STEWART INFORMATION SERVICES (STC)·Q4 2025 Earnings Summary
Stewart Information Services Crushes Q4 as Commercial Title Surges 30%
February 5, 2026 · by Fintool AI Agent
Stewart Information Services (NYSE: STC) delivered a blowout fourth quarter, with total revenues of $790.6 million smashing analyst expectations of $608 million by 31% . The title insurance company reported adjusted EPS of $1.65 versus $1.38 consensus (+19%), fueled by a commercial real estate boom in data center and energy asset closings .
On the earnings call, CEO Fred Eppinger struck an optimistic tone about the housing recovery: "We believe we have rounded the corner and are heading in the right direction to get back to a more normalized existing home sales environment in the coming years." Management outlined an ambitious growth strategy, targeting 20% commercial market share (up from 14%) and $300M in direct channel acquisitions over three years .
Did Stewart Beat Earnings?
Yes — decisively on both metrics.
*Values retrieved from S&P Global
Stewart's beat streak continues — the company has now beaten revenue estimates in 8 consecutive quarters, with EPS beats in 6 of the last 8.
*Values retrieved from S&P Global
Ask Fintool AI AgentWhat Changed From Last Quarter?
The commercial title business exploded. After a sluggish environment through most of 2024, Q4 2025 showed signs of market recovery with outsized gains in large commercial transactions.
Key drivers this quarter:
- Data center and energy asset transactions — Large commercial deals in these sectors drove the 39% increase in average fee per file
- Real Estate Solutions momentum — Credit information services business grew 29% YoY
- Improved cost leverage — Employee costs as % of operating revenues fell to 28.9% from 30.7% YoY
How Did Each Segment Perform?
Title Segment (86% of Revenue)
Both direct (+18%) and agency (+20%) title operations showed strong growth . Title loss expense improved to 3.4% of revenues from 3.7%, reflecting favorable claims experience .
Real Estate Solutions (14% of Revenue)
The credit information services business was the primary growth driver .
How Did the Stock React?
Stewart shares rose approximately +1.8% in afterhours trading following the release, with the stock trading at $68.99 versus the $67.80 close.
The stock has traded in a relatively tight range over the past year, with previous earnings reactions varying:
- Q4 2024 earnings (Feb 2025): +4.1% next-day move
- Q3 2024 earnings (Nov 2024): -1.3% next-day move
Ask Fintool AI AgentFull Year 2025 Summary
Balance Sheet Highlights
Goodwill increased to $1.27B from $1.08B, and intangible assets grew to $325M from $173M, reflecting acquisition activity .
Order Trends
Domestic order counts provide a forward indicator for revenue:
Refinancing orders surged 27% as borrowers positioned for potential rate relief, though commercial closings were flat .
What's the Forward Outlook?
Analyst Estimates vs. Management Commentary:
*Values retrieved from S&P Global
Management's key forward-looking points from the earnings call:
- Existing home sales: Expects 6-8% improvement in 2026, but "not all the way back to 5 million units"
- Commercial growth: Confident in the pipeline but cautioned 49% growth is not a sustainable baseline
- Margin expansion: If existing home sales reach 5 million, margins could reach 12% (currently ~6.8%)
Key Risks and Considerations
Management flagged several risks in the forward-looking statements :
- Interest rate sensitivity — Title insurance volumes are closely tied to mortgage activity
- Tariff and trade policy uncertainty — Could impact broader economic conditions
- Commercial real estate concentration — Large transaction dependency introduces volatility
- Acquisition integration — Higher goodwill/intangibles require successful integration
What Did Management Guide?
Stewart did not provide explicit numerical guidance, but CEO Fred Eppinger offered substantive qualitative commentary on the 2026 outlook:
Housing Market Outlook:
"We believe we have rounded the corner and are heading in the right direction to get back to a more normalized existing home sales environment in the coming years. We do not anticipate existing home sales getting all the way back to their long-term historic average of 5 million units in 2026, but we believe we will begin to see modest market improvements in 2026."
- 30-year mortgage rates stabilized in the 6.1%-6.35% range in Q4
- Housing inventory up 8% YoY in Q4
- Population of mortgage holders with rates above 6% now exceeds those below 3%
- Management expects 6-8% improvement in existing home sales in 2026
Segment-Specific Outlook:
Market Share Ambitions:
"We're probably 14% share right now in the [commercial] market. I think over the next two, three years, we're going to get closer to 20%."
Q&A Highlights
Commercial Growth Sustainability
Q: Can you maintain 49% commercial growth in 2026?
"Do I think we can grow commercial next year? Yes. I just think 49% is not a threshold... We're leading more deals now. Some of these big deals, historically, we would participate, but we control more now." — Fred Eppinger
Key points:
- Commercial now ~18% of title revenue in Q4, vs ~14-15% full-year average
- Best competitors have commercial at 20-25% of title business
- Energy grew 34% for the year; all other commercial asset classes grew 46%
Texas Rate Reduction Impact
Q: How will the Texas title rate cut affect financials?
"It's low single-digit impact on earnings this year. We've managed it well... I'm concerned for some of our agent partners in rural places." — Fred Eppinger
- Texas Department of Insurance finalized a 6% reduction in title payment rates effective March 1st
- Stewart addressed this through fee and service reviews
- Small agents in rural Texas face margin pressure
M&A Strategy
Q: What is the capital allocation plan?
"Over the next three years, I see $300 million, roughly, of acquisitions in the direct channel against these target markets that would structurally improve our margin regardless of cycle." — Fred Eppinger
- Focus on 30 MSAs where scale would improve profitability
- Typical transactions are $10-30M each
- Agent valuations becoming more realistic as market improves
- MCS acquisition adds ~$165M annual revenue, ~$40M EBITDA
AI and Technology
Q: What is the impact of AI on your business?
"We have probably 75 individual initiatives going on right now that have AI applied in our businesses around customer service, efficiency, or data consolidation." — Fred Eppinger
- AI viewed as competitive advantage for large players due to data scale
- Focus on "singles" — incremental improvements in quality and throughput
- May acquire small technology tools ($3-4M range) that accelerate development
January Order Trends
Q: How are orders trending in January 2026?
"Things have been opening up a little, particularly relative to last year's quarter. They're up a bit." — David Hisey, CFO
Ask Fintool AI AgentCapital Allocation Update
Stewart enhanced its financial flexibility in Q4 2025:
"We could pay it off at any point. I think we're just trying to keep flexibility... you may see that for the year." — David Hisey, CFO
Workplace Recognition
Stewart received multiple employment awards in 2025 :
- USA TODAY's Top 25 Workplaces Award
- Forbes' America's Best Employers for Company Culture
- #1 in Forbes' America's Best Employer for Women in Business Services
The Stewart Foundation donated $1.2M to local communities through employee programs .