Stewart(STC) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were $612.0 million, an increase of 10.4% from $554.3 million in Q1 2024[5] - Adjusted net income for Q1 2025 was $7.0 million ($0.25 per diluted share), up from $4.6 million ($0.17 per diluted share) in Q1 2024, representing a 52.2% increase[2][5] - Total revenues for the quarter ended March 31, 2025, were $612.0 million, representing a 10% increase from $554.3 million in the same quarter of 2024[29] - Adjusted net income attributable to Stewart for Q1 2025 was $7.0 million, a 51% increase compared to $4.6 million in Q1 2024[30] - The Title Segment reported total revenues of $514.9 million, up 9% from $471.4 million in the previous year[30] - The Real Estate Solutions Segment achieved total revenues of $97.1 million, reflecting a 17% increase from $83.0 million in Q1 2024[30] - Adjusted total revenues for Q1 2025 were $608.9 million, an 11% increase from $547.3 million in Q1 2024[29] Segment Performance - Title segment operating revenues increased by $47.8 million (11%) to $499.2 million in Q1 2025 compared to Q1 2024[7][8] - Direct title revenues rose by 10% to $231.7 million in Q1 2025, driven by a 39% increase in domestic commercial revenues[11] - Real estate solutions segment operating revenues improved by $14.1 million (17%) to $97.1 million in Q1 2025[12][13] - Adjusted pretax income for the Title Segment rose by 77% to $11.5 million, compared to $6.5 million in Q1 2024[30] Operational Metrics - Total opened orders for Q1 2025 reached 78,943, a 6.5% increase compared to 79,335 in Q1 2024[24] - Closed orders for Q1 2025 totaled 45,673, reflecting a 9.7% decrease from 50,459 in Q1 2024[24] - Commercial opened orders in Q1 2025 were 4,328, up from 3,693 in Q1 2024, indicating an 17.3% increase[24] - Purchase opened orders in Q1 2025 amounted to 46,250, compared to 48,024 in Q1 2024, showing a decrease of 3.7%[24] - Refinancing opened orders for Q1 2025 were 17,562, which is a 7.3% increase from 16,371 in Q1 2024[24] - Other opened orders in Q1 2025 totaled 10,803, down from 11,247 in Q1 2024, representing a decrease of 4.0%[24] - Closed commercial orders in Q1 2025 were 4,390, slightly higher than 3,568 in Q1 2024, marking a 23.1% increase[24] - Closed purchase orders in Q1 2025 totaled 26,780, down from 29,744 in Q1 2024, reflecting a decrease of 10.0%[24] - Closed refinancing orders in Q1 2025 were 9,898, compared to 9,353 in Q1 2024, indicating a 5.8% increase[24] - Closed other orders in Q1 2025 reached 4,605, a decrease from 7,794 in Q1 2024, showing a decline of 41.0%[24] Financial Position - Total assets as of March 31, 2025, were $1,485,510,021, compared to $1,298,000,000 as of December 31, 2024, reflecting a significant increase[25] - Cash and cash equivalents amounted to $674,842,669 as of March 31, 2025, up from $609,800,000 as of December 31, 2024[25] - The company reported receivables from premiums of $359,984,336 as of March 31, 2025, compared to $375,753,000 as of December 31, 2024, indicating a decrease[25] - Total liabilities were $1,145,323,111 as of March 31, 2025, compared to $1,183,511,000 as of December 31, 2024, showing a reduction in liabilities[25] - The estimated title losses were $510,790,511 as of March 31, 2025, compared to $534,000,000 as of December 31, 2024, indicating a decrease in estimated losses[25] - The company's total stockholders' equity was $1,407,863,000 as of March 31, 2025, compared to $1,411,089,000 as of December 31, 2024, showing a slight decline[25] - The number of shares outstanding was 27,919,927 as of March 31, 2025, compared to 27,764,000 as of December 31, 2024, indicating an increase in shares[25] - The company reported retained earnings of $1,078,378,000 as of March 31, 2025, compared to $1,089,484,000 as of December 31, 2024, reflecting a decrease[25] - Goodwill was reported at $1,092,747,000 as of March 31, 2025, compared to $1,084,139,000 as of December 31, 2024, indicating an increase[25] - The company has short-term investments of $457,164,000 as of March 31, 2025, compared to $419,000,000 as of December 31, 2024, showing growth in investments[25] Cost and Margin Analysis - Consolidated employee costs increased by $13.4 million (8%) in Q1 2025, but as a percentage of total operating revenues, they improved to 31.2% from 32.3% in the prior year[15] - Employee costs increased to $185.8 million in Q1 2025 from $172.4 million in Q1 2024, reflecting a rise in operational expenses[26] - The company's GAAP pretax margin for Q1 2025 was 1.0%, down from 1.3% in Q1 2024[29] - The adjusted pretax margin improved to 1.8% in Q1 2025, compared to 1.7% in the same quarter of 2024[29] Gains and Losses - Total net realized and unrealized gains in Q1 2025 were $3.1 million, down 57% from $7.1 million in Q1 2024[3][7] - Net realized and unrealized gains for Q1 2025 were $(3.1) million, compared to $(7.0) million in Q1 2024[30] - Title loss expense for Q1 2025 was $17.7 million, representing 3.5% of title operating revenues, an improvement from 3.9% in Q1 2024[10] Future Outlook - The company plans to focus on market growth and pretax margin improvements in the future[21]