Exhibit 99.1

 

 

 

NEWS RELEASE

 

STEWART INFORMATION SERVICES CORP.

P.O. Box 2029

Houston, Texas 77252-2029

www.stewart.com

CONTACT

Kathryn Bass

Investor Relations

(713) 625-8633

 

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.”

 

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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):

 

   Quarter Ended
June 30,
   Six Months Ended
June 30,
 
   2026   2025   2026   2025 
Total revenues   899.2    722.2    1,680.5    1,334.2 
Pretax income before noncontrolling interests   55.1    46.8    78.7    52.7 
Income tax expense   (13.3)   (11.1)   (17.9)   (11.6)
Net income attributable to noncontrolling interests   (4.5)   (3.7)   (6.6)   (6.1)
Net income attributable to Stewart   37.2    31.9    54.2    35.0 
Non-GAAP adjustments, after taxes*   5.7    6.0    12.8    9.9 
Adjusted net income attributable to Stewart*   42.9    38.0    66.9    44.9 
Pretax margin   6.1%   6.5%   4.7%   3.9%
Adjusted pretax margin*   7.0%   7.6%   5.7%   5.0%
Net income per diluted Stewart share   1.21    1.13    1.76    1.24 
Adjusted net income per diluted Stewart share*   1.39    1.34    2.17    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):

 

   Quarter Ended June 30, 
   2026   2025   % Change 
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.

 

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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):

 

   Quarter Ended June 30, 
   2026   2025   % Change 
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.

 

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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):

 

   Quarter Ended June 30, 
   2026   2025   % Change 
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.

 

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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.

 

Cautionary statement regarding forward-looking statements. Certain statements in this press release are "forward-looking statements", including statements related to Stewart’s future business plans and expectations, including our plans to achieve market growth and pretax margin improvements. Forward-looking statements, by their nature, are subject to various risks and uncertainties that could cause our actual results to differ materially. Such risks and uncertainties include the volatility of general economic conditions, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, and adverse changes in the level of real estate activity, as well as a number of other risks and uncertainties discussed in detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.

 

ST-IR

 

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STEWART INFORMATION SERVICES CORPORATION

CONDENSED STATEMENTS OF INCOME

(In thousands of dollars, except per share amounts and except where noted)

   Quarter Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
Revenues:                    
Title revenues:                    
Direct title   306,590    291,262    576,767    522,942 
Agency title   377,036    301,285    710,042    568,803 
Real estate solutions   197,347    112,650    358,718    209,727 
Total operating revenues   880,973    705,197    1,645,527    1,301,472 
Investment income   14,839    16,257    28,691    28,913 
Net realized and unrealized gains   3,426    727    6,328    3,780 
    899,238    722,181    1,680,546    1,334,165 
Expenses:                    
Amounts retained by agencies   314,890    252,112    591,032    473,489 
Employee costs   241,061    208,209    462,159    394,019 
Other operating expenses   241,051    173,527    458,570    334,439 
Title losses and related claims   22,066    21,454    40,508    39,156 
Depreciation and amortization   17,634    15,150    34,488    30,472 
Interest   7,439    4,953    15,067    9,914 
    844,141    675,405    1,601,824    1,281,489 
Income before taxes and noncontrolling interests   55,097    46,776    78,722    52,676 
Income tax expense   (13,346)   (11,141)   (17,902)   (11,625)
Net income   41,751    35,635    60,821    41,051 
Less net income attributable to noncontrolling interests   4,534    3,713    6,639    6,052 
Net income attributable to Stewart   37,217    31,922    54,181    34,999 
                     
Net earnings per diluted share attributable to Stewart   1.21    1.13    1.76    1.24 
Diluted average shares outstanding (000)   30,853    28,330    30,833    28,337 
                     
Selected financial information:                    
Net cash provided by operations   60,499    53,428    56,009    23,501 
Other comprehensive (loss) income   (1,194)   14,454    (6,645)   20,825 

 

Second Quarter Domestic Order Counts: 

 

Opened Orders 2026:  April   May   June   Total   Closed Orders 2026:  April   May   June   Total
Commercial   2,353    1,836    1,814    6,003   Commercial   2,035    1,612    1,677        5,324
Purchase   17,469    16,648    17,034    51,151   Purchase   11,494    11,587    12,789        35,870
Refinancing   7,239    6,376    6,567    20,182   Refinancing   4,915    4,145    4,116        13,176
Other   4,604    2,962    7,645    15,211   Other   1,849    3,206    1,884        6,939
Total   31,665    27,822    33,060    92,547   Total   20,293    20,550    20,466        61,309
                                            
Opened Orders 2025:   April    May    June    Total   Closed Orders 2025:   April    May    June        Total
Commercial   1,612    1,326    1,588    4,526   Commercial   1,472    1,444    1,499        4,415
Purchase   18,050    17,785    16,958    52,793   Purchase   11,491    12,156    12,239        35,886
Refinancing   7,010    6,188    6,538    19,736   Refinancing   4,424    3,989    3,752        12,165
Other   5,232    4,666    2,693    12,591   Other   5,729    6,503    1,896        14,128
Total   31,904    29,965    27,777    89,646   Total   23,116    24,092    19,386        66,594

 

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STEWART INFORMATION SERVICES CORPORATION

CONDENSED BALANCE SHEETS

(In thousands of dollars)

 

   June 30,
2026
   December 31,
2025
 
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 

 

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STEWART INFORMATION SERVICES CORPORATION

SEGMENT INFORMATION

(In thousands of dollars)

 

Quarter Ended:  June 30, 2026   June 30, 2025 
   Title   Real
Estate
Solutions
   Corporate   Total   Title   Real
Estate
Solutions
   Corporate   Total 
Revenues:                                        
Operating revenues   683,626    197,347    -    880,973    592,547    112,650    -    705,197 
Investment income   14,794    45    -    14,839    16,233    24    -    16,257 
Net realized and unrealized gains (losses)   3,443    -    (17)   3,426    768    -    (41)   727 
    701,863    197,392    (17)   899,238    609,548    112,674    (41)   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    15,437    3,223    208,209 
Other operating expenses   95,104    144,552    1,395    241,051    88,252    84,072    1,203    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    6,424    283    15,150 
Interest   456    3    6,980    7,439    424    -    4,529    4,953 
    653,263    178,909    11,969    844,141    560,234    105,933    9,238    675,405 
Income (loss) before taxes   48,600    18,483    (11,986)   55,097    49,314    6,741    (9,279)   46,776 

 

Six Months Ended:  June 30, 2026   June 30, 2025 
   Title   Real
Estate
Solutions
   Corporate   Total   Title   Real
Estate
Solutions
   Corporate   Total 
Revenues:                                        
Operating revenues   1,286,809    358,718    -    1,645,527    1,091,745    209,727    -    1,301,472 
Investment income   28,616    75    -    28,691    28,855    58    -    28,913 
Net realized and unrealized gains (losses)   6,528    -    (200)   6,328    3,823    -    (43)   3,780 
    1,321,953    358,793    (200)   1,680,546    1,124,423    209,785    (43)   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    29,172    6,811    394,019 
Other operating expenses   191,584    264,207    2,779    458,570    174,759    157,015    2,665    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    12,796    619    30,472 
Interest   911    8    14,148    15,067    846    2    9,066    9,914 
    1,248,388    329,286    24,150    1,601,824    1,063,343    198,985    19,161    1,281,489 
Income (loss) before taxes   73,565    29,507    (24,350)   78,722    61,080    10,800    (19,204)   52,676 

 

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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).

 

   Quarter Ended June 30,   Six Months Ended June 30, 
   2026   2025   % Chg   2026   2025   % Chg 
Total revenues   899.2    722.2    25%   1,680.5    1,334.2    26%
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    26%
 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    67%
                               
Pretax income   55.1    46.8    18%   78.7    52.7    49%
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    45%
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    55%
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    49%
                               
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      

 

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   Quarter Ended June 30,   Six Months Ended June 30, 
   2026   2025   % Chg   2026   2025   % Chg 
Title Segment:                              
Revenues   701.9    609.5    15%   1,322.0    1,124.4    18%
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    17%
                               
Pretax income   48.6    49.3    (1)%   73.6    61.1    20%
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    15%
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    71%
                               
Pretax income   18.5    6.7    174%   29.5    10.8    173%
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    116%
GAAP pretax margin   9.4%   6.0%        8.2%   5.1%     
Adjusted pretax margin   13.6%   10.9%        13.1%   10.4%     

 

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