18:15:45 EDT Wed 22 Apr 2026
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Stewart Reports First Quarter 2026 Results

2026-04-22 16:15 ET - News Release

Stewart Reports First Quarter 2026 Results

PR Newswire

  • 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 quarter
  • Net 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)

HOUSTON, April 22, 2026 /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, December 31,
                                                                2026          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              Corporate    Total    Title              Real         Corporate       Total
                                                                 Estate                                                     Estate
                                                                Solutions                                                  Solutions



 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 %

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SOURCE Stewart Information Services Corporation

Contact:

Kathryn Bass, Investor Relations, (713) 625-8633

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