M/I Homes Thrives Amidst Market Volatility: Expert Execution and Rock-Solid Balance Sheet Drive Results
M/I Homes Inc, a leading home builder in the United States, has demonstrated resilience amidst market volatility, delivering solid results for the third quarter of 2026. In a recent conference call, CEO Bob Schottenstein highlighted the company's ability to navigate challenging conditions, citing its strong balance sheet and execution as key factors driving success.
The quarter was marked by significant fluctuations in interest rates, with the 10-year U.S. Treasury bond rising from 4.5% on July 1st to 5.3% on September 30th, and mortgage rates increasing by nearly 100 basis points over the same period. These changes had a profound impact on consumer confidence and demand, contributing to growing economic uncertainty.
Despite these headwinds, M/I Homes achieved pre-tax income of $87 million, representing an 8%+ return. The company's revenue decreased by 5% to $1.08 billion in the quarter, with a gross margin of 21.3%, excluding inventory charges. While this was lower than last year's figure due to increased rate buydown costs and lot expenses, M/I Homes' ability to adapt and manage its operations effectively remained impressive.
The company sold 1,861 homes during the quarter, representing a 2% decline from the same period in the previous year. However, for the first nine months of 2026, M/I Homes has sold 6,598 homes, which is 5% more than the corresponding period last year. This demonstrates the company's ongoing commitment to driving sales and adapting to market conditions.
One notable highlight from the quarter was the performance of M/I Homes' mortgage company, which achieved a capture rate of 96%. This marks one of the highest capture rates in the history of the home building industry and underscores the company's expertise in this area. The average credit score for buyers during the quarter stood at 748, with an average down payment exceeding 16%.
Bob Schottenstein emphasized that M/I Homes' strong balance sheet is a key factor in navigating challenging market conditions. As he noted, 'execution matters more than ever,' and the company's proven ability to adapt and manage its operations effectively has been instrumental in driving results.
In light of these achievements, it is clear that M/I Homes remains well-positioned to navigate the current market landscape. The company's commitment to quality product, thoughtful design, and strong execution continues to set it apart from competitors, even amidst the volatility of the home building industry.
