Stewart Information Services (STC) Q1 2026 earnings summary

Executive summary

• Delivered one of the best first quarters in company history, with adjusted EPS of $0.78 and revenue growth of 28% year-over-year, reaching $781.3 million.

• Net income attributable to Stewart rose to $17.0 million ($0.55 per diluted share), with adjusted net income of $24.1 million ($0.78 per share), up from $3.1 million ($0.11 per share) in the prior year.

• All business segments showed strong revenue growth and improved earnings, despite historically low residential transaction activity and macroeconomic volatility.

• Strategic acquisitions, including MCS and Nationwide Appraisal Network, contributed to segment growth and margin improvement.

• Management highlighted momentum in all businesses and continued dedication to customer service excellence.

Financial highlights

• Total first quarter revenues reached $781.3 million, with net income of $17.0 million and adjusted net income of $24.1 million.

• Adjusted diluted EPS was $0.78, up from $0.25 in the prior year.

• Pretax income before noncontrolling interests was $23.6 million ($33.2 million adjusted), up from $5.9 million ($11.2 million adjusted) year-over-year.

• Pretax margin improved to 3.0% (4.3% adjusted) from 1.0% (1.8% adjusted) year-over-year.

• Net cash used by operations improved to $4.5 million from $29.9 million in the prior year quarter.

Outlook and guidance

• Residential market growth expected at 3%-5% for 2026, with commercial remaining resilient.

• The company expects stable mortgage rates and forecasts increases in home sales and mortgage originations for Q2 2026.

• Existing and new home sales are projected to rise 5% and 7%, respectively, with purchase and refinancing originations up 1% and 63% year-over-year.

• Margins in real estate solutions segment expected to improve to low teens for the full year.

• Company anticipates maintaining business momentum into Q2, though residential market may remain flat if geopolitical tensions persist.