The St. Joe Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter decreased 3% to $156.2 million from $161.1 million; for the first nine months, revenue increased 8% to $414.1 million from $384.4 million.
• Net income decreased 5% to $36.9 million ($0.65 per share) in the third quarter from $38.7 million ($0.67 per share); for the first nine months, net income increased 7% to $91.3 million ($1.60 per share) from $85.7 million ($1.48 per share).
• Operating income increased 16% to $61.5 million in the third quarter from $52.9 million; for the first nine months, operating income increased 26% to $134.5 million from $106.8 million.
• EBITDA decreased 7% to $64.1 million in the third quarter from $68.8 million; for the first nine months, EBITDA increased 2% to $167.4 million from $164.6 million.
• Real estate revenue decreased 9% to $76.1 million in the third quarter (excluding a $41.0 million sale in Q3 2025) and increased 12% to $185.4 million for the first nine months.
• Hospitality revenue reached a record $66.0 million in the third quarter (up 9%) and $184.9 million for the first nine months (up 9%).
• Leasing revenue decreased 16% to $14.1 million in the third quarter and 11% to $43.8 million for the first nine months, primarily due to property sales.
• Corporate and other operating expenses increased to $8.0 million in the third quarter and $23.6 million for the first nine months.
• As of September 30, 2026, cash and cash equivalents were $117.9 million; debt was $361.7 million with a weighted average effective interest rate of 4.7%.
• Deferred revenue increased to $63.5 million as of September 30, 2026, from $58.7 million as of December 31, 2025.

Guidance and Future Outlook:

• The Pigeon Creek DSAP master planned community for PulteGroup is expected to break ground in the first part of 2027, planned for approximately 3,000 homes.
• The Watersound West Bay Center is planned for a minimum of 500,000 square feet of commercial leasing space, with 69,134 square feet currently under construction.
• The Latitude Margaritaville Watersound joint venture is expected to reach a total of approximately 7,200 planned residential homes following the addition of 3,500 new homesites.
• The company anticipates the Havenry community (Pigeon Creek DSAP) will generate significant variable revenue due to its long-term nature.
• Commercial leasing centers (Watersound Town Center, Watersound West Bay Center, FSU/TMH Medical Campus) have the potential to more than double the company's total current leasable commercial space.

Business Segments and Product Lines:

• Real Estate: Residential real estate volume totaled 80 homesites and 5 townhomes in the third quarter; 2,426 completed transactions and 222 homes under contract exist at Latitude Margaritaville Watersound as of September 30, 2026.
• Hospitality: Gross margins improved to 37% in the third quarter from 35% in the prior year; hotel revenue increased 7% and club revenue increased 14%.
• Leasing: 97% of 1,148,000 square feet of leasable space was leased as of September 30, 2026; 85,946 square feet of space is under construction.
• Joint Ventures: The Latitude Margaritaville Watersound joint venture placed 106 homes under contract in the third quarter (a 49% increase) and 309 homes under contract for the first nine months (a 24% increase).
• New Developments: A second phase of the Latitude Margaritaville Watersound joint venture was moved forward in the third quarter.

Market and Competitive Landscape:

• Hospitality guest geography expanded, with the highest growth coming from New York, South Carolina, Illinois, and Michigan; guests from all 50 states stayed in company hotels through September 2026.
• The company owns 12 hotels with 1,298 operational rooms as of September 30, 2026.
• Club membership increased to 3,831 members as of September 30, 2026, from 3,578 members in the prior year.
• The company maintains a pipeline of over 23,000 residential homesites in various stages of development, engineering, permitting, or concept planning.

Risks and Challenges:

• Results are impacted by the timing of home sales, development cycles, and the sale of specific properties like Watercrest and WindMark Beach Town Center.
• Forward-looking statements involve risks including economic conditions, interest rate fluctuations, inflation, supply chain disruptions, and geopolitical conflicts.
• Risks include the ability to successfully execute development projects, manage joint venture partners, and recover from natural disasters or severe weather.
• Potential negative impacts include losses and negative cash flows from self-development strategies and dependence on homebuilder partners.

Management Commentary and Tone:

• CEO Jorge Gonzalez stated the third quarter had organic growth despite the prior year's Watercrest sale boost, and the first nine months exceeded prior year revenue and net income.
• Management highlighted a "measured and multi-faceted capital allocation strategy" with capital allocation in Q3 2026 split as 40% to stock repurchases, 34% to capital expenditures, 13% to debt repayment, and 13% to dividends.
• Stock repurchases increased 161% in the first nine months of 2026 compared to the prior year period.
• Outstanding shares decreased to 56,578,851 as of September 30, 2026, the lowest number since 1997.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.18 per share, a 13% increase from the previous quarter's $0.16; this represents a 157% increase since the program began in 2020.
• In the third quarter, the company repurchased $27.2 million of common stock (412,800 shares) and funded $22.8 million in capital expenditures.
• In the first nine months, the company repurchased $64.9 million of common stock (988,637 shares) and funded $67.5 million in capital expenditures.
• The company sold additional land to the Latitude Margaritaville Watersound joint venture in September 2026 for a contractual value of $50.4 million, recognized at $31.4 million net present value in the quarter.
• The company repaid $8.8 million of debt in the third quarter and $30.6 million for the first nine months.
• An earnings call is scheduled for October 29, 2026, at 9:00 a.m. Central Time.