Weekly Real Estate News
Stewart Information Services reported a sharp drop in third-quarter profit Wednesday despite higher revenue, underscoring continued pressure on title insurance economics amid a difficult housing transaction market.
In results released October 21 at 4:20 p.m. Eastern, the Houston-based title insurer reported total revenue of $900.7 million, up from $796.9 million in the third quarter of 2025. Net income attributable to Stewart fell to $30.3 million, compared with $44.3 million a year earlier, a decline of approximately 32%.
Diluted earnings per share declined to $0.98 from $1.55. Adjusted net income fell to $41.2 million from $46.7 million, while adjusted diluted earnings per share declined to $1.33 from $1.64.
Revenue growth did not translate into higher margins
Pretax income before noncontrolling interests decreased to $45.6 million from $61.2 million, and the pretax margin fell to 5.1% from 7.7%. The adjusted pretax margin declined to 6.7% from 8.1%.
CEO Fred Eppinger said the company faced increased industry headwinds that management expects to persist into next year. Stewart said it remains focused on market share gains and disciplined operations.
The comparison also reflects differences in investment gains and other items: third-quarter 2025 results included $5.6 million of pretax net realized and unrealized gains. That context matters when comparing the GAAP earnings decline with the smaller drop in adjusted profit.
Primary source: Stewart’s October 21 earnings announcement.
