The St. Joe Company

St. Joe said second-quarter 2026 total revenue was $158.9 million, up 23% year over year, and net income was $40.5 million, up 37% year over year. It described both figures as records for a second quarter, with revenue the highest in 20 years and net income the highest in company history excluding a one-off 1996 gain from discontinued operations. Gross margins improved in every segment, with residential at 48% versus 45%, hospitality at 42% versus 39%, and commercial at 65% versus 57%. On capital allocation, the company repurchased $32.7 million of stock, invested $24 million in capital expenditures, repaid $10.9 million of debt, and paid $9.1 million in cash dividends. For 2026 through July 27, it said it had repurchased $41 million of stock, compared with $40 million in all of 2025, and had 56,930,451 shares outstanding. Management did not give formal forward revenue or EPS guidance on the call; instead it highlighted continued residential development, two planned utility corridors later this year, and first-phase ground break timing for the Ticheli DSAP early next year.

Jorge Gonzalez framed the quarter as evidence that St. Joe is scaling while also becoming more profitable, emphasizing the across-the-board margin expansion and the company’s focus on deliberate asset optimization. He said the firm systematically reviews operating assets for lower-margin dispositions and believes the strategy maximizes value based on timing and market conditions. His tone was confident and long-term oriented, pointing to a very large land base, diversified residential price points, and a broad set of future development opportunities.

Marek Bakun mostly led the Q&A and highlighted financial outcomes and capital allocation. He pointed to $14.6 million of new true-ups booked in the first half of 2026 and $5.3 million of existing true-ups collected, and he underscored the pace of repurchases and the low share count. He also pressed management on the long-term buyback model and recurring cash generation, while the company reiterated that buybacks are part of a broader long-term capital allocation framework rather than a purely short-term cash-flow decision.

Analysts asked about the residual balance, and management confirmed that homesites in Bay County added to the estimated residual balance this quarter, with the increase driven by higher price-point communities. Questions also focused on capital allocation, and management said buybacks are guided by a long-term model, not just near-term cash flow timing. Other notable topics included the new hospital on Highway 79, which is still expected to be completed in 2028, possible power or grid constraints, which management said do not currently appear to be a constraint, and continued demand for homes in Northwest Florida, which management said is being driven by ongoing in-migration from a broader range of locations.