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Stock-Based Compensation Stock-Based Compensation (Notes)
 9 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement [Text Block]
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 4,255,321 common shares, of which 825,621 remain available for grant at September 30, 2025.
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 2024 or the first quarter of 2025. Total stock-based compensation expense related to stock option awards that were issued in previous years that has been charged against income was $1.5 million for both the three months ended September 30, 2025 and 2024. As of September 30, 2025, there was a total of $9.7 million of unrecognized compensation expense related to unvested stock option awards that will be recognized as stock-based compensation expense over a weighted average period of 1.7 years.
Employee Restricted Share Units
On February 11, 2025 and February 15, 2024, the Company awarded certain of its employees (in the aggregate) 88,603 and 133,149 restricted share units under the 2018 LTIP, respectively. The closing price of our common shares on the New York Stock Exchange on such dates was $119.65 and $124.66, respectively. These awards vest ratably over a three-year period (subject to the employee’s continued service on the vesting date (except in certain circumstances)) and will be settled in common shares. Stock-based compensation expense for our employee restricted share units is recognized over the period of the award (amortized over three years). The Company recognized $2.1 million in compensation expense related to the employee restricted share unit awards during the three months ended March 31, 2025. As of September 30, 2025, there was a total of $20.0 million of unrecognized compensation expense related to unvested employee restricted share units that will be recognized as stock-based compensation expense over a weighted average period of 1.7 years.
Performance Share Unit Awards
On February 11, 2025, February 15, 2024 and February 15, 2023, the Company awarded its executive officers (in the aggregate) a target number of performance share units (“PSU’s”) equal to 21,729, 20,856, 27,243 PSU’s, respectively. Each PSU represents a contingent right to receive one common share of the Company if vesting is satisfied at the end of a three-year performance period (the “Performance Period”). The ultimate number of PSU’s that will vest and be earned, if any, after the completion of the Performance Period, is based on (1) (a) the Company’s cumulative annual pre-tax income from operations, excluding extraordinary items, as defined in the underlying award agreements with the executive officers, over the Performance Period (weighted 80%) (the “Performance Condition”), and (b) the Company’s relative total shareholder return over the Performance Period compared to the total shareholder return of a peer group of other publicly-traded homebuilders (weighted 20%) (the “Market Condition”) and (2) the participant’s continued employment through the end of the Performance Period, except in the case of termination due to death, disability or retirement or involuntary termination without cause by the Company. The number of PSU’s that vest may increase by up to 50% from the target number based on levels of achievement of the above criteria as set forth in the applicable award agreements and decrease to zero if the Company fails to meet the minimum performance levels for both of the above criteria. If the Company achieves the minimum performance levels for both of the above criteria, 50% of the target number of PSU’s will vest and be earned. Any portion of PSU’s that does not vest at the end of the Performance Period will be forfeited. Additionally, the PSU’s have no dividend or voting rights during the Performance Period.
The grant date fair value of the portion of the PSU’s subject to the Performance Condition and the Market Condition component was $119.65 and $103.32 for the 2025 PSU’s, respectively, $124.66 and $112.53 for the 2024 PSU’s, respectively, and $58.73 and $64.45 for the 2023 PSU’s, respectively. In accordance with ASC 718, for the portion of the PSU’s subject to a Market Condition, stock-based compensation expense is derived using the Monte Carlo simulation methodology and is recognized ratably over the service period regardless of whether or not the attainment of the Market Condition is probable. Therefore, the Company recognized less than $0.1 million in stock-based compensation expense during the third quarter of 2025 related to the Market Condition portion of the 2025, 2024 and 2023 PSU awards. There was a total of $0.4 million of unrecognized stock-based compensation expense related to the Market Condition portion of the 2025, 2024 and 2023 PSU awards as of September 30, 2025.
For the portion of the PSU’s subject to the Performance Condition, we recognize stock-based compensation expense on a straight-line basis over the Performance Period based on the probable outcome of the related Performance Condition. Otherwise, stock-based compensation expense recognition is deferred until probability is attained and a cumulative stock-based compensation expense adjustment is recorded and recognized ratably over the remaining service period. The Company reassesses the probability of the satisfaction of the Performance Condition on a quarterly basis, and stock-based compensation expense is adjusted based on the portion of the requisite service period that has passed. As of September 30, 2025, the Company had not recognized any stock-based compensation expense related to the Performance Condition portion of the 2025 PSU awards. If the Company achieves the minimum performance levels for the Performance Conditions to be met for the 2025 PSU awards, the Company would record unrecognized stock-based compensation expense of $1.0 million as of September 30, 2025, for which $0.1 million would be immediately recognized had attainment been probable at September 30, 2025. The Company recognized a total of $0.2 million of stock-based compensation expense related to the Performance Condition portion of the 2023 and 2024 PSU awards during the third quarter of 2025 based on the probability of attaining the respective performance conditions. The Company has a total of $1.5 million of unrecognized stock-based compensation expense for these 2023 and 2024 PSU awards as of September 30, 2025.