M/I Homes, Inc. (MHO) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen, and welcome to the MI Homes Third Quarter Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on October 22, 2025. I would now like to turn the conference over to Phil Creek. Please go ahead. Thank you for joining us today. On the call with me is Bob Schottenstein, our CEO and President, and Derek Clutch, President of our mortgage company. First, to address regulation fair disclosure, we encourage you to ask any questions regarding issues that you consider material during this call because we are prohibited from discussing significant non-public items with you directly. And as to forward-looking statements, I want to remind everyone that the cautionary language about forward-looking statements contained in today's press release also applies to any comments made during this call. Also, be advised that the company undertakes no obligation to update any forward-looking statements made during this call. With that, I'll turn the call over to Bob. Thanks, Phil. Good morning, and I, too, want to thank you all for joining us today. Despite the continued challenging market conditions and choppy, uneven demand environment, we had a very solid third quarter. We generated $140 million of pre-tax income, though down 26% from last year's record third quarter results. Our pre-tax income percentage was a very solid 12% of revenue, with gross margins of 24%, and resulted in a strong return on equity of 16%. Consistent with our first and second quarter commentary, and also consistent with what our industry peers have rep...