Enact Holdings Reports Strong Q4 2025 Earnings with $688M Operating Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy ACT?
Source: seekingalpha
- Strong Financial Performance: Enact Holdings reported an adjusted operating income of $688 million for 2025, translating to $4.61 per diluted share, reflecting the company's commitment to shareholder value creation with over $500 million returned to shareholders, thereby boosting investor confidence.
- Innovative Pricing Engine: The deployment of the Rate360 pricing engine enhances risk selection and pricing capabilities through advanced modeling and machine learning, which is expected to further optimize the competitiveness of insurance products and drive future revenue growth.
- Capital Return Plans: Management announced a capital return expectation of approximately $500 million for 2026, with $157 million returned to shareholders through share repurchases and dividends in Q4, indicating a sustained commitment to capital allocation priorities and enhancing market confidence in future performance.
- Insurance Business Growth: New insurance written totaled $14 billion in Q4, an 8% year-over-year increase, indicating strong market demand, while the loss ratio improved significantly to 7%, which will help enhance the company's profitability and financial stability.
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Analyst Views on ACT
Wall Street analysts forecast ACT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACT is 42.25 USD with a low forecast of 40.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 44.190
Low
40.00
Averages
42.25
High
45.00
Current: 44.190
Low
40.00
Averages
42.25
High
45.00
About ACT
Enact Holdings, Inc. operates principally through its wholly owned subsidiary, Enact Mortgage Insurance Corporation, a private mortgage insurance provider. The Company is engaged in the business of writing and assuming residential mortgage guaranty insurance. The insurance protects lenders and investors against certain losses resulting from nonpayment of loans secured by mortgages, deeds of trust, or other instruments constituting a lien on residential real estate. It facilitates the sale of mortgages to the secondary market, including to private investors, as well as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). It has a diverse customer base and maintains enduring relationships across the mortgage origination market, including with national banks, non-bank mortgage lenders, local mortgage bankers, community banks and credit unions. Fannie Mae and Freddie Mac are government-sponsored enterprises.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diverse Investment Options: A list of 10 mid-cap stocks with market capitalizations ranging from $1.2 billion to $8.2 billion is recognized as compelling buys, covering sectors such as commercial mortgage finance, asset management, building products, apparel retail, and healthcare services, indicating market diversity and potential growth opportunities.
- Top Stock Recommendations: Enact Holdings (ACT) boasts a dividend growth grade of A+, alongside Artisan Partners Asset Management (APAM), Armstrong World Industries (AWI), The Buckle (BKE), and Badger Meter (BMI), highlighting these companies' strong performance in shareholder returns, making them suitable for investors seeking stable income.
- Dividend Growth Scoring System: Seeking Alpha's comprehensive dividend scoring system evaluates a company's track record of increasing dividend payments, helping investors assess commitment to growing shareholder returns through regular increases, with grades ranging from A+ to F, where B- and above is considered a Buy and D+ or below a Sell.
- Broad Industry Coverage: Other notable companies on the list include Cal-Maine Foods (CALM) and Chemed (CHE), representing the packaged foods and healthcare services sectors, while Cohen & Steers (CNS) and CareTrust REIT (CTRE) offer opportunities in asset management and healthcare REITs, showcasing the investment potential of mid-cap stocks across various fields.
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Enact Holdings Reports Strong Q4 2025 Earnings with $688M Operating Income
- Strong Financial Performance: Enact Holdings reported an adjusted operating income of $688 million for 2025, translating to $4.61 per diluted share, reflecting the company's commitment to shareholder value creation with over $500 million returned to shareholders, thereby boosting investor confidence.
- Innovative Pricing Engine: The deployment of the Rate360 pricing engine enhances risk selection and pricing capabilities through advanced modeling and machine learning, which is expected to further optimize the competitiveness of insurance products and drive future revenue growth.
- Capital Return Plans: Management announced a capital return expectation of approximately $500 million for 2026, with $157 million returned to shareholders through share repurchases and dividends in Q4, indicating a sustained commitment to capital allocation priorities and enhancing market confidence in future performance.
- Insurance Business Growth: New insurance written totaled $14 billion in Q4, an 8% year-over-year increase, indicating strong market demand, while the loss ratio improved significantly to 7%, which will help enhance the company's profitability and financial stability.
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Enact Holdings Announces New $500M Buyback and Dividend
- Buyback Program Authorization: Enact Holdings' board has authorized a new share repurchase program of up to $500 million, which not only enhances the company's capital return strategy but also reflects confidence in future market performance.
- Existing Buyback Program: This new authorization supplements the existing $350 million buyback program, of which approximately $30 million remained as of January 30, indicating the company's ongoing efforts in capital management.
- Quarterly Dividend Declaration: The company announced a quarterly dividend of $0.21 per share, payable on March 19 to shareholders of record on February 26, further enhancing shareholder return expectations.
- Market Condition Dependency: Enact stated that the timing and amount of repurchases will depend on market and business conditions, and the program has no specified expiration date, demonstrating a strategic intent to remain flexible in response to market changes.
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Enact Holdings Q4 Earnings Beat Expectations
- Earnings Beat: Enact Holdings reported a Q4 non-GAAP EPS of $1.23, exceeding market expectations by $0.13, indicating improved profitability that may boost investor confidence.
- Revenue Miss: The company's Q4 revenue of $312.71 million, while up 3.6% year-over-year, fell short of expectations by $4.31 million, reflecting challenges from increased market competition and fluctuating customer demand.
- Share Buyback Authorization: Enact announced a $500 million share buyback program aimed at enhancing EPS by reducing the number of shares outstanding, demonstrating management's confidence in the company's future performance.
- Quarterly Dividend Declaration: The company declared a quarterly dividend of $0.21, indicating a commitment to providing stable cash returns to shareholders while maintaining financial flexibility, which enhances its attractiveness to investors.
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Announcement of Closure: Auro Clean Technologies has announced the closing of its underwriter's overallotment option in a public offering.
Impact on Offering: This decision may affect the total capital raised in the public offering, as the overallotment option typically allows underwriters to sell additional shares beyond the initial offering.
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Enact Holdings Schedules Q4 2025 Earnings Release for February 3, 2026
- Earnings Release Schedule: Enact Holdings will issue its Q4 2025 earnings report after market close on February 3, 2026, which is expected to provide critical financial data for assessing the company's performance.
- Conference Call Details: The company will host a conference call on February 4, 2026, at 8:00 a.m. (ET) to review the fourth-quarter financial results, enhancing communication and transparency with investors.
- Participant Registration Requirement: Investors interested in joining the call must pre-register to obtain a dial-in number and unique PIN, ensuring smooth proceedings and increasing participation.
- Webcast and Archiving: The event will be available via live webcast on the company’s website and archived for one year, allowing investors who cannot attend in real-time to access the information later, thereby improving information accessibility.
See More
Analysis of Compelling Mid-Cap Stock Opportunities
- Diverse Investment Options: A list of 10 mid-cap stocks with market capitalizations ranging from $1.2 billion to $8.2 billion is recognized as compelling buys, covering sectors such as commercial mortgage finance, asset management, building products, apparel retail, and healthcare services, indicating market diversity and potential growth opportunities.
- Top Stock Recommendations: Enact Holdings (ACT) boasts a dividend growth grade of A+, alongside Artisan Partners Asset Management (APAM), Armstrong World Industries (AWI), The Buckle (BKE), and Badger Meter (BMI), highlighting these companies' strong performance in shareholder returns, making them suitable for investors seeking stable income.
- Dividend Growth Scoring System: Seeking Alpha's comprehensive dividend scoring system evaluates a company's track record of increasing dividend payments, helping investors assess commitment to growing shareholder returns through regular increases, with grades ranging from A+ to F, where B- and above is considered a Buy and D+ or below a Sell.
- Broad Industry Coverage: Other notable companies on the list include Cal-Maine Foods (CALM) and Chemed (CHE), representing the packaged foods and healthcare services sectors, while Cohen & Steers (CNS) and CareTrust REIT (CTRE) offer opportunities in asset management and healthcare REITs, showcasing the investment potential of mid-cap stocks across various fields.
See More
Enact Holdings Reports Strong Q4 2025 Earnings with $688M Operating Income
- Strong Financial Performance: Enact Holdings reported an adjusted operating income of $688 million for 2025, translating to $4.61 per diluted share, reflecting the company's commitment to shareholder value creation with over $500 million returned to shareholders, thereby boosting investor confidence.
- Innovative Pricing Engine: The deployment of the Rate360 pricing engine enhances risk selection and pricing capabilities through advanced modeling and machine learning, which is expected to further optimize the competitiveness of insurance products and drive future revenue growth.
- Capital Return Plans: Management announced a capital return expectation of approximately $500 million for 2026, with $157 million returned to shareholders through share repurchases and dividends in Q4, indicating a sustained commitment to capital allocation priorities and enhancing market confidence in future performance.
- Insurance Business Growth: New insurance written totaled $14 billion in Q4, an 8% year-over-year increase, indicating strong market demand, while the loss ratio improved significantly to 7%, which will help enhance the company's profitability and financial stability.
See More
Enact Holdings Announces New $500M Buyback and Dividend
- Buyback Program Authorization: Enact Holdings' board has authorized a new share repurchase program of up to $500 million, which not only enhances the company's capital return strategy but also reflects confidence in future market performance.
- Existing Buyback Program: This new authorization supplements the existing $350 million buyback program, of which approximately $30 million remained as of January 30, indicating the company's ongoing efforts in capital management.
- Quarterly Dividend Declaration: The company announced a quarterly dividend of $0.21 per share, payable on March 19 to shareholders of record on February 26, further enhancing shareholder return expectations.
- Market Condition Dependency: Enact stated that the timing and amount of repurchases will depend on market and business conditions, and the program has no specified expiration date, demonstrating a strategic intent to remain flexible in response to market changes.
See More
Enact Holdings Q4 Earnings Beat Expectations
- Earnings Beat: Enact Holdings reported a Q4 non-GAAP EPS of $1.23, exceeding market expectations by $0.13, indicating improved profitability that may boost investor confidence.
- Revenue Miss: The company's Q4 revenue of $312.71 million, while up 3.6% year-over-year, fell short of expectations by $4.31 million, reflecting challenges from increased market competition and fluctuating customer demand.
- Share Buyback Authorization: Enact announced a $500 million share buyback program aimed at enhancing EPS by reducing the number of shares outstanding, demonstrating management's confidence in the company's future performance.
- Quarterly Dividend Declaration: The company declared a quarterly dividend of $0.21, indicating a commitment to providing stable cash returns to shareholders while maintaining financial flexibility, which enhances its attractiveness to investors.
See More
ADURO CLEAN TECHNOLOGIES CONFIRMS COMPLETION OF UNDERWRITER'S OVER-ALLOTMENT OPTION IN PUBLIC OFFERING
Announcement of Closure: Auro Clean Technologies has announced the closing of its underwriter's overallotment option in a public offering.
Impact on Offering: This decision may affect the total capital raised in the public offering, as the overallotment option typically allows underwriters to sell additional shares beyond the initial offering.
See More
Enact Holdings Schedules Q4 2025 Earnings Release for February 3, 2026
- Earnings Release Schedule: Enact Holdings will issue its Q4 2025 earnings report after market close on February 3, 2026, which is expected to provide critical financial data for assessing the company's performance.
- Conference Call Details: The company will host a conference call on February 4, 2026, at 8:00 a.m. (ET) to review the fourth-quarter financial results, enhancing communication and transparency with investors.
- Participant Registration Requirement: Investors interested in joining the call must pre-register to obtain a dial-in number and unique PIN, ensuring smooth proceedings and increasing participation.
- Webcast and Archiving: The event will be available via live webcast on the company’s website and archived for one year, allowing investors who cannot attend in real-time to access the information later, thereby improving information accessibility.
See More
