Cuộc họp công bố kết quả kinh doanh quý 3/2026 của Stewart Information Services (STC): Thị trường nhà ở suy yếu gây áp lực lên biên lợi nhuận

Stewart Information Services (NYSE: STC) công bố kết quả kinh doanh quý 3/2026 suy yếu do lãi suất thế chấp trên 7% gây áp lực lên sản lượng giao dịch nhà ở và biên lợi nhuận. Mảng bảo hiểm quyền sở hữu bất động sản thương mại, hoạt động đại lý và các thương vụ thâu tóm đã hỗ trợ tăng trưởng doanh thu, nhưng EPS pha loãng điều chỉnh giảm so với cùng kỳ năm trước.

Điểm tin chính

• Lợi nhuận ròng quý 3 giảm xuống 30 triệu USD từ 44 triệu USD, trong khi EPS pha loãng giảm xuống 0,98 USD từ 1,55 USD.
• Lợi nhuận ròng điều chỉnh đạt 41 triệu USD, tương đương 1,33 USD trên mỗi cổ phiếu pha loãng, so với 47 triệu USD, tương đương 1,64 USD trên mỗi cổ phiếu của cùng kỳ năm trước.
• Doanh thu hoạt động mảng bảo hiểm quyền sở hữu tăng 5%, nhờ doanh thu từ đại lý và doanh thu thương mại trực tiếp, nhưng lợi nhuận trước thuế điều chỉnh mảng bảo hiểm quyền sở hữu giảm xuống 52 triệu USD từ 61 triệu USD.
• Doanh thu mảng Giải pháp Bất động sản tăng 68%, chủ yếu nhờ thương vụ thâu tóm MCS và sự tăng trưởng của các dịch vụ định giá và thông tin tín dụng. Biên lợi nhuận trước thuế điều chỉnh của mảng này thu hẹp xuống 10,4% từ 11,0%.
• Ban lãnh đạo dự kiến điều kiện thị trường nhà ở sẽ tiếp tục suy yếu trong quý tiếp theo sau khi lãi suất thế chấp cố định 30 năm tăng lên trên 7%, dẫn đến số lượng hồ sơ đăng ký vay giảm, tỷ lệ hủy hợp đồng tăng và sản lượng giao dịch trầm lắng hơn.
• Stewart đã nâng cổ tức hàng năm từ 2,10 USD lên 2,20 USD trên mỗi cổ phiếu, đánh dấu lần tăng thứ bảy trong chưa đầy sáu năm.

Dữ liệu tài chính cốt lõi

Tổng doanh thu hoạt động lũy kế từ đầu năm đến nay tăng 22%, trong khi EPS điều chỉnh tăng 8%. Tốc độ tăng trưởng doanh thu trong quý 3 đã chậm lại còn 13%.

Kết quả Kinh doanh và Hoạt động

Hoạt động bảo hiểm quyền sở hữu

Doanh thu bảo hiểm quyền sở hữu thương mại trong nước tăng 7 triệu USD, tương đương 9%, do số lượng đơn hàng hoàn tất giao dịch tăng 18% trên nhiều nhóm tài sản. Phí trung bình trên mỗi hồ sơ giảm 8% xuống còn 16.300 USD do các giao dịch có quy mô nhỏ hơn và hoạt động trong lĩnh vực trung tâm dữ liệu cùng năng lượng suy giảm.

Ban lãnh đạo cho biết một số ít thương vụ giao dịch thương mại hoàn tất trị giá vài triệu USD đã được chuyển sang quý 4. Công ty báo cáo danh mục dự án thương mại tiềm năng vẫn rất khả quan và chưa thấy sự chững lại trong hoạt động trung tâm dữ liệu, mặc dù ban lãnh đạo lưu ý về những thảo luận trên thị trường liên quan đến sự suy yếu của các giao dịch thương mại quy mô nhỏ hơn vốn phụ thuộc vào nợ vay.

Doanh thu phi thương mại trong nước tăng 3 triệu USD, tương đương 2%. Tổng doanh thu quốc tế giảm 4 triệu USD, tương đương 10%, chủ yếu do kỳ cùng kỳ năm trước có phát sinh một thương vụ giao dịch thương mại quy mô lớn.

Doanh thu đại lý gộp tăng 25 triệu USD, tương đương 7%, với sự tăng trưởng trên hầu hết các bang trọng điểm, bao gồm cả Florida. Sau khi trừ phần trích lại cho đại lý, doanh thu đại lý tăng 5 triệu USD, tương đương 8%. Phí bảo hiểm đại lý mảng nhà ở tăng 7%, trong khi phí bảo hiểm mảng thương mại tăng 25%.

Tỷ lệ tổn thất bảo hiểm quyền sở hữu ở mức 3,4%, về cơ bản tương đương với năm trước.

Giải pháp Bất động sản

Doanh thu mảng Giải pháp Bất động sản tăng 68%, hoặc tăng 7% nếu không tính đến các thương vụ thâu tóm MCS và Nationwide Appraisal Network. Áp lực lên biên lợi nhuận phản ánh lượng đơn hàng và doanh thu suy yếu từ các khách hàng hiện hữu trong mảng dịch vụ định giá và Informative Research.

Ban lãnh đạo cho biết khối lượng dữ liệu tín dụng cùng cửa hàng giảm khoảng 6% đến 7%, trong khi khối lượng định giá từ các khách hàng hiện hữu giảm khoảng 4% đến 5%. Tỷ lệ hủy giao dịch thế chấp lên tới 15% trong quý, làm ảnh hưởng đến doanh thu tạo ra ở cả giai đoạn nộp hồ sơ và giai đoạn hoàn tất giao dịch.

Mảng dịch vụ xử lý nợ xấu đã bù đắp một phần. Ban lãnh đạo dẫn chứng hoạt động tịch thu tài sản thế chấp gia tăng là yếu tố hỗ trợ cho các dịch vụ bảo tồn tài sản.

Các thương vụ thâu tóm và đầu tư

Stewart đã hoàn tất ba thương vụ thâu tóm quy mô lớn trong năm 2026: Nationwide Appraisal Network, ProTitleUSA và Tower Title. Các thương vụ ProTitleUSA và Tower Title được hoàn tất vào ngày 1 tháng 9 và chỉ có tác động nhỏ đến kết quả kinh doanh quý 3.

Nationwide Appraisal Network đã mở rộng quy mô định giá, ProTitleUSA củng cố các dịch vụ bảo hiểm quyền sở hữu tập trung cho các tổ chức, và Tower Title bổ sung năng lực trong hạ tầng viễn thông và năng lượng thương mại. Ban lãnh đạo cho biết khoảng 150 triệu USD đã được giải ngân cho cả ba giao dịch này.

Stewart cũng thông báo thương vụ thâu tóm Rattikin Title, nhằm củng cố vị thế của mình tại thị trường Dallas-Fort Worth.

Triển vọng từ Ban lãnh đạo

Ban lãnh đạo dự kiến điều kiện thị trường nhà ở sẽ tiếp tục suy yếu trong quý tiếp theo. Công ty có kế hoạch quản lý các khoản đầu tư và chi phí, đồng thời duy trì nguồn lực cần thiết để phục vụ khách hàng và nắm bắt các cơ hội tạo ra từ sự xáo trộn của thị trường.

Biên lợi nhuận mảng Giải pháp Bất động sản dự kiến sẽ duy trì gần mức 10% đến 10,5% hiện tại trong vài quý tới. Ban lãnh đạo tin rằng biên lợi nhuận có thể trở lại mức khoảng 13% đến 14% trong một thị trường ổn định với 4,1 triệu đến 4,2 triệu lượt bán nhà sẵn có, đồng thời cũng đặt mục tiêu biên lợi nhuận ở mức từ thấp đến giữa khoảng 10-15% trong môi trường nhà ở ổn định hơn trong hai đến ba quý tới.

Stewart dự kiến tỷ lệ tổn thất bảo hiểm quyền sở hữu của mình sẽ đạt mức trung bình từ khoảng 3,5% đến 4% cho cả năm.

Ban lãnh đạo cho biết tác động tài chính diện rộng từ các sáng kiến trí tuệ nhân tạo có thể mất khoảng 18 tháng để trở nên rõ nét. Tuy nhiên, công ty dự kiến tự động hóa sẽ giúp kiểm soát chi phí trong bốn đến sáu quý tới nếu hoạt động bất động sản nhà ở tiếp tục trầm lắng.

Rủi ro và Các yếu tố cần theo dõi

• Lãi suất thế chấp trên 7% đã khiến người mua đứng ngoài cuộc và làm giảm sản lượng giao dịch nhà ở.
• Những thay đổi nhanh chóng trong hoạt động tạo ra áp lực lên biên lợi nhuận do các chi phí và công việc chuẩn bị ban đầu có thể phát sinh trước khi hồ sơ vay thế chấp bị hủy.
• Doanh thu mảng thương mại có thể biến động do quy mô giao dịch và thời gian hoàn tất thủ tục.
• Số liệu so sánh quốc tế chịu ảnh hưởng bởi các giao dịch thương mại quy mô lớn bất thường của cùng kỳ năm trước.
• Chi phí dịch vụ cao hơn trong mảng Giải pháp Bất động sản đang làm tăng chi phí hoạt động khác hợp nhất khi mảng này chiếm tỷ trọng doanh thu ngày càng lớn.
• Ban lãnh đạo dự kiến số liệu so sánh mảng thương mại so với cùng kỳ năm trước sẽ gặp nhiều thách thức sau đợt tăng trưởng mạnh mẽ trong hai năm trước đó.

Điểm nhấn Hỏi & Đáp với Chuyên gia Phân tích

Ban lãnh đạo ước tính hàng triệu USD doanh thu từ các thương vụ giao dịch thương mại hoàn tất đã bị chuyển từ quý 3 sang quý 4. Công ty cho biết hiện không có dấu hiệu nào cho thấy các giao dịch này sẽ không thể hoàn tất.

Về việc miễn trừ bảo hiểm quyền sở hữu, ban lãnh đạo cho biết những thay đổi gần đây đã mở rộng sự tham gia của các bên cho vay nhưng không mở rộng đáng kể thị trường tái tài trợ được bảo vệ. Stewart dự kiến tác động sẽ ở mức hạn chế vì mảng tái tài trợ của các bên cho vay tập trung chỉ chiếm một phần nhỏ trong hoạt động kinh doanh của công ty.

Stewart đang theo dõi hơn 100 sáng kiến trí tuệ nhân tạo, trong đó khoảng 50 sáng kiến đã cho thấy tiềm năng vận hành. Các tính năng tìm kiếm là trọng tâm chính vì ban lãnh đạo thấy cơ hội cải thiện hiệu suất, độ chính xác và thời gian xử lý cho các đại lý.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Hello, and thank you for joining the Stewart Information Services Third Quarter 2026 Earnings Call. [Operator Instructions] Please note today's call is being recorded. [Operator Instructions]

It is now my pleasure to turn today's conference over to Brian Glaze, Chief Accounting Officer. Please go ahead.

Brian Glaze

Thank you for joining us today for Stewart's third 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.

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.

During our call, we will discuss some non-GAAP measures. For a 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.

Let me now turn the call over to Fred.

Frederick Eppinger

Thank you for joining us today for Stewart's third quarter 2026 earnings conference call.

Yesterday, we released the financial results for the quarter, and I will kick off today's call with an overview of our outlook for housing, followed by a review of our performance for the period and strategic direction broadly by business. I will then turn the call over to David so he can provide further commentary on our performance for the quarter.

In the third quarter, the market began to set a new lower bar for residential housing. Market primarily driven by the rapid escalation in the 30-year mortgage rate throughout the quarter. In August, the 30-year rates moved higher than in the same period a year prior and the rapid increase continued rates around 7.5% into October. As we have seen in the past 3 years, buyers will very quickly moved to the sidelines in a situation where rates meet or exceed 7% or when rates move up very quickly.

In Q3, we experienced both these scenarios, resulting in a below 4 million existing home sales for 2 of the 3 months in the quarter, a decrease of about 3% to 4% year-over-year in August and September. We believe the residential market conditions will continue to decline into the next quarter. Considering this outlook, we will be very focused on managing our business investments and expenses while continuing to capitalize on some of the market opportunities this disruptive market will create.

In the third quarter, we delivered adjusted earnings per share of $1.33. Year-to-date total operating revenue was up 22% and adjusted EPS growth was up 8%.

For the quarter, growth slowed to 13% and our adjusted EPS delivery was below last year's third quarter as we saw decreased margins in some of our businesses due to the rapidly decreasing residential volume off historic lows.

Our national commercial services business continued to deliver solid performance with overall commercial growing 9%. While the growth was less than our recent run rate, our order growth is strong and our competitive position continues to improve. We did see a number of closing shifts in the fourth quarter, which is not uncommon in the changing market. We continue to be very positive on our improving competitive position and our future growth opportunity.

In the third quarter, we also welcomed Tower Title to the family, expanding our commercial energy and infrastructure team capabilities for servicing the telecommunications space. The acquisition of best-in-class talent has remained our strategic growth priority for the national commercial services and the addition of Tower Title as well as the strategic hires we executed last quarter will help us further bolster this business for the long-term success as these new hires ramp up in their seats and begin to convert business in the coming quarters. We've had a lot of momentum in this space in the last 3 years, and we will continue to encounter some tough comparables for ourselves given the outsized growth we've had.

Overall, we remain positive on the large commercial and continue to see growth across multiple asset classes, though that growth is often lumpy given the time lines and transaction sizes.

Our direct operations bear the brunt of the slowing residential market and drove the majority of our margin reduction in title. Overall, our direct title operations business unit grew consolidated residential refinance and Main Street commercial by 1% in the second quarter compared to the same time frame last year. We saw residential volumes decrease by 3% and refi shrink 7%. That was offset by our mainstream commercial delivering 11% growth. Our growth plan for this business remains focused on strengthening our position and attracting MSAs through organic and inorganic efforts and continue to grow mainstream commercial.

In 2026, we have seen more opportunities present themselves in attractive geographies. Given market conditions, we will still focus on pursuing these opportunities, but we are sharpening our pencils even further to ensure they fit in our long-term financial goals.

In the third quarter, we announced the acquisition of Rattikin Title, one of the oldest and well-respected title agencies in Texas servicing Fort Worth. This transaction is a great example of a strong strategic fit for Stewart as it strengthens our position in the Dallas-Fort Worth marketplace, giving us a Fort Worth stronghold.

Our centralized title operations, which are included in our direct title revenue summary, includes our centralized refinance institutional business and reverse business.

In the third quarter, we welcomed ProTitleUSA and DocSolutionUSA to this organization. The addition of these companies, along with our existing offerings expand our scale to the title services for investors and capital market clients. In the third quarter, we grew this business 20% for these businesses.

Finally, moving to our international operations. We focused on profitably growing our business. In the third quarter, we saw a slight deceleration of our non-commercial revenue by 1%. However, we have grown our revenue in this business unit by 4% year-to-date, which is solid given the Canadian residential marketplace has been decelerating existing home sales since September of '25.

On the commercial front, we delivered $7.3 million in revenue, consistent sequentially with the second quarter, but behind the third quarter of '25 as we had a handful of very large transactions that closed in the third quarter last year. We believe we are on the right track in our international operations, and we will continue to build on our strong positions in these markets and continue to grow share.

Turning to Agency Services. In the third quarter, we saw net revenues [indiscernible] by 11% compared to the third quarter of last year. We are pleased with this given that the agents confront the same challenged residential market as our direct operations. We are focused on growing this business through winning the business with new agents and expanding wallet share of existing agents with the emphasis on 15 target states in addition to the expansion of our commercial footprint for agents. We continue to make good progress on these priorities with residential premiums up 7% and commercial premiums up 25% in the third quarter when compared to the same time frame last year.

As mentioned last quarter, we took advantage of some market disruption and expanded our agency team, which we have and will continue to see the benefit of as they ramp up and settle into their positions. While increasing market challenges will put pressure on future growth, we believe our ability to shift share should continue.

Turning to our Real Estate Solutions business. In the third quarter, we grew revenue by 68% and 7% after removing the impact of 2 acquisitions we made this year, MCS and NAN. Our adjusted pretax margin slipped from 11.3% last year to 10.5% this year. The margin was driven by a significant slowdown in orders and revenue from existing accounts in Informative Research, our credit data business and in appraisal.

From a strategic perspective, we remain focused on continuing to expand our coverage and servicing of the top 300 lenders. Our suite of products and services is in a good position, giving us even a great ability to cross-sell through new business.

I am pleased that we are able to maintain our double-digit margins in these conditions and believe we will get to low to mid-teen margin deliveries in the execution of our strategic priorities in a more stable residential market environment over the next 2 to 3 quarters.

I believe we are setting a new floor in the residential market that will likely continue into the next quarter. We will react to market changes by taking needed actions, but we'll be careful to retain the resources needed to serve our clients and react to opportunities I believe will come from this disruption. We remain focused on being a resilient company that has a growing portfolio of operations that will deliver share growth and improving margin performance over the next 2 to 3 years.

Thank you for your time, attention and interest in Stewart. As an enterprise, we are dedicated to being the premier title and real estate services company. I'm proud to share that in the third quarter, we delivered our seventh dividend increase in just under 6 years, raising our annual dividend from $2.10 a share to $2.20 a share. We are committed to strengthening and growing the company for continued long-lasting success while confronting the current challenging conditions.

To our customers and agents, thank you for your trust and dedication to Stewart. We are committed to serving you with excellence. And to the Stewart team, I want to thank you for your dedication and perseverance. It takes considerable effort to grow our company and even more so to confront such a challenging residential housing conditions. Thank you for your commitment to the company. I look forward to seeing where we can take this company together.

So David, I'll now turn it over to you to provide an update on our results.

David Hisey

Good morning, everyone, and thank you, Fred.

I want to thank our employees and customers for their continued support and partnership as we navigate this even more challenging real estate market with 30-year mortgage rates over 7% since mid-September.

Yesterday, Stewart reported third quarter 2026 net income of $30 million with diluted EPS of $0.98 compared to the prior year's quarter net income of $44 million and diluted EPS of $1.55. On an adjusted basis, third quarter net income was $41 million or diluted EPS of $1.33 compared to net income of $47 million or diluted EPS of $1.64 last year.

Appendix A of our press release shows adjustments to our consolidated and segment results, primarily related to acquired intangible amortization, acquisition-related expenses and net realized and unrealized gains, which we use to evaluate operating performance.

In the title segment, operating revenues increased $31 million or 5%, primarily driven by higher agency and direct commercial revenues. Title operating expenses increased 6%, primarily due to higher revenues and higher employee costs related to select growth investments while beginning to address the market transition as Fred spoke about.

Title pretax income in the third quarter was $47 million compared to $62 million last year, while on an adjusted basis, pretax income was $52 million compared to $61 million last year.

In our direct title business, direct title revenues increased $6 million or 2%, primarily due to increased commercial transactions. Domestic commercial revenues increased $7 million or 9% as closed orders improved 18% across multiple asset classes, while average fee per file decreased 8% to $16,300 due to reduced transaction sizes with less data center and energy activity. Domestic non-commercial revenue increased slightly by $3 million or 2% and total international revenues were down $4 million or 10% due primarily to a large commercial transaction last year.

On our agency operations, gross agency revenues increased $25 million or 7%, reflecting growth across a majority of our key agency states, including Florida. Net of agent retention, agency revenues improved $5 million or 8% compared to last year.

On title losses, title loss expense for the third quarter increased primarily due to higher title revenues, while the title loss ratio was 3.4% comparable to last year. We expect our title losses to average from mid-3% to 4% over a year.

In our real estate solutions segment, total revenues increased $80 million or 68%, primarily driven by the MCS acquisition and growth in our credit information and valuation services operations.

RES adjusted pretax margin increased by $7 million or 56% compared to $13 million last year, while adjusted pretax margin was 10.4% compared to 11% last year.

On our consolidated operating expenses, our employee cost ratio improved to 26% compared to 27% last year, primarily due to higher operating revenues, while the other operating expense ratio increased to 29% compared to 24%, primarily due to revenue growth in our Real Estate Solutions segment, which typically incurs higher service costs as a percent of revenue and as our Real Estate Solutions segment grows as a percentage of total revenue.

Our financial position remains solid and well positioned to support our customers employees in the real estate market. Total cash and investments was approximately $300 million in excess of statutory reserve fund requirements. Total Stewart stockholders' equity was approximately $1.7 billion, representing book value of approximately $55 per share.

Net cash provided by operations was $47 million compared to $93 million last year, primarily due to lower net operating income and timing of payments related to operating liabilities.

Again, thank you to our customers and employees for their continued support. We remain confident in our ability to serve the real estate markets.

I will now turn the call over to the operator for questions.

Operator

[Operator Instructions] Our first question today comes from Bose George with KBW.

Phần hỏi đáp

Bose George

Actually, first, just on the commercial side. So you guys noted some timing in terms of deals getting pushed out. Can you help quantify that? And also, are you seeing any broader signs of slowdown in the commercial pipeline, either on higher rates or specifically for the data centers, anything just related to political opposition at the local levels?

Frederick Eppinger

Yes. So it's multiple millions that got pushed, Bose. So it was meaningful to the quarter. And again, there's no indication it won't close in the fourth quarter, but there was some movement. Interestingly enough, our pipeline, and you can see from the open orders and stuff, records and commercial, has been really strong for us.

I have heard in the marketplace and clearly among agents, I've heard of a slower in the small commercial market. We have not seen it in our numbers yet, but there is a talk that it was small, more debt-oriented, there is some slowing. On the data center thing, we have not seen any slowdown at all.

And so again, it's hard to know what could have been, I guess, given all the noise you see in the marketplace. But it's a pretty robust portfolio that we see. We haven't seen any flow. For us, what's odd about us, as you know, in the last 2 years, we've doubled commercial. So we have a lot of quarters last year, we grew over 40%, 50%.

So some of our comparisons are a little odd for growth, but I really like the flow we're seeing. We have the best team we've ever had been able to make some investments over the last year here. So I continue to see growth opportunity there for the company in the next couple of years.

Bose George

Okay. Great. I might have missed the first part, but just on the amount that got pushed, did you give a dollar amount? I sort of missed what you said there.

Frederick Eppinger

I did, I guess it's a few million. Yeah, it's a handful of million. So it's not a small amount, and it's a handful of transactions.

Bose George

Okay. Great. And then actually just switching over to the Services segment. Can you just help us think about the drivers of the increase in expense relative to the revenues? Can you remind us how much of the segment is impacted by rates? And then you mentioned for just the margin outlook for that segment. And how much of that -- like to the extent we have, say, the market remains at this level into next year, does that change that? And can you just remind us what you said for margins for next year for that segment?

Frederick Eppinger

So what I've been saying, the portfolio we have, as you know, that portfolio is really made up of 3 pieces. It's made up of the appraisal business, the credit data and then the default business. In all 3 of those now, we're the top 3, 4 players. So we have critical mass. And again, there's some things happening in all those spaces around the importance of technology, and I feel good that we're going to continue to see consolidation and share growth there.

The 2 that are very sensitive to kind of the residential rate environment are appraisal and the data. And the complicating factor, by the way, is that it's worse than just closes. So we've had historical cancellations this quarter, probably up to 15% of the transactions. And we've had a big decrease in kind of mortgage applications.

So the way of data, for example, in credit data, we get paid both when the mortgage application gets opened, right, because some of our work is done in verification of kind of the quality of the credit, et cetera. And then we get paid again at the close, right?

So as the market goes down, you obviously have less revenue, so our same -- what I call same-store growth. So we've had some new accounts. So we still continue to grow a little bit, but we've seen about 6%, 7% reduction in same-store volume, which is the combination of the amount closed files, as you can imagine, but also more cancellations. And so we've seen a decrease in the -- just the opening of mortgage apps.

So that's where your margin goes because if you lose 2/3 of your revenue, which is kind of how to think about it between the opening of the application and then the closing, as those things cancel, you can see that your revenue is going to go down.

In appraisal, same thing, although we don't do a lot of prework in appraisal, most of that work is done afterwards. We don't have a lot of waste and costs. But we've seen in those 2 businesses, 4%, 5% for the appraisal part reduction of volume with our current customers. So that's why the volume.

So the margin, the margin is in that 10%, 10.5%, right? But all I need is a normalized market. I don't need it to go all the way back. I just need it to stabilize. So you don't have these deltas and changes because the changes are what cost you kind of -- because you're carrying the expenses because you're doing some of the work and then it goes away.

So again, what I've said is that business, even at 4.1, 4.2 kind of existing home sales, that's going to be about a 13%, 14% margin business. So we built the scale. We got the nice mix between the 3 businesses. For the next couple of quarters, we're going to see, in my view, kind of at this level of margin in that business. But I like the long term. It's a more stable part of our portfolio because of the mix we have now.

So again, that's why I say it will kind of migrate back up, I would say, after the next couple of 2 quarters.

David Hisey

You put out that information on FHA delinquencies and some of your reports that were like 11%, although they've been stabilizing. But the roles to foreclosure are just sort of getting started, and that's where the property preservation business helps. So it's a bit of an offset to what Fred was talking about.

Bose George

Okay. Great. But even in a flattish market next year, the margins go back up a few points as this lag kind of goes away.

Frederick Eppinger

I believe so. And again, there's a bunch of interesting changes with Vantage scores, which we can get into at some point that is going to position us really well to consolidate and grow share in that market because we have a very unique product and solution for those that transition to them.

So I feel very good about kind of the credit data business over the long haul.

Operator

[Operator Instructions] We'll go next to Oscar Nieves with Stephens Inc.

Oscar Nieves Santana

My first one is on the recent acquisitions that you announced, the one at the end of 2Q or at the beginning of 3Q and the ones at the beginning of September. Just wondering if you could walk us through those acquisitions and what we should expect them to add to revenue and earnings and how big those deals were and when they close or if they close already?

David Hisey

Yes Oscar, so we did 3 so far of size this year. We did the appraisal one back in I think it was April, Nationwide Appraisal, NAN. That just rolls into our Stewart Valuation Intelligence business. So the appraisal business that Fred talked about, and it just gives us scale. That's one of the things that got us up to now being like a top 3 player there.

The other 2 are in Title. So ProTitle goes into the CTS segment that Fred talked about. Those both closed on 9/1 and then Tower title that he also talked about, they just basically go into their respective businesses, right? So CTS will get ProTitle, Tower will get -- commercial will get Tower and they just add to those businesses.

But we said that we typically buy those kind of businesses that these are title businesses, so 4% to 6% EBITDA. These are higher margins. So I think you're maybe on the higher end. So if you just think about all the money we had to deploy at year-end between NAN and these other 2, we basically deployed $150 million. And so you can sort of back into what economics you might be able to get out of that.

And you'll see the acquisitions number in our 10-Q, so it will all be public. I would say to you, the last 2 were kind of late in this quarter and -- so it was marginal impact at all on the quarter. But in both cases, again, to me, they're really important because Tower gives us this additional capability and infrastructure, where I think we're going to have sustained growth in the business and it covers an area that we like.

And the ProTitle is the whole institutional business. One of the things I'm doing in the centralized title business is to create less volatile, I'm not a big refi guy, so our centralized title is really a portfolio of specialty centralized title. And these bring the institutional or the institutional business to us. And I feel good about all of these.

Oscar Nieves Santana

My next one is Bill Pulte has made some tweaks recently that have impacted title stocks. There's a lot of nervousness around potential expansion of title waivers. Any incremental commentary on that point?

Frederick Eppinger

Yes. Again, I think what's been said continually about the title is kind of old news. And essentially, what they did is they expanded the number of lenders that are in it. The coverage is roughly the same. It's a very small subset of refi that is included in the title space. And again, we'll see how it plays out.

I keep saying if it tests out, the whole thing is going to be pricing, because if it makes sense, we are not really big in the refi market and I don't think there's many scenarios that want to be big in the refi market given the volatility of that business and the low margins that are in it. But again, I don't see it -- there's no big expansion from where we are, but the number of, again, lenders that are participating is a little bit bigger. So again, it doesn't have much impact.

David Hisey

Oscar, the other thing to keep in mind is if you look at our refi orders, like Fred said, we don't really have much in that centralized lender. So most of our refi orders came from customers that we issued a prior Stewart policy on and they're out in our field operations. So stuff like this doesn't really impact them that much.

Oscar Nieves Santana

I guess my last one, are you seeing any AI and automation show up in margins yet, especially as you mentioned earlier that you expect a challenged market over the next few quarters?

Frederick Eppinger

Yes, it is interesting. It's a great question because I'm feeling pretty bullish on our AI initiatives. I think the financial impact is going to take 18 months to kind of see kind of the robust financial impact, although we are seeing it today, particularly in the search area.

And again, we've got some really interesting things that we're doing there. And I think the search area is the place where there's the greatest opportunity for efficiency, and accuracy and what I consider better turnaround time, for instance, for our agents, which I think matters to the combined economics.

So yeah, I am pretty bullish. The other thing, obviously, we give the Virtual Underwriter who rendered it to our agents, which actually helps their efficiency and the work when they do the clearing of title and the underwriting of policies for the agent.

But again, I think I mentioned to you, we have over 100 initiatives and frankly, there's like 50 that are penciling already operationally that we track returns on. And it's early days, but it is, in my view, going to be helpful, particularly if you see the residential market sit at 4/1 longer, which I think people are talking about, I think over the next 4 to 6 quarters it's going to be very helpful to us to manage expenses.

But again, I think it also is really good about quality from the quality of delivery and some of the consistency of turnaround, which is really what, particularly the agency channel, they really appreciate.

Operator

[Operator Instructions] And at this time, there are no additional questions in queue. I will now turn the meeting back to Fred for any additional or closing remarks.

Frederick Eppinger

I want to thank everybody for their interest in Stewart and appreciate you joining us on the call.

Operator

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