Shares of The St. Joe Company (NYSE: JOE) are soaring 14.62% in intraday trading on Thursday, following the release of the company's impressive third-quarter 2025 earnings report. The real estate development and operating company has demonstrated robust growth across multiple segments, driving investor enthusiasm.
St. Joe reported a 63% increase in total revenue and a remarkable 130% surge in net income for 2025 compared to the previous year. The company's residential real estate segment was particularly strong, with revenue growing 94% to $36.8 million. The average home site price saw a significant jump to $150,000 from $86,000, while residential gross margins improved to 53% from 39%.
Jorge Luis Gonzalez, President, CEO, and Chairman of St. Joe, highlighted the company's strategic approach to capital allocation. "We continued to execute a measured and multifaceted capital allocation strategy with $20.4 million for capital expenditures, $8.7 million for share repurchase, $8.1 million for cash dividends, and $28.4 million for project debt reduction," Gonzalez stated during the earnings call. The company's focus on share repurchases, which totaled $24.9 million in the first nine months of 2025, has helped reduce the outstanding share count to below 58 million, the lowest in nearly 30 years.
Investors were also encouraged by St. Joe's strategic asset monetization, exemplified by the sale of Watercrest Senior Living for $41 million, resulting in a gross profit of $19.4 million. This transaction underscores the company's ability to create value through property development and timely divestment. Additionally, the company's recurring revenue streams from hospitality and leasing segments continue to grow, with both achieving record-breaking performances in the third quarter.
As St. Joe continues to expand its residential pipeline and commercial developments, including the Watersound Town Center and FSU TMH health campus, investors appear optimistic about the company's long-term growth prospects. The stock's strong performance today reflects growing confidence in St. Joe's strategic direction and its ability to capitalize on the ongoing development of Northwest Florida's real estate market.