Overview

* First American Q2 2025 revenue grows 14%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus, reaching $1.53, per LSEG data

* Co announces new $300 mln share repurchase authorization

Outlook

* Company expects productivity improvements from investments in data, technology, and AI

* First American poised to outperform in next real estate cycle

* Company sees strong commercial business growth

Result Drivers

* TITLE INSURANCE GROWTH - Title Insurance and Services segment revenues increased 13% due to higher average revenue per order and more closed orders

* COMMERCIAL REVENUE - Commercial revenues rose 33%, driven by increased average revenue per order

* INVESTMENT INCOME - Investment income grew 17% due to higher interest income from the investment portfolio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.84 $1.76

Revenue bln bln (3

Analysts

)

Q2 Beat $1.53 $1.36 (5

Adjusted Analysts

EPS )

Q2 EPS $1.41

Q2 Net $146.10

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for First American Financial Corp ( FAF ) is $75.00, about 23.3% above its July 22 closing price of $57.56

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)