We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Skyward (SKWD) Down 5.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Skyward Specialty Insurance (SKWD - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Skyward due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Skyward Specialty Reports Strong Q4 Results on Strong Premiums
Skyward Specialty generated revenues of $385.6 million in Q4 2025, up 26.7% year over year, which beat the Zacks Consensus Estimate by 3.1%.
Adjusted EPS: $1.17, up 46% year over year and beat the consensus mark by 21.9%.
Top-line growth and strong underwriting execution drove the quarter. Revenue expanded on higher net earned premiums and a positive investment contribution. Fourth quarter underwriting profitability was robust as the combined ratio improved.
Q4 Performance Details
Gross written premiums were $439.6 million, up 13.2% year over year.
Specialty Programs: $91.3 million (+75% year over year).
Accident & Health (stop-loss): $67.3 million (+51%).
Surety: $45.9 million (+21%).
Captives: $62.4 million (+8%).
Global Property: $19.8 million (+6%), reflecting a small-premium quarter with high in-force retention and selective new wins.
Construction & Energy Solutions declined to $58.6 million (−21%).
Net earned premiums were $356.8 million, up 21.7% year over year. Net investment income rose by roughly $3 million year over year in Q4 to $23.5 million.
Combined ratio came at 88.5%, an improvement of 730 basis points versus the prior-year quarter. Loss ratio was 59.6% while the expense ratio of 28.9% was flat year over year.
Net income was $43.2 million, up almost 200% year over year, while underwriting income was $41 million, up around 235% year over year.
Fully diluted book value per share was $23.87 at 2025-end, up from $18.88 a year ago.
Financial Update (as of Dec. 31, 2025)
Operating cash flow for 2025 was $408.1 million, up from $305.1 million a year ago. The investment portfolio continued to shift toward fixed income. Alternatives represented 3.8% of the portfolio versus 6% a year earlier.
Financial leverage was under 11% at quarter???end, with an expected increase to 28%–29% in Q1 2026 tied to the Apollo financing. It ended 2025 with cash and cash equivalents of $168.5 million, up from $121.6 million at 2024-end.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Skyward has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Skyward has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Skyward belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Palomar (PLMR - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Palomar reported revenues of $250.99 million in the last reported quarter, representing a year-over-year change of +59.9%. EPS of $2.24 for the same period compares with $1.52 a year ago.
For the current quarter, Palomar is expected to post earnings of $2.17 per share, indicating a change of +16% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.
Palomar has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Skyward (SKWD) Down 5.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Skyward Specialty Insurance (SKWD - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Skyward due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Skyward Specialty Reports Strong Q4 Results on Strong Premiums
Skyward Specialty generated revenues of $385.6 million in Q4 2025, up 26.7% year over year, which beat the Zacks Consensus Estimate by 3.1%.
Adjusted EPS: $1.17, up 46% year over year and beat the consensus mark by 21.9%.
Top-line growth and strong underwriting execution drove the quarter. Revenue expanded on higher net earned premiums and a positive investment contribution. Fourth quarter underwriting profitability was robust as the combined ratio improved.
Q4 Performance Details
Gross written premiums were $439.6 million, up 13.2% year over year.
Specialty Programs: $91.3 million (+75% year over year).
Accident & Health (stop-loss): $67.3 million (+51%).
Surety: $45.9 million (+21%).
Captives: $62.4 million (+8%).
Global Property: $19.8 million (+6%), reflecting a small-premium quarter with high in-force retention and selective new wins.
Construction & Energy Solutions declined to $58.6 million (−21%).
Net earned premiums were $356.8 million, up 21.7% year over year. Net investment income rose by roughly $3 million year over year in Q4 to $23.5 million.
Combined ratio came at 88.5%, an improvement of 730 basis points versus the prior-year quarter. Loss ratio was 59.6% while the expense ratio of 28.9% was flat year over year.
Net income was $43.2 million, up almost 200% year over year, while underwriting income was $41 million, up around 235% year over year.
Fully diluted book value per share was $23.87 at 2025-end, up from $18.88 a year ago.
Financial Update (as of Dec. 31, 2025)
Operating cash flow for 2025 was $408.1 million, up from $305.1 million a year ago. The investment portfolio continued to shift toward fixed income. Alternatives represented 3.8% of the portfolio versus 6% a year earlier.
Financial leverage was under 11% at quarter???end, with an expected increase to 28%–29% in Q1 2026 tied to the Apollo financing. It ended 2025 with cash and cash equivalents of $168.5 million, up from $121.6 million at 2024-end.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Skyward has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Skyward has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Skyward belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Palomar (PLMR - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Palomar reported revenues of $250.99 million in the last reported quarter, representing a year-over-year change of +59.9%. EPS of $2.24 for the same period compares with $1.52 a year ago.
For the current quarter, Palomar is expected to post earnings of $2.17 per share, indicating a change of +16% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.
Palomar has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.