St. Joe Q2 Earnings Call Highlights

St. Joe delivered record second-quarter results: Revenue rose 23% year over year to $158.9 million, while net income increased 37% to $40.5 million. Gross margins improved across residential, hospitality and commercial operations. Residential growth remains a major focus, with revenue up 39% and utility-corridor projects planned to support thousands of future homesites. Management cited continued Northwest Florida in-migration and a broad range of communities and price points as demand drivers. Shareholder returns remained central to capital allocation: St. Joe repurchased $32.7 million of stock, paid $9.1 million in dividends and allocated 55% of second-quarter capital to shareholders. The company has repurchased $41 million of stock in 2026, bringing its share count to the lowest level in nearly 30 years.

St. Joe NYSE: JOE reported second-quarter revenue of $158.9 million, up 23% from the prior-year period, while net income rose 37% to $40.5 million, President, CEO and Chairman Jorge Gonzalez said during the company’s earnings call. Gonzalez said the revenue figure was the company’s highest second-quarter result in 20 years. He described net income as the highest second-quarter total in company history excluding a one-time gain related to discontinued operations in 1996. The company also reported higher gross margins across its operating segments. Residential gross margin increased to 48% from 45% a year earlier, hospitality margin rose to 42% from 39%, and commercial margin climbed to 65% from 57%.

Residential real estate revenue increased 39% year over year during the second quarter. Gonzalez attributed part of the growth to the company’s range of residential communities and home price points, which span from the high $200,000s to more than $5 million. “This diversity is deliberate to help insulate the residential segment from volatility in the market conditions of any one price point,” Gonzalez said. St. Joe plans later this year to begin development of two utility corridors. One corridor is intended to serve future residential communities in the Lake Powell and West Laird Detailed Specific Area Plans, or DSAPs, while the other is planned for the Pigeon Creek and West Bay Creek DSAPs. Gonzalez said off-site utility extensions are capital intensive but are necessary to support the future development of “many thousands” of residential homesites. He cautioned that residential results can vary quarter to quarter because of one- to two-year development cycles and differing homesite pricing. Chief Financial Officer Marek Bakun said that homesites in Bay County contributed to the company’s estimated residual balance during the quarter. He added that the increase was driven by higher-priced communities. During the first half of 2026, St. Joe recorded $14.6 million of new true-ups and collected $5.3 million of existing true-ups, according to Bakun.

During the second quarter, St. Joe repurchased $32.7 million of common stock, invested $24 million in capital expenditures primarily supporting future growth, repaid $10.9 million of debt and paid $9.1 million in cash dividends. 43% of second-quarter capital allocation went to stock repurchases. 31% went to capital expenditures. 14% was used for debt reduction. 12% was paid as cash dividends. More than half of the company’s capital allocation, or 55%, went to shareholders through buybacks and dividends, Gonzalez said. As of July 27, St. Joe had repurchased $41 million in stock during 2026, compared with $40 million for all of 2025. The company had 56,930,451 shares outstanding as of that date, which Gonzalez said was its lowest share count in nearly 30 years.