STEWART INFORMATION SERVICES CORP Q1 FY2026 earnings call

Fred mentioned being pleased with first quarter results despite seasonality and low residential transaction activity. Each business showed strong revenue growth and improved earnings. Commercial business expected to remain resilient. Direct operations focused on gaining share in target MSAs and growing Main Street commercial. National commercial services focused on growing asset classes. Agency services focused on growing through new agents and wallet share expansion. Real estate solutions business benefited from MCS acquisition and furthered strategic priorities. International operations focused on broadening geographic presence in Canada.

Direct operations business grew 10% in the first quarter. National commercial services business grew 40% in the first quarter. Agency services business revenues up 25% compared to first quarter of 2025. Real estate solutions business revenues grew 66% in first quarter. International operations non-commercial revenue grew 9% and commercial revenue grew 14% in a challenging housing market.

Anticipate residential market growth closer to 3% - 5% for the year. Expect to maintain business momentum in second quarter with residential market possibly bouncing around 4 million existing home sales. Real estate solutions segment expects margins to improve and be in low teens for the full year.

This conference call may contain forward-looking statements that involve a number of risks and uncertainties. Please refer to the company's press release and other filings with the SEC for a discussion of the risks and uncertainties that could cause actual results to differ materially.

Q: George with KBW asked about commercial fee trend and cadence of year-over-year growth.

A: Fred responded about strong pipeline, average fee profile likely to hover at higher level, and commercial in direct operations having momentum.

Q: Jeffrey Dunn with Dowling and Partners asked about agency commercial and RES margin.

A: Fred talked about agency commercial capabilities and RES margin expectations.

Q: Oscar Nieves with Stevens Inc. asked about acquisition of Nationwide Appraisal Network.

A: Fred discussed details of the acquisition, financing, and expected contributions