- First American Financial Corporation (FAF, Financial) reported a total revenue of $1.6 billion for Q1 2025, marking an 11% increase from the same period last year.
- The net income for the quarter rose to $74 million, or $0.71 per diluted share, compared to $47 million, or $0.45 per diluted share, in Q1 2024.
- Commercial revenues surged by 29% to $184 million, significantly contributing to the company's revenue growth.
First American Financial Corporation (FAF), renowned for its title, settlement, and risk solutions in real estate transactions, has announced its financial outcomes for the first quarter ending March 31, 2025. The company's total revenue reached $1.6 billion, an 11% increase compared to the previous year's first quarter. Adjusted total revenue, accounting for certain non-GAAP considerations, rose by 13% to $1.6 billion.
The net income reported was $74 million, or $0.71 per diluted share, a significant rise from $47 million, or $0.45 per diluted share, during the first quarter of 2024. When adjusted, net income was $88 million, or $0.84 per share, compared to the prior year's adjusted net income of $47 million, or $0.45 per share.
The Title Insurance and Services segment was a notable performer with revenues of $1.5 billion, up 12% from the previous year. This segment also achieved a pretax margin of 7.2%, or 7.9% on an adjusted basis. Investment income within this segment increased by 18%, totaling $138 million.
The Home Warranty segment also saw an increase in revenues to $108 million, up 2% year-on-year, with a pretax margin improvement to 22.9%, or 23.5% on an adjusted basis.
Additionally, First American Financial made strategic share repurchases in the first quarter, acquiring 447,812 shares for $28 million at an average price of $62.99. Continuing this in Q2, they repurchased 323,174 shares for $19 million at an average price of $59.95.
Under new leadership with Mark Seaton as CEO, First American Financial aims for continued growth despite economic uncertainties, buoyed by robust commercial revenues and a recovering mortgage origination market. Moreover, the company maintained its reputation, being named among the top 100 Best Companies to Work For by Great Places to Work® and Fortune Magazine for the tenth consecutive year.
