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Mar 31, 2025
First American Q1 2025 Earnings Report
First American Financial reported higher earnings in Q1 2025 driven by strong commercial revenue growth.
Key Takeaways
First American Financial posted solid Q1 2025 results, with net income rising to $74.2M and adjusted EPS of $0.84, supported by robust commercial revenue and improved margins across its segments.
Total revenue reached $1.5823 billion, up from $1.4246 billion last year
Net income rose to $74.2 million with adjusted EPS of $0.84
Commercial revenues grew 29% year-over-year to $183.8 million
Title Insurance and Services pretax margin improved to 7.2%, or 7.9% on an adjusted basis
Revenue by Segment
Forward Guidance
The company expects earnings growth to continue amid signs of recovery in mortgage origination.
Positive Outlook
- Commercial revenue surged 29% YoY
- Improved pretax margins across segments
- Higher investment income driven by portfolio performance
- Strong order trends with higher average revenue per order
- Company recognized as a top workplace for 10th consecutive year
Challenges Ahead
- Net investment losses of $11 million in the quarter
- Decline in investment gains compared to prior year
- Increase in operating expenses, particularly software and production costs
- Personnel costs rose due to higher compensation expenses
- Economic uncertainty continues to impact broader market
Historical Earnings Impact
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Avg. Return Before/After Earnings
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