St. Joe Q2 2026 Earnings Report

St. Joe EPS Results

• Actual EPS: $0.71
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

St. Joe Revenue Results

• Actual Revenue: $158.86 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

St. Joe Announcement Details

• Quarter: Q2 2026
• Date: 7/29/2026
• Time: After Market Closes
• Conference Call Date: Friday, July 31, 2026
• Conference Call Time: 11:00AM ET

The St. Joe (NYSE:JOE) Company (NYSE: JOE) is a leading real estate development and asset management firm focused on Northwest Florida. Headquartered in Jacksonville, the company owns and manages approximately 171,000 acres of land across Bay, Gulf, Franklin and Walton counties. St. Joe’s core businesses include residential community development, commercial real estate, and hospitality, with an emphasis on master-planned neighborhoods, office and retail campuses, resort hotels and mixed-use town centers.

Founded in 1936 as a paper manufacturing company, St. Joe underwent a strategic transformation in the late 1990s, divesting its pulp and paper operations to concentrate exclusively on land development and resource management. Over the past two decades, the company has guided the evolution of Panama City Beach, WaterColor, Watersound, and other Panhandle communities through comprehensive planning, infrastructure investment, and public-private partnerships. St. Joe also maintains a significant forestry and agriculture portfolio, practicing sustainable stewardship to protect sensitive ecosystems and water resources.

St. Joe serves a mix of full-time residents, second-home buyers, commercial tenants, and leisure travelers to its resorts and recreational amenities. The company’s projects are marked by careful integration of natural landscapes, pedestrian-oriented design, and community-oriented programming. With decades of experience in Florida land use and a reputation for placemaking, St. Joe continues to shape growth in one of the fastest-growing regions of the state.

St. Joe Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter revenue rose 23% to $158.9 million and net income increased 37% to $40.5 million, both marking the highest second-quarter results in company history apart from a prior one-time gain. Gross margins improved across residential, hospitality, and commercial segments.
• Positive Sentiment: Residential revenue increased 39% year over year, supported by continued in-migration and a diversified range of home prices and product types. St. Joe plans to begin developing two utility corridors later this year to support thousands of future homesites.
• Positive Sentiment: The company repurchased $32.7 million of stock, paid $9.1 million in dividends, repaid $10.9 million of debt, and funded $24 million of capital expenditures in the quarter. Management said its buyback strategy is based on a long-term model, and 2026 repurchases had reached $41 million by July 27.
• Positive Sentiment: Management highlighted additional long-term growth opportunities from waterfront and inland land holdings, the planned 2028 academic health center, and potential aerospace and aviation activity in Bay County.
• Neutral Sentiment: Executives cautioned that residential results will remain uneven because homesite development follows one- to two-year seeding and harvesting cycles, while utility extensions and new community launches require substantial planned capital investment.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to The St. Joe Company Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link at any time during the conference. Please be advised this call is being recorded. I'd now like to hand the conference over to your speaker today, Jorge Gonzalez, President, CEO, and Chairman of The St. Joe Company. Please go ahead.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Thank you and good morning. I'm Jorge Gonzalez, President, CEO, and Chairman of The St. Joe Company. It is my pleasure to welcome you to our quarterly earnings call. I'm joined today by Marek Bakun, our Chief Financial Officer. On Wednesday, after the market closed, we issued our second quarter of 2026 earnings press release, which can be found in the Investor Relations section of our corporate website at joe.com. This morning, we are continuing our commitment to quarterly earnings calls to provide our shareholders in the investor community with an opportunity to ask questions about our business and performance. We have always been an open and transparent company that welcomes all feedback and opinions. Because of the types of assets that we own, we encourage shareholders to visit us in person so they may assess firsthand the progress of the region and of our assets.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

If you'd like to send us questions for later in the call, you may do so by visiting the top right-hand corner of your screen, where the words "Submit a question" are visible. Clicking on that text will take you to the text entry box, where you can type in your question and then click submit. Before we begin discussing our results and answering your questions, I would like to remind everyone that Wednesday's press release and the statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release. Let's go ahead and get started. We assume everyone has already carefully reviewed our earnings release, which provides comprehensive details about our performance, so we are only going to mention a few key highlights of the second quarter before we move on to your questions. We had a strong second quarter, with total revenue increasing by 23% and net income increasing by 37% compared to the second quarter of 2025. The total revenue of $158.9 million was the highest in a second quarter in 20 years, and the net income of $40.5 million was the highest in the second quarter in the company's history, not including the one-off gain on the sale of discontinued operations in 1996.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

In addition to this growth, the company's also becoming more profitable, with an increase in the gross margins of every segment. The gross margins in the residential segment increased to 48% from 45%. The hospitality segment increased to 42% from 39%, and the commercial segment increased to 65% from 57%. This growth in gross margin demonstrates our emphasis on profitability while we continue to scale up and grow. The increase in profitability is in part due to our continued focus on refining and improving operations. In addition, we systematically evaluate our operating assets to identify non-strategic, lower-margin assets for their potential disposition. In the short term, these decisions may cause a slight reduction in revenue inside of a segment, but an increase in income and profitability, as evidenced by last year's sale of the Watercrest Senior Living community property in the commercial segment.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

This strategy is being executed with a deliberate and thoughtful process that seeks to maximize the value of these assets based on timing and market conditions. Residential real estate revenue grew by 39% in the second quarter when compared to the prior year. This growth is in part due to the diverse portfolio of our residential communities, which contain a mixture of price points and product types to accommodate a wide cross-section of consumers moving to our region. The new home prices in our communities range from the high $200,000 to over $5 million. This diversity is deliberate to help insulate the residential segment from volatility in the market conditions of any one price point.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Later this year, the company plans on commencing the development of two utility corridors, one that will serve the future residential communities in the Lake Powell and West Laird Detailed Specific Area Plans, or DSAPs, and the other that will serve the Pigeon Creek and West Bay Creek DSAPs. These types of off-site utility extensions are capital intensive but necessary seeding to harvest many thousands of future residential home sites in these DSAPs. It is important to remember that because of the one to two-year seeding and harvesting cycles and the mixture of home site pricing, the results of the residential segment are not linear and may vary from quarter-to-quarter. In the second quarter, we continued to implement a measured and multifaceted capital allocation strategy.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We repurchased $32.7 million of the company's common stock, funded $24 million for capital expenditures, primarily for future growth, repaid $10.9 million of debt, and paid $9.1 million in cash dividends. The allocation broke down as 43% for stock repurchases, 31% for capital expenditures, 14% for debt reduction, and 12% for cash dividends. More than half, or 55%, of the capital allocation in the second quarter was to shareholders through stock repurchases and cash dividends. As of July 27th, the company had repurchased $41 million of common stock in 2026, when compared to $40 million in all of 2025. As of the same date, the company now has 56,930,451 outstanding shares, which is the lowest number of outstanding shares in nearly 30 years.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

With 165,000 acres of mostly entitled land in one of the fastest-growing areas of Florida and a diverse operations platform with a proven track record of growing revenue, increasing profitability, distributing profits to shareholders, reducing the number of outstanding shares, and planning for the future, the company's uniquely positioned like few other companies. Marek and I are going to answer your questions. As a reminder, in the top right-hand corner of your screen, the words "Submit a Question" are visible. Clicking that text will take you to the text entry box where you can type your questions and click submit. Marek?

[Marek Bakun, CFO at The St. Joe Company]

Thank you, Jorge. First question. Estimated residuals grew this quarter. Origins looks to have added to residuals. Did homesites in Bay County add to the estimated residual balance this quarter?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Yes. The answer to the question is, homesites in Bay County did add to the estimated residual balance to this quarter.

[Marek Bakun, CFO at The St. Joe Company]

Yep. Just to add a little bit, the increase was driven by higher price point communities. For the first half of 2026, we booked a total of $14.6 million of new true-ups, but we've also collected $5.3 million worth of existing true-ups. The buyback pace this quarter was appreciated. Given your tireless work increasing the value of land holdings, it was also nice to see some of the piggie banks open, along with the operating improvements funding this capital allocation.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Thank you for the comment. We appreciate it. That is part of our measured and multifaceted capital allocation strategy, which we are planning to continue.

[Marek Bakun, CFO at The St. Joe Company]

How is the new hospital on Highway 79 progressing?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

The new hospital, which again, is an academic health center model, with teaching, research, and clinical delivery, or a teaching hospital, is progressing well. Construction is ongoing. There are many other components of operations that are in the works. The anticipated completion of that hospital is still in 2028.

[Marek Bakun, CFO at The St. Joe Company]

While record quarterly income is notable, I believe the across-the-board increase in margins and the 50% growth in net income on a trailing 12-month basis on lower amount of invested capital is far more indicative of the superb job done by management when it comes to maximizing long-term value of this great company and assets. In regards to capital allocation, when the company looks at buybacks as a capital allocation tool, are you doing so via a long-term model, i.e., are you thinking about buybacks in terms of can we reduce the share count by a certain percentage over a five or 10-year period? How you use that capital allocation along with subsequent earnings growth of the business will be able to impact future earnings on a per-share basis.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Thank you for the question. That's a great question. Our capital allocation strategy, specifically our share buyback strategy, is based on a longer-term model.

[Marek Bakun, CFO at The St. Joe Company]

As the region continues to grow, are you attracting new interest from investment institutions in St. Joe, the company, who have not visited the region before?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Obviously we can't answer questions on individual institutions that haven't called us. We, on a regular basis, do host entities that have not been here before, that are looking at the company and the region.

[Marek Bakun, CFO at The St. Joe Company]

Given another great quarter, what is management doing to attract more sell side coverage? This is amazing story to tell.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

It's not something that is a primary focus of ours. Obviously, if there's an interest in that, we would speak to whoever has an interest in providing that service.

[Marek Bakun, CFO at The St. Joe Company]

In the release, you said that capital allocation decisions may vary quarter-to-quarter based on the dynamic nature of our cash flows and for stock repurchases based on market conditions and the timing of open and close periods relative to our cash flows. While our lot sales and land sales are lumpy, it appears the company now has comfortably over $100 million of annualized recurring income, over $100 million in cash, and highly unlevered balance sheet. At this point, why should buybacks be dependent on the timing of your cash flows? I would think, given the above, we should be capable of repurchasing $100 million or more of our shares annually.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Another great question. That information we provided in our earnings release was not intended to mean that our share buybacks are exclusively based on the short-term cash flows. That was not the intent of that statement. It was an attempt at describing our capital allocation strategy in broad terms, cash flows is a factor in our broad capital allocation strategy, it was not meant to be specific to share buybacks. Like I answered in a previous question, our capital allocation strategy as a whole, and our share buyback strategy specifically, is based on a long-term model.

[Marek Bakun, CFO at The St. Joe Company]

Can you confirm that the 4.87 acres commercial parcel on the corner of 30A and Watersound Parkway is under contract?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We cannot disclose contractual matters in an earnings call, but we appreciate the question.

[Marek Bakun, CFO at The St. Joe Company]

We read daily about various costs being driven higher by AI-related data center build-out demand. Are you seeing larger than previous increases in either trade personnel costs or other expenses?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Not anything significant or acute.

[Marek Bakun, CFO at The St. Joe Company]

Is there a chance that recently increased lead time for power development and grid connection will constrain Joe's ability to execute on the growth plan?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

If the question's specific to power generation and distribution, we don't anticipate that being a constraint at this moment in time.

[Marek Bakun, CFO at The St. Joe Company]

While items like utility pipe improvement and new community launches are capital intensive, do we not have significant capital already within a lot development business which can then be recycled into these community investments as our prior lots are sold? Meaning, it is not as if we need to add significant additional capital into the business to fund these items.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

That's a great question, and it's really a description of our broader capital allocation strategy in our cash flows. That's a factor. What's mentioned in the question or the statement, it is a factor in how we execute that strategy.

[Marek Bakun, CFO at The St. Joe Company]

Where is the new Park Place development going to be located?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We're not too clever in naming projects. Park Place East is east of Park Place.

[Marek Bakun, CFO at The St. Joe Company]

Could you talk about cadence of capital spend for utility expansions? Is it more lump sum or more steady periodic investment over time?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

It's probably somewhere in between. Off-site utility extensions are capital intensive, but at the same time, they are things that we plan well ahead of time, and we incorporate into our overall business plan, budget, and capital allocation strategy.

[Marek Bakun, CFO at The St. Joe Company]

How has demand for homes evolved in Northwest Florida over the last few years?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We continue to see an increase in demand, it's really led by a continuation of in-migration into our region. Not only in-migration in terms of the actual numbers of people that are moving to our region, we continue to also see a broader range of geography where those individuals are moving from, which is very encouraging. We're not seeing migration from a static historical set of states and locations. It's dynamic, we continue to see more people move into our region from a broader range of locations.

[Marek Bakun, CFO at The St. Joe Company]

Okay. We have one more question. Given the negative impact Fairholme selling has had on the stock the last several years, have you guys given thought to a solution as far as it relates to the things in your control? As a shareholder, it becomes increasingly frustrating seeing any market enthusiasm down in a wave of Form 4. Even as it relates to attracting new investors, this dynamic is viewed very negatively, which is a shame given the outstanding assets, people, and executions that are occurring at St. Joe.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We appreciate the question, we don't comment on individual shareholders.

[Marek Bakun, CFO at The St. Joe Company]

Waterfront property across the country appears to be at record demand at record pricing. Are these assets around the bay or the intracoastal water frontage that the company can unlock over the next several years for residential and commercial development?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Yes. The short answer to the question is absolutely yes. In all the locations mentioned in the question, it's part of our planning process and part of the I guess the best way to describe it is we don't look at those locations in isolation. We look at those locations to see how we can drive value away from the water also. It's not just let's look at a property that's on the intracoastal or the bay, and maximize the value, but how can us moving forward with a concept in those locations add value to all of our land holdings adjacent to it?

[Marek Bakun, CFO at The St. Joe Company]

Could you talk a bit about the growth of aviation-related companies and the recent release on the Space Florida program in Bay County.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Aviation and aerospace has always been a focus of the regional and local economic development authorities for a number of reasons. That has been one of the target industries to attract, and we do continue to see interest from the industry in our region. There's also a concept that's in the process of being executed, led by Florida State University in an aerospace research and development center that is in the planning stage in Bay County that we believe may be a catalyst for the aerospace aviation industry.

[Marek Bakun, CFO at The St. Joe Company]

It appears build-to-lot inventory at Origins is dwindling, especially the bunch delivered in mid-2023. Does this not provide a huge window for growth in deliveries at Origins, Walton County over the next few years? More specifically, is it intentional that you're giving builders bigger communities such as the [Huff/Arkon] versus the previous piecemeal strategy? If so, would this open opportunities for builders like Toll, Fischer, or even Kolter, who's finishing up NatureWalk, to take their own communities in the future?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

I guess the short answer to that question is we are considering every and all those options. We don't feel that our pipeline is dwindling. It's a matter of when you look at the pipeline quarter-to-quarter because of that seeding and harvesting cycle, that we have a very long runway, a very long pipeline of potential residential home sites, both west of Origins and east of Origins.

[Marek Bakun, CFO at The St. Joe Company]

There are no additional questions at this time.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Great questions as always. Let's give it a couple more minutes in case there's any other questions.

[Marek Bakun, CFO at The St. Joe Company]

There's one more that just came in. How do you guys view your land holdings around Southport? It seems to be a unique area where there's huge and growing opportunity. Even the price points far inland around Lake Merial indicate these good values there.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We look at our geography very broadly. Again, going back to what I mentioned at the beginning of the call, that we want to continue to have a residential segment that has diversity in price point and product type. In the Southport area, we do own property in that area. For example, the Ticheli DSAP, which we have talked about a number of times, where we are planning on breaking ground on the first phase early next year, is an example of us, again, continuing to look at broader geographies, continue to maintain diversity in our residential segment.

[Marek Bakun, CFO at The St. Joe Company]

Thank you for taking my questions. Great job as always.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

That is an easy answer. Thank you. Okay. Well, we do not see any more questions. Again, thank you for joining us today. We greatly appreciate you joining us and asking great questions. We look forward to speaking with you again next quarter. Thank you.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Jorge Gonzalez, President, CEO, and Chairman
• Marek Bakun, CFO