Stewart Reports Second Quarter 2026 Results
- Total revenues of $899.2 million ($895.8 million on an adjusted basis) compared to $722.2 million ($721.5 million on an adjusted basis) in the prior year quarter
- Net income of $37.2 million ($42.9 million on an adjusted basis) compared to net income of $31.9 million ($38.0 million on an adjusted basis) in the prior year quarter
- Diluted EPS of $1.21 ($1.39 on an adjusted basis) compared to prior year quarter diluted EPS of $1.13 ($1.34 on an adjusted basis)
HOUSTON, July 22, 2026 - 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):
| Total revenues | 899.2 | 722.2 | 1,334.2 |
| Pretax income before noncontrolling interests | 55.1 | 46.8 | 52.7 |
| Income tax expense | (13.3) | (11.1 | (11.6)) |
| Net income attributable to noncontrolling interests | (4.5) | (3.7 | (6.1)) |
| Net income attributable to Stewart | 37.2 | 31.9 | 35.0 |
| Non-GAAP adjustments, after taxes* | 5.7 | 6.0 | 9.9 |
| Adjusted net income attributable to Stewart* | 42.9 | 38.0 | 44.9 |
| Pretax margin | 6.1% | 6.5 | 3.9%% |
| Adjusted pretax margin* | 7.0% | 7.6 | 5.0%% |
| Net income per diluted Stewart share | 1.21 | 1.13 | 1.24 |
| Adjusted net income per diluted Stewart share* | 1.39 | 1.34 | 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):
| 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):
| 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):
| 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.
CONDENSED STATEMENTS OF INCOME
In thousands of dollars, except per share amounts and except where noted
| Revenues: | |||
| Title revenues: | |||
| Direct title | 306,590 | 291,262 | 522,942 |
| Agency title | 377,036 | 301,285 | 568,803 |
| Real estate solutions | 197,347 | 112,650 | 209,727 |
| Total operating revenues | 880,973 | 705,197 | 1,301,472 |
| Investment income | 14,839 | 16,257 | 28,913 |
| Net realized and unrealized gains | 3,426 | 727 | 3,780 |
| 899,238 | 722,181 | 1,334,165 | |
| Expenses: | |||
| Amounts retained by agencies | 314,890 | 252,112 | 473,489 |
| Employee costs | 241,061 | 208,209 | 394,019 |
| Other operating expenses | 241,051 | 173,527 | 334,439 |
| Title losses and related claims | 22,066 | 21,454 | 39,156 |
| Depreciation and amortization | 17,634 | 15,150 | 30,472 |
| Interest | 7,439 | 4,953 | 9,914 |
| 844,141 | 675,405 | 1,281,489 | |
| Income before taxes and noncontrolling interests | 55,097 | 46,776 | 52,676 |
| Income tax expense | (13,346) | (11,141 | (11,625)) |
| Net income | 41,751 | 35,635 | 41,051 |
| Less net income attributable to noncontrolling interests | 4,534 | 3,713 | 6,052 |
| Net income attributable to Stewart | 37,217 | 31,922 | 34,999 |
| Net earnings per diluted share attributable to Stewart | 1.21 | 1.13 | 1.24 |
| Diluted average shares outstanding (000) | 30,853 | 28,330 | 28,337 |
| Selected financial information: | |||
| Net cash provided by operations | 60,499 | 53,428 | 23,501 |
| Other comprehensive (loss) income | (1,194) | 14,454 | 20,825) |
Second Quarter Domestic Order Counts:
| Opened Orders 2026: | Total | ||||||
|---|---|---|---|---|---|---|---|
| Commercial | 2,353 | 1,836 | 1,814 | 6,003 | Commercial | 2,035 | 5,324 |
| Purchase | 17,469 | 16,648 | 17,034 | 51,151 | Purchase | 11,494 | 35,870 |
| Refinancing | 7,239 | 6,376 | 6,567 | 20,182 | Refinancing | 4,915 | 13,176 |
| Other | 4,604 | 2,962 | 7,645 | 15,211 | Other | 1,849 | 6,939 |
| Total | 31,665 | 27,822 | 33,060 | 92,547 | Total | 20,293 | 61,309 |
| Opened Orders 2025: | April | May | June | Total | Closed Orders 2025: | April | Total |
| Commercial | 1,612 | 1,326 | 1,588 | 4,526 | Commercial | 1,472 | 4,415 |
| Purchase | 18,050 | 17,785 | 16,958 | 52,793 | Purchase | 11,491 | 35,886 |
| Refinancing | 7,010 | 6,188 | 6,538 | 19,736 | Refinancing | 4,424 | 12,165 |
| Other | 5,232 | 4,666 | 2,693 | 12,591 | Other | 5,729 | 14,128 |
| Total | 31,904 | 29,965 | 27,777 | 89,646 | Total | 23,116 | 66,594 |
CONDENSED BALANCE SHEETS
In thousands of dollars
| 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 |
SEGMENT INFORMATION
In thousands of dollars
| Quarter Ended: | Total | |||||
|---|---|---|---|---|---|---|
| Revenues: | ||||||
| Operating revenues | 683,626 | 197,347 | - | 880,973 | 592,547 | 705,197 |
| Investment income | 14,794 | 45 | - | 14,839 | 16,233 | 16,257 |
| Net realized and unrealized gains (losses) | 3,443 | - | (17) | 3,426 | 768 | 727) |
| 701,863 | 197,392 | (17) | 899,238 | 609,548 | 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 | 208,209 |
| Other operating expenses | 95,104 | 144,552 | 1,395 | 241,051 | 88,252 | 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 | 15,150 |
| Interest | 456 | 3 | 6,980 | 7,439 | 424 | 4,953 |
| 653,263 | 178,909 | 11,969 | 844,141 | 560,234 | 675,405 | |
| Income (loss) before taxes | 48,600 | 18,483 | (11,986) | 55,097 | 49,314 | 46,776) |
| Six Months Ended: | Total | |||||
|---|---|---|---|---|---|---|
| Revenues: | ||||||
| Operating revenues | 1,286,809 | 358,718 | - | 1,645,527 | 1,091,745 | 1,301,472 |
| Investment income | 28,616 | 75 | - | 28,691 | 28,855 | 28,913 |
| Net realized and unrealized gains (losses) | 6,528 | - | (200) | 6,328 | 3,823 | 3,780) |
| 1,321,953 | 358,793 | (200) | 1,680,546 | 1,124,423 | 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 | 394,019 |
| Other operating expenses | 191,584 | 264,207 | 2,779 | 458,570 | 174,759 | 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 | 30,472 |
| Interest | 911 | 8 | 14,148 | 15,067 | 846 | 9,914 |
| 1,248,388 | 329,286 | 24,150 | 1,601,824 | 1,063,343 | 1,281,489 | |
| Income (loss) before taxes | 73,565 | 29,507 | (24,350) | 78,722 | 61,080 | 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).
| Line item | 2026 | ||||
|---|---|---|---|---|---|
| Total revenues | 899.2 | 722.2 | 25% | 1,680.5 | 1,334.2% |
| 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% |
| 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% |
| Pretax income | 55.1 | 46.8 | 18% | 78.7 | 52.7% |
| 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% |
| 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% |
| 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% |
| 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 |
| Line item | 2026 | ||||
|---|---|---|---|---|---|
| Title Segment: | |||||
| Revenues | 701.9 | 609.5 | 15% | 1,322.0 | 1,124.4% |
| 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% |
| Pretax income | 48.6 | 49.3 | (1 | 73.6 | 61.1% |
| 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% |
| 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% |
| Pretax income | 18.5 | 6.7 | 174% | 29.5 | 10.8% |
| 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% |
| GAAP pretax margin | 9.4% | 6.0 | 8.2% | 5.1% | |
| Adjusted pretax margin | 13.6% | 10.9 | 13.1% | 10.4% |