- Total revenues increased by 10.4% year-over-year, reaching $612.0 million in Q1 2025.
- Adjusted net income rose significantly by 52% to $7.0 million ($0.25 per diluted share).
- Domestic commercial revenues surged 39% due to higher transaction volume and size.
Stewart Information Services (STC, Financial) has released its financial results for the first quarter of 2025, showcasing a robust growth trajectory in its revenue streams. The company recorded total revenues of $612.0 million, marking a 10.4% increase from $554.3 million in Q1 2024. Despite challenging economic conditions, the firm maintained a net income of $3.1 million ($0.11 per diluted share), consistent with the previous year.
On an adjusted basis, however, Stewart's net income saw a substantial increase to $7.0 million ($0.25 per diluted share), up from $4.6 million ($0.17 per diluted share) in Q1 2024. This improvement was driven by strong performances across various segments.
The title segment demonstrated particular strength, with operating revenues climbing 11% to $499.2 million. This growth was accompanied by an impressive 77% rise in adjusted pretax income. Domestic commercial revenue figures were notable, soaring 39% due to a 13% increase in average transaction size and a 23% rise in closed transactions. The average commercial fee per file rose to $15,800 from $13,900 the previous year, further boosting quarterly results.
However, the real estate solutions segment struggled, despite a 17% increase in revenues to $97.1 million. Its pretax income fell by 40% to $4.1 million, with an adjusted pretax margin decline from 14.8% to 9.9%, pointing towards mounting cost pressures within the segment.
Operating expenses across the company increased by 18%, outpacing revenue growth, while the firm continued to experience negative cash flow of $29.9 million, virtually unchanged from the previous year. Stewart's CEO, Fred Eppinger, noted the company's ability to deliver these results in a challenging macroeconomic environment, highlighting significant resilience, particularly within the commercial segment.
