Stewart Reports Fourth Quarter and Full Year 2025 Results

Stewart Reports Fourth Quarter and Full Year 2025 Results Feb 04, 2026 Total revenues of $790.6 million ($794.4 million on an adjusted basis) compared to $665.9 million ($664.2 million on an adjusted basis) in the prior year quarterNet income of $36.3 million ($47.9 million on an adjusted basis) compared to net income of $22.7 million ($31.5 million on an adjusted basis) in the prior year quarter Diluted EPS of $1.25 ($1.65 on an adjusted basis) compared to prior year quarter diluted EPS of $0.80 ($1.12 on an adjusted basis)Full year 2025 revenues of $2.9 billion compared to 2024 revenues of $2.5 billion Full year 2025 net income of $115.5 million ($139.6 million on an adjusted basis) compared to 2024 net income of $73.3 million ($94.4 million on an adjusted basis)Full year 2025 diluted EPS of $4.05 ($4.89 on an adjusted basis) compared to 2024 diluted EPS of $2.61 ($3.35 on an adjusted basis) , /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $36.3 million ($1.25 per diluted share) for the fourth quarter 2025, compared to net income attributable to Stewart of $22.7 million ($0.80 per diluted share) for the fourth quarter 2024. On an adjusted basis, net income for the fourth quarter 2025 was $47.9 million ($1.65 per diluted share) compared to net income of $31.5 million ($1.12 per diluted share) in the fourth quarter 2024. Pretax income before noncontrolling interests for the fourth quarter 2025 was $51.7 million ($67.5 million on an adjusted basis) compared to $35.4 million ($47.3 million on an adjusted basis) for the fourth quarter 2024. Fourth quarter 2025 results included $3.8 million of pretax net realized and unrealized losses, primarily recorded in the title segment, while the fourth quarter 2024 results included $1.7 million of pretax net realized and unrealized gains, comprised of $2.8 million net gains in the title segment and $1.1 million net losses in the corporate segment. "I am pleased with our strong fourth quarter results as they demonstrate continued progress across all lines of business as the market begins to slowly improve," commented Fred Eppinger, chief executive officer. "We are focused on improving our operational results in all of our businesses regardless of market conditions and taking advantage of opportunities." 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 December 31, Year Ended December 31, 2025 2024 2025 2024 Total revenues 790.6 665.9 2,921.6 2,490.4 Pretax income before noncontrolling interests 51.7 35.4 165.6 114.3 Income tax expense (10.8) (8.2) (35.4) (26.2) Net income attributable to noncontrolling interests  (4.6) (4.5) (14.6) (14.8) Net income attributable to Stewart 36.3 22.7 115.5 73.3 Non-GAAP adjustments, after taxes* 11.7 8.8 24.0 21.1 Adjusted net income attributable to Stewart* 47.9 31.5 139.6 94.4 Pretax margin 6.5 % 5.3 % 5.7 % 4.6 % Adjusted pretax margin* 8.5 % 7.1 % 6.8 % 5.8 % Net income per diluted Stewart share 1.25 0.80 4.05 2.61 Adjusted net income per diluted Stewart share* 1.65 1.12 4.89 3.35 *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 December 31, 2025 2024 % Change Operating revenues 668.4 562.7 19 % Investment income 14.0 14.5 (3 %) Net realized and unrealized (losses) gains (3.8) 2.8 (236 %) Pretax income 58.0 45.2 28 % Non-GAAP adjustments to pretax income* 10.1 5.3 90 % Adjusted pretax income* 68.1 50.5 35 % Pretax margin 8.5 % 7.8 % Adjusted pretax margin* 10.0 % 8.8 % * 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 improved $105.7 million (19 percent) in the fourth quarter 2025, driven by strong performances by our direct and agency title operations with operating revenue growth of 18 percent and 20 percent, respectively, compared to the fourth quarter 2024. Segment total operating expenses increased $85.9 million (16 percent) compared to the prior year quarter, primarily driven by the $43.9 million (19 percent) higher agency retention expenses and $40.3 million (15 percent) increased combined employee costs and other operating expenses, consistent with title revenue growth. As a percentage of operating revenues, total employee costs and other operating expenses for the title segment improved to 47 percent in the fourth quarter 2025 compared to 49 percent in the fourth quarter 2024, primarily due to increased title operating revenues. Title loss expense increased $2.3 million (11 percent) in the fourth quarter 2025, compared to the fourth quarter 2024, primarily driven by higher title revenues. As a percentage of title operating revenues, the title loss expense improved to 3.4 percent in the fourth quarter 2025, compared to 3.7 percent in the prior year quarter, primarily influenced by our continued overall favorable claims experience. Net realized and unrealized losses in the fourth quarter 2025 were primarily related to net losses of $4.7 million on fair value changes of equity securities investments, $2.9 million on disposal of a subsidiary and $1.0 million on an acquisition liability adjustment, partially offset by net gains of $4.9 million on the sale of securities investments. Net realized and unrealized gains in the fourth quarter 2024 were primarily related to $1.4 million of net gains on fair value changes of equity securities investments and a $2.4 million gain on an acquisition liability adjustment, partially offset by a $0.8 million loss on disposal of a subsidiary. In addition to the above net realized and unrealized gains and losses, the title segment's adjusted pretax income for the fourth quarters 2025 and 2024 included total other non-GAAP adjustments of $6.3 million and $8.1 million, respectively, related to acquisition intangible asset amortization, office closure costs and severance expenses (refer to Appendix A for details). Direct title revenues information is presented below (dollars in millions): Quarter Ended December 31, 2025 2024 % Change Non-commercial: Domestic 180.2 162.5 11 % International 31.0 25.9 20 % 211.2 188.4 12 % Commercial: Domestic 116.1 84.1 38 % International 7.5 11.1 (32 %) 123.6 95.2 30 % Total direct title revenues  334.8 283.6 18 % Domestic commercial revenues improved by $32.0 million (38 percent) in the fourth quarter 2025, primarily driven by increased sizes of commercial closed transactions, principally related to the data center and energy asset classes, while domestic non-commercial revenues increased $17.7 million (11 percent), primarily driven by higher combined purchase and refinancing closed transactions and average fee per file compared to the prior year quarter. Average domestic commercial fee per file for the fourth quarter 2025 grew 39 percent to $27,300, compared to $19,600 in the prior year quarter, while average domestic residential fee per file improved 13 percent to $3,300, compared to $2,900 in the fourth quarter 2024. Total international revenues increased $1.5 million (4 percent) in the fourth quarter 2025, primarily driven by improved residential volumes compared to the prior year quarter. Real Estate Solutions Segment Summary results of the real estate solutions segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin): Quarter Ended December 31, 2025 2024 % Change Total revenues 111.9 87.0 29 % Pretax income 3.9 0.9 317 % Non-GAAP adjustments to pretax income* 5.6 5.5 2 % Adjusted pretax income* 9.5 6.5 47 % Pretax margin 3.5 % 1.1 % Adjusted pretax margin* 8.5 % 7.4 % * 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 $24.9 million (29 percent) in the fourth quarter 2025 compared to the fourth quarter 2024, primarily driven by our credit information services business. Combined employee costs and other operating expenses in the fourth quarter 2025 increased $21.6 million (27 percent) primarily due to increased costs of services related to revenue growth. Non-GAAP adjustments to pretax income shown in the schedule above were related to acquisition intangible asset amortization expenses (refer to Appendix A). Corporate Segment Net expenses attributable to corporate operations for the fourth quarter 2025 increased to $10.1 million, compared to $9.7 million in the fourth quarter 2024, primarily due to higher interest expense on increased debt balances. The segment recorded a $1.1 million realized loss related to an investment impairment in the fourth quarter 2024. Expenses Consolidated employee costs increased $25.9 million (13 percent) in the fourth quarter 2025 compared to the prior year quarter, primarily driven by higher salaries and employee benefits expenses related to a higher average employee count, and increased incentive compensation consistent with overall improved results. As a percentage of total operating revenues, consolidated employee costs in the fourth quarter 2025 improved to 28.9 percent compared to 30.7 percent in the prior year quarter, primarily due to higher operating revenues in the fourth quarter 2025. Consolidated other operating expenses increased $36.0 million (23 percent), primarily resulting from higher real estate solutions service expenses and title outside search and premium tax expenses driven by increased revenues in the fourth quarter 2025 compared to the prior year quarter. As a percentage of total operating revenues, fourth quarter 2025 consolidated other operating expenses were 25 percent, which was comparable to the prior year quarter. Other Net cash provided by operations improved to $89.5 million in the fourth quarter 2025, compared to $68.0 million in the fourth quarter 2024, primarily driven by the higher net income in the fourth quarter 2025. Fourth Quarter Earnings Call Stewart will hold a conference call to discuss the fourth quarter 2025 earnings at 8:30 a.m. Eastern Time on Thursday, February 5, 2026. To participate, dial 800-274-8461 (USA) or 203-518-9814 (International) – access code STCQ425. 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 February 5, 2026 until midnight on February 12, 2026 by dialing (800) 839-4198 (USA) or (402) 220-2988 (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 risk 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, 2024, 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. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2025. 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 December 31, Year Ended December 31, 2025 2024 2025 2024 Revenues: Title revenues: Direct title 334,846 283,606 1,157,478 1,020,380 Agency title 333,578 279,092 1,262,568 1,043,173 Real estate solutions 111,921 86,998 438,255 358,559 Total operating revenues 780,345 649,696 2,858,301 2,422,112 Investment income 14,043 14,538 57,776 55,370 Net realized and unrealized (losses) gains (3,835) 1,699 5,559 12,937 790,553 665,933 2,921,636 2,490,419 Expenses: Amounts retained by agencies 274,648 230,724 1,047,660 864,807 Employee costs 225,354 199,418 830,594 745,405 Other operating expenses 195,019 159,071 714,626 603,959 Title losses and related claims 22,967 20,656 81,668 80,411 Depreciation and amortization 15,208 15,549 61,070 61,612 Interest 5,632 5,147 20,444 19,914 738,828 630,565 2,756,062 2,376,108 Income before taxes and noncontrolling interests 51,725 35,368 165,574 114,311 Income tax expense (10,810) (8,156) (35,411) (26,155) Net income 40,915 27,212 130,163 88,156 Less net income attributable to noncontrolling interests  4,638 4,471 14,628 14,846 Net income attributable to Stewart 36,277 22,741 115,535 73,310 Net earnings per diluted share attributable to Stewart 1.25 0.80 4.05 2.61 Diluted average shares outstanding (000) 29,060 28,277 28,560 28,129 Selected financial information: Net cash provided by operations 89,542 67,953 205,688 135,609 Other comprehensive income (loss) 2,586 (19,093) 21,489 (8,182) Fourth Quarter Domestic Order Counts: Opened Orders 2025: Oct Nov Dec Total Closed Orders 2025: Oct Nov Dec Total Commercial 1,599 1,404 1,493 4,496 Commercial 1,637 1,280 1,338 4,255 Purchase 15,471 12,077 12,251 39,799 Purchase 11,453 9,185 11,207 31,845 Refinancing 8,651 6,458 6,742 21,851 Refinancing 5,608 4,486 5,413 15,507 Other 2,820 2,167 2,394 7,381 Other 3,383 1,491 2,075 6,949 Total 28,541 22,106 22,880 73,527 Total 22,081 16,442 20,033 58,556 Opened Orders 2024: Oct Nov Dec Total Closed Orders 2024: Oct Nov Dec Total Commercial 1,471 1,226 1,586 4,283 Commercial 1,363 1,174 1,766 4,303 Purchase 15,852 12,224 11,323 39,399 Purchase 11,545 10,098 10,662 32,305 Refinancing 7,245 4,782 5,225 17,252 Refinancing 4,990 3,724 3,441 12,155 Other 4,076 2,239 2,090 8,405 Other 4,339 3,937 2,386 10,662 Total 28,644 20,471 20,224 69,339 Total 22,237 18,933 18,255 59,425 STEWART INFORMATION SERVICES CORPORATION CONDENSED BALANCE SHEETS (In thousands of dollars) December 31, 2025 December 31, 2024 Assets: Cash and cash equivalents 321,775 216,298 Short-term investments 47,899 41,199 Investments in debt and equity securities, at fair value 606,170 669,099 Receivables – premiums from agencies 38,286 36,753 Receivables – other 159,583 111,735 Allowance for uncollectible amounts (7,805) (7,725) Property and equipment, net 85,330 87,613 Operating lease assets, net 106,034 102,210 Title plants 81,670 74,862 Goodwill 1,271,958 1,084,139 Intangible assets, net of amortization 325,135 173,075 Deferred tax assets 7,656 4,827 Other assets 209,114 136,060 3,252,805 2,730,145 Liabilities: Notes payable 646,606 445,841 Accounts payable and accrued liabilities 255,852 214,580 Operating lease liabilities 122,153 118,835 Estimated title losses 524,473 511,534 Deferred tax liabilities 53,323 28,266 1,602,407 1,319,056 Stockholders' equity: Common Stock and additional paid-in capital 520,243 358,721 Retained earnings 1,145,415 1,089,484 Accumulated other comprehensive loss (21,908) (43,397) Treasury stock (2,666) (2,666) Stockholders' equity attributable to Stewart 1,641,084 1,402,142 Noncontrolling interests 9,314 8,947 Total stockholders' equity 1,650,398 1,411,089 3,252,805 2,730,145 Number of shares outstanding (000) 30,223 27,764 Book value per share 54.30 50.50 STEWART INFORMATION SERVICES CORPORATION SEGMENT INFORMATION (In thousands of dollars) Quarter Ended: December 31, 2025 December 31, 2024 Title Real Estate Solutions Corporate Total Title Real Estate Solutions Corporate Total Revenues: Operating revenues 668,425 111,920 - 780,345 562,698 86,998 - 649,696 Investment income 14,020 23 - 14,043 14,511 27 - 14,538 Net realized and unrealized (losses) gains (3,750) - (85) (3,835) 2,760 - (1,061) 1,699 678,695 111,943 (85) 790,553 579,969 87,025 (1,061) 665,933 Expenses: Amounts retained by agencies 274,648 - - 274,648 230,724 - - 230,724 Employee costs 204,705 17,213 3,436 225,354 181,436 14,667 3,315 199,418 Other operating expenses 109,592 84,174 1,253 195,019 92,580 65,124 1,367 159,071 Title losses and related claims 22,967 - - 22,967 20,656 - - 20,656 Depreciation and amortization 8,300 6,666 242 15,208 8,921 6,301 327 15,549 Interest 456 - 5,176 5,632 420 1 4,726 5,147 620,668 108,053 10,107 738,828 534,737 86,093 9,735 630,565 Income (loss) before taxes 58,027 3,890 (10,192) 51,725 45,232 932 (10,796) 35,368 Year Ended: December 31, 2025 December 31, 2024 Title Real Estate Solutions Corporate Total Title Real Estate Solutions Corporate Total Revenues: Operating revenues 2,420,046 438,255 - 2,858,301 2,063,553 358,559 - 2,422,112 Investment income 57,663 113 - 57,776 55,256 114 - 55,370 Net realized and unrealized gains (losses) 4,309 - 1,250 5,559 14,146 - (1,209) 12,937 2,482,018 438,368 1,250 2,921,636 2,132,955 358,673 (1,209) 2,490,419 Expenses: Amounts retained by agencies 1,047,660 - - 1,047,660 864,807 - - 864,807 Employee costs 754,339 62,479 13,776 830,594 677,378 54,572 13,455 745,405 Other operating expenses 381,832 327,668 5,126 714,626 339,950 258,827 5,182 603,959 Title losses and related claims 81,668 - - 81,668 80,411 - - 80,411 Depreciation and amortization 33,712 26,239 1,119 61,070 35,047 25,104 1,461 61,612 Interest 1,721 3 18,720 20,444 1,584 9 18,321 19,914 2,300,932 416,389 38,741 2,756,062 1,999,177 338,512 38,419 2,376,108 Income (loss) before taxes 181,086 21,979 (37,491) 165,574 133,778 20,161 (39,628) 114,311 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, and office closure costs 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 and year ended December 31, 2025 and 2024 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding). Quarter Ended December 31, Year Ended December 31, 2025 2024 % Chg 2025 2024 % Chg Total revenues 790.6 665.9 19 % 2,921.6 2,490.4 17 % Non-GAAP revenue adjustment: Net realized and unrealized losses (gains) 3.8 (1.7) (5.6) (12.9) Adjusted total revenues 794.4 664.2 20 % 2,916.1 2,477.5 18 % Net realized and unrealized (losses) gains: Net unrealized (losses) gains on equity securities fair value changes (4.7) 1.4 5.2 12.6 Net gains (losses) on sale of securities investments 4.9 (0.2) 4.4 - Losses on disposal of subsidiaries (2.9) (0.8) (2.9) (0.8) Net (losses) gains from acquisition liability adjustments (1.0) 2.4 (2.0) 2.4 Losses from impairment of investments (0.1) (1.1) (0.2) (1.2) Other items, net - - 1.0 (0.1) Total (3.8) 1.7 5.6 12.9 Pretax income 51.7 35.4 46 % 165.6 114.3 45 % Non-GAAP pretax adjustments: Net realized and unrealized losses (gains) 3.8 (1.7) (5.6) (12.9) Acquired intangible asset amortization 8.4 8.5 33.5 33.6 Office closure and severance expenses 3.5 5.1 4.5 7.8 Adjusted pretax income 67.5 47.3 43 % 198.1 142.8 39 % GAAP pretax margin 6.5 % 5.3 % 5.7 % 4.6 % Adjusted pretax margin 8.5 % 7.1 % 6.8 % 5.8 % Net income attributable to Stewart 36.3 22.7 60 % 115.5 73.3 58 % Non-GAAP pretax adjustments: Net realized and unrealized losses (gains) 3.8 (1.7) (5.6) (12.9) Acquired intangible asset amortization 8.4 8.5 33.5 33.6 Office closure and severance expenses 3.5 5.1 4.5 7.8 Net tax effects of non-GAAP adjustments (4.1) (3.1) (8.4) (7.4) Non-GAAP adjustments, after taxes 11.7 8.8 24.0 21.1 Adjusted net income attributable to Stewart 47.9 31.5 52 % 139.6 94.4 48 % Diluted average shares outstanding (000) 29,060 28,277 28,560 28,129 GAAP net income per share 1.25 0.80 4.05 2.61 Adjusted net income per share 1.65 1.12 4.89 3.35 Quarter Ended December 31, Year Ended December 31, 2025 2024 % Chg 2025 2024 % Chg Title Segment: Revenues 678.7 580.0 17 % 2,482.0 2,133.0 16 % Net realized and unrealized losses (gains) 3.8 (2.8) (4.3) (14.1) Adjusted revenues 682.4 577.2 18 % 2,477.7 2,118.8 17 % Pretax income 58.0 45.2 28 % 181.1 133.8 35 % Non-GAAP pretax adjustments: Net realized and unrealized losses (gains) 3.8 (2.8) (4.3) (14.1) Acquired intangible asset amortization 2.8 3.0 11.2 11.5 Office closure and severance expenses 3.5 5.1 4.4 7.8 Adjusted pretax income 68.1 50.5 35 % 192.3 138.9 38 % GAAP pretax margin 8.5 % 7.8 % 7.3 % 6.3 % Adjusted pretax margin 10.0 % 8.8 % 7.8 % 6.6 % Real Estate Solutions Segment: Revenues 111.9 87.0 29 % 438.3 358.6 22 % Pretax income 3.9 0.9 317 % 22.0 20.2 9 % Non-GAAP pretax adjustment: Acquired intangible asset amortization  5.6 5.5 22.4 22.2 Severance expenses - - 0.1 - Adjusted pretax income 9.5 6.5 47 % 44.5 42.3 5 % GAAP pretax margin 3.5 % 1.1 % 5.0 % 5.6 % Adjusted pretax margin 8.5 % 7.4 % 10.1 % 11.8 % View original content to download multimedia:https://www.prnewswire.com/news-releases/stewart-reports-fourth-quarter-and-full-year-2025-results-302679435.html SOURCE Stewart Information Services Corporation