First American(FAF) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $1.7 billion, up 18% compared to Q4 2023, while full year revenue reached $6.1 billion, a 2% increase year-over-year[5][8]. - Net income for Q4 2024 was $72 million, or $0.69 per diluted share, compared to $34 million, or $0.33 per diluted share in Q4 2023; full year net income was $131 million, or $1.26 per diluted share[6][8]. - Adjusted net income for Q4 2024 was $142 million, or $1.35 per diluted share, up from $72 million, or $0.69 per diluted share in the same quarter last year[7]. - Total revenues for Q4 2024 were $1,685.1 million, a 18% increase from $1,429.3 million in Q4 2023[33]. - Net income for Q4 2024 was $72.9 million, compared to $34.3 million in Q4 2023, representing a 112% increase[33]. - Total revenues for the year ended December 31, 2024, increased to $6,128.1 million, up from $6,003.5 million in 2023, representing a growth of 2.1%[43]. - Adjusted total revenues for the year ended December 31, 2024, were $6,529.7 million, compared to $6,209.9 million in 2023, indicating a growth of 5.2%[43]. - The adjusted net income for 2024 was $459.0 million, compared to $397.7 million in 2023, reflecting an increase of 15.4%[43]. - Earnings per diluted share (EPS) for 2024 were $1.26, down from $2.07 in 2023, a decline of 39.2%[43]. Revenue Segments - Commercial revenues in Q4 2024 were $252 million, a 47% increase compared to Q4 2023, with a pretax margin of 7.9%[5][12]. - Title Insurance and Services segment revenues for Q4 2024 were $1.6 billion, up 22% year-over-year, driven by a 19% increase in closed title orders[13]. - The Home Warranty segment reported revenues of $103 million in Q4 2024, up from $99 million in Q4 2023, with a pretax margin of 18.1%[22]. - Direct premiums and escrow fees rose to $2,446.0 million in 2024, compared to $2,252.1 million in 2023, marking an increase of 8.6%[43]. - The Title Insurance and Services Segment reported total revenues of $5,737.3 million in 2024, slightly up from $5,724.8 million in 2023[46]. - The Home Warranty Segment's total revenues increased to $425.7 million in 2024 from $417.2 million in 2023, a growth of 2.0%[46]. Operational Metrics - Title orders opened in Q4 2024 were 143,100, up 15% from 124,600 in Q4 2023[33]. - Title orders closed in Q4 2024 were 119,800, a 19% increase from 100,600 in Q4 2023[33]. - Paid title claims increased to $53.2 million in Q4 2024 from $44.4 million in Q4 2023[33]. - Cash flow from operations for 2024 was $897 million, significantly up from $354 million in 2023[5]. - The success ratio improved to 51% in Q4 2024, compared to 57% in Q4 2023[51]. - Total open orders per day decreased to 2,271 in Q4 2024 from 2,595 in Q3 2024[54]. - Average revenue per order (ARPO) increased to $4,343 in Q4 2024, up from $3,926 in Q3 2024[54]. - Closed orders per day remained stable at 1,902 in Q4 2024, slightly up from 1,900 in Q3 2024[54]. - Refinance orders as a percentage of residential orders were 28% in Q4 2024, compared to 26% in Q3 2024[54]. Expenses and Financial Position - Personnel and other operating expenses were $786.8 million, up from $691.0 million, indicating a change of $95.8 million[51]. - The ratio of personnel and other operating expenses to net operating revenues was 82.4% in Q4 2024, down from 90.2% in Q4 2023[51]. - Cash and cash equivalents decreased to $1,718.1 million in 2024 from $3,605.3 million in 2023[36]. - Total assets decreased to $14,908.6 million in 2024 from $16,802.8 million in 2023[36]. - The provision for policy losses and other claims increased significantly to $320.0 million in 2024 from $138.3 million in 2023, an increase of 131.5%[43]. - The effective tax rate for Q4 2024 was 27%, influenced by a valuation reserve against deferred tax assets[7]. Shareholder Returns - The company repurchased 124,000 shares for $8 million at an average price of $65.80 in Q4 2024, and 187,000 shares for $11 million at an average price of $61.31 in 2025 through February 11[5]. - Cash dividends declared per share increased to $0.54 in Q4 2024 from $0.53 in Q4 2023[33].