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Stewart Information Services Reports First Quarter 2025 Results

Stewart Information Services Corporation (NYSE: STC) has revealed its financial performance for the first quarter of 2025, showcasing robust growth in total revenues amidst ongoing macroeconomic challenges. The company reported total revenues of $612.0 million, compared to $554.3 million in the same quarter last year, marking an increase of 10%. On an adjusted basis, revenues also saw a substantial rise, reflecting positive operational outcomes across all segments.

Key Financial Highlights

• - Net Income: Stewart's net income for the first quarter was $3.1 million, unchanged from the first quarter of 2024, maintaining a consistent earnings per diluted share (EPS) of $0.11. On an adjusted basis, the net income surged to $7.0 million (or $0.25 per diluted share), up from $4.6 million in Q1 2024.
• - Direct Title Operating Revenues: The title segment saw a notable rise in operating revenues, reaching $499.2 million compared to $451.4 million in the previous year. This reflects an 11% increase, driven by enhancements in both direct and agency title operations.
• - Investment Gains: Realized and unrealized gains, which significantly impact net income, amounted to $3.1 million in the first quarter, down from $7.1 million the previous year. Despite this decline, overall financial performance remained strong due to the growth in core revenues.

Management's Comments

Fred Eppinger, the CEO of Stewart, expressed his satisfaction with the performance in a challenging macroeconomic context. He noted, "I'm proud of our first quarter 2025 performance as we delivered strong revenue results across all our segments, growing our total revenues compared to the first quarter of last year. Despite facing an uncertain economic landscape, we managed our operations effectively and continued to serve our customers relentlessly."

Segment Performance Details

Title Segment

The title segment not only reflected revenue growth but also improved operational efficiency. Operating revenues in this segment increased by $47.8 million, attributed to strategic enhancements in service delivery. However, operating expenses rose by $41.9 million, necessitating ongoing attention to cost management. Some details include:

• - Combined Employee Costs: Increased $20.3 million due primarily to heightened incentive compensation tied to better than expected title revenues.
• - Title Loss Expense: This expense slightly increased to $17.7 million but demonstrated an enhanced performance ratio as a percentage of operating revenues, improving to 3.5% compared to 3.9% in the previous year.

Real Estate Solutions Segment

Additionally, the Real Estate Solutions segment witnessed a 17% rise in operating revenues, totaling $97.1 million, driven by stronger-than-expected contributions from credit information services. However, pretax income saw a 40% drop to $4.1 million, reflecting higher operational expenses associated with service growth.

Corporate Expense Overview

Overall consolidated employee costs increased by 8% to $185.8 million, indicative of higher compensation structures reflecting improved earnings potential across the firm. Other operating expenses also witnessed an 18% uptick, attributing primarily to rising costs in real estate solutions, expanding the operational footprint of the company.

Future Outlook

Stewart will be holding a conference call at 8:30 AM Eastern Time on April 24, 2025, to further discuss these results and future strategies. Stakeholders and interested parties are encouraged to participate by dialing the provided numbers or listening through the Investor Relations website.

In conclusion, Stewart Information Services Corporation continues to demonstrate resilience and strategic growth amid uncertainties in the broader economic landscape, maintaining a firm commitment to operational excellence and customer satisfaction. For further information, visit Stewart's Investor Relations Page.