet homebuyer demand; • manage land spend and maintain disciplined cost management; • open new communities aligned with long‑term growth objectives; • maintain a strong balance sheet and liquidity levels, and low leverage; and • continue emphasizing product quality, customer service, and premier community locations.
We maintain a level of inventory homes in each community based on our current and planned sales pace and construction capacity, and we monitor and adjust inventory homes on an ongoing basis as conditions warrant. We seek to keep our homebuyers actively involved in the construction of their new home by communicating with them throughout the design and construction process.
We maintain a level of inventory homes in each community based on our current and planned sales pace and construction capacity, and we monitor and adjust inventory homes on an ongoing basis as conditions warrant. We may continue to use mortgage interest rate buydown programs to mitigate the affordability concerns of homebuyers.
We offer conventional financing options along with programs offered by the Federal Housing Authority (“FHA”), U.S. Veterans Administration (“VA”), United States Department of Agriculture (“USDA”) and state housing bond agencies. M/I Financial offers our homebuyers “one-stop” shopping by providing mortgage and title services for the purchase of their home, which we believe saves our customers both time and money.
As of December 31, 2025, we employed 293 home sales consultants. We also offer specialized mortgage financing programs through M/I Financial to assist our homebuyers. We offer conventional financing options along with programs offered by the Federal Housing Authority (“FHA”), U.S. Veterans Administration (“VA”), United States Department of Agriculture (“USDA”) and state housing bond agencies.
In addition, all of our employees must adhere to our code of conduct and participate in mandatory company-wide training sessions to ensure all employees follow the same set of safety and ethical standards. These training sessions cover topics such as workplace safety, cyber security, risk mitigation, unconscious bias, harassment, and discrimination.
Our operating divisions assign training to our employees based upon their particular roles and responsibilities. In addition, all of our employees must adhere to our code of conduct and participate in mandatory company-wide training sessions to ensure all employees follow the same set of safety and ethical standards.
The increase in the percentage of inventory homes closed in 2024 compared to 2023 was due to higher demand and more selective incentives offered on inventory homes compared to new builds.
Our desire to meet the higher demand for inventory homes that offered quick move-ins and more selective incentives compared to new builds led to an increase in the percentage of inventory homes delivered in 2025 compared to 2024.
We recognize the value of creating a collaborative, inclusive workplace, and to help foster such an environment, we promote a culture of mutual understanding and respect among employees, customers and building partners. We are committed to a culture of diversity, equity and inclusion (“DEI”).
Our workforce development strategy is rooted in building a workforce in which individuals from a diverse mix of backgrounds, experiences and talents can thrive, contribute and develop professionally. We recognize the value of creating a collaborative, inclusive workplace, and to help foster such an environment, we promote a culture of mutual understanding and respect among employees, customers and building partners.
Environmental laws and existing conditions may result in delays, cause us to incur substantial compliance and other costs and prohibit or severely restrict homebuilding activity in environmentally sensitive areas. For instance, the SEC has proposed extensive climate-related disclosure rules, which, if adopted, would likely impose significant compliance costs on us.
Environmental laws and existing conditions may result in delays, cause us to incur substantial compliance and other costs and prohibit or severely restrict homebuilding activity in environmentally sensitive areas. Environmental costs and accruals were not material to our operations, cash flows or financial position in 2025, 2024 or 2023.
The potential effects of these factors are uncertain and could adversely impact our operations and financial results in future periods. We believe that we are well positioned to manage through the evolving housing industry market conditions by focusing on our land position, new community openings, and affordable product offerings.
Demand for new homes remains uncertain due to affordability pressures, inflation, low consumer confidence, labor and material costs, and interest rate volatility. These factors could negatively impact future operations and financial results. Nevertheless, we believe we are well positioned to navigate evolving conditions by focusing on land strategy, new community openings, and affordable product offerings.
We use our social media presence to communicate to potential homebuyers the experiences of customers who have purchased our homes and to provide content about our homes and design features. Product Lines, Design and Construction Our residential communities are generally located in suburban areas that are easily accessible through public and personal transportation.
We will promote this brand distinction in digital and traditional media outlets, with a focus on the long standing mission of our company: treating our customers right. Product Lines, Design and Construction Our residential communities are generally located in suburban areas that are easily accessible through public and personal transportation.
Information on our website, including the Environmental, Social and Governance Report, is not incorporated by reference in or otherwise considered a part of this Annual Report on Form 10-K. 12 Available Information We are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and file annual, quarterly and current reports, proxy statements and other information with the SEC.
These training sessions cover topics such as workplace safety, ethics, cyber security, risk mitigation and anti-harassment. Available Information We are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and file annual, quarterly and current reports, proxy statements and other information with the SEC.
We remain sensitive to potential changes in market conditions, and continue to focus on controlling overhead leverage, carefully managing our investment in land and land development spending, and judiciously offering homebuyer incentives. Our strong balance sheet and liquidity position should also provide us with flexibility through changing economic conditions.
We will continue to manage overhead, control land and development spending, and offer incentives judiciously. Our strong balance sheet and liquidity provide flexibility in a changing economic environment.
Our financial services operations also experience seasonality because their loan originations correspond with the delivery of homes in our homebuilding operations. 11 Human Capital At December 31, 2024, we employed 1,760 people (including part-time employees), including 1,366 in homebuilding operations, 260 in financial services and 134 in management and administrative services.
Human Capital At December 31, 2025, we employed 1,801 people (including part-time employees), including 1,400 in homebuilding operations, 260 in financial services and 141 in management and administrative services. None of our employees are represented by a collective bargaining agreement. We believe that our employees are our most important resource.
The following table sets forth our land position in lots (including lots held in joint venture arrangements) at December 31, 2024: Lots Owned Region Developed Lots Lots Under Development Undeveloped Lots (a) Total Lots Owned Lots Under Contract Total Northern 3,374 1,005 2,167 6,546 11,076 17,622 Southern 5,924 4,768 6,598 17,290 17,244 34,534 Total 9,298 5,773 8,765 23,836 28,320 52,156 (a) Includes our interest in raw land held by joint venture arrangements expected to be developed into 2,233 lots.
The following table sets forth our land position in lots (including lots held in joint venture arrangements) at December 31, 2025: Lots Owned Region Developed Lots Lots Under Development Undeveloped Lots (a) Total Lots Owned Lots Under Contract Total Northern 3,944 1,135 2,449 7,528 11,590 19,118 Southern 6,543 5,226 6,355 18,124 12,739 30,863 Total 10,487 6,361 8,804 25,652 24,329 49,981 (a) Includes our interest in raw land held by joint venture arrangements expected to be developed into 2,263 lots. 9 Financial Services We sell our homes to customers who generally finance their purchases through mortgages.
With respect to current market conditions, although the level of new and existing home inventories has increased from historically low levels, the supply of homes at affordable price points is generally still limited. In addition, demographics supporting housing demand remain favorable and we believe that they will continue to benefit the housing industry over the long-term.
We believe that demographic trends continue to support long-term housing demand, driven by limited supply of both new and existing homes relative to household formation rates. Although the inventory of new and existing homes has increased from historically low levels, inventory levels remain constrained due to a decade of underbuilding and low resale activity.
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The telephone number of our corporate headquarters is (614) 418-8000 and our website address is www.mihomes.com.
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Industry Overview and Current Market Conditions During 2025, the housing market was challenged by affordability concerns including persistent inflation and elevated mortgage rates. To help stimulate homebuyer traffic and sales, we offered various incentives and mortgage rate buydowns throughout the year.
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In the second half of 2024, the Federal Reserve reduced interest rates three times for a total of 100 basis points. Despite the rate cuts by the Federal Reserve, mortgage rates continued to hover around 7% throughout 2024.
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We plan to continue land acquisition and development investments in 2026 to support future growth, subject to market conditions and return requirements. We remain focused on managing land spend and inventory levels by balancing development activity with construction pace.
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The demographics supporting housing demand continued to be somewhat favorable as a result of a limited supply of both new and existing homes compared to the rate of household formations. Inventory levels in the housing market remain undersupplied due to the underproduction of new homes over the past decade and low levels of existing home resale inventory.
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M/I Financial offers our homebuyers “one-stop” shopping by providing mortgage and title services for the purchase of their home, which we believe saves our customers both time and money.
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On the other hand, affordability is under increasing pressure due to rising home costs. We offered sales incentives and mortgage interest rate buydowns in 2024 to further stimulate traffic and demand.
Added
We actively manage inventory levels to ensure the availability of inventory homes. A higher percentage of inventory home sales can impact the number of homes in backlog and backlog conversion rate due to the shortened sale-to-delivery timeline of inventory home sales as compared with dirt sales.
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We believe that the 8% increase in new contracts during 2024 compared to 2023 resulted from our sales incentives and interest rate buydown offerings and the low inventory levels in the housing market. In addition, supply chain and labor conditions remained stable throughout 2024 which allowed us to improve construction cycle times compared to 2023.
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In the fourth quarter of 2025, 40% of our deliveries consisted of inventory homes sold and delivered in the same quarter. We seek to keep our homebuyers actively involved in the construction of their new home by communicating with them throughout the design and construction process.
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We do expect some margin compression in 2025 when compared to 2024 levels as a result of the current market conditions. We also expect to increase our land acquisition and development investment activity in 2025 compared to 2024 to support future growth, subject to market conditions and available opportunities that meet our investment return standards.
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We use our social media presence to communicate to potential homebuyers the experiences of customers who have purchased our homes and to provide content about our homes and design features. In 2026, we are celebrating 50 years as one of the nation’s leading homebuilders. Our messaging relating to this milestone aims to build confidence and trust with our homebuying customers.
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We will continue to prioritize managing our land spend and inventory levels of finished lots and inventory homes by balancing our development investment activity and our construction pace. The current demand for new homes remains subject to uncertainty due to ongoing affordability and inflation concerns, consumer confidence, labor and material costs and availability, and the current interest rate environment.
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Our warranty expense (including the warranty claims in 2025 in two of our Florida communities primarily relating to attic ventilation issues discussed in Note 8 to our Consolidated Financial Statements) was approximately 0.8%, 0.7% and 0.6% of total housing revenue in 2025, 2024 and 2023, respectively.
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However, we cannot provide any assurances that our strategic business objectives will remain successful, and we may need to adjust elements of our strategy to address evolving market conditions more effectively.
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Our financial services operations also experience seasonality because their loan originations correspond with the delivery of homes in our homebuilding operations. Additionally, short-term volatility in the homebuilding industry and in the overall economy may, from time to time, affect our quarter-to-quarter results, similar to 2025.
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Our average scores are generally lower (and, therefore, better) than the Environmental Protection Agency’s Energy Star target standard of 72-75 or the average score for a resale home (130 or higher).
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These lower HERS scores translate to not only reduced heating and cooling costs for our homebuyers, but also reduced energy usage compared to an average resale home, and therefore a lower environmental impact. To further enhance the homebuying process, we operate Design Studios in some markets.
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We believe these models showcase our homes at their maximum livability and potential and provide ideas and inspiration for our customers to incorporate desirable design options into their new home.
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We give significant attention to the ongoing training of all sales personnel to assure a high level of professionalism and product knowledge. As of December 31, 2024, we employed 275 home sales consultants. We also offer specialized mortgage financing programs through M/I Financial to assist our homebuyers.
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The agreements generally specify a fixed price for labor and materials and provide price protection for a majority of the higher-cost phases of construction for homes in our backlog.
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None of our employees are represented by a collective bargaining agreement. We believe that our employees are our most important resource. Our workforce development strategy is rooted in building a workforce in which individuals from a diverse mix of backgrounds, experiences and talents can thrive, contribute and develop professionally.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeCertain economic, real estate and other business conditions that have significant effects on the homebuilding industry include: • employment levels and job and personal income growth; • availability and pricing of financing for homebuyers; • short and long-term interest rates; • overall consumer confidence and the confidence of potential homebuyers in particular; • demographic trends; • changes in energy prices; • population growth, household formations and other demographic changes that may be driven by, among other factors birth rate changes or U.S. immigration changes; • U.S. and global financial system and credit market stability; • private party and governmental residential consumer mortgage loan programs, and federal and state regulation of lending and appraisal practices; • federal and state personal income tax rates and provisions, including provisions for the deduction of residential consumer mortgage loan interest payments and other expenses; • the supply of and prices for available new or existing homes (including lender-owned homes acquired through foreclosures and short sales) and other housing alternatives, such as apartments and other residential rental property; • homebuyer interest in our current or new product designs and community locations, and general consumer interest in purchasing a home compared to choosing other housing alternatives; and • real estate taxes.
Biggest changeCertain economic, real estate and other business conditions that have significant effects on the homebuilding industry include: • employment levels and job and personal income growth; • the supply of and prices for available new or existing homes (including lender-owned homes acquired through foreclosures and short sales) and other housing alternatives, such as apartments and other residential rental property; • availability and pricing of financing for homebuyers; • short and long-term interest rates; • overall consumer confidence and the confidence of potential homebuyers in particular; • demographic trends; • changes in energy prices; • population growth, household formations and other demographic changes that may be driven by, among other factors, birth rate changes or U.S. immigration changes; • U.S. and global financial system and credit market stability; • private party and governmental residential consumer mortgage loan programs, and federal and state regulation of lending and appraisal practices; • federal and state personal income tax rates and provisions, including provisions for the deduction of residential consumer mortgage loan interest payments and other expenses; • homebuyer interest in our current or new product designs and community locations, and general consumer interest in purchasing a home compared to choosing other housing alternatives; and • real estate taxes.
If, for example, prices for new homes decline, competitors increase their use of sales incentives, interest rates increase, the availability of mortgage financing diminishes, current homeowners find it difficult to sell their current homes, homebuyers are concerned about rising inflation, or there is a downturn in local or regional economies or in the national economy, homebuyers may choose to terminate their existing home purchase contracts with us in order to negotiate for a lower price or because they cannot, or will not, complete the purchase and our remedies generally do not extend beyond the retention of deposits.
If, for example, prices for new homes decline, competitors increase their use of sales incentives, mortgage interest rates increase, the availability of mortgage financing diminishes, current homeowners find it difficult to sell their current homes, homebuyers are concerned about rising inflation, or there is a downturn in local or regional economies or in the national economy, homebuyers may choose to terminate their existing home purchase contracts with us in order to negotiate for a lower price or because they cannot, or will not, complete the purchase and our remedies generally do not extend beyond the retention of deposits.
In addition, any reduction in the availability of the financing provided by Fannie Mae and Freddie Mac could adversely affect interest rates, mortgage availability and our sales of new homes and origination of mortgage loans. FHA and VA mortgage financing support remains an important factor in marketing our homes.
In addition, any reduction in the availability of the financing provided by Fannie Mae and Freddie Mac could adversely affect mortgage interest rates, mortgage availability and our sales of new homes and origination of mortgage loans. FHA and VA mortgage financing support remains an important factor in marketing our homes.
In addition, breaches of our information technology systems or data security systems, including cyberattacks and malicious uses of artificial intelligence, could result in the unintended and/or unauthorized public disclosure or the misappropriation of proprietary, personal identifying and confidential information (including information we collect and retain in connection with our business about our homebuyers, business partners and employees), and require us to incur significant expense (that we may not be able to recover in whole or in part from our service providers or responsible parties, or their or our insurers) to address and remediate or otherwise resolve.
In addition, breaches of our information technology systems or data security systems, including cyberattacks and malicious uses of artificial intelligence, could result in the unintended and/or unauthorized public disclosure or the misappropriation of proprietary, personal identifying and confidential information (including information we collect and retain in connection with 22 our business about our homebuyers, business partners and employees), and require us to incur significant expense (that we may not be able to recover in whole or in part from our service providers or responsible parties, or their or our insurers) to address and remediate or otherwise resolve.
For example: • a significant portion of our cash flow may be required to pay principal and interest on our indebtedness, which could reduce the funds available for working capital, capital expenditures, acquisitions or other purposes; • borrowings under the Credit Facility bear, and borrowings under any new facility could bear, interest at floating rates, which could result in higher interest expense in the event of an increase in interest rates; • the terms of our indebtedness could limit our ability to borrow additional funds or sell assets to raise funds, if needed, 18 for working capital, capital expenditures, acquisitions or other purposes; • our debt level and the various covenants contained in the Credit Facility, the indentures governing our 2030 Senior Notes and 2028 Senior Notes and the documents governing our other indebtedness could place us at a relative competitive disadvantage compared to some of our competitors; and • the terms of our indebtedness could prevent us from raising the funds necessary to repurchase all of the 2030 Senior Notes and the 2028 Senior Notes tendered to us upon the occurrence of a change of control, which, in each case, would constitute a default under the applicable indenture, which in turn could trigger a default under the Credit Facility and the documents governing our other indebtedness.
For example: • a significant portion of our cash flow may be required to pay principal and interest on our indebtedness, which could reduce the funds available for working capital, capital expenditures, acquisitions or other purposes; • borrowings under the Credit Facility bear, and borrowings under any new facility could bear, interest at floating rates, which could result in higher interest expense in the event of an increase in mortgage interest rates; • the terms of our indebtedness could limit our ability to borrow additional funds or sell assets to raise funds, if needed, for working capital, capital expenditures, acquisitions or other purposes; • our debt level and the various covenants contained in the Credit Facility, the indentures governing our 2030 Senior Notes and 2028 Senior Notes and the documents governing our other indebtedness could place us at a relative competitive disadvantage compared to some of our competitors; and • the terms of our indebtedness could prevent us from raising the funds necessary to repurchase all of the 2030 Senior Notes and the 2028 Senior Notes tendered to us upon the occurrence of a change of control, which, in each case, would constitute a default under the applicable indenture, which in turn could trigger a default under the Credit Facility and the documents governing our other indebtedness.
There can be no assurance that this seasonality pattern will continue to exist in future reporting periods. In addition, as a result of such variability, our historical performance may not be a meaningful indicator of future results. Damage to our corporate reputation or brand from negative publicity could adversely affect our business, financial results and/or stock price.
There can be no assurance that this seasonality pattern will continue to exist in future reporting periods. In addition, as a result of such variability, our historical performance may not be a meaningful indicator of future results. 21 Damage to our corporate reputation or brand from negative publicity could adversely affect our business, financial results and/or stock price.
In addition, if a buyer under the MIF Mortgage Repurchase Facility, which M/I Financial uses to fund mortgage originations, fails or is unable or unwilling to fulfill its obligations, M/I Financial’s borrowing capacity under the MIF Mortgage Repurchase Facility may be limited and have an adverse effect on our liquidity and ability to provide mortgage loans to our homebuyers.
In addition, if a buyer under the MIF Mortgage Repurchase Facility or the MIF Master Repurchase Facility, which M/I Financial uses to fund mortgage originations, fails or is unable or unwilling to fulfill its obligations, M/I Financial’s borrowing capacity under the MIF Mortgage Repurchase Facility or the MIF Master Repurchase Facility may be limited and have an adverse effect on our liquidity and ability to provide mortgage loans to our homebuyers.
If labor and building material shortages and cost increases return, our gross margins and results of operations could be adversely affected if we are unable to continue to increase prices or achieve other cost savings. We depend on the continued availability of and satisfactory performance of subcontracted labor for the construction of our homes and to provide related materials.
If labor and building material shortages and cost increases return, our gross margins and results of operations could be adversely affected if we are unable to continue to increase prices or achieve other cost savings. 15 We depend on the continued availability of and satisfactory performance of subcontracted labor for the construction of our homes and to provide related materials.
Even if potential customers do not need financing, changes in the availability of mortgage products may make it harder for them to sell their current homes to potential buyers who need financing, which may reduce demand for new homes. 15 Many of our homebuyers obtain financing for their home purchases from M/I Financial.
Even if potential customers do not need financing, changes in the availability of mortgage products may make it harder for them to sell their current homes to potential buyers who need financing, which may reduce demand for new homes. Many of our homebuyers obtain financing for their home purchases from M/I Financial.
We cannot provide any assurance that there will be a sufficient supply of, or satisfactory performance by, these unaffiliated third-party subcontractors, which could have a material adverse effect on our business. 16 Tax law changes could make home ownership more expensive and/or less attractive.
We cannot provide any assurance that there will be a sufficient supply of, or satisfactory performance by, these unaffiliated third-party subcontractors, which could have a material adverse effect on our business. Tax law changes could make home ownership more expensive and/or less attractive.
There can be no assurance that we will not have significant liabilities in respect of such claims in the future, which could exceed our reserves, or that the impact of such claims on our results of operations will not be material. 19 If our ability to resell mortgages to investors is impaired, we may be required to broker loans.
There can be no assurance that we will not have significant liabilities in respect of such claims in the future, which could exceed our reserves, or that the impact of such claims on our results of operations will not be material. If our ability to resell mortgages to investors is impaired, we may be required to broker loans.
In the future, our pricing strategies may be limited by market conditions. We may be unable to change the mix of our home offerings, reduce the costs of the homes we build or offer more 14 affordable homes to maintain our gross margins or satisfactorily address changing market conditions in other ways.
In the future, our pricing strategies may be limited by market conditions. We may be unable to change the mix of our home offerings, reduce the costs of the homes we build or offer more affordable homes to maintain our gross margins or satisfactorily address changing market conditions in other ways.
We may continue to experience high rates of inflation in the future, and in a high inflationary environment, we may not be able to raise home prices enough to keep pace with the increased costs of land and house construction, which could reduce our profit margins.
We may experience high rates of inflation in the future, and in a high inflationary environment, we may not be able to raise home prices enough to keep pace with the increased costs of land and house construction, which could reduce our profit margins.
Our ability to comply with the foregoing restrictions and covenants may be affected by events beyond our control, including prevailing economic, financial and industry conditions. Our indebtedness could adversely affect our financial condition, and we and our subsidiaries may incur additional indebtedness, which could increase the risks created by our indebtedness.
Our ability to comply with the foregoing restrictions and covenants may be affected by events beyond our control, including prevailing economic, financial and industry conditions. 17 Our indebtedness could adversely affect our financial condition, and we and our subsidiaries may incur additional indebtedness, which could increase the risks created by our indebtedness.
A reduction in our gross margins from home sales could have a significantly negative impact on our financial position and results of operations. Additional external factors, such as foreclosure rates, mortgage availability, high inflation, and unemployment rates, could also negatively impact our results.
A reduction in our gross margins from home sales could have a significantly negative impact on our financial position and results of operations. Additional external factors, such as foreclosure rates, mortgage availability, high inflation, competition and unemployment rates, could also negatively impact our results.
Any increases in down payment requirements, lower maximum loan amounts, or limitations or restrictions on the availability of FHA and VA financing support could adversely affect interest rates, mortgage availability and our sales of new homes and origination of mortgage loans.
Any increases in down payment requirements, lower maximum loan amounts, or limitations or restrictions on the availability of FHA and VA financing support 14 could adversely affect mortgage interest rates, mortgage availability and our sales of new homes and origination of mortgage loans.
These developments are highly uncertain and outside of our control. To the extent an epidemic, pandemic or similar public health issue has a significant adverse effect on the U.S. economy, our business, results of operations, financial condition and/or cash flows could be materially adversely affected. Item 1B. UNRESOLVED STAFF COMMENTS None. 24
These developments are highly uncertain and outside of our control. To the extent an epidemic, pandemic or similar public health issue has a significant adverse effect on the U.S. economy, our business, results of operations, financial condition and/or cash flows could be materially adversely affected. Item 1B. UNRESOLVED STAFF COMMENTS None. 23
Our $650 million unsecured revolving credit facility dated July 18, 2013, as amended, with M/I Homes, Inc. as borrower and guaranteed by the Company's wholly-owned homebuilding subsidiaries (the “Credit Facility”), the indenture governing our 3.95% Senior Notes due 2030 (the “2030 Senior Notes”) and the indenture governing our 4.95% Senior Notes due 2028 (the “2028 Senior Notes”) impose restrictions on our operations and activities.
Our $900 million unsecured revolving credit facility dated July 18, 2013, as amended, with M/I Homes, Inc. as borrower and guaranteed by the Company's wholly-owned homebuilding subsidiaries (the “Credit Facility”), the indenture governing our 3.95% Senior Notes due 2030 (the “2030 Senior Notes”) and the indenture governing our 4.95% Senior Notes due 2028 (the “2028 Senior Notes”) impose restrictions on our operations and activities.
Many of our information technology and other computer resources are provided to us and/or maintained on our behalf by third-party service providers pursuant to agreements that specify to varying degrees certain security and service level standards. We also rely upon our third-party service providers to maintain effective cyber security measures to keep our information secure and to carry cyber insurance.
Many of our information technology and other computer resources are provided to us and/or maintained on our behalf by third-party service providers pursuant to agreements that specify to varying degrees certain security and service standards. We also rely on our third-party service providers to maintain effective cyber security measures to keep our information secure and to carry cyber insurance.
During 2023 and 2024, we experienced delays in receiving governmental and municipality approvals in certain of our community locations, and we expect that we may experience a similar level of delays in 2025. Governmental authorities may also restrict or place moratoriums on the availability of utilities, such as water and sewer taps.
During 2024 and 2025, we experienced delays in receiving governmental and municipality approvals in certain of our community locations, and we expect that we may experience a similar level of delays in 2026. Governmental authorities may also restrict or place moratoriums on the availability of utilities, such as water and sewer taps.
Our financial services business is closely related to our homebuilding business, as it originates mortgage loans principally on behalf of purchasers of the homes we build. If demand for our homes declines in the future, the financial results of our financial services segment will also decline.
Our financial services business is closely related to our homebuilding business as it originates mortgage loans principally on behalf of purchasers of the homes we build. If demand for our homes declines in the future, the financial results of our financial services segment may also decline.
We closely monitor our sales prices and offer sales incentives and mortgage rate buydown programs and adjust base sales prices in certain circumstances and in certain communities, which negatively impacted our sales prices and gross margins in 2024. We may or may not continue to offer these incentives in 2025.
We closely monitor our sales prices and offer sales incentives and mortgage rate buydown programs and adjust base sales prices in 13 certain circumstances and in certain communities, which negatively impacted our sales prices and gross margins in 2025. We may or may not continue to offer these incentives in 2026.
The ability to obtain surety bonds also can be impacted by the willingness of insurance companies and sureties to issue performance bonds. If we cannot obtain surety bonds when required, our results of operations and/or cash flows could be adversely impacted. The M/I Financial repurchase facility will expire in 2025.
The ability to obtain surety bonds also can be impacted by the willingness of insurance companies and sureties to issue performance bonds. If we cannot obtain surety bonds when required, our results of operations and/or cash flows could be adversely impacted. The M/I Financial repurchase facilities will expire in 2026.
In addition to our costs, natural disasters and severe weather conditions may increase the cost of homeowner’s insurance which could reduce the number of potential buyers who can afford, or who are willing to purchase homes we build in these affected areas, which could result in reduced demand for our homes in these markets. 22 Information technology failures and data security breaches could harm our business.
In addition to our costs, natural disasters and severe weather conditions may increase the cost of homeowner’s insurance which could reduce the number of potential buyers who can afford, or who are willing to purchase homes we build in these affected areas, which could result in reduced demand for our homes in these markets.
Our limited geographic diversification could adversely impact us if the demand for new homes or the level of homebuilding activity in our current markets declines, since there may not be a balancing opportunity in a stronger market in other geographic regions. We may write off intangible assets, such as goodwill.
Our limited geographic diversification could adversely impact us if the demand for new homes or the level of homebuilding activity in our current markets declines, since there may not be a balancing opportunity in a stronger market in other geographic regions.
In addition, cancellations of home sales contracts in backlog may increase. Although our absorption rate, cancellation rate and new contracts improved during 2024 compared to prior year, any decline in sales activity could adversely affect our results of operations, financial condition and cash flows.
In addition, cancellations of home sales contracts in backlog may increase. Our absorption rate and new contracts declined in 2025 compared to prior year while our cancellation rate increased year over year. Any further decline in sales activity could adversely affect our results of operations, financial condition and cash flows.
An epidemic, pandemic or similar public health issue, or fear of such an event, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period and, together with any associated economic and social instability or distress, have a material adverse effect on our business, results of operations, financial condition and/or cash flows. 23 The impact of an epidemic, pandemic or similar public health issue on our business will depend on future developments, including whether governmental authorities impose additional health and safety measures, the duration and severity of the public health issue, the acceptance and effectiveness of treatments including vaccines, and the impact of the public health issue on our employees, customers, and building partners.
An epidemic, pandemic or similar public health issue, or fear of such an event, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period and, together with any associated economic and social instability or distress, have a material adverse effect on our business, results of operations, financial condition and/or cash flows.
We recorded goodwill in connection with our acquisition of the assets and operations of Pinnacle Homes. On an ongoing basis, we evaluate whether facts and circumstances indicate any impairment of the value of intangible assets. As circumstances change, we cannot provide any assurance that we will realize the value of these intangible assets.
On an ongoing basis, we evaluate whether facts and circumstances indicate any impairment of the value of intangible assets. As circumstances change, we cannot provide any assurance that we will realize the value of these intangible assets.
If we are unable to renew or replace the MIF Mortgage Repurchase Facility when it matures, the activities of our financial services segment could be impeded and our home sales and homebuilding and financial services results of operations may be adversely affected.
If we are unable to renew or replace the MIF Mortgage Repurchase Facility or the MIF Master Repurchase Facility when they mature, the activities of our financial services segment could be impeded and our home sales and homebuilding and financial services results of operations may be adversely affected. Capital allocation strategies could adversely affect our operating results and shareholder value.
As of December 31, 2024, we had approximately $695.0 million of indebtedness (net of debt issuance costs), excluding issuances of letters of credit and our $300 million mortgage repurchase facility, with M/I Financial as borrower (the “MIF Mortgage Repurchase Facility”), and we had $569.6 million of remaining availability for borrowings under the Credit Facility.
As of December 31, 2025, we had approximately $696.3 million of indebtedness (net of debt issuance costs), excluding issuances of letters of credit, our $200 million mortgage repurchase facility, with M/I Financial as borrower (the “MIF Mortgage Repurchase Facility”) and our $100 million master repurchase facility, with M/I Financial as borrower (the “MIF Master Repurchase Facility), and we had $806.8 million of remaining availability for borrowings under the Credit Facility.
If we became unable to sell loans into the secondary mortgage market or directly to Fannie Mae and Freddie Mac or issue Ginnie Mae securities, we would have to modify our origination model, which, among other things, could significantly reduce our ability to sell homes.
If we became unable to sell loans into the secondary mortgage market or directly to Fannie Mae and Freddie Mac or issue Ginnie Mae securities, we would have to modify our origination model, which, among other things, could significantly reduce our ability to sell homes. 19 The inability of our lenders to satisfy their obligations under our credit facilities could adversely affect our liquidity and financial condition.
M/I Financial uses the MIF Mortgage Repurchase Facility to finance eligible residential mortgage loans originated by M/I Financial. This facility will expire on October 21, 2025.
M/I Financial uses the MIF Mortgage Repurchase Facility and the MIF Master Repurchase Facility to finance eligible residential mortgage loans originated by M/I Financial. These facilities will expire on October 20, 2026.
In addition, any failure to comply therewith could give rise to fines, penalties or other liabilities, obligations to remediate, permit revocations or other sanctions and have an adverse effect on our results of operations, financial condition or business. Various advocacy groups and government agencies and the general public are increasingly focusing on the impact of climate change.
In addition, any failure to comply therewith could 20 give rise to fines, penalties or other liabilities, obligations to remediate, permit revocations or other sanctions and have an adverse effect on our results of operations, financial condition or business.
We are required to periodically evaluate our inventory for potential impairment, which may result in additional valuation adjustments that could be significant and negatively impact our results of operations and financial condition. We cannot make any assurances that the measures we employ to manage inventory risks and costs will be successful.
Additionally, we are required to periodically evaluate our inventory for potential impairment, which may result in valuation adjustments that could be significant and negatively impact our results of operations and financial condition.
Future rulings by the NLRB or other courts or governmental agencies could make us responsible for labor violations committed by our subcontractors.
Future rulings by the NLRB or other courts or governmental agencies could make us responsible for labor violations committed by our subcontractors. Governmental rulings that hold us responsible for labor practices of our subcontractors could create substantial exposures for us under our subcontractor relationships.
These statutes, ordinances, rules, and regulations, and any failure to comply therewith, could give rise to additional liabilities or expenditures and have an adverse effect on our results of operations, financial condition or business.
This regulation affects construction activities as well as sales activities, mortgage lending activities, land availability and other dealings with homebuyers. These statutes, ordinances, rules, and regulations, and any failure to comply therewith, could give rise to additional liabilities or expenditures and have an adverse effect on our results of operations, financial condition or business.
Inflation can have a long-term adverse impact on us because if our costs of land, materials and labor increase, we would need to increase the sale prices of our homes to maintain satisfactory margins.
Inflation can have a long-term adverse impact on us because if our costs of land, materials and labor increase, we would need to increase the sale prices of our homes to maintain satisfactory margins. Although inflation declined in 2025 compared to the past several years, many of the increases in costs that we experienced from 2022 through 2024 have persisted.
We use information technology, digital communications and other computer resources to carry out important operational and marketing activities and to maintain our business records. We have implemented systems and processes intended to address ongoing and evolving cyber security risks, secure our information technology, applications and computer systems, and prevent unauthorized access to or loss of sensitive, confidential and personal data.
We have implemented systems and processes intended to address ongoing and evolving cybersecurity risks, secure our information technology, applications and computer systems, and prevent unauthorized access to or loss of sensitive, confidential and personal data.
Housing market conditions improved in 2024, as interest rates continued to hover around 7% and consumer confidence continued to improve. However, any decline in the homebuilding and mortgage lending industries and overall economy could decrease the market value of our inventory which could have a negative impact on our gross margins from home sales.
Declines in the homebuilding and mortgage lending industries and overall economy could decrease the market value of our inventory which could have a negative impact on our gross margins from home sales as we experienced in 2025 compared to 2024.
When we identify these defects, we repair them in accordance with our warranty obligations. Improper construction processes and defective products widely used in the homebuilding industry can result in the need to perform extensive repairs to large numbers of homes.
Improper construction processes and defective products widely used in the homebuilding industry can result in the need to perform extensive repairs to large numbers of homes. The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from subcontractors, materials suppliers and insurers.
Despite our detailed specifications and quality control procedures, in some cases, it may be determined that subcontractors used improper construction processes or defective materials in the construction of our homes. Although our subcontractors have principal responsibility for defects in the work they do, we have ultimate responsibility to the homebuyers.
Our subcontractors can expose us to warranty and other risks. We rely on subcontractors to construct our homes, and in many cases, select and obtain building materials. Despite our detailed specifications and quality control procedures, in some cases, it may be determined that subcontractors used improper construction processes or defective materials in the construction of our homes.
Because of the high degree of judgment required in determining these liability reserves, our actual future liability could differ significantly from our reserves. Given the inherent uncertainties, we cannot provide assurance that our insurance coverage, our subcontractor arrangements and our reserves will adequately address all of our construction defect, product liability and warranty claims.
Given the inherent uncertainties, we cannot provide assurance that our insurance coverage, our subcontractor arrangements and our reserves will adequately address all of our construction defect, product liability and warranty claims. If the costs to resolve these claims exceed our estimates, our results of operations, financial condition and cash flows could be adversely affected.
Further reduction in the availability of mortgage financing or continued increases in mortgage interest rates or down payment requirements could adversely affect our business. Mortgage interest rates have remained elevated since rising in 2022 after a period of historically low rates, which increased the costs of owning a home and reduced the demand for our homes.
Reductions in the availability of mortgage financing, continued elevated mortgage interest rates for prolonged periods and further increases in mortgage interest rates or down payment requirements could adversely affect our business.
Despite the Federal Reserve reducing rates by 100 basis points during the second half of 2024, mortgage rates continue to hover between 6% and 7%. Any increases by the Federal Reserve could further increase the costs of owning a home and reduce the demand for our homes.
Mortgage interest rates have remained elevated since rising in 2022 after a period of historical low rates, which has increased the costs of owning a home and reduced the demand for our homes. Despite the Federal Reserve reducing rates by an additional 75 basis points during 2025, mortgage rates continue to hover between 6% and 7%.
The homebuilding industry is subject to numerous local, state, and federal statutes, ordinances, rules, and regulations concerning building, zoning, sales, consumer protection, and similar matters. This regulation affects construction activities as well as sales activities, mortgage lending activities, land availability and other dealings with homebuyers.
We are subject to extensive government regulations, which could restrict our business and cause us to incur significant expense. The homebuilding industry is subject to numerous local, state, and federal statutes, ordinances, rules, and regulations concerning building, zoning, sales, consumer protection, and similar matters.
Supply shortages and risks related to the demand for labor and building materials could increase costs and delay deliveries.
We cannot make any assurances that the measures we employ to manage inventory risks and costs will be successful or that we will not record additional inventory impairment charges or write-offs of land deposits and pre-acquisition costs. Supply shortages and risks related to the demand for labor and building materials could increase costs and delay deliveries.
Removed
As a result of the historically high rates of inflation we experienced in 2022 and into early 2023, we experienced increases in the costs of land, materials and labor.
Added
Housing market conditions were challenging in 2025 and consumer confidence weakened as affordability concerns were exacerbated by elevated mortgage interest rates and uncertain trade policies.
Removed
If the costs to resolve these claims exceed our estimates, our results of operations, financial condition and cash flows could be adversely affected. Our subcontractors can expose us to warranty and other risks. We rely on subcontractors to construct our homes, and in many cases, select and obtain building materials.
Added
We recorded an aggregate charge of $47.7 million during 2025 that included $11.8 million of write-offs of land deposits and pre-acquisition costs for land we no longer intend to purchase and $35.9 million of inventory impairments. Of these charges, $6.7 million and $41.0 million were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively.
Removed
The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from 17 subcontractors, materials suppliers and insurers.
Added
Any rate increases by the Federal Reserve could further increase the costs of owning a home and reduce the demand for our homes. Demand for new homes may also further decline or fail to improve if mortgage interest rates remain elevated for a longer period of time.
Removed
The inability of our lenders to satisfy their obligations under our credit facilities could adversely affect our liquidity and financial condition.
Added
We recorded an aggregate charge of $47.7 million during 2025 that included $11.8 million of write-offs of land deposits and pre-acquisition costs for land we no longer intend to purchase as a result of our efforts to right-size our land portfolio and $35.9 million of inventory impairments.
Removed
Governmental rulings that hold us responsible for labor practices of our subcontractors could create substantial exposures for us under our subcontractor relationships. 20 We are subject to extensive government regulations, which could restrict our business and cause us to incur significant expense.
Added
Moreover, certain insurance companies doing business in states in which we operate could restrict, curtail or suspend the issuance of homeowners’ insurance policies on single-family homes. This could both reduce the availability of hurricane, fire and other types of natural disaster insurance, in general, and increase the cost of such insurance to prospective purchasers of homes.
Removed
Government restrictions, standards and regulations intended to mitigate climate change, such as greenhouse gas emissions standards, are emerging and may increase in the future in the form of additional restrictions or regulations on land development and home construction in certain areas.
Added
Mortgage financing for a new home is conditioned, among other things, on the availability of adequate homeowners’ insurance. We may write off intangible assets, such as goodwill. We recorded goodwill in connection with our acquisition of the assets and operations of Pinnacle Homes.
Removed
Such restrictions and regulations could increase our operating and compliance costs and have an adverse effect on our results of operations, financial condition or business.
Added
We recorded $11.2 million in additional warranty claims in 2025 in two communities in Florida primarily relating to attic ventilation issues. Because of the high degree of judgment required in determining these liability 16 reserves, our actual future liability could differ significantly from our reserves.
Removed
ESG matters have also attracted increasing governmental and societal attention, which may expand our reporting, diligence, and disclosure on topics including climate change, waste production, water usage, human capital, labor, and risk oversight, and the nature, scope, and complexity of matters that we are required to control, assess, and report.
Added
Although our subcontractors have principal responsibility for defects in the work they do, we have ultimate responsibility to the homebuyers. When we identify these defects, we repair them in accordance with our warranty obligations. As mentioned above, we recorded an additional $11.2 million for warranty claims in two or our Florida communities primarily relating to attic ventilation issues.
Removed
The rapidly evolving laws, regulations, policies and related interpretations, as well as increased enforcement actions by various governmental and regulatory agencies, relating to ESG matters including climate change may create challenges for the Company, alter the environment in which we do business and increase compliance costs, which could adversely impact our results of operations and cash flows.
Added
Our goal is to allocate capital to maximize our overall long-term returns. This includes growing profitability, improving balance sheet efficiency and generating returns above our cost of capital.
Removed
On February 1, 2025, President Trump 21 signed executive orders imposing additional tariffs on Canada, Mexico and China under the International Emergency Economic Powers Act. While the imposition of tariffs on Canada and Mexico was subsequently paused on February 3, 2025, uncertainty remains around the logistics of international trade in the future.
Added
If we do not properly allocate our capital, we may fail to produce optimal financial results and we may experience a reduction in shareholder value, including increased volatility in the price of our common shares.
Added
As part of our capital allocation strategy, from time to time we have returned, and may continue to return, value to our shareholders through share repurchases. For example, during 2025 we repurchased 1.6 million outstanding common shares under our share repurchase programs at an aggregate purchase price of $202.0 million.
Added
In addition, in November 2025 we announced a new share repurchase program that authorizes the Company to purchase up to $250 million of its outstanding common shares through open market transactions, privately negotiated transactions or otherwise in accordance with all applicable laws (the “Second 2025 Share Repurchase Program”).
Added
The timing, amount and other terms and conditions of any 18 additional repurchases under the Second 2025 Share Repurchase Program is based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements.
Added
Decisions with respect to share repurchases are subject to the discretion of our Board of Directors and are based on a variety of factors, including the price and availability of our shares, trading volume, our earnings and financial condition, general market conditions and other capital allocation opportunities.
Added
The share repurchase program may be suspended or discontinued at any time in the future without prior notice. Repurchases under our share repurchase program may reduce the market liquidity for our common shares, potentially affecting its trading volatility and price. Future share repurchases may also diminish our cash reserves, which may also impact our ability to pursue other opportunities.
Added
Information technology failures and data security breaches could harm our business. We use information technology, digital communications and other computer resources to carry out important operational and marketing activities and to maintain our business records.
Added
The impact of an epidemic, pandemic or similar public health issue on our business will depend on future developments, including whether governmental authorities impose additional health and safety measures, the duration and severity of the public health issue, the acceptance and effectiveness of treatments including vaccines, and the impact of the public health issue on our employees, customers, and building partners.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company has integrated cyber security into its annual risk assessment process. This process identifies critical assets and assesses those assets for potential threats and vulnerabilities. Risks are prioritized based on their impact and likelihood. Controls are assessed to ensure the Company’s controls are appropriate to mitigate risks.
Biggest changeThe Company has integrated cyber security into its annual risk assessment process. This process identifies critical assets and assesses those assets for potential threats and vulnerabilities, prioritizes risks based on their impact and likelihood, assesses controls to ensure they appropriately mitigate risks and identifies gaps that require additional attention.
Risk Factors” in Part I of this Annual Report on Form 10-K for more information regarding the risk factors associated with cybersecurity risks. 25
Risk Factors” in Part I of this Annual Report on Form 10-K for more information regarding the risk factors associated with cybersecurity risks. 24
Members of senior management are notified by our Information Security Committee if any cybersecurity incident leads to a breach or loss of any data.
Our Information Security Committee notifies members of senior management if any cybersecurity incident leads to a breach or loss of any data.
It also allows us to identify any gaps that we need to focus on. These gaps are typically part of the Information Security Committees risk register. The Information Security Committee meets quarterly and continuously monitors and re-evaluates risks through this risk register, which was initially developed using the NIST CSF framework.
Gaps identified during this process are typically included in the Information Security Committee’s risk register. The Information Security Committee meets quarterly and continuously monitors and re-evaluates risks through its risk register, which was initially developed using the NIST CSF framework.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed2 unchanged
Biggest changeAn adverse outcome in certain of these proceedings could have a material adverse effect on our business, financial condition and results of operations, and could cause the market value of our common shares to decline. The Company’s current legal proceedings are discussed in Note 8 to the Company’s Consolidated Financial Statements. Item 4. MINE SAFETY DISCLOSURES None. 26 PART II
Biggest changeAn adverse outcome in certain of these proceedings could have a material adverse effect on our business, financial condition and results of operations, and could cause the market value of our common shares to decline. The Company’s current legal proceedings are discussed in Note 8 to the Company’s Consolidated Financial Statements. Item 4. MINE SAFETY DISCLOSURES None. 25 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+1 added−2 removed0 unchanged
Biggest changePeriod Ending Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 M/I Homes, Inc. $ 100.00 $ 112.55 $ 158.02 $ 117.36 $ 350.04 $ 337.87 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 S&P 500 Homebuilding Index 100.00 124.48 187.16 151.13 263.07 261.28 27 Share Repurchases Common shares purchased during each month during the fourth quarter ended December 31, 2024 were as follows: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) October 1, 2024 - October 31, 2024 — $ — — 156,876,530 November 1, 2024 - November 30, 2024 — $ — — 156,876,530 December 1, 2024 - December 31, 2024 313,000 $ 163.37 313,000 106,719,705 Quarter ended December 31, 2024 313,000 $ 163.37 313,000 106,719,705 (1) On May 14, 2024, the Company announced that its Board of Directors authorized the 2024 Share Repurchase Program, which replaced the 2021 Share Repurchase Program which had $95 million of remaining availability at the time.
Biggest changePeriod Ending Index 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 M/I Homes, Inc. $ 100.00 $ 140.39 $ 104.27 $ 311.00 $ 300.18 $ 288.89 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 S&P 500 Homebuilding Index 100.00 150.35 121.41 211.33 209.89 204.19 26 Share Repurchases Common shares purchased during each month during the fourth quarter ended December 31, 2025 were as follows: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) October 1, 2025 - October 31, 2025 — $ — — 99,622,549 November 1, 2025 - November 30, 2025 360,000 $ 128.76 360,000 224,114,828 December 1, 2025 - December 31, 2025 27,000 $ 136.94 27,000 220,417,473 Quarter ended December 31, 2025 387,000 $ 129.33 387,000 220,417,473 (1) On February 11, 2025, the Company announced that its Board of Directors authorized a new share repurchase program which authorized the Company to purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”).
Performance Graph The following graph illustrates the Company’s performance in the form of cumulative total return to holders of our common shares for the last five calendar years through December 31, 2024, assuming a hypothetical investment of $100 and reinvestment of all dividends paid on such investment, compared to the cumulative total return of the same hypothetical investment in both the Standard and Poor’s 500 Stock Index and the Standard & Poor’s 500 Homebuilding Index.
Performance Graph The following graph illustrates the Company’s performance in the form of cumulative total return to holders of our common shares for the last five calendar years through December 31, 2025, assuming a hypothetical investment of $100 and reinvestment of all dividends paid on such investment, compared to the cumulative total return of the same hypothetical investment in both the Standard and Poor’s 500 Stock Index and the Standard & Poor’s 500 Homebuilding Index.
See Note 11 to our Consolidated Financial Statements for more information regarding the limit imposed by the indenture governing our 2028 Senior Notes on our ability to pay dividends on, and repurchase, our common shares to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture. ITEM 6. Reserved 28
See Note 11 to our Consolidated Financial Statements for more information regarding the limit imposed by the indenture governing our 2028 Senior Notes on our ability to pay dividends on, and repurchase, our common shares to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture. ITEM 6. Reserved 27
Under the 2024 Share Repurchase Program, the Company may purchase up to $250 million of its outstanding common shares through open market transactions, privately negotiated transactions or otherwise in accordance with all applicable laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
Under the Second 2025 Share Repurchase Program, the Company may purchase up to $250 million of its outstanding common shares through open market transactions, privately negotiated transactions or otherwise in accordance with all applicable laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Shares and Dividends The Company’s common shares are traded on the New York Stock Exchange under the symbol “MHO.” As of February 12, 2025, there were approximately 297 record holders of the Company’s common shares.
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Shares and Dividends The Company’s common shares are traded on the New York Stock Exchange under the symbol “MHO.” As of February 11, 2026, there were approximately 296 record holders of the Company’s common shares.
The 2025 Share Repurchase Program replaces the 2024 Share Repurchase Program. The 2025 Share Repurchase Program does not have an expiration date and may be modified, suspended or discontinued at any time. See Note 16 to our Consolidated Financial Statements for additional information.
As of December 31, 2025, $220 million remained available for repurchase under the Second 2025 Share Repurchase Program. The Second 2025 Share Repurchase Program does not have an expiration date and may be modified, suspended or discontinued at any time. See Note 16 to our Consolidated Financial Statements for additional information.
At that date, there were 30,137,141 common shares issued and 27,114,451 common shares outstanding.
At that date, there were 30,137,141 common shares issued and 25,767,709 common shares outstanding.
Removed
As of December 31, 2024, $106.7 million remained available for repurchase under the 2024 Share Repurchase Program.
Added
The 2025 Share Repurchase Program replaced the 2024 Share Repurchase Program which had $106.7 million of remaining availability at the time. On November 12, 2025, the Company announced that its Board of Directors authorized the Second 2025 Share Repurchase Program which replaced the 2025 Share Repurchase Program which had $79.2 million of remaining availability at this time.
Removed
On February 11, 2025, the Company announced that its Board of Directors approved a new share repurchase program pursuant to which the Company may purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”) through open market transactions, privately negotiated transactions or otherwise in accordance with all applicable laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

108 edited+31 added−23 removed66 unchanged
Biggest change(b) Includes development reimbursements from local municipalities. 36 Reportable Segments The following table presents, by reportable segment, selected operating and financial information as of and for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (Dollars in thousands) 2024 2023 2022 Northern Region Homes delivered 3,873 3,169 3,581 New contracts, net 3,761 3,361 2,747 Backlog at end of period 1,136 1,248 1,056 Average sales price of homes delivered $ 490 $ 479 $ 478 Average sales price of homes in backlog $ 561 $ 531 $ 523 Aggregate sales value of homes in backlog $ 636,862 $ 663,180 $ 552,451 Housing revenue $ 1,897,288 $ 1,519,488 $ 1,711,627 Land sale revenue $ 2,725 $ 4,455 $ 2,609 Operating income homes (a) $ 280,505 $ 176,074 $ 217,309 Operating income land $ 594 $ 246 $ 190 Number of average active communities 95 101 92 Number of active communities, end of period 90 102 98 Southern Region Homes delivered 5,182 4,943 4,785 New contracts, net 4,823 4,616 3,921 Backlog at end of period 1,395 1,754 2,081 Average sales price of homes delivered $ 478 $ 485 $ 480 Average sales price of homes in backlog $ 547 $ 520 $ 551 Aggregate sales value of homes in backlog $ 762,821 $ 912,463 $ 1,145,719 Housing revenue $ 2,478,541 $ 2,394,884 $ 2,298,800 Land sale revenue $ 9,910 $ 20,846 $ 32,162 Operating income homes (a) $ 447,483 $ 437,054 $ 440,329 Operating income land $ 3,115 $ 3,114 $ 11,545 Number of average active communities 121 101 86 Number of active communities, end of period 130 111 98 Total Homebuilding Regions Homes delivered 9,055 8,112 8,366 New contracts, net 8,584 7,977 6,668 Backlog at end of period 2,531 3,002 3,137 Average sales price of homes delivered $ 483 $ 483 $ 479 Average sales price of homes in backlog $ 553 $ 525 $ 541 Aggregate sales value of homes in backlog $ 1,399,683 $ 1,575,643 $ 1,698,170 Housing revenue $ 4,375,829 $ 3,914,372 $ 4,010,427 Land sale revenue $ 12,635 $ 25,301 $ 34,771 Operating income homes (a) $ 727,988 $ 613,128 $ 657,638 Operating income land $ 3,709 $ 3,360 $ 11,735 Number of average active communities 216 202 179 Number of active communities, end of period 220 213 196 (a) Includes the effect of total homebuilding selling, general and administrative expense for the region as disclosed in the first table set forth in this “Outlook” section.
Biggest change(b) Includes development reimbursements from local municipalities. 35 Reportable Segments The following table presents, by reportable segment, selected operating and financial information as of and for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, (Dollars in thousands) 2025 2024 2023 Northern Region Homes delivered 3,716 3,873 3,169 New contracts, net 3,416 3,761 3,361 Backlog at end of period 836 1,136 1,248 Average sales price of homes delivered $ 507 $ 490 $ 479 Average sales price of homes in backlog $ 569 $ 561 $ 531 Aggregate sales value of homes in backlog $ 475,950 $ 636,862 $ 663,180 Housing revenue $ 1,882,641 $ 1,897,288 $ 1,519,488 Land sale revenue $ 7,816 $ 2,725 $ 4,455 Operating income homes (a)(b) $ 275,923 $ 280,505 $ 176,074 Operating income land $ 2,133 $ 594 $ 246 Number of average active communities 95 95 101 Number of active communities, end of period 94 90 102 Southern Region Homes delivered 5,205 5,182 4,943 New contracts, net 4,783 4,823 4,616 Backlog at end of period 973 1,395 1,754 Average sales price of homes delivered $ 460 $ 478 $ 485 Average sales price of homes in backlog $ 528 $ 547 $ 520 Aggregate sales value of homes in backlog $ 513,980 $ 762,821 $ 912,463 Housing revenue $ 2,392,033 $ 2,478,541 $ 2,394,884 Land sale revenue $ 9,828 $ 9,910 $ 20,846 Operating income homes (a)(b) $ 247,906 $ 447,483 $ 437,054 Operating income land $ 2,063 $ 3,115 $ 3,114 Number of average active communities 134 121 101 Number of active communities, end of period 138 130 111 Total Homebuilding Regions Homes delivered 8,921 9,055 8,112 New contracts, net 8,199 8,584 7,977 Backlog at end of period 1,809 2,531 3,002 Average sales price of homes delivered $ 479 $ 483 $ 483 Average sales price of homes in backlog $ 547 $ 553 $ 525 Aggregate sales value of homes in backlog $ 989,930 $ 1,399,683 $ 1,575,643 Housing revenue $ 4,274,674 $ 4,375,829 $ 3,914,372 Land sale revenue $ 17,644 $ 12,635 $ 25,301 Operating income homes (a)(b) $ 523,829 $ 727,988 $ 613,128 Operating income land $ 4,196 $ 3,709 $ 3,360 Number of average active communities 229 216 202 Number of active communities, end of period 232 220 213 (a) Includes the effect of total homebuilding selling, general and administrative expense for the region as disclosed in the first table set forth in this “Outlook” section.
The 2030 Senior Notes and the 2028 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by all of M/I Homes, Inc.’s subsidiaries (the “Subsidiary Guarantors”) with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by M/I Homes, Inc. or another subsidiary, and other subsidiaries designated as Unrestricted Subsidiaries (as defined in the indentures governing the 2030 Senior Notes and the 2028 Senior Notes), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indentures governing the 2030 Senior Notes and the 2028 Senior Notes (the “Non-Guarantor 43 Subsidiaries”).
The 2030 Senior Notes and the 2028 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by all of M/I Homes, Inc.’s subsidiaries (the “Subsidiary Guarantors”) with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by M/I Homes, Inc. or another subsidiary, and other subsidiaries designated as Unrestricted Subsidiaries (as defined in the indentures governing the 2030 Senior Notes and the 2028 Senior Notes), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indentures governing the 2030 Senior Notes and the 2028 Senior Notes (the “Non-Guarantor Subsidiaries”).
The cash used in financing activities in 2024 was primarily due to the repurchase of $177.0 million of our outstanding common shares during 2024 offset, in part, by proceeds of $120.3 million (net of proceeds from borrowings) under the MIF Mortgage Repurchase Facility and $21.3 million in proceeds from the exercise of stock options during 2024.
The cash used in financing activities in 2024 was primarily due to the repurchase of $177.0 million of our outstanding common shares during 2024, offset, in part, by proceeds of $120.3 million (net of repayments of borrowings) under the MIF Mortgage Repurchase Facility and $21.3 million in proceeds from the exercise of stock options during 2024.
Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, which could materially impact future cash flow and fair value estimates. 30 If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.
Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, which could materially impact future cash flow and fair value estimates. 29 If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.
In addition, we routinely monitor current and anticipated operational and debt service requirements, financial market conditions, and credit relationships, and we may choose to seek additional capital by issuing new debt and/or equity securities or engaging in other financial transactions to strengthen our liquidity or our long-term capital structure.
In addition, we routinely monitor current and anticipated operational and debt service requirements, financial market conditions, and credit relationships, and we may choose to seek additional capital by issuing new 40 debt and/or equity securities or engaging in other financial transactions to strengthen our liquidity or our long-term capital structure.
The amount borrowed will also be impacted by other cash receipts and payments, any capital markets transactions or other additional financings by the Company, any repayments or redemptions of outstanding debt, any additional share repurchases under the 2025 Share Repurchase Program and any other extraordinary events or transactions.
The amount borrowed will also be impacted by other cash receipts and payments, any capital markets transactions or other additional financings by the Company, any repayments or redemptions of outstanding debt, any additional share repurchases under the Second 2025 Share Repurchase Program and any other extraordinary events or transactions.
The timing and amount of any future purchases under the 2025 Share Repurchase Program will be based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements.
The timing and amount of any future purchases under the Second 2025 Share Repurchase Program will be based on a variety of factors, including the market price of the Company’s common shares, business considerations, general market and economic conditions and legal requirements.
We expect to continue managing our balance sheet and liquidity carefully in 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.
We expect to continue managing our balance sheet and liquidity carefully in 2026 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 2026 from cash receipts, excess cash balances and availability under our credit facilities.
To the extent we elect to borrow under the Credit Facility during 2025, the actual amount borrowed and the related timing will be subject to numerous factors, which are subject to significant variation as a result of the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, and cash receipts from home deliveries.
To the extent we elect to borrow under the Credit Facility during 2026, the actual amount borrowed and the related timing will be subject to numerous factors, which are subject to significant variation as a result of the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, and cash receipts from home deliveries.
The Credit Facility contains various representations, warranties and covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth of $1.8 billion at December 31, 2024 (subject to increase over time based on earnings and proceeds from equity offerings), (2) a leverage ratio not in excess of 60%, and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum amount of available liquidity.
The Credit Facility contains various representations, warranties and covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth of $2.2 billion at December 31, 2025 (subject to increase over time based on earnings and proceeds from equity offerings), (2) a leverage ratio not in excess of 60%, and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum amount of available liquidity.
See Note 11 to our Consolidated Financial Statements for more information regarding the 2030 Senior Notes and the 2028 Senior Notes. Supplemental Financial Information. As of December 31, 2024, M/I Homes, Inc. had $300.0 million aggregate principal amount of its 2030 Senior Notes and $400.0 million aggregate principal amount of its 2028 Senior Notes outstanding.
See Note 11 to our Consolidated Financial Statements for more information regarding the 2030 Senior Notes and the 2028 Senior Notes. Supplemental Financial Information. As of December 31, 2025, M/I Homes, Inc. had $300.0 million aggregate principal amount of its 2030 Senior Notes and $400.0 million aggregate principal amount of its 2028 Senior Notes outstanding.
Contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, are not material. 29 A performance obligation is a promise in a contract to transfer a distinct good or service to the customer.
Contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, are not material. 28 A performance obligation is a promise in a contract to transfer a distinct good or service to the customer.
The fair value of a community is estimated by discounting management’s cash flow projections using an appropriate risk-adjusted interest rate. As of December 31, 2024, we utilized discount rates ranging from 13% to 16% in our valuations.
The fair value of a community is estimated by discounting management’s cash flow projections using an appropriate risk-adjusted interest rate. As of December 31, 2025, we utilized discount rates ranging from 13% to 16% in our valuations.
These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2030 Senior Notes. As of December 31, 2024, the Company was in compliance with all terms, conditions, and covenants under the indenture. 4.95% Senior Notes.
These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2030 Senior Notes. As of December 31, 2025, the Company was in compliance with all terms, conditions, and covenants under the indenture. 4.95% Senior Notes.
The guarantors for the Credit Facility are the same subsidiaries that guarantee our 2030 Senior Notes and our 2028 Senior Notes. As of December 31, 2024, the Company was in compliance with all covenants of the Credit Facility, including financial covenants.
The guarantors for the Credit Facility are the same subsidiaries that guarantee our 2030 Senior Notes and our 2028 Senior Notes. As of December 31, 2025, the Company was in compliance with all covenants of the Credit Facility, including financial covenants.
Based on current market conditions, expected capital needs and availability, and the current market price of the Company’s common shares, we expect to continue repurchasing shares during 2025.
Based on current market conditions, expected capital needs and availability, and the current market price of the Company’s common shares, we expect to continue repurchasing shares during 2026.
These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2028 Senior Notes. As of December 31, 2024, the Company was in compliance with all terms, conditions, and covenants under the indenture.
These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2028 Senior Notes. As of December 31, 42 2025, the Company was in compliance with all terms, conditions, and covenants under the indenture.
At December 31, 2024 and December 31, 2023, our ratio of homebuilding debt to capital was 19% and 22%, respectively, 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.
At December 31, 2025 and December 31, 2024, our ratio of homebuilding debt to capital was 18% and 19%, respectively, 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.
There are no guarantors of the MIF Mortgage Repurchase Facility. As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders.
As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders.
Our principal uses of cash during 2024 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, and debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $177.0 million of our outstanding common shares under our 2021 and 2024 Share Repurchase Programs.
Our principal uses of cash during 2025 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, and debt service requirements, including the repayment of amounts outstanding under our credit facilities, and the repurchase of $202.0 million of our outstanding common shares under the 2024 and both 2025 Share Repurchase Programs compared to $177.0 million repurchased under the 2024 and 2021 Share Repurchase Programs in 2024.
In addition to commissions, costs associated with our sales offices, including compensation-related expenses and models, increased $8.9 million in 2024 due to our increased community count. General and administrative expense increased $35.7 million in 2024 compared to 2023 and also increased as a percentage of revenue from 5.5% in 2023 to 5.7% in 2024.
In addition to commissions, costs associated with our sales offices, including compensation-related expenses and models, increased $5.8 million in 2025 due to our increased community count. General and administrative expense increased $4.3 million in 2025 compared to 2024 and also increased as a percentage of revenue from 5.7% in 2024 to 5.9% in 2025.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 16, 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 14, 2025.
These macroeconomic trends have pressured housing affordability, negatively impacted homebuyer sentiment and impacted the costs of financing land development activities and housing construction. The annual rate of inflation in the United States was 2.9% in December 2024, as measured by the Consumer Price Index, up slightly from prior quarter, and down from 3.4% in December 2023.
These macroeconomic trends have pressured housing affordability, negatively impacted homebuyer sentiment and impacted the costs of financing land development activities and housing construction. The annual rate of inflation in the United States was 2.7% in December 2025, as measured by the Consumer Price Index, down slightly from the prior quarter and from 2.9% in December 2024.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW M/I Homes, Inc. and subsidiaries is one of the nation’s leading builders of single-family homes, having sold over 160,000 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW M/I Homes, Inc. together with its subsidiaries is one of the nation’s leading builders of single-family homes, having sold over 168,200 homes since commencing homebuilding activities in 1976. The Company’s homes are marketed and sold primarily under the M/I Homes brand.
Cancellation Rates The following table sets forth the cancellation rates for each of our homebuilding segments for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, 2024 2023 2022 Northern 9.8 % 10.5 % 11.7 % Southern 10.6 % 12.1 % 16.1 % Total cancellation rate 10.3 % 11.4 % 14.3 % Year Over Year Comparisons Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Northern Region.
Cancellation Rates The following table sets forth the cancellation rates for each of our homebuilding segments for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 Northern 10.0 % 9.8 % 10.5 % Southern 12.1 % 10.6 % 12.1 % Total cancellation rate 11.2 % 10.3 % 11.4 % Year Over Year Comparisons Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Northern Region.
The Company earned $27.5 million of interest income - net in the twelve months ended December 31, 2024 compared to earning $20.0 million of interest income - net in the twelve months ended December 31, 2023. This was primarily due to a higher average cash balance on hand compared to prior year. Income Taxes.
The Company earned $20.0 million of interest income - net in the twelve months ended December 31, 2025 compared to earning $27.5 million of interest income - net in the twelve months ended December 31, 2024. The reduction in interest income in 2025 was primarily due to a lower average cash balance on hand compared to prior year. Income Taxes.
As of December 31, 2024, 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 $986 million, with $286 million payable within 12 months.
As of December 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 $977 million, with $277 million payable within 12 months.
The Company may also experience significant variation in cash and Credit Facility balances from week to week due to the timing of such receipts and payments. There were $80.4 million of letters of credit issued and outstanding under the Credit Facility at December 31, 2024.
The Company may also experience significant variation in cash and Credit Facility balances from week to week due to the timing of such receipts and payments. There were $93.2 million of letters of credit issued and outstanding under the Credit Facility at December 31, 2025.
Approximately 89% of our homes delivered during 2024 were financed through M/I Financial, compared to 83% during 2023. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter. Corporate Selling, General and Administrative Expenses. Corporate selling, general and administrative expense increased $11.0 million, from $78.0 million in 2023 to $89.0 million in 2024.
Approximately 93% of our homes delivered during 2025 were financed through M/I Financial, compared to 89% during 2024. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter. 38 Corporate Selling, General and Administrative Expenses. Corporate selling, general and administrative expense increased $0.6 million, from $89.0 million in 2024 to $89.6 million in 2025.
Selling expense increased $11.3 million due to a $4.9 million increase in realtor commissions and a $6.4 million increase in costs related to our sales offices and models due to our increased community count.
Selling expense increased $13.3 million due to an $8.9 million increase in realtor commissions and a $4.3 million increase in costs related to our sales offices and models due to our increased community count.
The mix of communities delivering homes may cause fluctuations in our new contracts and housing gross margin from year to year. For 2024, selling, general and administrative expense increased $61.1 million, and increased as a percentage of revenue to 10.9% in 2024 from 10.7% in 2023.
The mix of communities delivering homes may cause fluctuations in our new contracts and housing gross margin from year to year. For 2025, selling, general and administrative expense increased $17.9 million, and increased as a percentage of revenue to 11.6% in 2025 from 10.9% in 2024.
Our monthly absorption rate in our Northern region improved to 3.3 per community in 2024 compared to 2.8 per community in 2023 as a result of the increase in the number of new contracts and the decrease in the number of average active communities during 2024 compared to 2023. Southern Region.
Our monthly absorption rate in our Northern region declined to 3.0 per community in 2025 compared to 3.3 per community in 2024 as a result of the decrease in the number of new contracts and the increase in the number of average active communities during 2025 compared to 2024. Southern Region.
On February 11, 2025 the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company may purchase up to $250 million of its outstanding common shares (the “2025 Share Repurchase Program”), which replaced the 2024 Share Repurchase Program.
On November 12, 2025, the Company announced that its Board of Directors authorized a new share repurchase program pursuant to which the Company may purchase up to $250 million of its outstanding common shares (the “Second 2025 Share Repurchase Program”), which replaced the 2025 Share Repurchase Program.
The increase in the number of new communities opened primarily related to prior year delays that were pushed to 2024. Our monthly absorption rate in our Southern region decreased to 3.3 per community in 2024 from 3.8 per community in 2023 due to the increase in average community count. Financial Services.
The decrease in the number of new communities opened primarily related to delays in 2023 that were pushed to 2024. Our monthly absorption rate in our Southern region declined to 3.0 per community in 2025 from 3.3 per community in 2024 due to the increase in average community count. Financial Services.
(b) The available amount is computed in accordance with the borrowing base calculations under the MIF Mortgage Repurchase Facility, which may be increased by pledging additional mortgage collateral, not to exceed the maximum aggregate commitment amount of M/I Financial's repurchase agreement as of December 31, 2024, which was $300 million.
(b) The available amount is computed in accordance with the borrowing base calculations under the MIF Mortgage Repurchase Facility, which may be increased by pledging additional mortgage collateral, not to exceed the maximum aggregate commitment amount of the MIF Mortgage Repurchase Facility as of December 31, 2025, which is $200 million.
The increase in cash is primarily due to 2024 net income and home deliveries and the timing of land spend compared to prior year.
The decrease in cash is primarily due to decreased net income and home deliveries in 2025 and the timing of land spend compared to prior year.
As of December 31, 2024, the Company was authorized to repurchase an additional $106.7 million of outstanding common shares under the 2024 Share Repurchase Program (see Note 16 to our Consolidated Financial Statements).
As of December 31, 2025, the Company was authorized to repurchase an additional $220.4 million of outstanding common shares under the Second 2025 Share Repurchase Program (see Note 16 to our Consolidated Financial Statements).
During 2024, the Company repurchased 1.2 million outstanding common shares for an aggregate purchase price of $177.0 million under the 2024 and 2021 Share Repurchase Program which was funded with cash on hand.
During 2025, the Company repurchased 1.6 million outstanding common shares for an aggregate purchase price of $202.0 million under the two 2025 Share Repurchase Programs and the 2024 Share Repurchase Program which was funded with cash on hand.
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 most recently on October 22, 2024 (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower.
The Company is a party to three primary credit agreements: (1) a $900 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; (2) a $200 million mortgage repurchase agreement, dated October 24, 2023, as amended most recently on October 21, 2025 (the “MIF Mortgage Repurchase Facility”), with M/I Financial as borrower; and (3) an uncommitted $100 million mortgage repurchase agreement dated October 21, 2025 (the “MIF Master Repurchase Facility”), with M/I Financial as borrower.
The financial covenants, as more fully described and defined in the MIF Mortgage Repurchase Facility, are summarized in the following table, which also sets forth M/I Financial’s compliance with such covenants as of December 31, 2024: Financial Covenant Covenant Requirement Actual (Dollars in millions) Leverage Ratio ≤ 12.0 to 1.0 8.0 to 1.0 Liquidity ≥ $ 10.0 $ 56.3 Adjusted Net Income > $ 0.0 $ 27.0 Tangible Net Worth ≥ $ 25.0 $ 39.6 Senior Notes. 3.95% Senior Notes.
The financial covenants, as more fully described and defined in the MIF Mortgage Repurchase Facility, are summarized in the following table, which also sets forth M/I Financial’s compliance with such covenants as of December 31, 2025: Financial Covenant Covenant Requirement Actual (Dollars in millions) Leverage Ratio ≤ 12.0 to 1.0 8.05 to 1.0 Liquidity ≥ $ 10.0 $ 38.2 Adjusted Net Income > $ 0.0 $ 42.2 Tangible Net Worth ≥ $ 25.0 $ 40.2 MIF Master Repurchase Facility.
We ended 2024 with approximately 52,200 lots under control, which represents a 5.8 year supply of lots based on 2024 homes delivered, including certain lots that we anticipate selling to third parties. This represents a 14% increase from our approximately 45,700 lots under control at the end of 2023.
We ended 2025 with approximately 50,000 lots under control, which represents a 5.6-year supply of lots based on 2025 homes delivered, including certain lots that we anticipate selling to third parties. This represents a 4% decrease from our approximately 52,200 lots under control at the end of 2024.
Revenue from our mortgage and title operations increased $22.4 million, or 24%, from $93.8 million for the twelve months ended December 31, 2023 to $116.2 million for the twelve months ended December 31, 2024 as a result of an increase in the number of loan originations, from 5,395 in 2023 to 6,731 in 2024 and an increase in the average loan amount from $393,000 in 2023 to $399,000 in 2024.
Revenue from our mortgage and title operations increased $9.3 million, or 8%, from $116.2 million for the twelve months ended December 31, 2024 to $125.5 million for the twelve months ended December 31, 2025 as a result of an increase in the number of loan originations from 6,731 in 2024 to 7,117 in 2025 and an increase in the average loan amount from $399,000 in 2024 to $407,000 in 2025.
The Credit Facility provides for an aggregate commitment amount of $650 million and also includes an accordion feature pursuant to which the maximum borrowing availability may be increased to an aggregate of $800 million, subject to obtaining additional commitments from lenders. The Credit Facility matures on December 9, 2026.
The Credit Facility provides for an aggregate commitment amount of $900 million and also includes an accordion feature pursuant to which the maximum borrowing availability may be increased to an aggregate of $1.05 billion, subject to obtaining additional commitments from lenders. The Credit Facility matures on September 18, 2030.
During 2024, the average daily amount of letters of credit outstanding under the Credit Facility was $76.3 million and the maximum amount of letters of credit outstanding under the Credit Facility was $86.5 million. At December 31, 2024, M/I Financial had $286.2 million outstanding under the MIF Mortgage Repurchase Facility.
During 2025, the average daily amount of letters of credit outstanding under the Credit Facility was $82.8 million and the maximum amount of letters of credit outstanding under the Credit Facility was $94.5 million. At December 31, 2025, M/I Financial had $198.2 million outstanding under the MIF Mortgage Repurchase Facility.
During 2024, we generated $179.7 million of cash from operating activities, compared to generating $552.1 million of cash from operating activities in 2023.
During 2025, we generated $137.3 million of cash from operating activities, compared to generating $179.7 million of cash from operating activities in 2024.
Our financial service operations ended 2024 with a $14.7 million increase in operating income compared to 2023, which was primarily due to the increase in revenue discussed above, partially offset by a $7.7 million increase in selling, general and administrative expense compared to 2023.
The operating income of our financial service operations increased $4.8 million in 2025 compared to 2024, which was primarily due to the increase in revenue discussed above, partially offset by a $4.5 million increase in selling, general and administrative expense compared to 2024.
The increase in selling, general and administrative expense was primarily attributable to a $6.4 million increase in compensation expense related to our improved results during the period, a $0.7 million increase in computer-related costs, and a $0.6 million increase in miscellaneous expenses. At December 31, 2024, M/I Financial provided financing services in all of our markets.
The increase in selling, general and administrative expense was primarily attributable to a $2.5 million increase in compensation related expense, a $0.8 million increase in computer-related costs, and a $1.2 million increase in miscellaneous expenses. At December 31, 2025, M/I Financial provided financing services in all of our markets.
Future interest payments associated with these notes payable totaled $135 million as of December 31, 2024, with $32 million payable within 12 months. As of December 31, 2024, there were no borrowings outstanding and $80.4 million of letters of credit outstanding under our Credit Facility, leaving $569.6 million available.
Future interest payments associated with these notes payable totaled $103 million as of December 31, 2025, with $32 million payable within 12 months. As of December 31, 2025, there were no borrowings outstanding and $93.2 million of letters of credit outstanding under our Credit Facility, leaving $806.8 million available.
In addition, the Credit Facility contains covenants that limit the Company’s number of unsold housing units and model homes, as well as the amount of Investments in Unrestricted Subsidiaries and Joint Ventures (each as defined in the Credit Facility).
In addition, the Credit Facility contains covenants that limit the amount of Investments in Unrestricted Subsidiaries and Joint Ventures (each as defined in the Credit Facility).
M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate based on Daily Adjusting One-Month Term SOFR plus a margin as defined in the MIF Mortgage Repurchase Facility. The MIF Mortgage Repurchase Facility also contains certain financial covenants each of which is defined in the MIF Mortgage Repurchase Facility.
M/I Financial pays interest on each advance under the MIF Master Repurchase Facility at a per annum rate based on Daily Simple SOFR plus a margin as defined in the MIF Master Repurchase Facility. The MIF Master Repurchase Facility contains the same financial covenants as the MIF Mortgage Repurchase Facility.
Investing Cash Flow Activities. During 2024, we used $54.9 million of cash in investing activities, compared to using $18.6 million of cash in investing activities during 2023. This $36.3 million increase in cash usage was primarily due to a $30.5 million increase in cash contributions to our joint venture arrangements compared to prior year.
Investing Cash Flow Activities. During 2025, we used $59.7 million of cash in investing activities, compared to using $54.9 million of cash in investing activities during 2024. This $4.8 million increase in cash usage was primarily due to a $5.1 million increase in cash contributions to our joint venture arrangements compared to prior year. Financing Cash Flow Activities.
During 2024, we invested $472.9 million in land acquisitions and $646.0 million in land development. We invested more in land development than in land acquisitions in order to finish lots needed to start homes and allow us to open new communities.
During 2025, we invested $523.7 million in land acquisitions and $645.6 million in land development. We invested more in land development than in land acquisitions in order to finish lots needed to start homes and allow us to open new communities.
We plan to open additional new communities during 2025, increasing our average community count by approximately 5% compared to 2024. Income before income taxes for the twelve months ended December 31, 2024 increased 21% from $607.3 million for the year ended December 31, 2023 to $733.6 million for the year ended December 31, 2024.
We plan to open additional new communities during 2026 and increase our average community count by about 5% compared to 2025. Income before income taxes for the twelve months ended December 31, 2025 decreased 28% from $733.6 million for the year ended December 31, 2024 to $526.6 million for the year ended December 31, 2025.
The following table summarizes the most significant restrictive covenant thresholds under the Credit Facility and our compliance with such covenants as of December 31, 2024: Financial Covenant Covenant Requirement Actual (Dollars in millions) Consolidated Tangible Net Worth ≥ $ 1,796.8 $ 2,854.9 Leverage Ratio ≤ 0.60 (0.01) Interest Coverage Ratio ≥ 1.5 to 1.0 23.74 to 1.0 Investments in Unrestricted Subsidiaries and Joint Ventures ≤ $ 856.5 $ 6.4 Unsold Housing Units and Model Homes ≤ 3,271 1,852 Notes Payable - Financial Services.
The following table summarizes the most significant restrictive covenant thresholds under the Credit Facility and our compliance with such covenants as of December 31, 2025: Financial Covenant Covenant Requirement Actual (Dollars in millions) Consolidated Tangible Net Worth ≥ $ 2,172.7 $ 3,061.4 Leverage Ratio ≤ 0.60 0.02 Interest Coverage Ratio ≥ 1.5 to 1.0 18.64 to 1.0 Investments in Unrestricted Subsidiaries and Joint Ventures ≤ $ 918.4 $ 6.8 41 Notes Payable - Financial Services.
During the twelve months ended December 31, 2024, homebuilding revenue in our Northern region increased $376.1 million, from $1.52 billion in 2023 to $1.90 billion in 2024.
During the twelve months ended December 31, 2025, homebuilding revenue in our Northern region decreased $9.6 million, from $1.90 billion in 2024 to $1.89 billion in 2025.
Average sales price in backlog increased to $547,000 at December 31, 2024 from $520,000 at December 31, 2023 primarily due to the mix of homes in backlog. During 2024, we opened 51 communities in our Southern region compared to 43 in 2023.
Average sales price in backlog decreased to $528,000 at December 31, 2025 from $547,000 at December 31, 2024 primarily due to increased homebuyer incentives ($9,500 per home) compared to 2024 and the mix of homes in backlog. During 2025, we opened 44 communities in our Southern region compared to 51 in 2024.
Revenue from our financial services segment increased 24% to $116.2 million in 2024 as a result of an increase in loans closed and sold during the year and a slight increase in the average loan amount.
Revenue from our financial services segment increased 8% to $125.5 million in 2025 as a result of increases in loans closed and sold during the year and the average loan amount.
For the twelve months ended December 31, 2024, homebuilding revenue in our Southern region increased $72.7 million, from $2.42 billion in 2023 to $2.49 billion in 2024.
For the twelve months ended December 31, 2025, homebuilding revenue in our Southern region decreased $86.6 million, from $2.49 billion in 2024 to $2.40 billion in 2025.
During the year ended December 31, 2024, we delivered 9,055 homes, started 9,196 homes, ended the year with approximately 4,700 homes under construction compared to approximately 4,500 at the end of last year, and spent $472.9 million on land purchases and $646.0 million on land development.
During the year ended December 31, 2025, we delivered 8,921 homes, started 8,697 homes, ended the year with approximately 4,500 homes under construction compared to approximately 4,700 at the end of last year, and spent $523.7 million on land purchases and $645.6 million on land development.
The cash used in financing activities in 2023 was primarily due to repayments of $79.9 million (net of proceeds from borrowings) under our then-outstanding M/I Financial credit facilities and the repurchase of $65.3 million of our outstanding common shares during 2023, offset, in part, by $33.8 million in proceeds from the exercise of stock options during 2023.
The increase in cash used in financing activities in 2025 was primarily due to the repurchase of $202.0 million of our outstanding common shares during 2025, repayments of $9.3 million (net of proceeds from borrowings) under the MIF credit facilities and $7.0 million of debt issue costs offset, in part, by $8.4 million in proceeds from the exercise of stock options during 2025.
We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of October 21, 2025, but we cannot provide any assurance that we will be able to obtain such an extension. As of December 31, 2024, there was $286.2 million outstanding under the MIF Mortgage Repurchase Facility.
We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of October 20, 2026, but we cannot provide any assurance that we will be able to obtain such an extension.
Paul, Minnesota Austin, Texas Detroit, Michigan Dallas/Fort Worth, Texas Houston, Texas San Antonio, Texas Charlotte, North Carolina Raleigh, North Carolina Nashville, Tennessee 34 The following table shows, by segment: revenue; selling, general and administrative expense; operating income (loss); interest (income) expense; and income before income taxes for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (In thousands) 2024 2023 2022 Revenue: Northern homebuilding $ 1,900,013 $ 1,523,943 $ 1,714,236 Southern homebuilding 2,488,451 2,415,730 2,330,962 Financial services (a) 116,206 93,829 86,195 Total revenue $ 4,504,670 $ 4,033,502 $ 4,131,393 Cost of Sales: Northern homebuilding $ 1,480,326 $ 1,228,949 $ 1,379,936 Southern homebuilding 1,825,455 1,785,624 1,707,615 Financial services (a) — — — Total cost of sales $ 3,305,781 $ 3,014,573 $ 3,087,551 General and administrative expense: Northern homebuilding $ 42,908 $ 36,827 $ 36,659 Southern homebuilding 76,200 65,078 61,775 Financial services (a) 52,826 45,115 41,813 Segment general and administrative expense $ 171,934 $ 147,020 $ 140,247 Corporate and unallocated general and administrative expense 86,488 75,745 74,564 Total general and administrative expense $ 258,422 $ 222,765 $ 214,811 Selling expense: Northern homebuilding $ 95,680 $ 81,847 $ 80,142 Southern homebuilding 136,198 124,860 109,698 Financial services (a) — — — Segment selling expense $ 231,878 $ 206,707 $ 189,840 Corporate and unallocated selling expense 2,495 2,235 1,740 Total selling expense: $ 234,373 $ 208,942 $ 191,580 Operating income (loss): Northern homebuilding $ 281,099 $ 176,320 $ 217,499 Southern homebuilding 450,598 440,168 451,874 Financial services (a) 63,380 48,714 44,382 Segment operating income $ 795,077 $ 665,202 $ 713,755 Corporate selling, general and administrative expense (88,983) (77,980) (76,304) Total operating income (a) $ 706,094 $ 587,222 $ 637,451 Interest (income) expense - net: Northern homebuilding $ (228) $ (186) $ (469) Southern homebuilding (2,554) (1,703) (1,447) Financial services (a) 13,698 10,360 5,122 Segment Interest (income) expense - net $ 10,916 $ 8,471 $ 3,206 Corporate Interest (income) expense - net (38,430) (28,493) (956) Total interest (income) expense - net $ (27,514) $ (20,022) $ 2,250 Other income (b) $ — $ (33) $ (6) Income before income taxes $ 733,608 $ 607,277 $ 635,207 (a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuyers, with the exception of a small amount of mortgage refinancing.
Paul, Minnesota Austin, Texas Detroit, Michigan Dallas/Fort Worth, Texas Houston, Texas San Antonio, Texas Charlotte, North Carolina Raleigh, North Carolina Nashville, Tennessee 33 The following table shows, by segment: revenue; selling, general and administrative expense; operating income (loss); interest (income) expense; and income before income taxes for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, (In thousands) 2025 2024 2023 Revenue: Northern homebuilding $ 1,890,457 $ 1,900,013 $ 1,523,943 Southern homebuilding 2,401,861 2,488,451 2,415,730 Financial services (a) 125,463 116,206 93,829 Total revenue $ 4,417,781 $ 4,504,670 $ 4,033,502 Cost of Sales: Northern homebuilding $ 1,475,438 $ 1,480,326 $ 1,228,949 Southern homebuilding 1,925,144 1,825,455 1,785,624 Financial services (a) — — — Total cost of sales (b) $ 3,400,582 $ 3,305,781 $ 3,014,573 General and administrative expense: Northern homebuilding $ 41,103 $ 42,908 $ 36,827 Southern homebuilding 77,291 76,200 65,078 Financial services (a) 57,303 52,826 45,115 Segment general and administrative expense $ 175,697 $ 171,934 $ 147,020 Corporate and unallocated general and administrative expense 87,069 86,488 75,745 Total general and administrative expense $ 262,766 $ 258,422 $ 222,765 Selling expense: Northern homebuilding $ 95,860 $ 95,680 $ 81,847 Southern homebuilding 149,457 136,198 124,860 Financial services (a) — — — Segment selling expense $ 245,317 $ 231,878 $ 206,707 Corporate and unallocated selling expense 2,563 2,495 2,235 Total selling expense: $ 247,880 $ 234,373 $ 208,942 Operating income (loss): Northern homebuilding $ 278,056 $ 281,099 $ 176,320 Southern homebuilding 249,969 450,598 440,168 Financial services (a) 68,160 63,380 48,714 Segment operating income $ 596,185 $ 795,077 $ 665,202 Corporate selling, general and administrative expense (89,632) (88,983) (77,980) Total operating income (a) (b) $ 506,553 $ 706,094 $ 587,222 Interest (income) expense - net: Northern homebuilding $ (70) $ (228) $ (186) Southern homebuilding (3,076) (2,554) (1,703) Financial services (a) 12,504 13,698 10,360 Segment interest (income) expense - net $ 9,358 $ 10,916 $ 8,471 Corporate interest (income) expense - net (29,393) (38,430) (28,493) Total interest (income) expense - net $ (20,035) $ (27,514) $ (20,022) Other income (c) $ — $ — $ (33) Income before income taxes $ 526,588 $ 733,608 $ 607,277 (a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.
The cash generated by operating activities in 2023 was primarily a result of net income of $465.4 million, proceeds from the sale of mortgage loans that exceeded mortgage loan originations by $72.9 million and a $46.7 million decrease in inventory, 40 offset partially by a $28.8 million decrease in other liabilities and $31.9 million decrease in accounts payable and customer deposits.
The cash generated by operating activities in 2025 was primarily a result of net income of $402.9 million and a $36.7 million increase in other liabilities, offset partially by a $313.5 million increase in inventory, loan originations that exceeded proceeds from the sale of mortgage loans by $20.7 million, a $16.0 million decrease in other assets and a $35.9 million increase in accounts payable and customer deposits.
The gross margin of our financial services operations improved by $22.4 million in 2024 compared to 2023 as a result of an increase in the number of loan originations, higher margins on loans sold, and a slight increase in the average loan amount during 2024 compared to prior year. We opened 72 new communities during 2024.
The improvement in the gross margin of our financial services operations is attributable to an increase in the number of loan originations, higher margins on loans sold, and an increase in the average loan amount during 2025 compared to prior year. We opened 81 new communities during 2025.
Selling, general and administrative expense increased $19.9 million from $118.7 million in 2023 to $138.6 million in 2024 and decreased as a percentage of revenue to 7.3% in 2024 from 7.8% in 2023.
Selling, general and administrative expense decreased $1.6 million from $138.6 million in 2024 to $137.0 million in 2025 and decreased as a percentage of revenue to 7.2% in 2025 from 7.3% in 2024.
In 2024, we achieved net income of $563.7 million, or $19.71 per diluted share, compared to net income of $465.4 million, or $16.21 per diluted share in 2023. Our effective tax rate was 23.2% in 2024 compared to 23.4% in 2023.
In 2025, our net income was $402.9 million, or $14.74 per diluted share, compared to net income of $563.7 million, or $19.71 per diluted share in 2024. Our effective tax rate was 23.5% in 2025 compared to 23.2% in 2024.
As a result, the full $650 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $80.4 million of letters of credit outstanding at December 31, 2024, leaving $569.6 million available. The Credit Facility has an expiration date of December 9, 2026.
As a result, the full $900 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $93.2 million of letters of credit outstanding at December 31, 2025, leaving $806.8 million available. The Credit Facility has an expiration date of September 18, 2030.
(b) Other income is comprised of the equity in (income) loss from joint venture arrangements. 35 The following table show supplemental segment information regarding depreciation and amortization expense for years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (In thousands) 2024 2023 2022 Depreciation and amortization: Northern homebuilding $ 3,787 $ 3,673 $ 3,308 Southern homebuilding 3,636 2,965 2,790 Financial services 1,130 810 2,178 Segment depreciation and amortization $ 8,553 $ 7,448 $ 8,276 Corporate 8,833 8,343 8,898 Total depreciation and amortization $ 17,386 $ 15,791 $ 17,174 The following tables show total assets by segment at December 31, 2024 and 2023: December 31, 2024 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 12,209 $ 57,274 $ — $ 69,483 $ — $ 69,483 Inventory (a) 1,041,713 1,980,666 — 3,022,379 — 3,022,379 Investments in joint venture arrangements — 65,334 — 65,334 — 65,334 Other assets 37,721 132,316 (b) 370,558 540,595 852,005 1,392,600 Total assets $ 1,091,643 $ 2,235,590 $ 370,558 $ 3,697,791 $ 852,005 $ 4,549,796 December 31, 2023 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 8,990 $ 42,618 $ — $ 51,608 $ — $ 51,608 Inventory (a) 1,016,982 1,728,561 — 2,745,543 — 2,745,543 Investments in joint venture arrangements — 44,011 — 44,011 — 44,011 Other assets 37,171 104,306 (b) 243,176 384,653 796,625 1,181,278 Total assets $ 1,063,143 $ 1,919,496 $ 243,176 $ 3,225,815 $ 796,625 $ 4,022,440 (a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.
(c) Other income is comprised of the equity in (income) loss from joint venture arrangements. 34 The following table shows supplemental segment information regarding depreciation and amortization expense for years ended December 31, 2025, 2024 and 2023: Year Ended December 31, (In thousands) 2025 2024 2023 Depreciation and amortization: Northern homebuilding $ 3,723 $ 3,787 $ 3,673 Southern homebuilding 4,616 3,636 2,965 Financial services 1,177 1,130 810 Segment depreciation and amortization $ 9,516 $ 8,553 $ 7,448 Corporate 9,382 8,833 8,343 Total depreciation and amortization $ 18,898 $ 17,386 $ 15,791 The following tables show total assets by segment at December 31, 2025 and 2024: December 31, 2025 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 14,319 $ 60,226 $ — $ 74,545 $ — $ 74,545 Inventory (a) 1,164,647 2,144,748 — 3,309,395 — 3,309,395 Investments in joint venture arrangements — 106,299 — 106,299 — 106,299 Other assets 35,087 122,223 (b) 375,682 532,992 753,894 1,286,886 Total assets $ 1,214,053 $ 2,433,496 $ 375,682 $ 4,023,231 $ 753,894 $ 4,777,125 December 31, 2024 (In thousands) Northern Southern Financial Services Segment Total Corporate and unallocated Total Deposits on real estate under option or contract $ 12,209 $ 57,274 $ — $ 69,483 $ — $ 69,483 Inventory (a) 1,041,713 1,980,666 — 3,022,379 — 3,022,379 Investments in joint venture arrangements — 65,334 — 65,334 — 65,334 Other assets 37,721 132,316 (b) 370,558 540,595 852,005 1,392,600 Total assets $ 1,091,643 $ 2,235,590 $ 370,558 $ 3,697,791 $ 852,005 $ 4,549,796 (a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.
Selling expense increased $25.4 million from 2023 and remained consistent as a percentage of revenue at 5.2%. Sales and realtor commissions contributed $16.5 million to the increase in selling expense in 2024 due to the increase in the homes delivered as well as higher external sales commission rates paid during the period compared to prior year.
Selling expense increased $13.5 million from 2024 and increased as a percentage of revenue to 5.6% from 5.2% in 2024. Realtor commissions contributed $7.7 million to the increase in selling expense in 2025 due to higher realtor commissions paid during the period compared to prior year.
Operating income in our Northern region increased $104.8 million, from $176.3 million in 2023 to $281.1 million in 2024. The increase in operating income was primarily the result of a $124.7 million increase in our gross margin offset in part by a $19.9 million increase in selling, general, and administrative expense.
Operating income in our Northern region decreased $3.0 million, from $281.1 million in 2024 to $278.1 million in 2025. The decrease in operating income was primarily the result of a $4.6 million decrease in our homebuilding gross margin offset in part by a $1.6 million decrease in selling, general, and administrative expense.
During the second half of 2024, the Federal Reserve reduced interest rates by 100 basis points. High mortgage interest rates have made it more difficult for homebuyers to qualify for mortgages or to obtain mortgages at interest rates that are acceptable to them.
During 2025, the Federal Reserve reduced interest rates by 75 basis points. High mortgage interest rates have made it more difficult for homebuyers to qualify for mortgages or to obtain mortgages at interest rates that are acceptable to them. We plan to help combat high interest costs in 2026 by offering mortgage interest rate buydowns to potential homebuyers.
This 3% increase in homebuilding revenue was primarily the result of a 5% increase in the number of homes delivered (239 units) due to increased availability of inventory homes and improved construction cycle times on our backlog homes offset in part by a 1% decrease in the average sales price of homes delivered ($7,000 per home delivered) and a $10.9 million decrease in land sales.
This 1% decrease in homebuilding revenue was the result of a 4% decrease in the number of homes delivered (157 units), offset in part by a 3% increase in the average sales price of homes delivered ($17,000 per home delivered) and a $5.1 million increase in land sales.
The increase in selling, general and administrative expense was attributable to a $13.8 million increase in selling expense, due to a $11.6 million increase in sales and realtor commissions and a $2.2 million increase primarily related to costs associated with our sales offices and models.
The decrease in general and administrative expense was partially offset by a $0.2 million increase in selling expense, due to a $1.4 million increase primarily related to costs associated with compensation-related expenses and models partially offset by a $1.2 million decrease in sales and realtor commissions.
As the rate of inflation has declined from 2022’s historic levels, our costs have stabilized. However, continued increases in inflation rates could impact our costs, potentially reduce our gross margins, reduce the purchasing power of potential homebuyers, and negatively impact their ability and desire to buy a home. Mortgage interest rates have hovered around 7% since the end of 2023.
However, continued increases in inflation rates could impact our costs, potentially reduce our gross margins, reduce the purchasing power of potential homebuyers, and negatively impact their ability and desire to buy a home. 44 Mortgage interest rates remained elevated since the end of 2023, although slightly lower rates began to appear in the second half of 2025.
Our overall effective tax rate was 23.2% for the year ended December 31, 2024 and 23.4% for the year ended December 31, 2023 (see Note 14 to our Consolidated Financial Statements for more information). 39 Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 For a comparison of our results of operations for the fiscal years ended December 31, 2023 and December 31, 2022, see “Part II, Item 7.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 For a comparison of our results of operations for the fiscal years ended December 31, 2024 and December 31, 2023, see “Part II, Item 7.
The increase in selling, general and administrative expense was attributable to a $11.1 million increase in general and administrative expense, which was primarily related to a $4.9 million increase in compensation related expenses as a result of an increase in headcount and incentive compensation due to our strong financial performance during the period, a $1.2 million increase in land-related expenses, and a $5.0 million increase in miscellaneous expenses.
General and administrative expense increased $1.1 million due to a $2.4 million increase in land-related expenses and a $0.7 million increase in miscellaneous expenses offset in part by $2.0 million decrease in compensation related expenses due to incentive compensation due to our financial performance during the period.
However, offering sales incentives, such as interest rate buydowns, may reduce our margins from the record level we achieved in 2024.
However, offering sales incentives, such as mortgage interest rate buydowns, may further reduce our margins.
Income before income taxes and net income both increased 21% from prior year, both company records. 31 We achieved the following results during the year ended December 31, 2024 in comparison to the year ended December 31, 2023: • Homes delivered increased 12% to 9,055, an all-time record for our Company • Revenue increased 12% to $4.5 billion, an all-time record for our Company • Pre-tax income increased 21% to an all-time record $733,608, 16.3% of revenue • Net income increased 21% to $564 million, an all-time record for our Company • New contracts increased 8% to 8,584 • Absorption pace of sales per community remained consistent at 3.3 per month • Average community count increased 7% with 220 active communities at the end of 2024 • Shareholders’ equity increased 17% to $2.9 billion, an all-time record high for our Company • Book value per common share increased to a record high $109 per share • Homebuilding debt to capital ratio improved to 19% In addition to the results described above, our financial services operations recorded a $14.7 million increase in operating income in 2024 compared to 2023 as a result of an increase in closings and a slight increase in the average loan amount.
Despite the challenging conditions facing the housing industry, we had strong cash flow and liquidity in 2025 and ended the year with low leverage. 30 Our results for the year ended December 31, 2025 in comparison to the year ended December 31, 2024 were as follows: • Homes delivered decreased 1% to 8,921 • Revenue decreased 2% to $4.4 billion • Pre-tax income decreased 28% to $526.6, 11.9% of revenue • Net income decreased 29% to $402.9 million • New contracts decreased 4% to 8,199 • Absorption pace of sales per community declined to 3.0 per month compared to 3.3 per month • Average community count increased 6% with 232 active communities at the end of 2025 • Shareholders’ equity increased 8% to $3.2 billion, an all-time record high for our Company • Book value per common share increased to a record high $123 per share • Homebuilding debt to capital ratio improved to 18% In addition to the results described above, our financial services operations recorded a $4.8 million increase in operating income in 2025 compared to 2024 as a result of increases in closings and average loan amount.
LIQUIDITY AND CAPITAL RESOURCES Overview of Capital Resources and Liquidity At December 31, 2024, we had $821.6 million of cash, cash equivalents and restricted cash, with $821.5 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $88.9 million increase in unrestricted cash and cash equivalents from December 31, 2023.
LIQUIDITY AND CAPITAL RESOURCES Overview of Capital Resources and Liquidity At December 31, 2025, we had $689.2 million of cash, cash equivalents and restricted cash (all of which was comprised of unrestricted cash and cash equivalents), which represents a $132.3 million decrease in unrestricted cash and cash equivalents from December 31, 2024.
Year Ended December 31, (Dollars in thousands) 2024 2023 2022 Financial Services Number of loans originated 6,731 5,395 5,374 Value of loans originated $ 2,685,078 $ 2,118,884 $ 2,069,615 Revenue $ 116,206 $ 93,829 $ 86,195 Less: Selling, general and administrative expenses 52,826 45,115 41,813 Less: Interest expense 13,698 10,360 5,122 Income before income taxes $ 49,682 $ 38,354 $ 39,260 37 A home is included in “new contracts” when our standard sales contract is executed.
Additionally, total cost of sales and operating income in the Southern homebuilding operating segment were reduced by $11.2 million for warranty charges in two of our Florida communities primarily relating to attic ventilation issues. 36 Year Ended December 31, (Dollars in thousands) 2025 2024 2023 Financial Services Number of loans originated 7,117 6,731 5,395 Value of loans originated $ 2,897,111 $ 2,685,078 $ 2,118,884 Revenue $ 125,463 $ 116,206 $ 93,829 Less: Selling, general and administrative expenses 57,303 52,826 45,115 Less: Interest expense 12,504 13,698 10,360 Income before income taxes $ 55,656 $ 49,682 $ 38,354 A home is included in “new contracts” when our standard sales contract is executed.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe table below shows the notional amounts of our financial instruments at December 31, 2024 and 2023: December 31, Description of Financial Instrument (in thousands) 2024 2023 Uncommitted IRLCs $ 215,696 $ 174,274 FMBSs related to uncommitted IRLCs 228,000 174,000 Whole loan contracts and related mortgage loans held for sale 17,667 10,398 FMBSs related to mortgage loans held for sale 252,000 152,000 Mortgage loans held for sale covered by FMBSs 276,140 160,547 The table below shows the measurement of assets and liabilities at December 31, 2024 and 2023: December 31, Description of Financial Instrument (in thousands) 2024 2023 Mortgage loans held for sale $ 283,540 $ 176,329 Forward sales of mortgage-backed securities 2,946 (7,220) Interest rate lock commitments 532 3,617 Whole loan contracts (864) (335) Total $ 286,154 $ 172,391 The following table sets forth the amount of gain (loss) recognized on assets and liabilities for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, Description (in thousands) 2024 2023 2022 Mortgage loans held for sale $ (6,746) $ 6,739 $ 407 Forward sales of mortgage-backed securities 10,166 (4,215) (7,482) Interest rate lock commitments (3,085) 2,829 1,282 Whole loan contracts (529) 43 (323) Total gain (loss) recognized $ (194) $ 5,396 $ (6,116) 46 The following table provides the expected future cash flows and current fair values of borrowings under our credit facilities and mortgage loan origination services that are subject to market risk as interest rates fluctuate, as of December 31, 2024.
Biggest changeThe table below shows the notional amounts of our financial instruments at December 31, 2025 and 2024: December 31, Description of Financial Instrument (in thousands) 2025 2024 Uncommitted IRLCs $ 300,595 $ 215,696 FMBSs related to uncommitted IRLCs 335,000 228,000 Whole loan contracts and related mortgage loans held for sale 15,044 17,667 FMBSs related to mortgage loans held for sale 290,000 252,000 Mortgage loans held for sale covered by FMBSs 302,790 276,140 45 The table below shows the measurement of assets and liabilities at December 31, 2025 and 2024: December 31, Description of Financial Instrument (in thousands) 2025 2024 Mortgage loans held for sale $ 309,100 $ 283,540 Forward sales of mortgage-backed securities (635) 2,946 Interest rate lock commitments 3,661 532 Whole loan contracts (817) (864) Total $ 311,309 $ 286,154 The following table sets forth the amount of gain (loss) recognized on assets and liabilities for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, Description (in thousands) 2025 2024 2023 Mortgage loans held for sale $ 4,906 $ (6,746) $ 6,739 Forward sales of mortgage-backed securities (3,581) 10,166 (4,215) Interest rate lock commitments 3,129 (3,085) 2,829 Whole loan contracts 47 (529) 43 Total gain (loss) recognized $ 4,501 $ (194) $ 5,396 The following table provides the expected future cash flows and current fair values of borrowings under our credit facilities and mortgage loan origination services that are subject to market risk as interest rates fluctuate, as of December 31, 2025.
Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings. 45 Forward Sales of Mortgage-Backed Securities: Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date.
Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings. Forward Sales of Mortgage-Backed Securities: Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date.
Because the MIF Mortgage Repurchase Facility is effectively secured by certain mortgage loans held for sale which are typically sold within 30 to 45 days, its outstanding balance is included in the most current period presented. The interest rates for our variable rate debt represent the weighted average interest rates in effect at December 31, 2024.
Because the MIF Mortgage Repurchase Facility is effectively secured by certain mortgage loans held for sale which are typically sold within 30 to 45 days, its outstanding balance is included in the most current period presented. The interest rates for our variable rate debt represent the weighted average interest rates in effect at December 31, 2025.
Expected Cash Flows by Period Fair Value (Dollars in thousands) 2025 2026 2027 2028 2029 Thereafter Total 12/31/2024 ASSETS: Mortgage loans held for sale: Fixed rate $291,040 — — — — — $291,040 $283,540 Weighted average interest rate 5.74% — — — — — 5.74% LIABILITIES: Long-term debt — fixed rate — — — $400,000 $— $300,000 $700,000 $651,250 Weighted average interest rate — — — 2.83% —% 1.69% 4.52% Short-term debt — variable rate $286,159 — — — — — $286,159 $286,159 Weighted average interest rate 6.19% — — — — — 6.19% 47
Expected Cash Flows by Period Fair Value (Dollars in thousands) 2026 2027 2028 2029 2030 Thereafter Total 12/31/2025 ASSETS: Mortgage loans held for sale: Fixed rate $314,112 — — — — — $314,112 $309,100 Weighted average interest rate 5.23% — — — — — 5.23% LIABILITIES: Long-term debt — fixed rate — — $400,000 $— $300,000 $— $700,000 $685,625 Weighted average interest rate — — 2.83% —% 1.69% —% 4.52% Short-term debt — variable rate $276,856 — — — — — $276,856 $276,856 Weighted average interest rate 5.46% — — — — — 5.46% 46
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our primary market risk results from fluctuations in interest rates. We are exposed to interest rate risk through borrowings under our revolving credit facilities, consisting of the Credit Facility and the MIF Mortgage Repurchase Facility which permitted borrowings of up to $950.0 million at December 31, 2024, subject to availability constraints.
We are exposed to interest rate risk through borrowings under our revolving credit facilities, consisting of the Credit Facility, the MIF Mortgage Repurchase Facility and the MIF Master Repurchase facility which permitted borrowings of up to $1.2 billion at December 31, 2025, subject to availability constraints.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our primary market risk results from fluctuations in interest rates.

Other MHO 10-K year-over-year comparisons