St. Joe Co Sees 5% Q1 Revenue Growth, Hospitality Revenues Hit $44.7M
St. Joe Co’s Q1 revenue rose 5% and operating income climbed 8%, led by a 13% hospitality revenue jump to $44.7 million and 24% gross margins. Net income fell 21% on lower joint venture earnings and leasing revenue slid 10% after the Watercrest sale.
1. Q1 Financial Highlights
The St. Joe Co reported a 5% increase in total revenue for Q1 2026 and an 8% rise in operating income, with gross margins improving to 24%, up from 18% a year earlier.
2. Hospitality and Real Estate Performance
Hospitality revenue jumped 13% to a record $44.7 million, while the company secured a contract with Pulte Group for up to 2,653 home sites, marking Pulte’s entry into the Northwest Florida market.
3. Net Income Decline and Leasing Impact
Net income declined 21% due to reduced equity income from unconsolidated joint ventures, and leasing revenue dropped 10% following the sale of the Watercrest Senior Living property.
4. Growth and Development Initiatives
St. Joe Co is exploring data center development opportunities at Venture Crossings through potential ground leases or sales and plans to expand its real estate brokerage operations, while navigating regulatory delays at the Intercoastal Waterway Marina and inventory management challenges.