Stewart Reports Second Quarter 2026 Results
HOUSTON, July 22, 2026 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $37.2 million ($1.21 per diluted share) for the second quarter 2026, compared to net income attributable to Stewart of $31.9 million ($1.13 per diluted share) for the second quarter 2025. On an adjusted basis, net income for the second quarter 2026 was $42.9 million ($1.39 per diluted share) compared to net income of $38.0 million ($1.34 per diluted share) in the second quarter 2025. Pretax income before noncontrolling interests for the second quarter 2026 was $55.1 million ($62.8 million on an adjusted basis) compared to $46.8 million ($54.9 million on an adjusted basis) for the second quarter 2025.
Second quarter 2026 results included $3.4 million of pretax net realized and unrealized gains, which were primarily related to net gains from fair value changes of equity securities investments recorded in the title segment. Second quarter 2025 results included $0.7 million of pretax net realized and unrealized gains, which primarily resulted from $2.4 million of net unrealized gains on fair value changes of equity securities investments, partially offset by a $1.2 million acquisition liability adjustment loss in the title segment.
"We continued to build on our momentum in the second quarter and delivered another quarter of strong revenue results," commented Fred Eppinger, chief executive officer. "Though the housing market faces continued headwinds, we remain dedicated to growing each of our businesses and delivering best-in-class service to our customers."
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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Total revenues
899.2
722.2
1,680.5
1,334.2
Pretax income before noncontrolling interests
55.1
46.8
78.7
52.7
Income tax expense
(13.3)
(11.1)
(17.9)
(11.6)
Net income attributable to noncontrolling interests
(4.5)
(3.7)
(6.6)
(6.1)
Net income attributable to Stewart
37.2
31.9
54.2
35.0
Non-GAAP adjustments, after taxes*
5.7
6.0
12.8
9.9
Adjusted net income attributable to Stewart*
42.9
38.0
66.9
44.9
Pretax margin
6.1 %
6.5 %
4.7 %
3.9 %
Adjusted pretax margin*
7.0 %
7.6 %
5.7 %
5.0 %
Net income per diluted Stewart share
1.21
1.13
1.76
1.24
Adjusted net income per diluted Stewart share*
1.39
1.34
2.17
1.59
*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 June 30,
2026
2025
% Change
Operating revenues
683.6
592.5
15 %
Investment income
14.8
16.2
(9 %)
Net realized and unrealized gains
3.4
0.8
348 %
Pretax income
48.6
49.3
(1 %)
Non-GAAP adjustments to pretax income*
(0.7)
2.6
(127 %)
Adjusted pretax income*
47.9
51.9
(8 %)
Pretax margin
6.9 %
8.1 %
Adjusted pretax margin*
6.9 %
8.5 %
* 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 $91.1 million (15 percent) in the second quarter 2026 compared to the second quarter 2025, primarily resulting from strong performance by our direct and agency title operations. Direct title revenues improved $15.3 million (5 percent), primarily due to increased domestic commercial transaction volume, while gross agency title revenues increased $75.8 million (25 percent). Net of agency retention, agency title revenues increased $13.0 million (26 percent), consistent with the gross agency revenue growth.
The title segment's combined employee costs and other operating expenses increased $29.6 million (11 percent) in the second quarter 2026 compared to the prior year quarter, primarily driven by higher salaries and employee benefits, incentive compensation, and title outside search and service fees. As a percentage of title operating revenues, these expenses improved to 45 percent from 47 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 3.2 percent in the second quarter 2026 from 3.6 percent in the prior year quarter, primarily due to continued overall favorable claims experience.
Investment income decreased $1.4 million (9 percent) in the second quarter 2026, primarily driven by lower earned interest from eligible escrow balances resulting from lower interest rates and escrow balances compared to the second quarter 2025. In addition to the above net realized and unrealized gains, the title segment's adjusted pretax income for the second quarters 2026 and 2025 included total other non-GAAP adjustments of $2.7 million and $3.4 million, respectively, primarily related to acquisition intangible asset amortization expenses (refer to Appendix A for details).
Direct title revenues information is presented below (dollars in millions):
Quarter Ended June 30,
2026
2025
% Change
Non-commercial:
Domestic
177.9
179.6
(1 %)
International
31.0
29.7
4 %
208.9
209.3
0 %
Commercial:
Domestic
89.8
74.6
20 %
International
7.9
7.4
7 %
97.7
82.0
19 %
Total direct title revenues
306.6
291.3
5 %
Domestic commercial revenues increased $15.2 million (20 percent) in the second quarter 2026, driven by higher commercial transaction volume across energy and other asset classes, as well as larger data center transactions. Domestic commercial closed orders improved 21 percent, while the average domestic commercial fee per file remained relatively consistent with the prior year quarter at $16,900, primarily due to asset class mix. Domestic non-commercial revenues were comparable to the second quarter 2025, as lower non-commercial transactions were offset by a higher average domestic residential fee per file in the second quarter 2026. The average domestic residential fee per file improved 10 percent to $3,200 in the second quarter 2026. Total international revenues increased $1.8 million (5 percent) in the second quarter 2026 compared to the prior year quarter, primarily due to higher transaction volumes.
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 June 30,
2026
2025
% Change
Revenues
197.4
112.7
75 %
Pretax income
18.5
6.7
174 %
Non-GAAP adjustments to pretax income*
8.3
5.5
52 %
Adjusted pretax income*
26.8
12.2
119 %
Pretax margin
9.4 %
6.0 %
Adjusted pretax margin*
13.6 %
10.9 %
* 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 revenues increased $84.7 million (75 percent) in the second quarter 2026 compared to the second quarter 2025, primarily driven by our recently acquired MCS business and higher revenues from credit information and valuation services. Combined employee costs and other operating expenses increased $70.4 million (71 percent), primarily due to higher costs of services associated with revenue growth and increased employee count. Non-GAAP adjustments to pretax income in both second quarters 2026 and 2025 were primarily related to acquisition intangible asset amortization expenses. Additionally, second quarter 2026 adjustments included MCS integration costs.
Corporate Segment
Net expenses attributable to corporate operations for the second quarter 2026 increased to $12.0 million from $9.2 million in the second quarter 2025, primarily due to higher interest expense on increased debt balances.
Expenses
Consolidated employee costs increased $32.9 million (16 percent) in the second quarter 2026 compared to the prior year quarter, primarily due to higher salaries and employee benefit expenses resulting from a 17 percent higher average employee count, and increased incentive compensation consistent with improved operating results. As a percentage of total operating revenues, consolidated employee costs improved to 27.4 percent in the second quarter 2026, compared to 29.5 percent in the prior year quarter, primarily due to higher operating revenues.
Consolidated other operating expenses increased $67.5 million (39 percent) in the second quarter 2026 compared to the prior year quarter, primarily driven by higher real estate solutions service expenses and higher title outside search and services fees expenses associated with operating revenue growth. As a percentage of total operating revenues, consolidated other operating expenses increased to 27.4 percent from 24.6 percent in the prior year quarter, primarily due to increased real estate solutions service expenses in the second quarter 2026.
Other
Net cash provided by operations improved to $60.5 million in the second quarter 2026, compared to $53.4 million in the prior year quarter, primarily driven by higher net income.
Second Quarter Earnings Call
Stewart will hold a conference call to discuss the second quarter 2026 earnings at 8:30 a.m. Eastern Time on Thursday, July 23, 2026. To participate, dial 800-420-1459 (USA) or 203-518-9861 (International) – access code STCQ226. 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 July 23, 2026 until midnight on July 30, 2026 by dialing (800) 839-9307 (USA) or (402) 220-6085 (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 June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenues:
Title revenues:
Direct title
306,590
291,262
576,767
522,942
Agency title
377,036
301,285
710,042
568,803
Real estate solutions
197,347
112,650
358,718
209,727
Total operating revenues
880,973
705,197
1,645,527
1,301,472
Investment income
14,839
16,257
28,691
28,913
Net realized and unrealized gains
3,426
727
6,328
3,780
899,238
722,181
1,680,546
1,334,165
Expenses:
Amounts retained by agencies
314,890
252,112
591,032
473,489
Employee costs
241,061
208,209
462,159
394,019
Other operating expenses
241,051
173,527
458,570
334,439
Title losses and related claims
22,066
21,454
40,508
39,156
Depreciation and amortization
17,634
15,150
34,488
30,472
Interest
7,439
4,953
15,067
9,914
844,141
675,405
1,601,824
1,281,489
Income before taxes and noncontrolling interests
55,097
46,776
78,722
52,676
Income tax expense
(13,346)
(11,141)
(17,902)
(11,625)
Net income
41,751
35,635
60,821
41,051
Less net income attributable to noncontrolling interests
4,534
3,713
6,639
6,052
Net income attributable to Stewart
37,217
31,922
54,181
34,999
Net earnings per diluted share attributable to Stewart
1.21
1.13
1.76
1.24
Diluted average shares outstanding (000)
30,853
28,330
30,833
28,337
Selected financial information:
Net cash provided by operations
60,499
53,428
56,009
23,501
Other comprehensive (loss) income
(1,194)
14,454
(6,645)
20,825
Second Quarter Domestic Order Counts:
Opened Orders 2026:
April
May
June
Total
Closed Orders 2026:
April
May
June
Total
Commercial
2,353
1,836
1,814
6,003
Commercial
2,035
1,612
1,677
5,324
Purchase
17,469
16,648
17,034
51,151
Purchase
11,494
11,587
12,789
35,870
Refinancing
7,239
6,376
6,567
20,182
Refinancing
4,915
4,145
4,116
13,176
Other
4,604
2,962
7,645
15,211
Other
1,849
3,206
1,884
6,939
Total
31,665
27,822
33,060
92,547
Total
20,293
20,550
20,466
61,309
Opened Orders 2025:
April
May
June
Total
Closed Orders 2025:
April
May
June
Total
Commercial
1,612
1,326
1,588
4,526
Commercial
1,472
1,444
1,499
4,415
Purchase
18,050
17,785
16,958
52,793
Purchase
11,491
12,156
12,239
35,886
Refinancing
7,010
6,188
6,538
19,736
Refinancing
4,424
3,989
3,752
12,165
Other
5,232
4,666
2,693
12,591
Other
5,729
6,503
1,896
14,128
Total
31,904
29,965
27,777
89,646
Total
23,116
24,092
19,386
66,594
STEWART INFORMATION SERVICES CORPORATION
CONDENSED BALANCE SHEETS
(In thousands of dollars)
June 30,
2026
December 31,
2025
Assets:
Cash and cash equivalents
261,631
321,775
Short-term investments
46,887
47,899
Investments in debt and equity securities, at fair value
606,381
606,170
Receivables, net
227,670
190,064
Property and equipment, net
98,204
85,330
Operating lease assets, net
108,499
106,034
Title plants
81,711
81,670
Goodwill
1,293,831
1,271,958
Intangible assets, net of amortization
321,623
325,135
Deferred tax assets
7,900
7,656
Other assets
237,170
209,114
3,291,507
3,252,805
Liabilities:
Notes payable
646,742
646,606
Accounts payable and accrued liabilities
270,447
255,852
Operating lease liabilities
124,236
122,153
Estimated title losses
519,219
524,473
Deferred tax liabilities
58,080
53,323
1,618,724
1,602,407
Stockholders' equity:
Common Stock and additional paid-in capital
527,781
520,243
Retained earnings
1,166,857
1,145,415
Accumulated other comprehensive loss
(28,553)
(21,908)
Treasury stock
(2,666)
(2,666)
Stockholders' equity attributable to Stewart
1,663,419
1,641,084
Noncontrolling interests
9,364
9,314
Total stockholders' equity
1,672,783
1,650,398
3,291,507
3,252,805
Number of shares outstanding (000)
30,450
30,223
Book value per share
54.63
54.30
STEWART INFORMATION SERVICES CORPORATION
SEGMENT INFORMATION
(In thousands of dollars)
Quarter Ended:
June 30, 2026
June 30, 2025
Title
Real
Estate
Solutions
Corporate
Total
Title
Real
Estate
Solutions
Corporate
Total
Revenues:
Operating revenues
683,626
197,347
-
880,973
592,547
112,650
-
705,197
Investment income
14,794
45
-
14,839
16,233
24
-
16,257
Net realized and unrealized gains
(losses)
3,443
-
(17)
3,426
768
-
(41)
727
701,863
197,392
(17)
899,238
609,548
112,674
(41)
722,181
Expenses:
Amounts retained by agencies
314,890
-
-
314,890
252,112
-
-
252,112
Employee costs
212,305
25,404
3,352
241,061
189,549
15,437
3,223
208,209
Other operating expenses
95,104
144,552
1,395
241,051
88,252
84,072
1,203
173,527
Title losses and related claims
22,066
-
-
22,066
21,454
-
-
21,454
Depreciation and amortization
8,442
8,950
242
17,634
8,443
6,424
283
15,150
Interest
456
3
6,980
7,439
424
-
4,529
4,953
653,263
178,909
11,969
844,141
560,234
105,933
9,238
675,405
Income (loss) before taxes
48,600
18,483
(11,986)
55,097
49,314
6,741
(9,279)
46,776
Six Months Ended:
June 30, 2026
June 30, 2025
Title
Real
Estate
Solutions
Corporate
Total
Title
Real
Estate
Solutions
Corporate
Total
Revenues:
Operating revenues
1,286,809
358,718
-
1,645,527
1,091,745
209,727
-
1,301,472
Investment income
28,616
75
-
28,691
28,855
58
-
28,913
Net realized and unrealized gains
(losses)
6,528
-
(200)
6,328
3,823
-
(43)
3,780
1,321,953
358,793
(200)
1,680,546
1,124,423
209,785
(43)
1,334,165
Expenses:
Amounts retained by agencies
591,032
-
-
591,032
473,489
-
-
473,489
Employee costs
407,672
47,764
6,723
462,159
358,036
29,172
6,811
394,019
Other operating expenses
191,584
264,207
2,779
458,570
174,759
157,015
2,665
334,439
Title losses and related claims
40,508
-
-
40,508
39,156
-
-
39,156
Depreciation and amortization
16,681
17,307
500
34,488
17,057
12,796
619
30,472
Interest
911
8
14,148
15,067
846
2
9,066
9,914
1,248,388
329,286
24,150
1,601,824
1,063,343
198,985
19,161
1,281,489
Income (loss) before taxes
73,565
29,507
(24,350)
78,722
61,080
10,800
(19,204)
52,676
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 integration expenses (in connection with integration of 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 and six months ended June 30, 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 June 30,
Six Months Ended June 30,
2026
2025
% Chg
2026
2025
% Chg
Total revenues
899.2
722.2
25 %
1,680.5
1,334.2
26 %
Non-GAAP revenue adjustment:
Net realized and unrealized gains
(3.4)
(0.7)
(6.3)
(3.8)
Adjusted total revenues
895.8
721.5
24 %
1,674.2
1,330.4
26 %
Net realized and unrealized gains:
Net unrealized gains on equity securities fair
value changes
3.1
2.4
6.5
5.6
Net gains (losses) on sale of securities
investments
0.3
(0.1)
0.3
(0.4)
Net losses from acquisition liability adjustments
-
(1.2)
-
(1.0)
Other items, net
-
(0.4)
(0.5)
(0.4)
Total
3.4
0.7
371 %
6.3
3.8
67 %
Pretax income
55.1
46.8
18 %
78.7
52.7
49 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains
(3.4)
(0.7)
(6.3)
(3.8)
Acquired intangible asset amortization
9.9
8.3
19.3
16.6
Acquisition integration expenses
1.2
-
3.7
-
Office closure and severance expenses
-
0.6
0.6
0.6
Adjusted pretax income
62.8
54.9
14 %
96.0
66.1
45 %
GAAP pretax margin
6.1 %
6.5 %
4.7 %
3.9 %
Adjusted pretax margin
7.0 %
7.6 %
5.7 %
5.0 %
Net income attributable to Stewart
37.2
31.9
17 %
54.2
35.0
55 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains
(3.4)
(0.7)
(6.3)
(3.8)
Acquired intangible asset amortization
9.9
8.3
19.3
16.6
Acquisition integration expenses
1.2
-
3.7
-
Office closure and severance expenses
-
0.6
0.6
0.6
Net tax effects of non-GAAP adjustments
(2.0)
(2.1)
(4.5)
(3.5)
Non-GAAP adjustments, after taxes
5.7
6.0
12.8
9.9
Adjusted net income attributable to Stewart
42.9
38.0
13 %
66.9
44.9
49 %
Diluted average shares outstanding (000)
30,853
28,330
30,833
28,337
GAAP net income per share
1.21
1.13
1.76
1.24
Adjusted net income per share
1.39
1.34
2.17
1.59
Quarter Ended June 30,
Six Months Ended June 30,
2026
2025
% Chg
2026
2025
% Chg
Title Segment:
Revenues
701.9
609.5
15 %
1,322.0
1,124.4
18 %
Net realized and unrealized gains
(3.4)
(0.8)
(6.5)
(3.8)
Adjusted revenues
698.4
608.8
15 %
1,315.4
1,120.6
17 %
Pretax income
48.6
49.3
(1 %)
73.6
61.1
20 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains
(3.4)
(0.8)
(6.5)
(3.8)
Acquired intangible asset amortization
2.7
2.8
5.5
5.6
Office closure and severance expenses
-
0.6
0.6
0.6
Adjusted pretax income
47.9
51.9
(8 %)
73.1
63.5
15 %
GAAP pretax margin
6.9 %
8.1 %
5.6 %
5.4 %
Adjusted pretax margin
6.9 %
8.5 %
5.6 %
5.7 %
Real Estate Solutions Segment:
Revenues
197.4
112.7
75 %
358.8
209.8
71 %
Pretax income
18.5
6.7
174 %
29.5
10.8
173 %
Non-GAAP pretax adjustment:
Acquired intangible asset amortization
7.2
5.5
13.9
11.0
Acquisition integration expenses
1.2
-
3.7
-
Adjusted pretax income
26.8
12.2
119 %
47.0
21.8
116 %
GAAP pretax margin
9.4 %
6.0 %
8.2 %
5.1 %
Adjusted pretax margin
13.6 %
10.9 %
13.1 %
10.4 %
SOURCE Stewart Information Services Corporation