Stewart Information Services (STC) investor relations material

Executive summary

• Revenues rose 25% year-over-year to $899.2 million, driven by strong performance in title and real estate solutions segments, with significant contributions from the MCS acquisition.

• Net income increased to $37.2 million ($1.21 per diluted share), up from $31.9 million ($1.13 per diluted share) in the prior year quarter.

• Pretax income before noncontrolling interests reached $55.1 million, with $3.4 million in pretax net realized and unrealized gains, mainly from equity securities.

• Significant investments in talent and teams were made to drive organic growth and capture targeted opportunities.

• Continued focus on expanding commercial, agency, and real estate solutions segments, with inorganic growth opportunities in the acquisition pipeline.

Financial highlights

• Operating revenues grew to $880.97 million from $705.20 million year-over-year; net income for the first six months was $60.8 million, up from $41.1 million.

• Adjusted net income per diluted share was $1.39, up from $1.34 year-over-year.

• Title segment operating revenues increased 15% to $701.9 million; real estate solutions revenues surged 75% to $197.4 million, driven by the MCS acquisition.

• Domestic commercial title revenues rose 20% due to higher transaction volume, especially in energy and data center asset classes.

• Net cash provided by operations improved to $60.5 million from $53.4 million in the prior year quarter.

Outlook and guidance

• Management expects stable mortgage rates and modest improvement in existing home sales for the remainder of 2026, with new home sales projected to remain consistent with 2025.

• Revenue expected to grow around 20% and earnings 30% for the full year, assuming a flat residential market.

• Margin improvement of about half a percentage point year-over-year anticipated.

• Anticipates continued benefit from recent acquisitions and ongoing cost management initiatives.

• Earnings growth expected to outpace revenue growth for the full year.