Stewart Information Services Reports $3.1 Million Net Income in Q1 2025

Stewart Information Services Corporation reported a net income of $3.1 million, or $0.11 per diluted share, for the first quarter of 2025, matching the same figures from the first quarter of 2024. However, pretax income before noncontrolling interests decreased to $5.9 million from $7.1 million year-over-year. The results for the first quarter of 2025 included $3.1 million in pretax net realized and unrealized gains, a significant drop from the $7.0 million reported in the prior year, primarily due to changes in fair value of equity security investments in the title segment.

In terms of segment performance, the title insurance and related services segment saw operating revenues increase by 11% to $514.9 million, driven by improvements in both direct and agency title operations. Total segment operating expenses rose by 9% to $503.1 million, with employee costs and other operating expenses contributing to this increase. The real estate solutions segment also experienced growth, with revenues rising 17% to $97.1 million, although pretax income fell by 40% to $4.1 million due to higher operational costs.

Operationally, the company reported a slight decline in total closed orders, which fell to 45,673 from 50,459 in the previous year, reflecting a 9% decrease. However, commercial closed orders increased by 23%, indicating a shift in focus towards higher-value transactions. The average employee count rose to approximately 6,800, up from 6,700 in the prior year, contributing to an 8% increase in consolidated employee costs. The company also noted a slight improvement in the average retention rate by independent agencies, which increased to 82.8% from 83.1% year-over-year.

Looking ahead, Stewart Information Services anticipates a gradual decline in mortgage interest rates, projected to average 6.4% by the end of 2025. The company expects second-quarter sales of existing and new homes to increase by 5% and 3%, respectively, compared to the previous year. Despite the challenges posed by high mortgage rates and rising home prices, Stewart remains focused on cost management and operational efficiencies, including the integration of technology and consolidation of operations, to enhance profitability and navigate the evolving market landscape.