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ST JOE Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 1 raised, 1 lowered, 2 new. The quarter’s numbers.

Key takeaways

  • Total revenue reaches 20-year high: Total quarterly revenue increased 23% to $158.8 million from $129.1 million in Q2 2025, the company's highest second quarter revenue in twenty years. Source
  • Net income reaches historic 30-year level: Net income increased 37% to $40.5 million, or $0.71 per share, from $29.5 million or $0.51 per share, the highest Q2 net income in thirty years. Source
  • Park Place East approved for 2,000 units: The company obtained approval for Park Place East, a new residential community of approximately 2,000 units. Two additional communities (Teachee and Pigeon Creek DSAPs) are planned to commence in early 2027. Source
  • Hospitality gross margin expands to 41 percent: Hospitality gross margin improved to 41% in Q2 2026 from 39% in Q2 2025. The margin improvement reflected better performance across all hospitality categories. Source
  • Leasing margins improve to 60 percent: Leasing gross profit increased to $9.0 million with a 60% margin in Q2 2026 from $8.9 million with a 54% margin in Q2 2025, despite lower revenue. Source
  • Residential margin improves to 48 percent: Residential real estate gross margin increased to 48% in Q2 2026 from 45% in Q2 2025, demonstrating refined operations and improved profitability as the company scales. Source
  • Across-the-board margin expansion demonstrates efficiency: All three business segments expanded margins, showing the company's ability to refine operations and increase profitability while scaling. This reflects improved execution across residential, hospitality and commercial. Source
  • Share repurchases accelerate 133 percent: The company repurchased $32.7 million of common stock, or 499,700 shares, in Q2 2026. For H1 2026, repurchases totaled $37.7 million, up 133% versus $16.2 million in H1 2025. Source
  • Outstanding shares reach lowest since 1997: As of June 30, 2026, the company had 56,991,651 outstanding shares, the lowest number of outstanding shares since 1997, reflecting continued share repurchase activity. Source

“We had a strong second quarter with total revenue increasing by 23% and net income increasing by 37%, as compared to the second quarter of 2025. It was our highest total revenue for a second quarter in 20 years and the highest net income for a second quarter in our history since a one-off gain on sale of discontinued operations 30 years ago.”

Jorge Gonzalez, President, Chief Executive Officer and Chairman of the Board

Guidance

AreaPeriodFigureAgainst last quarter
Real estate revenue (residential homesites) SourceOver the next several years, at closingApproximately $109.2 million from 1,104 homesitesLowered from $119.9 million
Real estate revenue (Latitude Margaritaville joint venture) SourceAt completion of homes under contractApproximately $115.1 million from 183 homesRaised from $93.5 million
Residential pipeline units SourceVarious stages, development to conceptOver 25,000 residential unitsNew
New residential community SourceDevelopment to commence 2026 - 2027Approximately 2,000 residential units (Park Place East)New

What changed from last quarter

  • Guidance lowered: Expected revenue from homesites under contract (excluding Pigeon Creek and SouthWood) decreased to $109.2 million from $119.9 million in Q1 2026 due to home closings reducing units in pipeline. Source
  • Guidance raised: Expected sales value from Latitude Margaritaville homes under contract increased to $115.1 million from $93.5 million as additional homes entered the contract pipeline. Source
  • New: Park Place East, a new residential community of approximately 2,000 units, was approved in Q2 2026, adding to the development pipeline. Source

Quarterly Revenue and Earnings Growth

  • Total revenue reaches 20-year high: Total quarterly revenue increased 23% to $158.8 million from $129.1 million in Q2 2025, the company's highest second quarter revenue in twenty years. Source
  • Net income reaches historic 30-year level: Net income increased 37% to $40.5 million, or $0.71 per share, from $29.5 million or $0.51 per share, the highest Q2 net income in thirty years. Source
  • Hospitality reaches quarterly record level: Hospitality revenue increased 8% to $74.2 million, a company quarterly record. Watersound Club revenue rose 13% to $28.6 million; hotel revenue increased 4% to $40.5 million. Source

Residential Real Estate Pipeline

  • Homesites under contract total 3,077: The company had 3,077 residential homesites under contract as of June 30, 2026. Excluding Pigeon Creek and SouthWood, the remaining 1,104 homesites are expected to generate approximately $109.2 million in revenue. Source
  • Park Place East approved for 2,000 units: The company obtained approval for Park Place East, a new residential community of approximately 2,000 units. Two additional communities (Teachee and Pigeon Creek DSAPs) are planned to commence in early 2027. Source
  • Diverse residential portfolio with wide pricing: The company offers residential communities with home pricing ranging from the high $200 thousands to over $5 million. Results vary by quarter due to one to two year development cycles. Source

“This across-the-board increase in gross margin demonstrates that the Company continues to refine operations and increase profitability as we continue to scale and plan for the future.”

Jorge Gonzalez

Hospitality and Watersound Club

  • Watersound Club membership reaches 3,723: Watersound Club membership reached 3,723 members as of June 30, 2026, up 172 from 3,551 a year earlier. Club revenue increased 13% to $28.6 million in the quarter. Source
  • Hotel operations span 12 properties: The company owns or has joint venture interests in 12 hotels with 1,298 operational rooms. Hotel revenue increased 4% to $40.5 million, continuing to drive hospitality segment growth. Source
  • Hospitality gross margin expands to 41 percent: Hospitality gross margin improved to 41% in Q2 2026 from 39% in Q2 2025. The margin improvement reflected better performance across all hospitality categories. Source

Commercial Leasing Operations

  • Leasing revenue declines from 2025 sale: Leasing revenue decreased 9% to $15.0 million in Q2 2026 from $16.5 million in Q2 2025, primarily due to the September 2025 sale of the Watercrest joint venture senior living property. Source
  • Leasing margins improve to 60 percent: Leasing gross profit increased to $9.0 million with a 60% margin in Q2 2026 from $8.9 million with a 54% margin in Q2 2025, despite lower revenue. Source
  • Commercial space occupancy remains strong: As of June 30, 2026, leasable space totaled 1,196,000 square feet with 1,139,000 or 95% leased. An additional 69,134 square feet under construction is 84% pre-leased. Source
  • Major commercial centers planned expansion: The company is focused on three major commercial leasing centers: Watersound Town Center, Watersound West Bay Center, and FSU/TMH Medical Campus, with potential to more than double commercial space. Source

“We are seeing this model function in real time: A visiting family stays in one of our hotels and becomes introduced to our area. The family decides to purchase a home in one of our communities and hires our brokerage business, closes the purchase with our title agency.”

Jorge Gonzalez

Gross Margin Expansion Across All Segments

  • Residential margin improves to 48 percent: Residential real estate gross margin increased to 48% in Q2 2026 from 45% in Q2 2025, demonstrating refined operations and improved profitability as the company scales. Source
  • Across-the-board margin expansion demonstrates efficiency: All three business segments expanded margins, showing the company's ability to refine operations and increase profitability while scaling. This reflects improved execution across residential, hospitality and commercial. Source

Share Repurchases and Capital Returns

  • Share repurchases accelerate 133 percent: The company repurchased $32.7 million of common stock, or 499,700 shares, in Q2 2026. For H1 2026, repurchases totaled $37.7 million, up 133% versus $16.2 million in H1 2025. Source
  • Outstanding shares reach lowest since 1997: As of June 30, 2026, the company had 56,991,651 outstanding shares, the lowest number of outstanding shares since 1997, reflecting continued share repurchase activity. Source
  • Quarterly dividend declared at 16 cents: The board of directors declared a quarterly cash dividend of $0.16 per share, payable September 18, 2026 to shareholders of record August 21, 2026. Source
  • Capital expenditures fund growth initiatives: Capital expenditures in Q2 2026 totaled $24.0 million. For the first half, capex was $44.7 million, representing 31% of total capital allocation. Source

Cash Position and Debt Management

  • Cash balance declines to $117.3 million: As of June 30, 2026, cash and cash equivalents totaled $117.3 million, compared to $129.6 million at December 31, 2025, reflecting capital deployment in the first half. Source
  • Debt weighted average rate at 4.7 percent: The weighted average effective interest rate on outstanding debt was 4.7% with an average remaining life of 19.8 years. Eighty-four percent of debt was fixed or swapped. Source

Coming up, as management said on 29 July 2026

  • Park Place East moves to development: Park Place East, approved in Q2 2026 for approximately 2,000 residential units, will move forward in development. The company is in active discussions with additional homebuilders for participation. Source
  • Latitude Margaritaville homes complete sales: The Latitude Margaritaville Watersound joint venture has 183 homes under contract with expected sales value of approximately $115.1 million at completion. The community is planned for 3,700 total homes. Source
  • Commercial leasing centers planned expansion: Watersound Town Center, Watersound West Bay Center, and FSU/TMH Medical Campus are planned expansions with potential to more than double the company's total current leasable commercial space. Source
  • New residential communities commence early 2027: The company plans to commence the first phase of two new communities in the Teachee and Pigeon Creek Detailed Specific Area Plans in early 2027, adding to the development pipeline. Source

Risks management discussed

  • Demand: The company's residential results vary by quarter due to one to two year seeding and harvesting cycles within communities, and mortgage interest rates influence home buying decisions. Source
  • Operational: The company depends on homebuilders for residential sales. While expanding partnerships with new builders including PulteGroup, D.R. Horton and Toll Brothers, demand remains contingent on builder market activity. Source
  • External: The company is exposed to natural disasters, severe weather, and climate change risks affecting Northwest Florida operations, property values and development timelines. Source
  • Financial: The company has variable-rate debt exposure on 16% of its debt portfolio that varies with SOFR rates, and longer-term development cycles involve negative cash flows before value realization. Source

Earlier plans management reported on

  • On track: The company continued expanding its stock repurchase program with H1 2026 repurchases up 133% versus H1 2025, reaching the lowest share count since 1997. Source
  • On track: Board declared the quarterly dividend at $0.16 per share, consistent with prior quarters, payable September 18, 2026. Source
  • On track: First phase of Teachee and Pigeon Creek DSAPs planned to commence development in early 2027 as previously indicated. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.