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St. Joe NYSE: JOE reported second-quarter revenue of $158.9 million, up 23% from the prior-year period, while net income rose 37% to $40.5 million, President, CEO and Chairman Jorge Gonzalez said during the company’s earnings call.Gonzalez said the revenue figure was the company’s highest second-quarter result in 20 years. He described net income as the highest second-quarter total in company history excluding a one-time gain related to discontinued operations in 1996.
The company also reported higher gross margins across its operating segments. Residential gross margin increased to 48% from 45% a year earlier, hospitality margin rose to 42% from 39%, and commercial margin climbed to 65% from 57%.
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Residential Growth and Future Infrastructure Residential real estate revenue increased 39% year over year during the second quarter. Gonzalez attributed part of the growth to the company’s range of residential communities and home price points, which span from the high $200,000s to more than $5 million.
“This diversity is deliberate to help insulate the residential segment from volatility in the market conditions of any one price point,” Gonzalez said.
St. Joe plans later this year to begin development of two utility corridors. One corridor is intended to serve future residential communities in the Lake Powell and West Laird Detailed Specific Area Plans, or DSAPs, while the other is planned for the Pigeon Creek and West Bay Creek DSAPs.
Gonzalez said off-site utility extensions are capital intensive but are necessary to support the future development of “many thousands” of residential homesites. He cautioned that residential results can vary quarter to quarter because of one- to two-year development cycles and differing homesite pricing.
Chief Financial Officer Marek Bakun said that homesites in Bay County contributed to the company’s estimated residual balance during the quarter. He added that the increase was driven by higher-priced communities. During the first half of 2026, St. Joe recorded $14.6 million of new true-ups and collected $5.3 million of existing true-ups, according to Bakun.
Capital Allocation and Share Repurchases During the second quarter, St. Joe repurchased $32.7 million of common stock, invested $24 million in capital expenditures primarily supporting future growth, repaid $10.9 million of debt and paid $9.1 million in cash dividends.
43% of second-quarter capital allocation went to stock repurchases. 31% went to capital expenditures. 14% was used for debt reduction. 12% was paid as cash dividends. More than half of the company’s capital allocation, or 55%, went to shareholders through buybacks and dividends, Gonzalez said. As of July 27, St. Joe had repurchased $41 million in stock during 2026, compared with $40 million for all of 2025.
The company had 56,930,451 shares outstanding as of that date, which Gonzalez said was its lowest share count in nearly 30 years.
In response to investor questions, Gonzalez said St. Joe’s capital allocation strategy, including its repurchase program, is based on a longer-term model rather than solely on short-term cash flows. He said cash flow remains a factor in the broader allocation strategy but was not intended to be viewed as the exclusive determinant of buyback activity.
Development, Healthcare and Regional Demand Construction on a new academic health center model hospital on Highway 79 is progressing, according to Gonzalez. The facility is expected to include teaching, research and clinical delivery functions, with anticipated completion still targeted for 2028.
Gonzalez said St. Joe does not currently anticipate power generation or distribution constraints to limit execution of its growth plans. He also said the company has not seen any “significant or acute” increase in trade personnel costs or other expenses associated with artificial-intelligence-related data center construction demand.
Demand for homes in Northwest Florida continues to increase, Gonzalez said, led by continued in-migration. He noted that buyers and new residents are arriving from a broader geographic range than in prior years.
St. Joe is also considering waterfront development opportunities around bay and intracoastal locations. Gonzalez said the company evaluates those properties not only for their direct waterfront value, but also for their ability to increase the value of adjacent land holdings.
Land Pipeline and Economic Development Addressing questions about Origins in Walton County, Gonzalez said the company does not view its residential pipeline as dwindling. He said St. Joe has a “very long runway” of potential homesites both west and east of Origins and is considering a range of development and builder-partnership options.
In the Southport area, Gonzalez cited the Ticheli DSAP as an example of the company’s strategy to maintain geographic and product diversity. St. Joe plans to break ground on the first phase of that project early next year.
The company also continues to see interest from aviation and aerospace businesses in the region, Gonzalez said. He noted that aviation and aerospace have long been focus industries for regional economic development authorities. A Florida State University-led aerospace research and development center remains in the planning stage in Bay County and could become a catalyst for the sector, he said.
Gonzalez said St. Joe owns approximately 165,000 acres of mostly entitled land in Florida and intends to continue pursuing a capital allocation approach that balances future development investment, debt reduction, dividends and share repurchases.
About St. Joe (NYSE:JOE)The St. Joe Company NYSE: JOE is a leading real estate development and asset management firm focused on Northwest Florida. Headquartered in Jacksonville, the company owns and manages approximately 171,000 acres of land across Bay, Gulf, Franklin and Walton counties. St. Joe's core businesses include residential community development, commercial real estate, and hospitality, with an emphasis on master-planned neighborhoods, office and retail campuses, resort hotels and mixed-use town centers.
Founded in 1936 as a paper manufacturing company, St.
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