The 22.5% EPS miss and 5% revenue decline confirm deteriorating demand in a high-rate environment. Watch for further guidance commentary on the Q4 call and whether the $50M buyback accelerates to support the stock. The backlog decline of 9% in value suggests near-term revenue pressure.
Price Chart
Executive Summary
M/I Homes reported Q3 2026 EPS of $2.56, a 22.5% miss vs consensus of $3.30, and revenue of $1.08B vs $1.11B consensus. Net income fell 38% YoY to $67M, with pre-tax income down 38% on a 5% revenue decline, higher mortgage rates, and weakening demand. The company maintained a strong balance sheet with record equity of $3.3B and no borrowings on its $900M credit facility, but the earnings miss and deteriorating fundamentals are the dominant signals.
Key Financial Metrics
Key Facts
- Q3 2026 EPS $2.56 vs consensus $3.30 (22.5% miss)
- Q3 2026 revenue $1.076B vs consensus $1.11B (3.1% miss)
- Net income $66.6M, down 38% YoY from $106.5M
- Pre-tax income $86.9M, down 38% YoY from $139.8M
- Homes delivered down 2% YoY to 2,241; new contracts down 2% to 1,861
- Gross margin 20.9% vs 23.9% a year ago; 21.3% excluding inventory charges
- Backlog sales value $1.1B, down 9% YoY; backlog units down 7%
- Repurchased $50M of common stock during the quarter
- Homebuilding debt-to-capital ratio unchanged at 18%
- Cash and equivalents $621M; no borrowings on $900M credit facility
Financial Impact
EPS miss of $0.74 (22.5%) and revenue miss of ~$34M (3.1%); net income decline of $40M (38% YoY)
Risk Factors
- Higher mortgage rates and economic uncertainty continue to pressure homebuyer demand
- Inventory charges of $4.7M in Q3 may signal further land or home impairments
- Backlog units down 7% and average sales price down 2.5% indicate pricing power erosion
- Operating income margin compressed to 7.7% from 12.0% a year ago
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302914531 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $114.04 $123.30 | ▼ −8.12% | ▼ −9.30% | $126.17 (−10.64%) |
Oct 21, 2026 6d ago | Press Release | $114.04 $123.30 | ▼ −8.12% | ▼ −9.30% | $126.17 (−10.64%) |
Sep 10, 2026 6w ago | Press Release | $139.10 | awaiting T+1 | awaiting T+1 | $126.17 (−9.30%) |
Jul 29, 2026 12w ago | 8-K | $154.48 $151.33 | ▲ +2.04% | ▲ +3.72% | $126.17 (+18.33%) |
Apr 22, 2026 26w ago | 8-K | $133.64 $134.67 | ▲ +0.77% | ▲ +1.16% | $126.17 (−5.59%) |
Mar 4, 2026 33w ago | 8-K | $138.37 $135.62 | ▼ −1.99% | ▼ −0.67% | $126.17 (−8.82%) |
US Market Status
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