Stewart(STC) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income attributable to Stewart was $22.7 million ($ 0.80 per diluted share), a significant increase from $8.8 million ($ 0.32 per diluted share) in the fourth quarter 2023, representing a 158% year-over-year growth[2]. - Full year 2024 net income was $73.3 million ($ 2.61 per diluted share), compared to $30.4 million ($ 1.11 per diluted share) in 2023, marking a 141% increase[4]. - Net income attributable to Stewart for the year 2024 was $73.3 million, up 141.5% from$ 30.4 million in 2023[23]. - Net earnings per diluted share attributable to Stewart increased to $2.61 in 2024, compared to$ 1.11 in 2023[23]. - Adjusted net income attributable to Stewart rose by 90% to $31.5 million for Q4 2024, and by 42% to$ 94.4 million for the year 2024[29]. Revenue Growth - Total revenues for the fourth quarter 2024 reached $665.9 million, up 14.4% from$ 582.2 million in the same quarter of 2023[4]. - Total operating revenues for Q4 2024 reached $649.7 million, a 15.1% increase from$ 564.4 million in Q4 2023[23]. - Total revenues for the Title Segment grew by 11% to $580.0 million in Q4 2024, and by 7% to$ 2,133.0 million for the year 2024[29]. - Adjusted total revenues for the year ended December 31, 2024, were $2,477.5 million, reflecting a 10% growth compared to$ 2,257.3 million in 2023[28]. - Real Estate Solutions Segment total revenues surged by 42% to $87.0 million in Q4 2024, and by 36% to$ 358.7 million for the year 2024[29]. Operational Efficiency - Adjusted pretax margin improved to 7.1% in the fourth quarter 2024, up from 5.0% in the prior year quarter, reflecting operational efficiency[5]. - The GAAP pretax margin improved to 5.3% in Q4 2024 from 3.2% in Q4 2023[28]. - The company’s adjusted pretax margin for Q4 2024 was 7.1%, up from 5.0% in Q4 2023[28]. - Adjusted pretax income for the Title Segment rose by 61% to $50.5 million in Q4 2024, and by 20% to$ 138.9 million for the year 2024[29]. - GAAP pretax margin improved to 7.8% in Q4 2024, and to 6.3% for the year 2024, compared to 5.2% and 4.9% in the previous year respectively[29]. Cash Flow and Expenses - Total cash provided by operations in the fourth quarter 2024 was $68.0 million, compared to$ 39.5 million in the fourth quarter 2023, indicating improved cash flow generation[18]. - Employee costs increased by $21.3 million, or 12%, in the fourth quarter 2024, primarily due to higher incentive compensation and increased salaries[15]. - Total expenses for the year ended December 31, 2024, were$ 2,376.1 million, compared to $2,196.5 million in 2023[28]. - Employee costs for Q4 2024 totaled$ 199.4 million, reflecting a 11.9% increase from $178.1 million in Q4 2023[23]. Market Conditions and Future Outlook - The company plans to continue focusing on growth and margin improvement across all business lines in 2025, despite challenging macro-housing conditions[4]. - The number of opened commercial orders in Q4 2024 was 4,283, slightly down from 4,303 in Q4 2023[23]. - The total number of purchase orders opened in Q4 2024 was 39,399, compared to 42,750 in Q4 2023, indicating a decrease of 7.4%[23]. Asset and Equity Changes - Cash and cash equivalents increased to$ 216,298,233 from $336,365[24]. - Short-term investments rose to$ 41,199,393 from $23,936[24]. - Total assets net increased to$ 102,210,115 from $87,899[24]. - Total stockholders' equity reached$ 1,411,089,891 from $378,549[24]. - Book value per share is$ 50.50[24].