St. Joe (NYSE:JOE) reported year-over-year gains in both revenue and profitability for the fourth quarter and full year 2025, while management highlighted an expanding development pipeline and an active capital allocation program that included higher share repurchases, dividends, growth capital spending, and debt reduction.
Fourth-quarter and full-year results
Chairman and CEO Jorge Gonzalez said the company extended the year-over-year growth pattern seen in prior quarters, posting a 24% increase in revenue and a 58% increase in net income in Q4 2025 versus the prior-year period.
Gonzalez noted that, excluding a one-time large timberland sale in 2014, 2025 marked the first time the company exceeded $500 million in revenue in 20 years, and the first time it reached $2 per share in 23 years. He also emphasized a shift in the business model over time: roughly 20 years ago, the company’s performance was driven primarily by bulk asset sales with about 15% recurring revenue; today, he described St. Joe as a diversified real estate operating company with 56% recurring revenue.
Margins and operating commentary
Management said the company continued refining operations and improving profitability. For the full year:
- Homesite gross margins increased to 51% from 47%.
- Leasing gross margins increased to 57% from 54%.
- Hospitality gross margins decreased slightly to 31% from 32%, which management attributed primarily to opening expenses for the new golf course, The Third, and renovations of the Shark’s Tooth clubhouse.
Gonzalez added that the hospitality gross margin in 2024 (32%) had been a significant improvement from 20% in 2023.
Capital allocation: growth spending, buybacks, dividends, and debt
In Q4 2025, St. Joe’s capital allocation included $18.5 million of capital expenditures (primarily for growth), $15.1 million of stock repurchases, $9.2 million in dividends, and $8 million in debt reduction. Management said the fourth-quarter buyback total was the highest quarterly repurchase amount in 2025.
For the full year, the company described a “measured and multifaceted” capital allocation strategy, with 47% allocated to capital expenditures (primarily for growth), 33% to dividends and stock repurchases, and 20% to project debt reduction.
Chief Financial Officer Marek Bakun said St. Joe repurchased 798,622 shares in 2025, compared with 70,985 in 2024, at an average price of $50.10 per share. Gonzalez said management still views buybacks as a prudent use of capital even after a sharp rise in the share price, adding that repurchases remain a component of capital allocation subject to “facts and circumstances” each quarter.
On leverage, management pushed back on the idea that the company should carry more debt given its low cost of borrowing and reported low loan-to-value. Gonzalez emphasized that interest is a “real cash expense” and said the company has been methodical in paying down project debt. Bakun added that not all debt is treated equally: long-term, HUD-insured apartment financing with very low fixed rates is not being targeted for paydown, while shorter-duration, higher-interest project debt may be reduced to save interest expense.
Development pipeline and growth initiatives
Gonzalez said the company has received local and state approvals for 10 Detailed Specific Area Plans (DSAPs), each with at least 1,000 acres of fully entitled mixed-use projects, and noted the company has only begun development in three of the 10, which he characterized as a long runway for future growth.
Key pipeline and project updates discussed on the call included:
- Home site pipeline: approximately 23,900 home sites in various stages of planning, engineering, permitting, or development at year-end, up about 2,200 versus the end of 2024.
- Commercial construction: 94,500 square feet under construction at Watersound Town Center and Watersound West Bay Center, with approximately 76% pre-leased. For 2026, the company plans to break ground on new commercial buildings totaling approximately 54,000 square feet, and also discussed plans to begin a new apartment complex and execute several new commercial ground leases.
- Multifamily: in response to a question on new units, Gonzalez said the company plans to break ground on a new apartment complex focused on the vicinity of the FSU Health campus.
- Pier Park East: after opening Topgolf, St. Joe said it finalized a ground lease for a “family-oriented surf park concept” as the second major anchor at Pier Park East, and is planning the remainder of the property, including potentially breaking ground on infrastructure in 2026.
- Premium homesites: management addressed questions about replacing high-value Camp Creek lots, saying it is planning and permitting “replacement product” in Origins West near an art park, though no specific time frame was provided.
- Amenities and neighborhoods: the company said it is still in the planning and programming phase for a Lake Powell amenity concept for the Watersound Club. On Pigeon Creek, management said it is in advanced discussions with one homebuilder new to the market for the project’s more than 3,000 potential units and is “cautiously optimistic” about converting discussions into action relatively soon.
Gonzalez also discussed activity along the State Road 79 corridor, pointing to progress at Ward Creek with four homebuilders offering a range of product types. He said the FSU Health campus is progressing, noting its first phase (an 80,000-square-foot medical office building) is essentially full, and describing the second phase—a teaching hospital and academic health center—as a potential catalyst for the corridor and broader region.
Market dynamics, residuals, and other topics
Responding to a question about a year-over-year increase in Q4 real estate revenue, management pointed to higher average prices, the sale of 136 North Splash Drive and Watersound Villas, “normal land sales,” and disclosed that for the full year there was $13.6 million of new residuals that flowed through across all four quarters. Gonzalez also addressed a question suggesting St. Joe might be selling lots at a discount to nearby transactions, saying the company monitors market pricing closely and arguing its transactions are not directly comparable because St. Joe includes back-end participation arrangements in homesite sales to builders, which vary by builder, community, and price point.
Elsewhere, management said growing recurring revenue remains a key strategic priority. The company also said it is exploring how to use AI tools to improve operational efficiency, while noting the technology is evolving quickly.
In hospitality, Gonzalez said the company is focused on increasing club membership, hotel occupancy, and margins while evaluating opportunities for new hotels, marinas, and club amenities. Asked about Delta’s nonstop flight from New York, he said early performance appears encouraging, and the company has launched a campaign to increase awareness in that market that has translated into increased web traffic and early signs of higher occupancy and reservations from that region, though he cautioned it is still early to predict long-term outcomes.
Finally, management said it has been pleased with the early reception to its brokerage business, particularly the level of interest from agents seeking to join, while noting the business remains in its infancy.
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.
