What M/I Homes, Inc. told the SEC could break it.

M/I Homes' primary raw materials are lumber, concrete and similar construction materials. While generally available from a variety of sources (and partly cost-managed via national purchasing contracts), the company is exposed to price volatility in these commodity inputs; lumber and other building-material price spikes raise housing costs and pressure gross margins to the extent they cannot be offset by price or incentives.

“Our raw materials consist primarily of lumber, concrete and similar construction materials, and while these materials are generally available from a variety of sources, we have reduced construction and administrative costs by executing national purchasing contracts.”

M/I Homes uses subcontractors for nearly all aspects of construction, so it competes for and depends on subcontractor labor and building materials. The residential construction industry periodically experiences labor and material shortages — work stoppages, labor disputes, and shortages of qualified subcontractors and materials — which could increase its costs and delay home deliveries, directly affecting closings and revenue timing.

“Supply shortages and risks related to the demand for labor and building materials could increase costs and delay deliveries.”

M/I Homes builds homes using imported materials and products exposed to U.S. tariffs. In recent years the U.S. government has imposed new or increased tariffs on an array of imported materials used in the homes it builds — including lumber, steel, aluminum and washing machines — raising the cost of those items. Further trade-policy changes (and potential non-tariff barriers) add uncertainty to its input costs.

“During the past several years, the U.S. government has imposed new, or increased existing, tariffs on an array of imported materials and products that are used in the homes we build, including but not limited to, lumber, steel, aluminum and washing machines, which increases the costs of those items.”