Financial Analysis

Commitments and Contingencies Warranty Our warranty reserves are included in Other Liabilities in the Companys Consolidated Balance Sheets, as further explained in Note 1 to our Consolidated Financial Statements. A summary of warranty activity for the years ended December 31, 2025, 2024 and 2023 is as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Warranty reserves, beginning of period $ 36,219 $ 31,980 $ 32,902 Warranty expense on homes delivered during the period 23,992 24,186 21,525 Changes in estimates for pre-existing warranties (168) 5,268 2,457 Charges related to unusual warranty claims (a) 11,162 Settlements made during the period (27,247) (25,215) (24,904) Warranty reserves, end of period $ 43,958 $ 36,219 $ 31,980 (a) The Company incurred an increase in warranty expense attributable to two communities in Florida primarily due to attic ventilation issues. At December 31, 2025, the Company had a remaining accrual related to these warranty claims of $9.0 million. Performance Bonds and Letters of Credit The Company provides standby letters of credit and completion bonds for development work in progress, deposits on land and lot purchase agreements and miscellaneous deposits. At December 31, 2025, the Company had outstanding approximately $590.1 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through November 2030. Included in this total are: (1) $491. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Notes Payable - Homebuilding 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. Interest on amounts borrowed under the Credit Facility is payable at an adjusted term SOFR plus a margin of 150 basis points (subject to adjustment in subsequent quarterly periods based on the Companys leverage ratio). The available amount under the Credit Facility is computed in accordance with a borrowing base, which is calculated by applying various advance rates for different categories of inventory, and totaled $2.4 billion of availability for additional senior debt at December 31, 2025. As a result, the full $900 million commitment amount of the Credit Facility was available, less any borrowings and letters of credit outstanding. At December 31, 2025, there were no borrowings outstanding and $93.2 million of letters of credit outstanding, leaving a net remaining borrowing availability of $806.8 million. The Credit Facility includes a $250 million sub-facility for letters of credit. The Companys obligations under the Credit Facility are guaranteed by all of the Companys subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar fi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenues disaggregated by revenue source: Year Ended December 31, (In thousands) 2025 2024 2023 Housing $ 4,274,674 $ 4,375,829 $ 3,914,372 Land sales 17,644 12,635 25,301 Financial services (a) 125,463 116,206 93,829 Total revenue $ 4,417,781 $ 4,504,670 $ 4,033,502 (a) Revenues include hedging losses of $12.4 million for the year ended December 31, 2025, hedging losses of $2.6 million for the year ended December 31, 2024, and hedging gains of $11.9 million for the year ended December 31, 2023. Hedging gains (losses) do not represent revenues recognized from contracts with customers.

DisaggregationOfRevenueTableTextBlock

Stock-Based and Deferred Compensation We measure and recognize compensation expense associated with our grant of equity-based awards in accordance with ASC 718, Compensation-Stock Compensation (ASC 718), which generally requires that companies measure and recognize stock-based compensation expense in an amount equal to the fair value of share-based awards granted under compensation arrangements over the related vesting period. We have granted share-based awards to certain of our employees and directors in the form of stock options, director stock units, director restricted stock units, employee restricted share units and performance share units (PSUs). Determining the fair value of share-based awards requires judgment to identify the appropriate valuation model and develop the assumptions. Stock Incentive Plans The Company maintains the M/I Homes, Inc. 2018 Long-Term Incentive Plan (the 2018 LTIP), an equity compensation plan administered by the Compensation Committee of our Board of Directors. Under the 2018 LTIP, the Company is permitted to grant (1) nonqualified stock options to purchase common shares, (2) incentive stock options to purchase common shares, (3) stock appreciation rights, (4) restricted common shares, (5) other stock-based awards (awards that are valued in whole or in part by reference to, or otherwise based on, the fair market value of our common shares), and (6) cash-based awards to its officers, employees, non-employee directors and other eligible partici …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the assets or liabilities, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, and include situations where there is little, if any, market activity for the assets or liabilities. Assets Measured on a Recurring Basis To meet financing needs of our home-buying customers, M/I Financial is party to interest rate lock commitments (IRLCs), which are extended to customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. These IRLCs are considered derivative financial instruments. M/I Financial manages interest rate risk related to its IRLCs and mortgage loans held for sale through the use of forward sales of mortgage-backed securities (FMBSs), the use of whole loan delivery commitments, and the occa …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. In accordance with ASC 740 , we evaluate our deferred tax assets, including the benefit from NOLs and tax credit carryforwards, if any, to determine if a valuation allowance is required. Companies must assess, using significant judgments, whether a valuation allowance should be established based on the consideration of all available evidence using a more likely than not standard with significant weight being given to evidence that can be objectively verified. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. Based …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Operating Leases The Company leases certain office space and model homes under operating leases with remaining terms of less than one year to 15 years. The Company sells model homes to investors with the express purpose of leasing the homes back as sales models for a specified period of time. Under ASC 842, Leases (""ASC 842""), the Company records the sale of the model home and the profit on the sale at the time of the home delivery. The Company determines if an arrangement is a lease at inception when the arrangement transfers the right to control the use of an identified asset to the Company. Right of Use (ROU) assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments arising from the lease agreement. The Company has operating leases but does not have any material financing leases. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease term includes an option to extend or terminate a lease when it is reasonably certain that the option will be exercised. The exercise of these lease renewal options is generally at our discretion. The operating lease ROU assets include any lease payments made in advance and exclude any lease incentives. Lease payments include both lease and non-lease components as a single lease component. Lease expense is recognized on a straight-line …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards. In October 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative issued in August 2018 (ASU 2023-06). ASU 2023-06 amends GAAP to reflect updates and simplifications to certain disclosure requirements referred to the FASB by the SEC. The targeted amendments incorporate 14 of the 27 disclosures referred by the SEC into codification. Some of the amendments represent clarifications to, or technical corrections of, the current requirements. ASU 2023-06 could move certain disclosures from the nonfinancial portions of SEC filings to the financial statement notes. Each amendment in ASU 2023-06 will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. No amendments were effective at December 31, 2025. The Company is currently evaluating the impact the adoption of ASU 2023-06 may have on our consolidated financial statements and disclosures, but we do not expect the impact to be significant. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if th …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Transactions with Related Parties From time to time, in the ordinary course of business, we have transacted with related or affiliated companies and with certain of our officers and directors. We believe that the terms and fees negotiated for all transactions listed below are no less favorable than those that could be negotiated in arms length transactions. The Company made a contribution of $1.4 million in 2025 to the M/I Homes Foundation, a charitable organization having certain officers and directors of the Company on its Board of Trustees. The Company had a receivable of $0.2 million at both December 31, 2025 and 2024 due from an executive officer, relating to amounts owed to the Company for split-dollar life insurance policy premiums. The Company will collect the receivable either directly from the executive officer, if employment terminates other than by death, or from the executive officers beneficiary, if employment terminates due to death of the executive officer. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15. Business Segments The application of segment reporting requires significant judgment in determining our operating segments. Operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Companys chief operating decision makers to evaluate performance, make operating decisions and determine how to allocate resources. The Companys chief operating decision makers consist of the Chief Executive Officer and Chief Financial Officer. The Companys chief operating decision makers evaluate the Companys operating income performance in various ways, including: (1) the results of our individual homebuilding operating segments and the results of our financial services operations; (2) the results of our homebuilding reportable segments; and (3) our consolidated financial results. The chief operating decision makers use operating income for each segment predominately in the annual budget and forecasting process. The chief operating decision makers consider budget-to-actual variances for profit measures on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The chief operating decisions maker also use segment operating income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. In accordance with ASC 280, Segment Reporting (ASC 280), …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Warranty We use subcontractors for nearly all aspects of home construction. Although our subcontractors are generally required to repair and replace any product or labor defects, we are, during applicable warranty periods, ultimately responsible to the homeowner for making such repairs. As such, we record warranty reserves to cover our exposure to the costs for materials and labor not expected to be covered by our subcontractors to the extent they relate to warranty-type claims. Warranty reserves are established by charging cost of sales and crediting a warranty reserve for each home delivered. The amounts charged are estimated by management to be adequate to cover expected warranty-related costs under the Companys warranty programs. Warranty reserves are recorded for warranties under our Home Builders Limited Warranty (HBLW) and our transferable structural warranty in Other Liabilities on the Companys Unaudited Condensed Consolidated Balance Sheets. The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in qualit …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Notes Payable - Homebuilding 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. Interest on amounts borrowed under the Credit Facility is payable at an adjusted term SOFR plus a margin of 150 basis points (subject to adjustment in subsequent quarterly periods based on the Companys leverage ratio). The available amount under the Credit Facility is computed in accordance with a borrowing base, which is calculated by applying various advance rates for different categories of inventory, and totaled $2.49 billion of availability for additional senior debt at June 30, 2026. As a result, the full $900 million commitment amount of the Credit Facility was available, less any borrowings and letters of credit outstanding. The Credit Facility also includes a $250 million sub-facility for letters of credit. At June 30, 2026, there were no borrowings outstanding and $82.5 million of letters of credit outstanding, leaving a net remaining borrowing availability of $817.5 million . The Companys obligations under the Credit Facility are guaranteed by all of the Companys subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financia …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenues disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Housing $ 1,011,974 $ 1,124,475 $ 1,890,584 $ 2,064,506 Land sales 18,948 6,667 29,814 11,209 Financial services (a) 32,336 31,450 63,567 62,970 Total revenue $ 1,063,258 $ 1,162,592 $ 1,983,965 $ 2,138,685 (a) Revenue includes hedging gains of $7.4 million for the three months ended June 30, 2026 and hedging loss of $0.8 million for the three months ended June 30, 2025. Revenue includes hedging gains of $4.9 million and $1.5 million for the six months ended June 30, 2026 and 2025, respectively. Hedging gains/losses do not represent revenue recognized from contracts with customers.

DisaggregationOfRevenueTableTextBlock

The Company maintains the M/I Homes, Inc. 2018 Long-Term Incentive Plan (the 2018 LTIP), an equity compensation plan administered by the Compensation Committee of our Board of Directors. Under the 2018 LTIP, the Company is permitted to grant (1) nonqualified stock options to purchase common shares, (2) incentive stock options to purchase common shares, (3) stock appreciation rights, (4) restricted common shares, (5) other stock-based awards (awards that are valued in whole or in part by reference to, or otherwise based on, the fair market value of our common shares), and (6) cash-based awards to its officers, employees, non-employee directors and other eligible participants. Subject to certain adjustments, the 2018 LTIP authorizes awards to officers, employees, non-employee directors and other eligible participants for up to 4,225,321 common shares, of which 706,361 remain available for grant at June 30, 2026. The 2018 LTIP replaced the M/I Homes, Inc. 2009 Long-Term Incentive Plan (the 2009 LTIP), which was terminated immediately following our 2018 Annual Meeting of Shareholders. Awards outstanding under the 2009 LTIP Plan remain in effect in accordance with their respective terms. Stock Options The Company did not grant any stock option awards in 2025 or the first quarter of 2026. Total stock-based compensation expense related to stock option awards that were issued in previous years that has been charged against income was $1.0 million and $1.5 million for the three months …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the assets or liabilities, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, and include situations where there is little, if any, market activity for the assets or liabilities. Assets Measured on a Recurring Basis The Company measures both mortgage loans held for sale and interest rate lock commitments (IRLCs) at fair value. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them. In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers lock-in a specified interest rate within establi …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

During the three months ended June 30, 2026 and 2025, the Company recorded a tax provision of $25.5 million and $38.9 million, respectively, which reflects income tax expense related to income before income taxes for the periods. The effective tax rate for the three months ended June 30, 2026 and 2025 was 24.4% and 24.3%, respectively. During the six months ended June 30, 2026 and 2025, the Company recorded a tax provision of $46.8 million and $73.7 million, respectively. The effective tax rate for the six months ended June 30, 2026 and 2025 was 24.2% and 24.1%, respectively. The increase in the effective rate from the three and six months ended June 30, 2025 was primarily attributable to a $0.4 million and $1.0 million decrease in federal tax credits in 2026, respectively. This decrease in tax benefit resulted from The One Big Beautiful Bill Act (the Act), enacted on July 4, 2025, which terminated the availability of this benefit on June 30, 2026. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Revenue and the related profit from the sale of a home and revenue and the related profit from the sale of land to third parties are recognized in the financial statements on the date of closing if delivery has occurred, title has passed to the buyer, all performance obligations (as defined below) have been met, and control of the home or land is transferred to the buyer in an amount that reflects the consideration we expect to be entitled to receive in exchange for the home or land. If not received immediately upon closing, cash proceeds from home closings are held in escrow for the Companys benefit, typically for up to three days, and are included in Cash, cash equivalents and restricted cash on the Unaudited Condensed Consolidated Balance Sheets. Sales incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. The costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in Land and housing costs in the Unaudited Condensed Consolidated Statements of Income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances and mortgage interest rate buydowns are recorded as a reduction of housing revenue at the time the hom …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

The Companys chief operating decision makers evaluate the Companys performance in various ways, including: (1) the results of our individual homebuilding operating segments and the results of our financial services operations; (2) the results of our homebuilding reportable segments; and (3) our consolidated financial results. In accordance with ASC 280, Segment Reporting (ASC 280), we have identified each homebuilding division as an operating segment and have elected to aggregate our operating segments into separate reportable segments as they share similar aggregation characteristics prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity. The homebuilding operating segments that comprise each of our reportable segments are as follows: Northern Southern Chicago, Illinois Ft. Myers/Naples, Florida Cincinnati, Ohio Orlando, Florida Columbus, Ohio Sarasota, Florida Indianapolis, Indiana Tampa, Florida Minneapolis/St. Paul, Minnesota Austin, Texas Detroit, Michigan Dallas/Fort Worth, Texas Houston, Texas San Antonio, Texas Charlotte, North Carolina Raleigh, North Carolina Nashville, Tennessee The following table shows, by segment: revenue; cost of sales; selling, general and administrative expense; operating income; interest (income) expense; and income before income taxes for …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing