Stewart Information Services Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 22 April 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose: Net income attributable to Stewart was $17.0 million, or $0.55 per diluted share, against $3.1 million or $0.11 a year earlier. Adjusted net income was $24.1 million, or $0.78 per diluted share. Source
• Total revenues rose 28 percent: Total revenues were $781.3 million against $612.0 million. On an adjusted basis, revenues were $778.4 million against $608.9 million, up 28 percent. Source
• Title operating revenues up 21 percent: Title segment operating revenues rose $104.0 million, or 21 percent, to $603.2 million. Direct title revenues rose 17 percent and gross agency revenues rose 25 percent. Source
• Commercial fee per file jumped: Domestic commercial revenues rose 35 percent on larger transactions across energy, industrial, site development, data center and retail. Average fee per file was $21,100, up 33 percent. Source
• Real estate solutions revenue up 66 percent: Segment operating revenues rose $64.3 million, or 66 percent, to $161.4 million, on credit information services and the recently acquired MCS business. Source
• Title loss expense ratio improved: Title loss expense was 3.1 percent of title operating revenues, against 3.5 percent. Management attributed the improvement to continued overall favorable claims experience. Source

“I am proud of our first quarter results as they reflect the momentum we have built in each of our businesses,”

Fred Eppinger, chief executive officer

What changed from last quarter

• New: Real estate solutions results now include the recently acquired MCS business, which the prior-quarter release did not mention. Source

Results and growth drivers

• Net income and EPS rose: Net income attributable to Stewart was $17.0 million, or $0.55 per diluted share, against $3.1 million or $0.11 a year earlier. Adjusted net income was $24.1 million, or $0.78 per diluted share. Source
• Total revenues rose 28 percent: Total revenues were $781.3 million against $612.0 million. On an adjusted basis, revenues were $778.4 million against $608.9 million, up 28 percent. Source
• Pretax margin rose to 3.0 percent: Pretax income before noncontrolling interests was $23.6 million, a 3.0 percent margin, against $5.9 million and 1.0 percent. Adjusted pretax margin was 4.3 percent against 1.8 percent. Source

Title segment and direct orders

• Title operating revenues up 21 percent: Title segment operating revenues rose $104.0 million, or 21 percent, to $603.2 million. Direct title revenues rose 17 percent and gross agency revenues rose 25 percent. Source
• Commercial fee per file jumped: Domestic commercial revenues rose 35 percent on larger transactions across energy, industrial, site development, data center and retail. Average fee per file was $21,100, up 33 percent. Source
• Refinancing lifted non-commercial revenue: Domestic non-commercial revenues rose 8 percent, mainly on higher closed volumes from refinancing. Average domestic residential fee per file was $3,300, unchanged from the prior year quarter. Source
• International revenues rose 10 percent: Total international revenues rose $2.7 million, or 10 percent, driven mainly by improved residential volumes compared with the prior year quarter. Source

“We remain focused on growth across all of our business lines and are dedicated to serving our customers with excellence.”

Fred Eppinger, chief executive officer

Real estate solutions segment

• Real estate solutions revenue up 66 percent: Segment operating revenues rose $64.3 million, or 66 percent, to $161.4 million, on credit information services and the recently acquired MCS business. Source
• Segment costs rose with revenue: Combined employee costs and other operating expenses rose $55.3 million, or 64 percent, mainly on costs of services that track higher revenue levels. Source
• Segment pretax income rose: Pretax income was $11.0 million, up from $4.1 million, a 6.8 percent margin against 4.2 percent. Adjusted pretax margin was 12.5 percent against 9.9 percent. Source

Expenses, margins and loss experience

• Title loss expense ratio improved: Title loss expense was 3.1 percent of title operating revenues, against 3.5 percent. Management attributed the improvement to continued overall favorable claims experience. Source
• Title cost ratio improved to 48 percent: Combined title employee costs and other operating expenses were 48 percent of operating revenues, against 51 percent, mainly because of higher title operating revenues. Source
• Employee costs rose 19 percent: Consolidated employee costs rose $35.3 million, or 19 percent, on more employees and higher incentive pay. They were 29 percent of total operating revenues, against 31 percent. Source

Cash, balances and corporate costs

• Operating cash outflow narrowed: Net cash used by operations was $4.5 million, against $29.9 million a year earlier, which the company attributed to higher net income. Source
• Corporate costs rose on debt interest: Corporate net expenses rose to $12.2 million from $9.9 million, mainly from higher interest expense on larger debt balances. Notes payable were $646.7 million at March 31, 2026. Source
• Estimated title losses reserve declined: Estimated title losses were $516.8 million at March 31, 2026, against $524.5 million at December 31, 2025. Source

Adjusted results and MCS acquisition

• Adjusted results add back amortization: Adjusted pretax income adds back $9.4 million of acquired intangible asset amortization, along with acquisition-related and severance costs, and excludes net realized and unrealized gains. Source
• Gains came mainly from equity securities: Pretax net realized and unrealized gains were $2.9 million, against $3.1 million a year earlier, mainly from fair value changes of equity securities. Source
• MCS acquisition drove acquisition costs: The MCS acquisition produced $2.5 million of real estate solutions acquisition-related expenses, which were excluded from adjusted results. Source

Figures management reported

Risks management discussed

• Demand: Management named housing market and macroeconomic volatility as conditions the company is confronting while delivering results. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

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.