#United States #Houston #Stewart Information #Q4 2024 #financial report

Stewart Information Services Reports Impressive Financial Results

On February 5, 2025, Stewart Information Services Corporation (NYSE: STC) released its financial results for the fourth quarter and full year of 2024, revealing a remarkable achievement amidst ongoing challenging housing market conditions.

For the fourth quarter of 2024, Stewart reported total revenues of approximately $665.9 million, which marks a significant increase from $582.2 million reported during the same period in 2023. When adjusted, the revenues stand at $664.2 million, reflecting a 14% increase year-over-year. This upward trend highlights the company’s ability to adapt and grow in a competitive landscape.

Furthermore, the net income attributable to Stewart for the fourth quarter climbed to $22.7 million or $0.80 per diluted share, a substantial rise from $8.8 million or $0.32 per diluted share in the previous year. The adjusted net income, a crucial metric that excludes irregular expenses, reached $31.5 million, equating to $1.12 per diluted share – a performance that illustrates a robust annual growth rate of 90%.

Summarizing the annual performance, Stewart’s full year 2024 results indicate a net income of $73.3 million or $2.61 per diluted share, up from $30.4 million or $1.11 per diluted share in 2023. Adjusted net income for the full year reached $94.4 million, translating to $3.35 per diluted share. This means not only a recovery from previous lows, but also a solid growth trajectory, affirming Stewart's operational excellence and profit generation capabilities.

Fred Eppinger, the Chief Executive Officer, expressed satisfaction with the results stating, "We are pleased with our fourth quarter and full year 2024 results as they demonstrate both our progress and resilience in these continuing challenging macro-housing conditions. We continue to improve on our operations to win share and fortify our position and look forward to continuing to do so in 2025."

The title segment, a primary contributor to Stewart’s success, reported operating revenues of $562.7 million in Q4 2024, which is a 12% increase from the prior year’s figures. Notably, the commercial title revenues surged by an impressive 50%, attributed to a higher average transaction size and increased volume of commercial transactions.

In terms of expenses, Stewart has effectively managed its operational costs. Consolidated employee costs were up by 12% to $199.4 million, largely due to increased compensation tied to improved revenue and higher employee counts resulting from business expansion efforts.

Moreover, the integration of strong operational strategies has also improved the pretax margin, which rose to 5.3% from 3.2% a year ago. Adjusted pretax margin for the fourth quarter reached 7.1%, illustrating enhanced efficiency and operational stability.

Looking Ahead

As Stewart enters 2025, the strategic focus on growth and margin expansion across all business segments, including title services and real estate solutions, remains paramount. The concerted efforts on optimizing operational excellence, coupled with an eye on the macroeconomic landscape, will be vital for sustaining momentum and achieving long-term objectives.

The full details about the Q4 earnings and future prospects will be discussed in the upcoming earnings call scheduled for February 6, 2025.

Stewart Information Services Corporation continues to solidify its position as a leading player in the real estate services sector, boasting a diverse portfolio that fulfills the evolving needs of the market while setting a blueprint for sustained profitability and strategic growth.