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). 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), 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.

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Skyward Specialty Insurance Group, Inc. (SKWD): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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