Net income of $44.3 million ($46.7 million on an adjusted basis) compared to net income of $30.1 million ($33.1 million on an adjusted basis) in the prior year quarter
Diluted EPS of $1.55 ($1.64 on an adjusted basis) compared to prior year quarter diluted EPS of $1.07 ($1.17 on an adjusted basis)
HOUSTON, Oct. 22, 2025 /PRNewswire/ -- Stewart Information Services Corporation (NYSE:STC) today reported net income attributable to Stewart of $44.3 million ($1.55 per diluted share) for the third quarter 2025, compared to net income attributable to Stewart of $30.1 million ($1.07 per diluted share) for the third quarter 2024. On an adjusted basis, net income for the third quarter 2025 was $46.7 million ($1.64 per diluted share) compared to net income of $33.1 million ($1.17 per diluted share) in the third quarter 2024. Pretax income before noncontrolling interests for the third quarter 2025 was $61.2 million ($64.5 million on an adjusted basis) compared to $42.8 million ($46.8 million on an adjusted basis) for the third quarter 2024.
Third quarter 2025 results included $5.6 million of pretax net realized and unrealized gains, primarily driven by $4.3 million of net unrealized gains on fair value changes of equity securities investments and a $1.2 million realized gain on a sale of real property. Third quarter 2024 results included $4.7 million of pretax net realized and unrealized gains, primarily related to net unrealized gains on fair value changes of equity securities investments.
"I am proud of our third quarter results as they demonstrate our momentum," commented Fred Eppinger, chief executive officer. "We are committed to growth across all business lines and are thoughtful in our operational management. The combination of these efforts allowed us to deliver solid third quarter results, even as the broad housing environment remains subdued relative to historic norms."
Selected Financial InformationSummary 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
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Total revenues
796.9
667.9
2,131.1
1,824.5
Pretax income before noncontrolling interests
61.2
42.8
113.8
78.9
Income tax expense
(13.0)
(9.1)
(24.6)
(18.0)
Net income attributable to noncontrolling interests
(3.9)
(3.6)
(10.0)
(10.4)
Net income attributable to Stewart
44.3
30.1
79.3
50.6
Non-GAAP adjustments, after taxes*
2.4
3.0
12.4
12.3
Adjusted net income attributable to Stewart*
46.7
33.1
91.6
62.8
Pretax margin
7.7 %
6.4 %
5.3 %
4.3 %
Adjusted pretax margin*
8.1 %
7.1 %
6.2 %
5.3 %
Net income per diluted Stewart share
1.55
1.07
2.79
1.80
Adjusted net income per diluted Stewart share*
1.64
1.17
3.23
2.24
*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 SegmentSummary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
Quarter Ended September 30,
2025
2024
% Change
Operating revenues
659.9
553.3
19 %
Investment income
14.8
13.6
9 %
Net realized and unrealized gains
4.2
4.8
(11 %)
Pretax income
62.0
45.0
38 %
Non-GAAP adjustments to pretax income*
(1.2)
(1.6)
Adjusted pretax income*
60.8
43.4
40 %
Pretax margin
9.1 %
7.9 %
Adjusted pretax margin*
9.0 %
7.7 %
* 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 in the third quarter 2025 increased $106.6 million (19 percent), driven by revenue improvement of $29.0 million (11 percent) and $77.6 million (28 percent) from our direct and agency title operations, respectively, compared to the third quarter 2024. Total segment operating expenses increased $90.3 million (17 percent) compared to the prior year quarter, primarily due to $65.5 million (28 percent) increased agency retention expenses, consistent with the gross agency revenue increase, and $27.0 million (10 percent) higher combined employee costs and other operating expenses, primarily due to increased incentive compensation, outside search and service expenses and premium taxes consistent with higher title revenues, and higher salaries expense related to increased employee count. As a percentage of operating revenues, total employee costs and other operating expenses for the title segment improved to 44 percent in the third quarter 2025 compared to 47 percent in the third quarter 2024, primarily due to increased title operating revenues.
Title loss expense in the third quarter 2025 decreased by $1.7 million (8 percent) compared to the prior year quarter, primarily driven by our continued overall favorable claims experience. As a percentage of title operating revenues, the title loss expense improved to 3.0 percent in the third quarter 2025 compared to 3.8 percent in the third quarter 2024.
Investment income improved 9 percent in the third quarter 2025 compared to the prior year quarter, primarily driven by higher earned interest income from eligible escrow balances. Net realized and unrealized gains presented above were primarily related to net unrealized gains on fair value changes of equity securities investments. In addition to these net realized and unrealized gains, the title segment's adjusted pretax income included other non-GAAP adjustments of $3.0 million and $3.2 million for the third quarters 2025 and 2024, respectively, primarily driven by acquisition intangible asset amortization and related expenses (refer to Appendix A for details).
Direct title revenues information is presented below (dollars in millions):
Quarter Ended September 30,
2025
2024
% Change
Non-commercial:
Domestic
176.8
168.2
5 %
International
32.5
29.0
12 %
209.3
197.2
6 %
Commercial:
Domestic
79.1
67.4
17 %
International
11.3
6.1
85 %
90.4
73.5
23 %
Total direct title revenues
299.7
270.7
11 %
Domestic commercial revenues improved by $11.7 million (17 percent) in the third quarter 2025, primarily due to increased commercial closed transactions, while domestic non-commercial revenues increased $8.6 million (5 percent), primarily driven by improved purchase and refinancing closed transactions compared to the prior year quarter. Average domestic commercial fee per file for the third quarter 2025 was $17,700, which was comparable to the prior year quarter, while average domestic residential fee per file was $3,200, or 6 percent higher than the third quarter 2024. Total international revenues improved by $8.7 million (25 percent) in the third quarter 2025, primarily driven by overall increased volumes and larger commercial transactions compared to the prior year quarter.
Real Estate Solutions SegmentSummary results of the real estate solutions segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
Quarter Ended September 30,
2025
2024
% Change
Total revenues
116.6
96.4
21 %
Pretax income
7.3
7.4
(1 %)
Non-GAAP adjustments to pretax income*
5.9
5.5
Adjusted pretax income*
13.2
12.9
2 %
Pretax margin
6.2 %
7.7 %
Adjusted pretax margin*
11.3 %
13.4 %
* 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 operating revenues improved by $20.3 million (21 percent) in the third quarter 2025 compared to the third quarter 2024, primarily driven by our credit information and valuation services businesses and a recently acquired real estate information services provider. Combined employee costs and other operating expenses in the third quarter 2025 increased $19.8 million (24 percent), primarily resulting from increased costs of services related to higher revenues and higher employee costs supporting revenue growth. Non-GAAP adjustments to pretax income shown in the schedule above were related to acquisition intangible asset amortization expenses (refer to Appendix A).
Corporate SegmentNet expenses attributable to corporate operations totaled $9.5 million for both the third quarters 2025 and 2024, while the segment recorded net realized gains of $1.4 million in the third quarter 2025, primarily resulting from a sale of real property.
ExpensesConsolidated employee costs in the third quarter 2025 increased $17.4 million (9 percent) compared to the third quarter 2024, primarily driven by higher salaries and employee benefits expenses resulting from a 9 percent higher average employee count. As a percentage of total operating revenues, consolidated employee costs in the third quarter 2025 improved to 27.2 percent compared to 29.8 percent in the prior year quarter, primarily due to higher operating revenues in the third quarter 2025.
Consolidated other operating expenses increased $29.5 million (19 percent), primarily resulting from higher real estate solutions service expenses and title outside search and premium tax expenses related to overall revenue growth in the third quarter 2025 compared to the prior year quarter. As a percentage of total operating revenues, third quarter 2025 consolidated other operating expenses was 23.8 percent, which was comparable to 24.0 percent from the prior year quarter.
OtherNet cash provided by operations improved by $16.5 million to $92.6 million in the third quarter 2025, compared to $76.1 million in the third quarter 2024, primarily driven by the higher net income in the third quarter 2025.
Third Quarter Earnings CallStewart will hold a conference call to discuss the third quarter 2025 earnings at 8:30 a.m. Eastern Time on Thursday, October 23, 2025. To participate, dial 800-267-6316 (USA) or 203-518-9783 (International), access code STCQ325. 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 October 23, 2025 until midnight on October 30, 2025 by dialing (800) 839-9815 (USA) or (402) 220-2190 (International).
About StewartStewart (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 risk 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, 2024, 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
STEWART INFORMATION SERVICES CORPORATION
CONDENSED STATEMENTS OF INCOME
(In thousands of dollars, except per share amounts and except where noted)
Quarter Ended
September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Revenues:
Title revenues:
Direct title
299,690
270,706
822,631
736,774
Agency title
360,186
282,549
928,989
764,081
Real estate solutions
116,607
96,346
326,334
271,561
Total operating revenues
776,483
649,601
2,077,954
1,772,416
Investment income
14,819
13,626
43,733
40,833
Net realized and unrealized gains
5,614
4,714
