STC · Stewart Information Services Corporation

Stewart Information Services Corporation delivered robust Q1 2026 results, with total revenues surging to $781.3 million from $612.0 million in the prior year quarter, primarily fueled by the title segment's 21% operating revenue growth to $603.2 million. Direct title revenues rose 17% to $270.2 million, led by a 35% increase in domestic commercial revenues to $93.9 million, driven by higher transaction sizes and volumes in energy, industrial, data center, and retail sectors, with average fee per file jumping 33% to $21,100. Domestic non-commercial revenues grew 8%, supported by refinancing activity, while international direct title added 10% growth. Agency title revenues net of retention increased 23%. The real estate solutions segment exploded 66% to $161.4 million, propelled by credit information services and the recently acquired MCS business. Pretax margins expanded significantly, with title at 4.0% (adjusted 4.1%) from 2.3%, and RES at 6.8% (adjusted 12.5%) from 4.2%, aided by favorable title loss ratios improving to 3.1% of revenues and operating leverage. CEO Fred Eppinger highlighted momentum across businesses amid housing and macro volatility, emphasizing growth focus and customer service. Corporate expenses rose due to higher interest on debt, but overall employee costs as a percentage of revenues improved to 29% from 31%. Net cash used by operations improved markedly to $4.5 million from $29.9 million, reflecting higher profitability. No forward guidance was provided, but results underscore resilience and strategic execution in a challenging market.