Stewart Information Services Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 22 July 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Total revenues rose 25 percent: Total revenues were $899.2 million, against $722.2 million in the second quarter 2025. Adjusted total revenues were $895.8 million, against $721.5 million. Source
• Net income and diluted EPS higher: Net income attributable to Stewart was $37.2 million, or $1.21 per diluted share, against $31.9 million, or $1.13, a year earlier. Adjusted diluted EPS was $1.39, against $1.34. Source
• Title operating revenues up 15 percent: Title operating revenues were $683.6 million, against $592.5 million, primarily from direct and agency title operations. Source
• Title pretax margin declined year over year: Title pretax income was $48.6 million, against $49.3 million. Adjusted pretax income was $47.9 million, against $51.9 million. Pretax margin was 6.9 percent against 8.1 percent. Source
• RES revenue up 75 percent: Real estate solutions revenues were $197.4 million, against $112.7 million. Growth was driven by the recently acquired MCS business and higher credit information and valuation services revenue. Source
• Other operating expenses ratio rose: Consolidated other operating expenses rose $67.5 million (39 percent). Their share of total operating revenues increased to 27.4 percent from 24.6 percent, mainly on real estate solutions service expenses. Source
• Domestic commercial closed orders up 21 percent: Domestic commercial closed orders totaled 5,324, against 4,415. Average domestic commercial fee per file was $16,900, consistent with the prior year quarter. Source
• Book value per share rose: Book value per share was $54.63 at June 30, 2026, against $54.30 at December 31, 2025 and $53.84 at March 31, 2026. Shares outstanding were 30.45 million, against 30.22 million at year-end. Source

“We continued to build on our momentum in the second quarter and delivered another quarter of strong revenue results,”

Fred Eppinger, chief executive officer

Results and growth drivers

• Total revenues rose 25 percent: Total revenues were $899.2 million, against $722.2 million in the second quarter 2025. Adjusted total revenues were $895.8 million, against $721.5 million. Source
• Net income and diluted EPS higher: Net income attributable to Stewart was $37.2 million, or $1.21 per diluted share, against $31.9 million, or $1.13, a year earlier. Adjusted diluted EPS was $1.39, against $1.34. Source
• Pretax income up; margin down: Pretax income before noncontrolling interests was $55.1 million, against $46.8 million. Pretax margin was 6.1 percent against 6.5 percent; adjusted pretax margin was 7.0 percent against 7.6 percent. Source
• Equity securities gains in quarter: Net realized and unrealized gains were $3.4 million pretax, against $0.7 million, mostly from fair value changes of equity securities in the title segment. Source
• Six-month diluted EPS reported: Six-month diluted EPS was $1.76, against $1.24. Six-month adjusted diluted EPS was $2.17, against $1.59. Source

Title segment results

• Title operating revenues up 15 percent: Title operating revenues were $683.6 million, against $592.5 million, primarily from direct and agency title operations. Source
• Gross agency revenue up 25 percent: Gross agency title revenues rose $75.8 million (25 percent). Net of agency retention, agency title revenues increased $13.0 million (26 percent). Source
• Direct title revenues up 5 percent: Direct title revenues were $306.6 million, against $291.3 million. Domestic commercial revenues rose $15.2 million (20 percent), while domestic non-commercial revenues were $177.9 million. Source
• Title loss expense ratio fell to 3.2 percent: Title loss expense was 3.2 percent of title operating revenues, against 3.6 percent a year earlier. Management attributed this to continued overall favorable claims experience. Source
• Title investment income down 9 percent: Title investment income was $14.8 million, down 9 percent, on lower earned interest from eligible escrow balances, reflecting lower interest rates and escrow balances. Source
• Title pretax margin declined year over year: Title pretax income was $48.6 million, against $49.3 million. Adjusted pretax income was $47.9 million, against $51.9 million. Pretax margin was 6.9 percent against 8.1 percent. Source

“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.”

Fred Eppinger, chief executive officer

Real estate solutions segment

• RES revenue up 75 percent: Real estate solutions revenues were $197.4 million, against $112.7 million. Growth was driven by the recently acquired MCS business and higher credit information and valuation services revenue. Source
• RES pretax income more than doubled: Real estate solutions pretax income was $18.5 million, against $6.7 million. Pretax margin was 9.4 percent against 6.0 percent. Adjusted pretax margin was 13.6 percent, against 10.9 percent. Source
• RES costs rose with revenue: Combined employee costs and other operating expenses rose $70.4 million (71 percent), attributed to costs of services tied to revenue growth and a higher employee count. Source
• RES adjustments mainly amortization: Non-GAAP pretax adjustments for the segment were $8.3 million, against $5.5 million, mainly acquired intangible asset amortization of $7.2 million, against $5.5 million. Source

Expenses and margins

• Consolidated employee costs up 16 percent: Consolidated employee costs rose $32.9 million (16 percent), with a 17 percent higher average employee count. Incentive compensation also rose, consistent with improved operating results. Source
• Employee costs at 27.4 percent of revenue: Consolidated employee costs were 27.4 percent of total operating revenues, against 29.5 percent in the prior year quarter, primarily from higher operating revenues. Source
• Other operating expenses ratio rose: Consolidated other operating expenses rose $67.5 million (39 percent). Their share of total operating revenues increased to 27.4 percent from 24.6 percent, mainly on real estate solutions service expenses. Source
• Title costs ratio improved to 45 percent: Title employee costs and other operating expenses rose $29.6 million (11 percent), on higher salaries, incentive compensation and title outside search and service fees. As a share of title operating revenues they were 45 percent, against 47 percent. Source
• Amounts retained by agencies up: Amounts retained by agencies were $314.9 million, against $252.1 million in the prior year quarter. Source

Demand and order counts

• Domestic commercial closed orders up 21 percent: Domestic commercial closed orders totaled 5,324, against 4,415. Average domestic commercial fee per file was $16,900, consistent with the prior year quarter. Source
• Residential fee per file up 10 percent: The average domestic residential fee per file was $3,200. Domestic non-commercial revenues were comparable with the prior year, as lower non-commercial transactions were offset by the higher fee. Source
• Total opened and closed orders: Opened orders totaled 92,547 in the second quarter, against 89,646 a year earlier. Closed orders totaled 61,309, against 66,594. Source
• Other closed orders lower: Other closed orders were 6,939 in the second quarter 2026, against 14,128 a year earlier. Other opened orders were 15,211, against 12,591. Source

Cash, capital and book value

• Operating cash flow higher: Net cash provided by operations was $60.5 million, against $53.4 million a year earlier. Six-month net cash provided by operations was $56.0 million, against $23.5 million. Source
• Book value per share rose: Book value per share was $54.63 at June 30, 2026, against $54.30 at December 31, 2025 and $53.84 at March 31, 2026. Shares outstanding were 30.45 million, against 30.22 million at year-end. Source
• Goodwill up, intangibles down: Goodwill was $1,293.8 million, up from $1,272.0 million at December 31, 2025. Intangible assets, net, were $321.6 million, against $325.1 million. Source
• Cash balance declined in quarter: Cash and cash equivalents were $261.6 million at June 30, 2026, against $321.8 million at December 31, 2025. Source
• Corporate expenses rose on interest: Net expenses attributable to corporate operations were $12.0 million, against $9.2 million, primarily from higher interest expense on increased debt balances. Source
• Diluted share count higher: Diluted average shares outstanding were 30.85 million in the quarter, against 28.33 million a year earlier. Source

Non-GAAP adjustments

• Acquired intangible amortization higher: Acquired intangible asset amortization was $9.9 million in the quarter, against $8.3 million, and $19.3 million for six months, against $16.6 million. Source
• Acquisition integration expenses recorded: Acquisition integration expenses were $1.2 million in the quarter and $3.7 million for six months, tied to integration of the MCS acquisition. Source
• Adjusted net income higher year over year: Adjusted net income attributable to Stewart was $42.9 million, against $38.0 million. Six-month adjusted net income was $66.9 million, against $44.9 million. Source

Figures management reported

Risks management discussed

• Demand: Management described continued housing-market headwinds as a factor for its businesses. Source
• External: Title investment income fell as escrow-balance interest declined with lower interest rates and lower escrow balances. Source

Other quarters

• Q1 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.