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.
Housing Market Outlook Softens
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.
Commercial and Agency Businesses Lead Growth
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 properties.
Hisey said domestic commercial revenues increased $15 million, or 20%, driven by higher transaction volume across energy and other asset classes, including continued benefit from data centers. The average domestic commercial fee per file was comparable to last year at $16,900.
Eppinger said Stewart spent an additional $3 million to $4 million during the quarter to hire commercial teams aimed at regional and sector opportunities. He said he expects the company to feel the full impact of those hires over the next two to three quarters.
During the question-and-answer portion of the call, Eppinger said Stewart’s commercial business has doubled from $208 million at the end of 2023 to $450 million over the last four quarters. He said the company has increased its commercial market share from about 9% to roughly 13.5% to 14%, and said Stewart could potentially reach 20% over the next few years if it continues investing in talent and coverage.
Agency services also posted strong results. Eppinger said the business delivered 25% revenue growth for the second quarter in a row. Residential premiums rose 30%, while commercial premiums increased 16% from the prior-year period. Hisey said gross agency revenues increased to $377 million from $301 million a year earlier, and net agency revenues after agent retention rose $13 million, or 26%.
Eppinger said Stewart invested another $2 million to $3 million in customer-facing agency talent to take advantage of disruption in several target markets.
Direct Title and Real Estate Solutions Expand
Stewart’s direct operations business grew consolidated residential, refinance and Main Street commercial revenues by 7% in the second quarter from the prior year. Eppinger said residential transactions increased 3%, while Main Street commercial revenue rose more than 20% due to higher transaction volumes and larger deal sizes.
However, centralized title operations faced difficult comparisons with the year-ago quarter, particularly in bulk business, which Eppinger described as “very bumpy.” He said those headwinds contributed to a roughly 1% decline in overall non-commercial direct business compared with the second quarter of 2025.
The real estate solutions segment posted the company’s strongest growth rate. Eppinger said revenue increased 75% and adjusted pretax margin reached 13.6%. Hisey said real estate solutions adjusted pretax income more than doubled to $27 million from $12 million, with adjusted pretax margin improving to 14% from 11%.
Eppinger said the segment benefited from the acquisitions of Mortgage Contracting Services, Stewart’s property preservation business, and Nationwide Appraisal Network. Excluding those contributions, he said Stewart’s legacy real estate solutions business grew about 18%.
Expenses Rise as Stewart Invests in Growth
Executives emphasized that increased expenses reflected deliberate investment in growth opportunities. Eppinger said Stewart spent about $8 million in the quarter on incremental investments in individuals and teams across three title businesses.
Hisey said title operating revenues increased $91 million, or 15%, driven by agency and domestic commercial performance. Title operating expenses rose 17%, primarily due to expenses tied to revenue growth and higher employee costs from continued talent investments. As a result, title pretax income was comparable to last year.
The title loss ratio improved to 3.2% from 3.6%, which Hisey attributed to favorable claims experience. He said Stewart expects title losses for the year to average in the mid-3% to 4% range.
Hisey said the employee cost ratio improved to 27% from 30% due to revenue growth, while the other operating expense ratio increased to 27% from 25%, mainly because of higher costs associated with real estate solutions growth. He said Stewart expects the other operating expense ratio to remain in the 27% to 28% range going forward.
Acquisition Pipeline Remains Active
Eppinger said Stewart has seen a “meaningful pickup” in acquisition opportunities in 2026 after raising capital in late 2025. He said most of that capital has not yet been deployed, but Stewart is working on transactions it expects to close in the next 60 to 120 days.
He said the company is focused on smaller deals in real estate services and agency operations, rather than acquisitions the size of Mortgage Contracting Services. In the call’s Q&A session, Eppinger described the recently announced Rattikin Title acquisition as a “micro deal” but said it fills a gap for Stewart in the Fort Worth side of the Dallas market and brings “an amazing commercial position.”
Hisey said Stewart’s financial position remains strong, with total cash and investments about $400 million in excess of statutory premium reserve requirements. Total stockholders’ equity was approximately $1.66 billion at June 30, representing book value of about $55 per share. Net cash provided by operations increased to $60 million from $53 million, primarily driven by higher net income.
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.
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