Business Segments Business Segments (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table shows, by segment, revenue, operating income and interest (income) expense for 2025, 2024 and 2023, as well as the Company’s income before income taxes for such periods:


	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.

(b)For the year ended December 31, 2025, total cost of sales and operating income were reduced by $47.7 million in inventory impairment charges and write-offs of land deposits and pre-acquisition costs taken during the period. $6.7 million and $41.0 million of these charges and write-offs were attributable to the Northern homebuilding operating segment and the Southern homebuilding operating segment, respectively. 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 (See Note 8).

(c)Other income is comprised of the equity in (income) loss from joint venture arrangements.

The following table shows, by segment, depreciation and amortization expense for the 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

Reconciliation of Assets from Segment to Consolidated

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.

(b)Includes development reimbursements from local municipalities.

M/I HOMES, INC. 10-K