Stewart Information Services Corp (STC) 2026 Q1 法說會逐字稿

Thank you for your continued patience. Your meeting will begin shortly. (Operator Instructions)

感謝您持續的耐心等候。您的會議即將開始。（接線員指示）

Please stand by, your meeting is about to begin.

請稍候，您的會議即將開始。

Hello and thank you for joining the Stewart Information Services first-quarter 2026 earnings call. (Operator Instructions) Please note, today's call is being recorded. (Operator Instructions)

您好，感謝您參加 Stewart Information Services 2026 年第一季財報電話會議。（接線員指示）請注意，今天的電話會議將被錄音。（接線員指示）

It is now my pleasure to turn today's conference over to Kat Bass, Director of Investor Relations. Please go ahead.

現在我很榮幸將今天的會議交給投資人關係總監 Kat Bass。請開始。

Thank you for joining us today for Stewart's first-quarter 2026 earnings conference call. We will be discussing results that were released yesterday after the close. Joining me today are CEO, Fred Eppinger; and CFO, David Hisey.

感謝您今天參加 Stewart 2026 年第一季財報電話會議。我們將討論昨日收盤後發布的業績結果。今天與我一同出席的有執行長 Fred Eppinger，以及財務長 David Hisey。

To listen online, please go to the stewart.com website to access the link for this conference call. 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 our actual results to differ materially.

如需線上收聽，請至 stewart.com 網站取得本次電話會議的連結。本次電話會議可能包含前瞻性陳述，涉及多項風險與不確定性。請參閱公司新聞稿及向美國證券交易委員會（SEC）提交的其他文件，以了解可能導致實際結果與預期有重大差異的風險與不確定性。

During our call, we will discuss some non-GAAP measures. For reconciliation of these non-GAAP measures, please refer to the appendix in today's earnings release, which is available on our website at stewart.com.

在本次電話會議中，我們將討論部分非 GAAP 指標。如需這些非 GAAP 指標的調節表，請參閱今日財報新聞稿的附錄；該新聞稿可於我們的網站 stewart.com 取得。

Let me now turn the call over to Fred.

現在我把電話交給 Fred。

Thank you for joining us today for Stewart's first-quarter 2026 earnings conference call. Yesterday, we released the financial results for the first quarter. I will kick off today's call with an overview of our results and our current macro housing outlook, followed by a review of our results and strategic direction by business line. After my remarks, I will turn the call back over to David so he can further cover our results for the quarter.

感謝您今天參加 Stewart 2026 年第一季財報電話會議。昨日我們發布了第一季的財務結果。我將先概述我們的業績表現與目前對住宅市場的總體經濟展望，接著按業務線回顧我們的結果與策略方向。在我發言結束後，我會把電話交回給 David，讓他進一步說明本季的業績。

I am very pleased with the results for the first quarter this year. As you know, the first quarter is typically the most impacted by seasonality. And on top of that, the residential transaction activity continued to be at historically low levels. In that environment, we delivered one of the best quarters in the company's history, with adjusted EPS of $0.78 and revenue growth of 28%. In the first quarter, each of our businesses showed strong revenue growth and improved earnings as we executed on our strategic priorities.

我對今年第一季的結果感到非常滿意。如各位所知，第一季通常最受季節性因素影響。此外，住宅交易活動仍處於歷史低檔。在這樣的環境下，我們交出公司歷史上表現最好的季度之一：調整後每股盈餘（EPS）為 0.78 美元，營收成長 28%。第一季，我們各項業務在執行策略重點的同時，皆展現強勁的營收成長並改善獲利。

Though first-quarter existing home sales were muted, our direct operations, agency services, and national commercial services benefited from strong commercial growth. Our Real Estate Services segment also delivered strong results year over year, bolstered by our recent acquisition of MCS. In the first quarter, along with a 28% adjusted revenue growth, we adjust -- we delivered adjusted net income growth of $24 million, up from $7 million in the same quarter last year, and allowed us to deliver a 4.3% margin for the quarter, up from 1.8% in the first quarter of 2025.

儘管第一季成屋銷售表現平淡，我們的直營營運、代理服務與全國商業服務仍受惠於強勁的商業成長。我們的不動產服務事業部門也在近期收購 MCS 的帶動下，年對年交出亮眼成果。第一季，除調整後營收成長 28% 外，我們的調整後淨利增加 2,400 萬美元，較去年同季的 700 萬美元大幅提升，並使本季利潤率達 4.3%，高於 2025 年第一季的 1.8%。

On our last call, I shared that we expected existing home sales to improve around 6% to 8% in 2026, beginning our journey back to a more normal existing home sales. While we anticipate some growth in the housing market, we foresee the potential for growth to be a bit more muted this year, given the broader macro and geopolitical conditions and where we have seen interest rates move as a result.

在上次電話會議中，我曾分享我們預期 2026 年成屋銷售將改善約 6% 至 8%，並開始回到較正常的成屋銷售水準。雖然我們預期房市會有一些成長，但鑑於更廣泛的總體經濟與地緣政治情勢，以及利率因此的變動，我們認為今年的成長可能會較為溫和。

We anticipate that we will continue to maintain our business momentum in the second quarter, but we could see the residential market continue to bounce along the bottom of around 4 million existing home sales for the next quarter if ongoing geopolitical tensions prolong. In the first cap quarter, housing signals were mixed.

我們預期第二季將持續維持業務動能，但若地緣政治緊張情勢延續，未來一季住宅市場可能仍在約 400 萬戶成屋銷售的底部區間徘徊。第一季，房市訊號好壞參半。

As mentioned, existing home sales were relatively flat, down 1% compared to 2025. Median sale price growth was a bit weaker than in the past few quarters. However, it was positive, up just under 1% for the quarter. The pricing story currently varies very significantly by market, and we are seeing more price negotiations, which may be helping home buyers to balance rates.

如前所述，成屋銷售相對持平，較 2025 年下降 1%。房屋成交中位價的成長較過去幾季略為疲弱。不過仍為正成長，本季上升略低於 1%。目前各市場的價格走勢差異非常大，我們也看到更多價格協商，這可能有助於購屋者在利率環境下取得平衡。

Interest rates remain a critical gauge for home buyers entering the market. Though we were confronted by difficult weather across the country in January, early in the quarter, we saw rates move closer to 6% and felt momentum both in purchase and refinance activity. March, however, saw the impact of rising global tensions and rates exited the month around 6.3%, cooling activity a bit due to the increase itself, but also because of the quick shift in rate and sentiment.

利率仍是購屋者進入市場時的重要指標。儘管第一季初 1 月全國遭遇惡劣天候，我們看到利率走近 6%，並在購屋與再融資活動上感受到動能。然而 3 月受到全球緊張局勢升溫的影響，利率在月底約為 6.3%，由於利率上升本身，以及利率與情緒快速轉變，使得活動略為降溫。

We do anticipate some momentum will continue into the second quarter as rates remain below, kind of at or below 2025 levels, heading into the spring selling season. All in, our view of the residential market growth will be closer probably to 3% to 5% for the year. We believe commercial, on the other hand, will remain more resilient and continue to have solid growth.

我們確實預期在進入春季銷售旺季之際，利率維持在大致等同或低於 2025 年水準，部分動能將延續至第二季。整體而言，我們對今年住宅市場成長的看法，可能更接近 3% 至 5%。另一方面，我們認為商業市場將更具韌性，並持續保持穩健成長。

Turning to our business line results, our Direct operations business grew 10% in the first quarter compared to the same time frame last year. The growth came from improved transaction activity. We have not deviated from our longstanding focus on gaining share in target MSAs through organic and inorganic efforts. We continue to see positive momentum in our strategic initiatives to grow commercial business out of direct operations, which we often refer to as Main Street Commercial. In the first quarter, our Direct operations grew Main Street Commercial by more than 20% year over year.

接著談各業務線的表現，我們的直營營運業務在第一季較去年同期成長 10%。成長主要來自交易活動改善。我們仍持續聚焦於透過有機與併購方式，在目標都會統計區（MSA）提升市占的長期策略，並未偏離。我們在推動策略性計畫、由直營營運擴大商業業務（我們常稱為「Main Street Commercial」）方面，持續看到正向動能。第一季，我們直營營運的 Main Street Commercial 年對年成長超過 20%。

Looking forward, we believe we will grow this operation in part through targeted acquisitions. And we have seen a pickup in opportunities in our pipeline for Direct operations as well as opportunities that benefit our other business lines. We are thoughtful in our assessment of opportunities and expect to continue to grow the company in part through being acquisitive.

展望未來，我們相信將部分透過鎖定式收購來擴大此項營運。我們也看到直營營運的機會管線有所增加，同時也出現可使其他業務線受益的機會。我們會審慎評估各項機會，並預期將持續透過部分併購來推動公司成長。

Our National Commercial Services business delivered another impressive quarter of results. Energy continues to be our largest asset class, but other notable gainers in the quarter were our industrial, site development, data center, and retail asset classes. In total, we grew National Commercial Services by 40% in the first quarter. We remain focused on growing all of our asset classes through geographic expansion and acquisition of leading industry talent.

我們的全國商業服務業務再度交出令人印象深刻的一季成果。能源仍是我們最大的資產類別，但本季其他顯著成長的類別包括工業、基地開發、資料中心與零售。整體而言，我們第一季全國商業服務成長 40%。我們仍專注於透過地理擴張與延攬業界頂尖人才來收購（或引進）以推動各資產類別的成長。

Our Agency Services Business delivered a very strong first quarter, with revenues up 25% compared to the first quarter of 2025. Our agency partners confront the same housing headwinds as we do, so we consider this growth to be especially solid considering conditions. We are focused on growing this business through ramping up new agents and wallet share expansion of existing agents, with the emphasis on 15 target states.

我們的代理服務業務在第一季表現非常強勁，營收較2025年第一季成長25%。我們的代理合作夥伴面臨與我們相同的房市逆風，因此在此環境下，我們認為這樣的成長尤其穩健。我們專注於透過加速招募新代理人，以及提升既有代理人的錢包占有率來擴大此業務，並將重點放在15個目標州。

We saw strong progress towards our goals this quarter with solid year-over-year premium gains across most of our states. In addition to geographic growth, we are focused on expanding our commercial offering for agents, and we are seeing success there, growing 46% in the first quarter compared to last year. This goes along with a 15% residential growth as well. We will continue to build on the momentum we have made in recent years for our agents to differentiate our service and better our offerings for our agent partners.

本季我們朝目標取得顯著進展，在多數州的保費年增均有穩健提升。除地理版圖擴張外，我們也著重為代理人擴大商業型產品供給，且已見成效，第一季較去年成長46%。同時，住宅業務亦成長15%。我們將持續延續近年為代理人所建立的動能，以差異化我們的服務並強化對代理合作夥伴的產品與方案。

Our Real Estate Solutions business grew revenues by 66% in the first quarter compared to last year. Our recent transaction of MCS helped to strengthen our results for the first quarter. However, all of our other operations combined to grow over 20% when compared to the first quarter for 2025.

我們的不動產解決方案（Real Estate Solutions）業務第一季營收較去年成長66%。我們近期完成的MCS交易有助於強化第一季的業績表現。然而，若將其他所有營運合計，其相較2025年第一季仍成長逾20%。

The addition of MCS allows us to further our strategic priority for this segment, which is to win more share across the top 300 lenders and further our cross-selling efforts across our expanded product lines with existing customers.

納入MCS使我們得以推進本分部的策略優先事項：在前300大放款機構中取得更高市占，並在擴充後的產品線上，對既有客戶深化交叉銷售。

In the first quarter, we added to our Real Estate Solutions segment once more with the acquisition of Nationwide Appraisal Network into Stewart Valuation Intelligence. Our appraisal company, Nationwide Appraisal Network, also known as NAN, helped strengthen our appraisals, both the scale and deepen our talent base.

第一季，我們透過將Nationwide Appraisal Network併入Stewart Valuation Intelligence，再次擴充不動產解決方案分部。我們的估價公司Nationwide Appraisal Network（亦稱NAN）有助於強化我們的估價業務，不僅提升規模，也深化我們的人才基礎。

In the first quarter, we delivered 12.5% adjusted margins, up from 9% last quarter. For the full year, we fully expect to improve margins and deliver in the low teen range for this segment and expect that our recent acquisition of MCS will help us improve our historical margin outlook.

第一季我們達成12.5%的調整後利潤率，高於上一季的9%。就全年而言，我們完全預期本分部利潤率將持續改善，並落在10%出頭的區間；同時也預期近期收購MCS將有助於提升我們歷史利潤率展望。

Moving to our international operations, we are focused on broadening our geographic presence in Canada, increasing our commercial penetration as well. In the first quarter, we grew our non-commercial revenue by 9% and our commercial revenue by 14% in a very challenged housing market. We believe we can build on our strong position in these markets and continue to grow share.

談到國際營運，我們著重於擴大在加拿大的地理布局，同時提高商業業務滲透率。在房市極具挑戰的情況下，第一季我們的非商業營收成長9%，商業營收成長14%。我們相信可在這些市場的強勢地位上再接再厲，持續提升市占。

As an enterprise, we are dedicated to being the premier titles and real estate services company. We are focused on strengthening the company for lasting success through targeted multi-pronged growth plans by business to further fortify our position. We thank our customers and agent partners for your trust and dedication to Stewart. We are committed to doing our best to continually improve our services for your benefit.

就整體企業而言，我們致力成為首屈一指的產權（title）與不動產服務公司。我們透過依各業務制定的、具針對性的多管齊下成長計畫，專注於強化公司以確保長期成功，並進一步鞏固我們的地位。感謝客戶與代理合作夥伴對Stewart的信任與支持。我們承諾將竭盡所能，持續精進服務以回饋各位。

For the Stewart team, thank you for your dedication and focus on growing this company together. We are able to execute at this level because of your steadfast commitment to our journey. In the first quarter, we celebrated our inclusion on the Forbes America's Best Large Employers list. We thank our employees for this recognition and are committed to being a destination for industry-leading talent. I am very proud of the progress we have made on our journey and feel that progress is visible in the results we delivered this quarter in spite of both macro and housing headwinds.

對Stewart團隊而言，感謝各位的投入與專注，與我們一同成長這家公司。我們能以此水準執行，仰賴各位對我們旅程的堅定承諾。第一季，我們慶祝入選《富比士》（Forbes）「美國最佳大型雇主」榜單。感謝員工讓我們獲得此項肯定，我們也致力成為吸引業界頂尖人才的首選雇主。我為我們一路走來的進展感到非常自豪，且即使面臨總體與房市逆風，本季交出的成果也清楚展現了這些進步。

David, I will turn it over to you to provide the update on our results.

David，我把時間交給你，請你更新我們的業績表現。

Good morning, everyone, and thank you, Fred. I appreciate our employees and customers for their steadfast support amid a continuing challenging residential real estate market. Yesterday, Stewart reported strong first quarter results with both revenue and profitability improvement. Total first-quarter revenues were $781 million, resulting in net income of $17 million or diluted earnings per share of $0.55.

各位早安，也謝謝你，Fred。在住宅不動產市場持續充滿挑戰之際，我感謝我們的員工與客戶始終如一的支持。昨天，Stewart公布了強勁的第一季業績，營收與獲利能力皆有所改善。第一季總營收為7.81億美元，淨利為1,700萬美元，或稀釋後每股盈餘0.55美元。

On an adjusted basis, net income was $24 million or diluted earnings per share of $0.78, compared to $7 million and diluted earnings per share of $0.25 last year. Appendix A of our press release shows adjustments to our consolidated and segment results, primarily related to net realized and unrealized gains, acquired intangible asset amortization, acquisition-related expenses, and severance costs, which we use to evaluate operating performance.

以調整後基礎計算，淨利為2,400萬美元，或稀釋後每股盈餘0.78美元，相較去年為700萬美元與稀釋後每股盈餘0.25美元。我們新聞稿的附錄A列示對合併及分部結果的調整，主要與已實現及未實現淨收益、收購取得之無形資產攤銷、併購相關費用，以及資遣成本有關；我們以此用於評估營運績效。

In our title segment, operating revenues increased $104 million or 21%, driven by strong results from our direct and agency title operations. As a result, title pre-tax income increased $13 million or over 100%. On an adjusted basis, title pre-tax income increased $14 million and also over 100%, with adjusted pre-tax margin of 4% compared to 2% last year.

在產權（title）分部，營業收入增加1.04億美元或21%，主要受惠於我們直營與代理產權業務的強勁表現。因此，產權分部稅前利益增加1,300萬美元，增幅超過100%。以調整後基礎計算，產權分部稅前利益增加1,400萬美元，增幅同樣超過100%；調整後稅前利潤率為4%，高於去年的2%。

On our Direct Title business, direct title revenues increased $38 million or 17%, while total open and closed orders improved from last year. Domestic commercial revenues increased $25 million or 35%, driven by higher transaction size and volume with growth across asset classes led by energy, industrial, site development, data centers, and retail.

在直營產權業務方面，直營產權營收增加3,800萬美元或17%，未結與已結案訂單總量較去年改善。國內商業營收增加2,500萬美元或35%，主要由於交易規模與件數提升，且各資產類別均有成長，其中以能源、工業、基地開發、資料中心與零售為主。

Average domestic commercial fee per file improved 33% to $21 million compared to $15.8 million last year -- or $21,000, I'm sorry, compared to $15,800 last year. Average domestic residential fee per file in the first quarter was $3,300, consistent with last year. Total international revenues increased 10%, primarily driven by higher volumes.

國內商業每件案件平均費用較去年提升33%至2.1萬美元，去年為1.58萬美元——抱歉，是2.1萬美元，相較去年1.58萬美元。第一季國內住宅每件案件平均費用為3,300美元，與去年一致。國際總營收增加10%，主要由於案件量提高。

On our agency operations, gross agency revenues increased 25% to $333 million, compared to $268 million last year, driven by improved volumes across our key agency states, including New York, Florida, Ohio, Pennsylvania, and also helped by commercial transactions. After agent retention, net agency revenues increased to $11 million or 23%.

在代理業務方面，代理總營收成長25%至3.33億美元，去年為2.68億美元，主要受惠於我們關鍵代理州的案件量改善，包括紐約、佛羅里達、俄亥俄、賓夕法尼亞，並且也受到商業交易帶動。在扣除代理人留存（agent retention）後，代理淨營收增加至1,100萬美元，增幅為23%。

On title losses, the first quarter title loss ratio improved to 3.1% compared to 3.5% last year, reflecting our continued favorable claims experience. We expect our title losses in 2026 to average in the 3.5% to 4% range.

就產權損失而言，第一季產權損失率改善至3.1%，去年為3.5%，反映我們持續良好的理賠經驗。我們預期2026年的產權損失率平均將落在3.5%至4%的區間。

On our Real Estate Solutions segment, total revenues increased $64 million or 66%, driven by growth in our credit information services operations and our MCS business, as Fred noted. RES adjusted pre-tax income improved $11 million to $20 million or over 100%, and adjusted pre-tax margin improved to 12.5% compared to approximately 10% last year. We continue to focus on managing our overall cost of services and strengthening customer relationships. We expect our margins to trend higher as those relationships mature.

在不動產解決方案（Real Estate Solutions，RES）分部，總營收增加6,400萬美元或66%，主要由於我們的信用資訊服務營運成長，以及如Fred所提到的MCS業務帶動。RES調整後稅前利益改善1,100萬美元至2,000萬美元，增幅超過100%；調整後稅前利潤率提升至12.5%，去年約為10%。我們持續專注於管理整體服務成本並強化客戶關係。隨著這些關係日益成熟，我們預期利潤率將呈上升趨勢。

On our consolidated operating expenses, our employee cost ratio improved to 29% compared to 31% last year, primarily due to increased revenues. On our other operating expense ratio increased slightly to 28% due to higher expenses in the RES segment.

就我們的合併營業費用而言，員工成本比率由去年的 31% 改善至 29%，主要是因為營收增加。我們的其他營業費用比率則因 RES 部門費用較高而小幅上升至 28%。

Our financial position remains solid and well-positioned to support our customers, employees, and the real estate market. Total cash and investments were approximately $420 million in excess of statutory premium requirements. Total stockholders' equity at March 31 was approximately $1.64 billion, representing a book value of $54 a share. And net cash used by operations improved to $4 million compared to $30 million in the prior year quarter due to higher net income.

我們的財務狀況依然穩健，並具備良好條件以支援我們的客戶、員工以及房地產市場。現金及投資總額約有 4.2 億美元超出法定保費要求。截至 3 月 31 日，股東權益總額約為 16.4 億美元，帳面價值為每股 54 美元。此外，營運活動使用的淨現金改善至 400 萬美元，相較於去年同期為 3,000 萬美元，主要因淨利較高。

Again, thank you to our customers and employees for their continued support. We remain confident in our ability to serve the real estate markets, and I will now turn the call over to the operator for questions.

再次感謝我們的客戶與員工持續的支持。我們對於服務房地產市場的能力仍充滿信心，接下來我將把電話會議交給接線員進行提問。

(Operator Instructions) Bose George, KBW.

(接線員指示) Bose George，KBW。

Morning, Bose.

早安，Bose。

Hey, good morning. So just wanted to start on Commercial, obviously, the fee profile was up very nicely year over year. When you think about the trends over the next few quarters, how do you see the cadence of that year-over-year growth? Does it -- could it persist for a little while? When do the comps get a little more challenging?

嘿，早安。我想先從商業業務談起，顯然費用結構（fee profile）年增表現非常亮眼。當你看未來幾季的趨勢時，你如何看待這種年增成長的節奏？它——是否可能再持續一段時間？什麼時候同比基期會變得更具挑戰？

That's a great question, Bose. What's happened is our pipeline's really quite good. And what we're obviously seeing across the industry is the frequency of very large deals have increased. The other thing for us is we're leading more deals as we've had a good two-year run here of growing skill and capabilities. And so I think it's natural for our average to kind of hover at this higher level.

這是個很好的問題，Bose。目前我們的案源管線（pipeline）確實相當不錯。而我們在全產業看到的情況是，超大型交易的出現頻率正在增加。另外一點是，過去兩年我們的技能與能力持續提升，因此我們主導的交易也更多了。所以我認為，我們的平均水準自然會在較高的水位附近徘徊。

The other interesting thing for us, if you compared us to others, because we were small four or five years ago, our refi percentage is less, so we are a little bit bumpier on size of deal because there tends to be less refi kind of softening the numbers. I'm pretty confident that the business will continue.

對我們而言還有一個有趣的點：若與其他同業相比，因為我們在四、五年前規模較小，再融資（refi）占比相對較低，因此交易規模會更顛簸一些，因為較少有 refi 來「柔化」數字。我相當有信心這項業務會持續下去。

It'll jump around. The growth year over year will jump around, I think, on us a little bit. Just because if you recall a couple quarters last year, we grew, like, 50%-plus, and in a market that was growing half that. So I think there might be some comparisons, but I'm pretty bullish on our continued success as we go through the year on commercial.

它會上下波動。我認為我們的年增成長也會有些波動。因為如果你還記得，去年有幾個季度我們成長超過 50%，而當時市場成長只有我們的一半。所以我認為在比較基期上可能會有些影響，但我對我們今年在商業業務上的持續成功仍相當樂觀。

And I would say the commercial in our direct operation, part of that is generated by our own staffing, if you will, re-putting skills back into the direct offices, so I believe that has some momentum, both continuing but could increase over time for us because of the investments we're making there. So that's the other thing that's a little different by us because we were under-penetrated of commercial, what I call Main Street, the smaller end of commercial than probably the big guys.

另外我想說，我們直營營運中的商業業務，其中一部分是來自我們自身的人力配置——也就是把相關技能重新投入直營辦公室，因此我相信這股動能不僅會延續，且隨著我們在那裡的投資，未來還可能逐步提升。這也是我們與眾不同之處：因為我們在商業業務（我稱之為 Main Street，也就是較小型的商業端）滲透率過去偏低，相較於大型同業更是如此。

Okay, great, thanks. And then actually, switching over to the ancillary, can you just talk about the year-over-year growth rate outlook there just with MCS now is kind of what we saw in the first quarter, kind of a reasonable level for the rest of the year. I think you guided to a margin in the low teens for that segment for the rest of the year.

好的，很棒，謝謝。接著切換到附屬（ancillary）業務，你能否談談那邊的年增成長率展望？尤其是 MCS 現在的情況——第一季看到的水準，是否可視為今年其餘時間的合理水準？我記得你們指引該部門今年其餘時間的利潤率在 10% 出頭（low teens）。

Yeah, exactly. So before I -- on the margin first, I would say 11% or 12% was good. Now, it's 12%, 13%, maybe even a little more. We got some work to do on some consolidation stuff, but it's going to tick up to that 12.5% to 13%, maybe a little 13%-plus. So I feel good about the trends there, and it's a nice solid book of business.

對，沒錯。所以在我——先談利潤率：我會說 11% 或 12% 是不錯的。現在則是 12%、13%，甚至可能再高一點。我們在一些整併（consolidation）事項上還有些工作要做，但利潤率會上升到 12.5% 到 13%，也許略高於 13%。所以我對那邊的趨勢感覺良好，而且那是一個相當穩健扎實的業務組合。

Then your other question was growth. So again, we grew most of the businesses outside of MCS. In total, I think there were 21% or something growth. And so there's good penetration expectations in that business. I think it could soften a little bit, but you're going to see pretty strong growth coming out of that. There's a lot of momentum in those businesses, so I'm pretty good about it.

你另一個問題是成長。同樣地，我們在 MCS 以外的大多數業務都有成長。整體而言，我想成長大約是 21% 左右。因此那項業務在滲透率方面仍有不錯的期待。我認為成長可能會稍微放緩一些，但你仍會看到相當強勁的成長動能。那些業務有很大的動能，所以我對此相當有信心。

And again, the question overall to me, given my view that the RES growth is going to be marginal, particularly for the next quarter or two, I feel we can sustain with our momentum somewhere around the 15% growth rate for the overall company, might be a little less than a little more, but I feel like when I look under the hood in all of these businesses, even with a low RES, our share growth is good, like an agency, and the trends feel pretty good. So that's how I think about it in total, too. I think we've established a little bit of momentum right now.

再者，整體來看，以我對 RES 成長將偏溫和的看法——特別是接下來一兩季——我認為憑藉我們的動能，整體公司大致可維持在約 15% 的成長率，可能略低或略高；但當我深入檢視這些業務時，即使 RES 偏低，我們的市占成長仍不錯，例如代理（agency）業務，而且整體趨勢感覺相當正面。所以我也用這樣的方式來看整體。我認為我們目前已建立起一些動能。

Okay, great. That's helpful. Thanks a lot.

好的，很棒。這很有幫助。非常感謝。

And, Bose, just real quick on that to give a little more color, so we had mentioned that MCS was a little over $160 million a year, so it's roughly $40 million a period on revenue. So when you take that effect out, you can sort of get to that 20% that Fred was talking about.

另外，Bose，我很快補充一點細節：我們先前提到 MCS 一年略高於 1.6 億美元，因此每期營收大約是 4,000 萬美元。所以當你把這個影響扣除後，就能大致回推到 Fred 所提到的約 20% 成長。

And it's slightly seasonal, so it was a little less than that in the first quarter, but the $40 million is good for the rest of the quarter, so.

而且它有些季節性，所以第一季略低於那個水準，但其餘季度 4,000 萬美元是合理的，所以。

Okay, great. Thanks for that color.

好的，很棒。謝謝補充說明。

Geoffrey Dunn, Dowling & Partners.

Geoffrey Dunn，Dowling & Partners。

Good morning, Geoff.

早安，Geoff。

Thanks, good morning. First, could you share what the mix of commercial is in your agency line?

謝謝，早安。首先，你能分享一下你們代理（agency）業務線中，商業業務的占比嗎？

In agency? Yeah, I would -- it's got to be parallel to kind of what we have, but it won't have a lot of energy and big stuff. Agents typically don't have those mega kind of business. They'll have some small in the data center, but so it's a pretty broad CRE kind of mix, but without kind of the energy on top, right? Because, again, energy and the huge tend to be direct business mixes.

在代理（agency）？對，我會說——它應該與我們自身的組合大致平行，但不會有太多能源類與超大型案子。代理通常不會有那種超大型的業務。他們在資料中心可能會有一些小案子，但整體而言是相當廣泛的商用不動產（CRE）組合，只是少了上面那層能源類，對吧？因為再說一次，能源類與超大型案子通常屬於直營業務的組合。

And I'm really -- feel good about it in agency. If you recall, we've always been a strong kind of underwriter for agents, but our commercial was very skewed to New York. I mean, that's historically the company was very good in New York, and that's -- but our ability to reach our commercial capacity to other big kind of commercial-oriented agents across the country was much weaker. And we also didn't have the facility when we had big multi-location deals to kind of facilitate that, so we created something called a concierge service that facilitates that.

而且我在代理通路這邊對此感覺非常好。如果你還記得，我們一直以來都是代理人很強的承保方，但我們的商業業務非常偏向紐約。我的意思是，歷史上公司在紐約做得非常好，這點沒錯——但我們把商業承保產能觸及到全國其他大型、以商業為導向的代理人的能力就弱得多。而且當我們遇到大型、多據點的案子時，我們也沒有相應的機制來促成這件事，所以我們建立了一個叫做禮賓服務（concierge service）的東西來協助處理。

We also have instituted what we call direct issue capability. So in certain places where they don't have licenses, we can finish the account. And So we now have as good as anybody's capabilities in that space, so in my view, that's been one of those -- we've been growing now for six quarters at a very high rate, and because people have kind of started shifting parts of their book to us because we're a credible offering.

我們也導入了我們所稱的直接出單（direct issue）能力。因此在某些我們沒有執照的地區，我們仍然可以把這個帳戶完成。所以我們現在在那個領域的能力，依我看，已經不輸任何人；因此在我看來，這也是其中一個原因——我們已經連續六個季度以非常高的速度成長，因為大家開始把他們的部分業務組合轉到我們這裡，因為我們提供的是可信的方案。

Okay. And then I wanted to dig a little bit more into the RES margin. If I remember correctly, PropStream has a very strong margin. MCS, I think you're talking close to 20%, and then you're double digit in Informative. The challenge, I think, has been the rest of the businesses. So first, is that correct? And then what is the margin opportunity on those other businesses to maybe be thinking about something stronger, moving to margin in the future?

好的。接著我想再更深入談一下 RES 的利潤率。如果我沒記錯，PropStream 的利潤率非常強。MCS 我想你提到接近 20%，而 Informative 也是雙位數。我認為挑戰在於其餘的業務。所以第一，這樣的理解正確嗎？第二，那些其他業務的利潤率提升空間是什麼？未來是否可能朝更高的利潤率邁進？

Yeah, the margin is a little more consistent than you think. Again, PropStream is teeny, so yeah, it has a little bit higher margins, but it's a very small business. But MCS [IR] -- MCS was -- is higher, but the others hover around that kind of 12% target that we have, right?

是的，利潤率其實比你想的更一致一些。再說一次，PropStream 規模很小，所以沒錯，它的利潤率確實高一點，但它是非常小的業務。但 MCS [IR]——MCS 的確比較高，不過其他的都大致落在我們設定的約 12% 目標附近，對吧？

So again, is there an opportunity to improve that? Yes. So I'll give you an example. Appraisal, in my view, we got some platform work we're still doing because of the acquisition. And so that could -- say, it's high single digits, low double digits, that could go up a little bit. But I'm shooting for, in most of the businesses, around that 12% margin, and those are the ones we have our volume in.

所以再問一次，有沒有機會改善？有。我舉個例子。以估價（Appraisal）來說，我認為因為併購的關係，我們還在做一些平台面的工作。所以它——假設目前是高個位數到低雙位數——還可以再往上提升一些。但我的目標是，多數業務都維持在大約 12% 的利潤率，而我們的量主要也在這些業務上。

We don't really have -- we have, like -- our remote online notary tool is a very teeny business. It's really a tool for our business. We do a little bit of outside sales, but it's really for delivering for ourselves and our agent partners. It's not really a core of the growth we're talking about or the margin.

我們其實沒有——我們有一個遠端線上公證（remote online notary）工具，但那是非常小的業務。它基本上是我們自身業務用的工具。我們有做一點對外銷售，但主要是用來服務我們自己以及我們的代理合作夥伴。它並不是我們所談的成長或利潤率的核心。

So I feel pretty good about the breadth. What I would also say is the seasonality, obviously, in the appraisal and the notarization business, the signature, the kind of schedule business, those are very cyclical, right? They're just like the rest of our businesses where MCS is a tad counter-cyclical to that, because it's the default area and it's less volatile quarter to quarter, and so the pattern of that is helpful to us too.

所以我對整體的廣度相當有信心。我還想補充的是，估價與公證業務的季節性很明顯，簽署、排程這類業務都非常循環，對吧？它們就像我們其他業務一樣；而 MCS 則稍微具有逆循環特性，因為它屬於違約（default）領域，季度間波動較小，因此這樣的型態對我們也有幫助。

But, again, that -- I think I said as we're getting this 12.5% overall into the 13%, 14% range, and if the market comes back, right, if the market's at a 5 million, just like our other businesses, that thing could get to 15% to 60%, right? Because they have some cyclical nature to them, because of the volume. It's a very solid kind of portfolio now, and it's a lot stronger now that we've got the scale up in Appraisal, and we got MCS to the mix.

不過再說一次——我想我提過，當我們把整體從 12.5% 拉到 13%、14% 的區間，如果市場回來了，對吧，如果市場回到 500 萬（的規模），就像我們其他業務一樣，那個利潤率可能會到 15% 到 60%，對吧？因為它們有一些循環性，取決於量。現在這是一個非常扎實的組合，而且在我們把估價業務的規模做上來、並把 MCS 納入之後，整體也強很多。

Okay. Great, thank you.

好的。非常好，謝謝。

(Operator Instructions) Oscar Nieves, Stephens Inc.

（接線員指示）Oscar Nieves，Stephens Inc.。

Good morning. Hey, how are you all? You mentioned earlier the acquisition of Nationwide Appraisal Network, which was announced right after the end of the first quarter. So what details can you share about that transaction in terms of the purchase price and how it was financed? And also the expected contributions to the financials, both in terms of revenue and margins?

早安。嘿，你們大家都好嗎？你們先前提到收購 Nationwide Appraisal Network，這項交易是在第一季結束後不久宣布的。那麼就交易細節而言，你們能分享哪些資訊，例如收購價格以及資金來源／融資方式？另外，對財務的預期貢獻為何，包含營收與利潤率兩方面？

Yeah. So NAN is small. It's about a $40 million thing, so you probably got $30 million going to run through the three quarters or so. It's kind of the incremental margin is what I described. We should get in the double digit, kind of low double digits. There's going to be some integration costs and transition costs that you're going to have out of the gate here, so it's not big.

好的。所以 NAN 規模不大。大約是 4,000 萬美元的案子，所以你大概會看到約 3,000 萬美元在接下來三個季度左右反映出來。它的增量利潤率大致就是我剛才描述的那樣。我們應該可以做到雙位數，大概是低雙位數。一開始會有一些整合成本與轉換成本要支出，所以影響不大。

As far as the proceeds, if you recall in December, what I said, when we raised the $150 million, is that I saw some real promising, interesting things that I wanted to pursue to complement our business. There's a half a dozen or so things that were quite warm that helped both in the RES area and in the direct operations area. And so, that's what we're pursuing. And so, we had free cash on hand, essentially, free cash on hand that we used for that. And we have other dry powder for the other transactions I'm talking about.

至於資金來源，如果你還記得我在 12 月說過的，我們籌了 1.5 億美元時，我提到我看到一些非常有前景、很有意思的機會，想要追求以補強我們的業務。大概有半打左右的項目相當熱絡，能同時在 RES 領域與直接營運（direct operations）領域帶來幫助。所以我們就在推進這些。因此，我們基本上是用手上的自由現金（free cash on hand）來做這筆交易。而且針對我提到的其他交易，我們也還有其他可用的資金火力（dry powder）。

So again, what I'm trying to do is in each of these businesses, particularly on the services side, it -- they're relatively fragmented businesses that are kind of rolling up. And what you're seeing is the financial buyers in a lot of those businesses, they bought in '21, they overpaid, et cetera. They're withdrawing, right? And so, it's made a lot of people pause. And so what you're going to be able to do, at least I think in some of these businesses, is build a leadership position, which we've done in Property Pres. And again, it sets up nicely for us to get the kind of scale in these businesses.

所以再說一次，我想做的是：在每一個這些業務裡，特別是在服務端——它們都是相對分散、正在被整併（roll-up）的產業。你看到的是，很多這些業務的財務型買家在 2021 年進場、買貴了等等。他們正在撤出，對吧？因此讓很多人都先停下來觀望。所以你將能做到的——至少我認為在其中一些業務上——是建立領導地位，我們在 Property Pres. 已經做到了。而且再說一次，這也很適合讓我們在這些業務中取得所需的規模。

And then in the direct side, what's happened is because the commercial market's a little bit better and because there's a little bit more light at the end of the tunnel, agents are making a little bit of money. And they're much more will -- these folks that we've been talking to for months, we're getting at trading prices that kind of make sense for both of us with an earnout. And there's -- we have our target list. There's a couple in particular that I feel are higher probability in the next six months. That's why we raised the money. That's why we have available for these transactions, it's available to us.

接著在直營端，發生的情況是，因為商業市場稍微好轉，而且隧道盡頭也多了一點曙光，代理人開始賺到一些錢。因此他們也更願意——我們這幾個月一直在談的這些對象——以一個對雙方都合理、並包含追補條款（earnout）的交易價格來談。而且——我們有我們的目標名單。其中有幾家我覺得在未來六個月內成交的機率比較高。這就是我們募資的原因。這也是為什麼我們手上有資金可用於這些交易——這些資金對我們是可動用的。

So again, we'll see how it happens. One of the things that we do is we spend a lot of time reaching out, making contacts, developing a pipeline, figuring out how these things fit and how they help our talent base and things are going to start. My view is there's a chance here that things are going to start happening, and I want to make sure that we're staffed enough to take advantage of it. Because we don't like competing or auctions or any of that stuff. Most of what we do is we try to make this happen just on a one-on-one basis.

所以再說一次，我們就看看會怎麼發展。我們做的一件事是花很多時間去外聯、建立聯繫、培養案源管道，弄清楚這些案子如何契合、如何強化我們的人才基礎，然後事情就會開始推進。我的看法是，這裡有機會讓事情開始發生，而我想確保我們的人力配置足夠，能夠把握這個機會。因為我們不喜歡競標或拍賣或那一類的事情。我們大多數的做法，是盡量以一對一的方式把交易促成。

Yeah, that's very helpful. So I have a couple follow-ups related to that. Do you have an updated expectation on, given what you mentioned about the pickup in the pipeline, about how much capital you could be deploying through the end of the year? And also, if you can share some of your learning so far, related to the MCS and integration process?

是的，這非常有幫助。所以我有幾個相關的追問。就你提到案源管道回溫的情況，你對於到今年年底前可能部署多少資本，有沒有更新的預期？另外，你是否能分享一下你目前為止在 MCS 以及整合流程方面的學習與心得？

Yeah, the MCS, I'm thrilled. I think, as you know, MCS was a leader in their space, and I couldn't be more pleased with the leadership team and their ability to continue to grow, and set us up with a high reputation in that space, so I'm thrilled. It also completed a little bit of -- there's some other places I'm looking for default capabilities, but it really rounds out kind of our presence in the default marketplace.

是的，關於 MCS，我非常滿意。我想你也知道，MCS 在其領域是領導者；我對他們的領導團隊以及持續成長的能力感到非常高興，也讓我們在那個領域建立了很高的聲譽，所以我很振奮。它也補齊了我們的一部分——我還在其他地方尋找一些違約（default）相關能力，但它確實讓我們在違約市場的布局更完整。

Because of the nature of that business, there isn't a lot of integration with the rest of the company, except for the normal things you would think about, financial stuff, and so it's a pretty standalone business model. But here is, I believe, going to be a cross-sell opportunity, relationship opportunities that are going to come from it. As I said, it's doing everything we expected it to do, and I'm thrilled by it.

由於那項業務的性質，除了你能想到的一般事項（例如財務相關）之外，與公司其他部分並沒有太多整合，所以它基本上是一個相當獨立的商業模式。但我相信，未來會有交叉銷售的機會，以及由此帶來的關係拓展機會。如我所說，它的表現完全符合我們的預期，我對此非常滿意。

As far as capital, again, the things that I talked about in December are well within our excess capital availability, and so it's within the money we raised, and probably we had $70 million on top of that available. It's in that range of availability as we go forward. What's the probability of it happening? I don't know. These things are -- I just wanted us to be prepared, to be truthful, so I don't know.

至於資本方面，再次強調，我在 12 月談到的那些事項都完全在我們可用的超額資本範圍內，因此也在我們募得的資金之內，而且在此之外我們大概還有 7,000 萬美元可用。往後大致就是這個可用額度區間。至於發生的機率有多大？我不知道。這些事情——老實說——我只是希望我們做好準備，所以我也不確定。

Now, I would also tell you that I think in the next two or three years -- let's say two years -- I think there's going to be a few of the gems in our marketplace are going to come available, right? There's only a handful of things in the title business, 5, 6, 7, significant -- a little bit bigger, say, the 200, 300 range, assets, that are going to be. And somewhere in the next couple, three years, my feeling is they could become available. But I don't think -- I don't do capital planning for those because they're so rare, and it's one of those things that if it happens, it happens, and it'll stand on its own, and it'll justify the returns if we do it.

另外我也想告訴你，我認為在接下來兩到三年——就說兩年吧——我覺得我們市場裡有幾個「明珠」會有機會釋出，對吧？在產權保險（title）業務裡，真正的標的其實只有少數幾個，5、6、7 個左右，屬於較具規模——再大一點的，例如資產規模在 2 億到 3 億區間——可能會出現。而在接下來兩三年內，我的感覺是它們可能會變得可收購。但我不會為那些做資本規劃，因為它們太罕見了；這種事就是如果發生就發生，會是獨立的一個案子，而且如果我們做了，它本身也會證明其報酬是合理的。

But in the normal course, as you know, most of the deals we do are in that $20 million, $50 million range. And again, we have really good line of sight to the pipeline, so I don't think in the normal course that we're going to use anything but our available capital, so.

但在正常情況下，如你所知，我們做的大多數交易都在 2,000 萬到 5,000 萬美元這個區間。而且我們對案源管道的可見度非常高，所以我不認為在一般情況下我們會動用超出既有可用資本以外的資金。

Super helpful. I'll get back in the queue, thank you.

非常有幫助。我回到排隊序列，謝謝。

Thanks, Oscar.

謝謝你，Oscar。

Thank you. At this time, there are no further questions in queue.

謝謝。目前排隊中沒有其他問題。

I will now turn the meeting back to Fred for closing remarks.

我現在把會議交回給 Fred 做結語。

Thank you so much for your interest in Stewart. Just to summarize, I feel very good about the company. I don't think we've ever been this strong as far as talent and position in the marketplace. And hopefully, even with a difficult market, we can continue our momentum, and I'm pleased with the progress we're making so far. So again, I just want to thank everybody for their interest in the company.

非常感謝各位對 Stewart 的關注。簡單總結一下，我對公司感到非常有信心。就人才與市場定位而言，我不認為我們曾經像現在這麼強。也希望即使在艱難的市場環境下，我們仍能延續動能；我也對目前取得的進展感到滿意。所以再次感謝大家對公司的關注。

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

謝謝。今天的會議到此結束。感謝各位撥冗與會並參與。您現在可以斷線。