Stewart Information Services (NYSE:STC) executives said the company made meaningful operating and financial progress in 2025 despite what CEO Fred Eppinger described as a multi-year slump in existing home sales, while positioning the business for what management characterized as modest housing-market improvement in 2026.
2025 performance and capital actions
Eppinger said Stewart grew revenue 18%, net income 48%, and adjusted EPS 46% for full-year 2025, even as existing home sales remained near 30-year lows for the second consecutive year. He added that the company expanded its adjusted pre-tax margin to 6.8% from 5.8% in the prior year, attributing performance to execution on targeted growth plans, share gains, and margin improvement across business lines.
Fourth-quarter results: revenue and profitability improved
CFO David Hisey reported fourth-quarter net income of $36 million, or $1.25 per diluted share, on revenue of $791 million. On an adjusted basis, he said net income was $48 million, or $1.65 per diluted share, which he compared to adjusted net income of $32 million, or $1.17 per diluted share, in the prior-year quarter. Hisey said the company’s adjustments primarily related to net realized and unrealized gains and losses, acquired intangible amortization, and office closure and severance expenses.
Within the title segment, Hisey said operating revenues rose $106 million, or 19%, driven by both direct and agency title operations. Title pre-tax income increased $13 million, or 28%, and adjusted title pre-tax income rose 35% to $68 million from $51 million. Adjusted title pre-tax margin improved to 10% from about 9% a year ago, he said.
Commercial strength and agency momentum
Commercial was a major theme throughout the call. Eppinger said domestic commercial revenue rose 34% for full-year 2025, with the national commercial services business up 43% for the year and 49% in the fourth quarter. He said Stewart benefited in the quarter from underwriting “some sizable transactions” and pointed to expanded geographic coverage, team expansion, and improved ability to underwrite larger transactions due to stronger surplus.
Hisey added detail on commercial mix and pricing. He said domestic commercial revenues increased $32 million, or 38%, in the fourth quarter, with growth across asset classes led by data centers and energy. He also said the average domestic commercial fee per file increased 39% to about $27,000 from about $20,000, while the average domestic fee per file rose 13% to $3,300 from $2,900, primarily due to transaction mix.
In the Q&A, Eppinger said he expects commercial to remain seasonal, with the first quarter typically softer, and indicated first-quarter performance should be “a little bit better than last year” while still reflecting normal seasonal pressures. He also said Stewart is “leading more deals” than in the past, which he characterized as a sign of improving competitive position. Eppinger discussed a long-term aspiration to increase share over the next two to three years, while cautioning that growth rates could moderate off strong comparisons.
Agency operations also posted strong growth, management said. Eppinger reported agency services revenue grew 21% for full-year 2025 and 20% in the fourth quarter, supported by onboarding new agents and increasing wallet share, with notable performance in Florida, Texas, and New York. Hisey said fourth-quarter agency revenues were $334 million, up 20% year over year, driven by improved volumes in key states such as Florida and New York and by commercial transactions. After agent retention, net agency revenues rose $11 million, or 22%, he said.
On loss trends, Hisey said the title loss ratio improved to 3.4% from 3.7% a year earlier, and he expects 2026 title losses to average 3.5% to 4%.
Real Estate Solutions growth, margin outlook, and NCS acquisition
Stewart’s real estate solutions segment grew quickly in the quarter, executives said. Eppinger reported segment revenue increased 22% for full-year 2025 and 29% in the fourth quarter, alongside a “very robust pipeline.” He said full-year segment margin was 10.1%, below the company’s 2025 target due to isolated pricing issues and expansion costs, and said Stewart expects to improve margins to the low-teens range in 2026.
Hisey said real estate solutions revenue improved 29% in the fourth quarter, primarily driven by the credit information services business. He reported adjusted pre-tax income increased 47% to $10 million from $6 million, with adjusted pre-tax margin of 8.5%, up about one point year over year.
Management also discussed the late-December acquisition of Mortgage Contracting Services, also referred to as NCS, a property preservation service provider. Eppinger said the deal expands Stewart’s default services offering and enables cross-selling across product lines. In response to an analyst question, Hisey said NCS is “about a $165 million a year revenue company” and referenced “sort of in the $40 million EBITDA or so range,” adding that the business has some seasonality, with the first quarter typically lower. He said foreclosure and FHA delinquency trends have been increasing.
Housing outlook, Texas rate changes, and other topics
Looking ahead, Eppinger said the company is “cautiously optimistic” about housing in 2026. He noted mortgage-rate stability in the fourth quarter, with 30-year rates in the 6.1% to 6.35% range, and said early 2026 rates have remained in the low-6% range. He also pointed to housing inventory up 8% in the fourth quarter versus the prior year and a shift in the mortgage-holder mix, with borrowers at 6% or higher now exceeding those below 3%, which he said suggests the market is increasingly moving despite higher-rate conditions due to life events.
On sensitivity to overall market volumes, Eppinger reiterated that existing home sales are the key swing factor for Stewart due to its fixed-cost base, saying improved volumes can significantly lift profitability as capacity utilization rises.
Executives also addressed Texas title premium rate reductions. Eppinger said the finalized change was a 6% reduction and that Stewart has addressed the impact through fee and service reviews in Texas. He characterized the expected effect as a low single-digit impact on earnings for the year, while warning that smaller, rural agents could face more pressure.
On liquidity and leverage, Hisey said the company had approximately $480 million of cash and investments in excess of statutory premium reserve requirements. He also said Stewart ended 2025 with about $1.6 billion of stockholders’ equity and book value of $54 per share, $4 higher than the prior year. Responding to a question on the line of credit, Hisey said the company had about $200 million drawn and intends to maintain flexibility rather than pursue an aggressive paydown schedule.
Management also discussed the use of AI across operations. Eppinger said the company has “probably 75 individual initiatives” involving AI aimed at efficiency, customer satisfaction, quality, and data management, and described AI’s role as a series of incremental improvements rather than a fundamental disruption of the title business.
About Stewart Information Services (NYSE:STC)
Stewart Information Services Corporation (NYSE: STC) is a publicly traded provider of title insurance and real estate transaction services. The company underwrites title insurance policies for residential and commercial properties, offering lenders and property owners protection against title defects and liens. Beyond title insurance, Stewart delivers a range of ancillary services, including closing and escrow administration, property valuation, and risk mitigation solutions designed to streamline the mortgage process and reduce operational complexity for clients.
In addition to core title and settlement services, Stewart offers technology-driven products aimed at enhancing transparency and efficiency in real estate transactions.
