Stewart Reports First Quarter 2026 Results

Stewart Reports First Quarter 2026 Results Apr 22, 2026 Total revenues of $781.3 million ($778.4 million on an adjusted basis) compared to $612.0 million ($608.9 million on an adjusted basis) in the prior year quarterNet income of $17.0 million ($24.1 million on an adjusted basis) compared to net income of $3.1 million ($7.0 million on an adjusted basis) in the prior year quarter Diluted EPS of $0.55 ($0.78 on an adjusted basis) compared to prior year quarter diluted EPS of $0.11 ($0.25 on an adjusted basis) , /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $17.0 million ($0.55 per diluted share) for the first quarter 2026, compared to net income attributable to Stewart of $3.1 million ($0.11 per diluted share) for the first quarter 2025. On an adjusted basis, net income for the first quarter 2026 was $24.1 million ($0.78 per diluted share) compared to net income of $7.0 million ($0.25 per diluted share) in the first quarter 2025. Pretax income before noncontrolling interests for the first quarter 2026 was $23.6 million ($33.2 million on an adjusted basis) compared to $5.9 million ($11.2 million on an adjusted basis) for the first quarter 2025. First quarter 2026 and 2025 results included $2.9 million and $3.1 million, respectively, of pretax net realized and unrealized gains, both primarily driven by net gains from fair value changes of equity securities investments recorded in the title segment. "I am proud of our first quarter results as they reflect the momentum we have built in each of our businesses," commented Fred Eppinger, chief executive officer. "We are pleased with our ability to deliver these solid results while confronting housing market and macroeconomic volatility. We remain focused on growth across all of our business lines and are dedicated to serving our customers with excellence." Selected Financial Information Summary results of operations are as follows (dollars in millions, except per share amounts, pretax margin and adjusted pretax margin, and amounts may not add as presented due to rounding): Quarter Ended March 31, 2026 2025 Total revenues 781.3 612.0 Pretax income before noncontrolling interests 23.6 5.9 Income tax expense (4.6) (0.5) Net income attributable to noncontrolling interests (2.1) (2.3) Net income attributable to Stewart 17.0 3.1 Non-GAAP adjustments, after taxes* 7.1 3.9 Adjusted net income attributable to Stewart* 24.1 7.0 Pretax margin 3.0 % 1.0 % Adjusted pretax margin* 4.3 % 1.8 % Net income per diluted Stewart share 0.55 0.11 Adjusted net income per diluted Stewart share* 0.78 0.25 *Adjusted net income, adjusted pretax margin and adjusted net income per diluted share are non-GAAP measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments. Title Segment Summary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin): Quarter Ended March 31, 2026 2025 % Change Operating revenues 603.2 499.2 21 % Investment income 13.8 12.6 10 % Net realized and unrealized gains 3.1 3.1 1 % Pretax income 25.0 11.8 112 % Non-GAAP adjustments to pretax income* 0.2 (0.3) 180 % Adjusted pretax income* 25.2 11.5 119 % Pretax margin 4.0 % 2.3 % Adjusted pretax margin* 4.1 % 2.2 % * Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments. Title segment operating revenues increased $104.0 million (21 percent) in the first quarter 2026, driven by strong results across both our direct and agency title operations despite the current market environment. Direct title revenues improved $38.5 million (17 percent), primarily reflecting consistent strong performance in our domestic commercial business and improved domestic residential results. Gross agency revenues increased $65.5 million (25 percent), while revenues net of agency retention increased $10.7 million (23 percent) compared to the first quarter 2025. The title segment's combined employee costs and other operating expenses increased $36.9 million (14 percent); however, as a percentage of operating revenues, these costs improved to 48 percent in the first quarter 2026 from 51 percent in the prior year quarter, primarily due to higher title operating revenues. Title loss expense, as a percentage of title operating revenues, improved to 3.1 percent in the first quarter 2026, compared to 3.5 percent in the prior year quarter, primarily due to our continued overall favorable claims experience. Net realized and unrealized gains in the first quarters 2026 and 2025 were primarily related to net gains on fair value changes of equity securities investments. Investment income increased $1.2 million (10 percent) in the first quarter 2026, primarily driven by increased interest income resulting from increased cash balances compared to the first quarter 2025. In addition to the above net realized and unrealized gains, the title segment's adjusted pretax income for the first quarters 2026 and 2025 included total other non-GAAP adjustments of $3.3 million and $2.8 million, respectively, related to acquisition intangible asset amortization and severance expenses (refer to Appendix A for details). Direct title revenues information is presented below (dollars in millions): Quarter Ended March 31, 2026 2025 % Change Non-commercial: Domestic 145.6 134.4 8 % International 24.1 22.2 9 % 169.7 156.6 8 % Commercial: Domestic 93.9 69.3 35 % International 6.6 5.8 14 % 100.5 75.1 34 % Total direct title revenues 270.2 231.7 17 % Domestic commercial revenues increased $24.6 million (35 percent) in the first quarter 2026, driven by higher commercial transaction size and volume, primarily across energy, industrial, site development, data center and retail asset classes. Average domestic commercial fee per file improved 33 percent to $21,100 in the first quarter 2026 compared to $15,800 in the first quarter 2025, while domestic commercial closed orders increased 2 percent. Domestic non-commercial revenues increased $11.2 million (8 percent) in the first quarter 2026, primarily due to higher closed transaction volumes, driven mainly by increased refinancing activity. Average domestic residential fee per file was $3,300 in the first quarter 2026, consistent with the prior year quarter. Total international revenues increased $2.7 million (10 percent) in the first quarter 2026, driven primarily by improved residential volumes compared to the prior year quarter. Real Estate Solutions Segment Summary results of the real estate solutions (RES) segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin): Quarter Ended March 31, 2026 2025 % Change Operating revenues 161.4 97.1 66 % Pretax income 11.0 4.1 172 % Non-GAAP adjustments to pretax income* 9.2 5.5 66 % Adjusted pretax income* 20.2 9.6 111 % Pretax margin 6.8 % 4.2 % Adjusted pretax margin* 12.5 % 9.9 % * Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments. Segment operating revenues increased $64.3 million (66 percent) in the first quarter 2026 compared to the first quarter 2025, primarily driven by higher credit information services revenues and our recently-acquired MCS business. Combined employee costs and other operating expenses increased $55.3 million (64 percent) in the first quarter 2026, primarily due to increased costs of services associated with increased revenue levels. Non-GAAP adjustments to pretax income for both first quarters 2026 and 2025 were primarily related to acquisition intangible asset amortization expenses. The first quarter 2026 also included adjustments for MCS acquisition-related costs. Corporate Segment Net expenses attributable to corporate operations increased to $12.2 million for the first quarter 2026, compared to $9.9 million in the first quarter 2025, primarily driven by higher interest expense on increased debt balances. Expenses Consolidated employee costs increased $35.3 million (19 percent) in the first quarter 2026 compared to the prior year quarter, primarily driven by higher salaries and employee benefits expenses related to an increased average employee count, as well as higher incentive compensation consistent with improved operating results. As a percentage of total operating revenues, consolidated employee costs improved to 29 percent in the first quarter 2026, compared to 31 percent in the prior year quarter, primarily due to higher operating revenues. Consolidated other operating expenses increased $56.6 million (35 percent) in the first quarter 2026 compared to the prior year quarter, primarily as a result of higher real estate solutions service expenses and increased title outside search and premium tax expenses associated with increased operating revenues. As a percentage of total operating revenues, first quarter 2026 consolidated other operating expenses were 28 percent, compared to 27 percent in the prior year quarter, primarily due to increased real estate solutions service expenses. Other Net cash used by operations improved to $4.5 million in the first quarter 2026, compared to net cash used by operations of $29.9 million in the first quarter 2025, primarily as a result of the higher net income in the first quarter 2026. First Quarter Earnings Call Stewart will hold a conference call to discuss the first quarter 2026 earnings at 8:30 a.m. Eastern Time on Thursday, April 23, 2026. To participate, dial 800-274-8461 (USA) or 203-518-9814 (International) – access code STCQ126. Additionally, participants can listen to the conference call through Stewart's Investor Relations website at https://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on April 23, 2026 until midnight on April 30, 2026 by dialing (800) 925-9940 (USA) or (402) 220-5394 (International). About Stewart Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage and real estate industries, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we are dedicated to becoming the premier title services company and we are committed to doing so by partnering with our customers to create mutual success. Learn more at stewart.com. Cautionary statement regarding forward-looking statements. Certain statements in this press release are "forward-looking statements", including statements related to Stewart's future business plans and expectations, including our plans to achieve market growth and pretax margin improvements. Forward-looking statements, by their nature, are subject to various risks and uncertainties that could cause our actual results to differ materially. Such risks and uncertainties include the volatility of general economic conditions, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, and adverse changes in the level of real estate activity, as well as a number of other risks and uncertainties discussed in detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law. ST-IR STEWART INFORMATION SERVICES CORPORATION CONDENSED STATEMENTS OF INCOME (In thousands of dollars, except per share amounts and except where noted) Quarter Ended March 31, 2026 2025 Revenues: Title revenues: Direct title 270,177 231,680 Agency title 333,006 267,518 Real estate solutions 161,371 97,077 Total operating revenues 764,554 596,275 Investment income 13,851 12,656 Net realized and unrealized gains 2,902 3,053 781,307 611,984 Expenses: Amounts retained by agencies 276,142 221,377 Employee costs 221,098 185,811 Other operating expenses 217,517 160,911 Title losses and related claims 18,442 17,702 Depreciation and amortization 16,855 15,322 Interest 7,628 4,961 757,682 606,084 Income before taxes and noncontrolling interests 23,625 5,900 Income tax expense (4,556) (484) Net income 19,069 5,416 Less net income attributable to noncontrolling interests 2,105 2,339 Net income attributable to Stewart 16,964 3,077 Net earnings per diluted share attributable to Stewart 0.55 0.11 Diluted average shares outstanding (000) 30,809 28,341 Selected financial information: Net cash used by operations (4,490) (29,927) Other comprehensive (loss) income (5,451) 6,371 First Quarter Domestic Order Counts: Opened Orders 2026: Jan Feb Mar Total Closed Orders 2026: Jan Feb Mar Total Commercial 1,730 1,732 1,888 5,350 Commercial 1,318 1,493 1,648 4,459 Purchase 13,357 13,988 17,265 44,610 Purchase 7,319 8,452 10,262 26,033 Refinancing 7,234 7,460 8,627 23,321 Refinancing 3,847 4,264 5,274 13,385 Other 3,846 2,430 5,151 11,427 Other 1,475 1,471 1,804 4,750 Total 26,167 25,610 32,931 84,708 Total 13,959 15,680 18,988 48,627 Opened Orders 2025: Jan Feb Mar Total Closed Orders 2025: Jan Feb Mar Total Commercial 1,336 1,364 1,628 4,328 Commercial 1,394 1,376 1,620 4,390 Purchase 14,110 14,406 17,734 46,250 Purchase 7,784 8,562 10,434 26,780 Refinancing 5,481 5,655 6,426 17,562 Refinancing 3,142 3,074 3,682 9,898 Other 3,370 4,784 2,649 10,803 Other 1,413 1,507 1,685 4,605 Total 24,297 26,209 28,437 78,943 Total 13,733 14,519 17,421 45,673 STEWART INFORMATION SERVICES CORPORATION CONDENSED BALANCE SHEETS (In thousands of dollars) March 31, 2026 December 31, 2025 Assets: Cash and cash equivalents 271,235 321,775 Short-term investments 46,250 47,899 Investments in debt and equity securities, at fair value 602,485 606,170 Receivables, net 216,203 190,064 Property and equipment, net 91,892 85,330 Operating lease assets, net 107,988 106,034 Title plants 81,711 81,670 Goodwill 1,276,164 1,271,958 Intangible assets, net of amortization 316,097 325,135 Deferred tax assets 7,738 7,656 Other assets 220,224 209,114 3,237,987 3,252,805 Liabilities: Notes payable 646,748 646,606 Accounts payable and accrued liabilities 251,949 255,852 Operating lease liabilities 123,859 122,153 Estimated title losses 516,776 524,473 Deferred tax liabilities 52,991 53,323 1,592,323 1,602,407 Stockholders' equity: Common Stock and additional paid-in capital 521,984 520,243 Retained earnings 1,146,038 1,145,415 Accumulated other comprehensive loss (27,359) (21,908) Treasury stock (2,666) (2,666) Stockholders' equity attributable to Stewart 1,637,997 1,641,084 Noncontrolling interests 7,667 9,314 Total stockholders' equity 1,645,664 1,650,398 3,237,987 3,252,805 Number of shares outstanding (000) 30,425 30,223 Book value per share 53.84 54.30 STEWART INFORMATION SERVICES CORPORATION SEGMENT INFORMATION (In thousands of dollars) Quarter Ended: March 31, 2026 March 31, 2025 Title Real Estate Solutions Corporate Total Title Real Estate Solutions Corporate Total Revenues: Operating revenues 603,183 161,371 - 764,554 499,198 97,077 - 596,275 Investment income 13,822 29 - 13,851 12,621 35 - 12,656 Net realized and unrealized gains (losses) 3,085 - (183) 2,902 3,055 - (2) 3,053 620,090 161,400 (183) 781,307 514,874 97,112 (2) 611,984 Expenses: Amounts retained by agencies 276,142 - - 276,142 221,377 - - 221,377 Employee costs 195,366 22,360 3,372 221,098 168,487 13,736 3,588 185,811 Other operating expenses 96,478 119,653 1,386 217,517 86,505 72,943 1,463 160,911 Title losses and related claims 18,442 - - 18,442 17,702 - - 17,702 Depreciation and amortization 8,239 8,358 258 16,855 8,614 6,372 336 15,322 Interest 456 4 7,168 7,628 422 2 4,537 4,961 595,123 150,375 12,184 757,682 503,107 93,053 9,924 606,084 Income (loss) before taxes 24,967 11,025 (12,367) 23,625 11,767 4,059 (9,926) 5,900 Appendix A Non-GAAP Adjustments Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, acquired intangible asset amortization, acquisition-related expenses (in connection with our MCS acquisition), and severance expenses. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Adjusted pretax margin is calculated using adjusted pretax income divided by adjusted total revenues. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses. Below are reconciliations of the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the quarter ended March 31, 2026 and 2025 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding). Quarter Ended March 31, 2026 2025 % Chg Total revenues 781.3 612.0 28 % Non-GAAP revenue adjustment: Net realized and unrealized gains (2.9) (3.1) Adjusted total revenues 778.4 608.9 28 % Net realized and unrealized gains: Net unrealized gains on equity securities fair value changes 3.3 3.2 Loss on disposal of a subsidiary (0.3) - Net losses on sale of securities investments - (0.3) Other items, net (0.1) 0.2 Total 2.9 3.1 Pretax income 23.6 5.9 300 % Non-GAAP pretax adjustments: Net realized and unrealized gains (2.9) (3.1) Acquired intangible asset amortization 9.4 8.3 Acquisition-related expenses 2.5 - Severance expenses 0.6 - Adjusted pretax income 33.2 11.2 198 % GAAP pretax margin 3.0 % 1.0 % Adjusted pretax margin 4.3 % 1.8 % Net income attributable to Stewart 17.0 3.1 451 % Non-GAAP pretax adjustments: Net realized and unrealized gains (2.9) (3.1) Acquired intangible asset amortization 9.4 8.3 Acquisition-related expenses 2.5 - Severance expenses 0.6 - Net tax effects of non-GAAP adjustments (2.5) (1.4) Non-GAAP adjustments, after taxes 7.1 3.9 Adjusted net income attributable to Stewart 24.1 7.0 245 % Diluted average shares outstanding (000) 30,809 28,341 GAAP net income per share 0.55 0.11 Adjusted net income per share 0.78 0.25 Quarter Ended March 31, 2026 2025 % Chg Title Segment: Revenues 620.1 514.9 20 % Net realized and unrealized gains (3.1) (3.1) Adjusted revenues 617.0 511.8 21 % Pretax income 25.0 11.8 112 % Non-GAAP pretax adjustments: Net realized and unrealized gains (3.1) (3.1) Acquired intangible asset amortization 2.7 2.8 Severance expenses 0.6 - Adjusted pretax income 25.2 11.5 119 % GAAP pretax margin 4.0 % 2.3 % Adjusted pretax margin 4.1 % 2.2 % Real Estate Solutions Segment: Revenues 161.4 97.1 66 % Pretax income 11.0 4.1 172 % Non-GAAP pretax adjustment: Acquired intangible asset amortization 6.7 5.5 Acquisition-related expenses 2.5 - Adjusted pretax income 20.2 9.6 111 % GAAP pretax margin 6.8 % 4.2 % Adjusted pretax margin 12.5 % 9.9 % View original content to download multimedia:https://www.prnewswire.com/news-releases/stewart-reports-first-quarter-2026-results-302750757.html SOURCE Stewart Information Services Corporation