Stewart Information Services Q2 Earnings Call Highlights

Stewart Information Services reported strong second-quarter 2026 results, with revenue up about 25% and earnings improving despite a weak housing market. Year-to-date revenue rose 26%, and management said growth was supported by continued investments in talent and teams. The company’s commercial and agency businesses were the biggest growth drivers, with domestic commercial premiums up 20% and agency revenue rising 25% for the second straight quarter. Stewart said its commercial business has doubled since late 2023 and its market share has climbed to roughly 13.5% to 14%. Management lowered its 2026 housing outlook, now expecting existing home sales growth of about 2% instead of 6% to 8%. Even so, Stewart said it still sees full-year revenue growth around 20% and earnings growth around 30%, helped by acquisitions and continued expansion in real estate solutions.

Stewart Information Services NYSE: STC executives said the company delivered broad revenue growth in the second quarter of 2026 despite a still-subdued housing market, while also increasing spending on talent and acquisitions to support longer-term expansion. Chief Executive Officer Fred Eppinger said Stewart’s year-to-date results reflected progress in growing both revenue and earnings in a market where existing home sales remain near multi-decade lows. He said year-to-date revenue rose 26% and adjusted pretax income increased 45%.

“Our momentum continued in the second quarter as we saw very strong revenue growth of over 24%,” Eppinger said. He added that earnings growth for the quarter was 30%, with the pace affected by incremental investments in people and teams across title businesses. Chief Financial Officer David Hisey said Stewart reported “solid second quarter results with both revenue and profitability growth.” He said total revenues increased by $177 million, or 25%, while net income improved $5 million, or 17%. Diluted earnings per share were $1.21, compared with $1.13 in the prior-year period. On an adjusted basis, net income was $43 million, or $1.39 per diluted share, compared with $38 million, or $1.34 per diluted share, a year earlier.

Eppinger said the company has lowered its expectations for existing home sales growth in 2026. At the start of the year, Stewart expected existing home sales to improve by 6% to 8%, but now anticipates growth closer to 2% compared with last year. He said existing home sales remain in the low 4 million annualized unit range, with May and June showing some year-over-year momentum but not enough to materially change the broader picture. Home prices continued to hold and increased about 1.5% during the quarter, even as more inventory entered the market. Eppinger said interest rates remain a critical factor for buyers. He said Stewart saw positive effects in the first quarter as rates moved toward 6%, but felt a shift when rates moved back near 6.5%, where they remained throughout the second quarter. In response to an analyst question about margins if mortgage rates remain higher for longer, Eppinger said he does not expect residential market growth in the second half of the year. Still, he said Stewart could grow revenue about 20% and earnings about 30% for the year, with overall company margin improvement of about half a percentage point year over year.

Stewart’s national commercial services business continued to be a major growth driver. Eppinger said total domestic commercial premiums grew 20% year over year in the second quarter and were up 30% for the first half of 2026. Energy remained the company’s largest asset class, followed by data centers, multifamily and industrial p...