First American(FAF) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $1.582 billion, an increase of 11% compared to Q1 2024[5] - Net income for the quarter was $74.2 million, or $0.71 per diluted share, compared to $46.7 million, or $0.45 per diluted share in the prior year[6] - Adjusted net income was $87.9 million, or $0.84 per diluted share, up from $46.9 million, or $0.45 per diluted share year-over-year[6] - Commercial revenues increased by 29% to $184 million compared to the same quarter last year[6] - Title Insurance and Services segment revenues were $1.484 billion, up 12% year-over-year, with a pretax margin of 7.2%[9] - Home Warranty segment revenues were $107.8 million, a 2% increase from the previous year, with a pretax margin of 22.9%[19] - Total revenues for Q1 2025 increased to $1,582.3 million, up 11.1% from $1,424.6 million in Q1 2024[31] - Net income attributable to the company rose to $74.2 million, a 58.5% increase compared to $46.7 million in the same period last year[31] - Basic earnings per share (EPS) increased to $0.72, up from $0.45 in Q1 2024, reflecting a 60% growth[31] - Adjusted total revenues for Q1 2025 were $1,593.1 million, compared to $1,415.6 million in Q1 2024, marking a 12.5% increase[39] - Adjusted net income for Q1 2025 was $87.9 million, up from $46.9 million in Q1 2024, indicating a 87.5% increase[39] Investment and Assets - Investment income was $138 million, up 18% from the prior year, despite net investment losses of $11 million[6][12] - Total assets as of March 31, 2025, were $15,497.4 million, an increase from $14,908.6 million as of December 31, 2024[34] - Cash and cash equivalents increased to $2,045.1 million from $1,718.1 million at the end of 2024, reflecting a growth of 19%[34] - Net investment income increased to $137.7 million, up from $116.7 million year-over-year[47] Expenses and Costs - Personnel costs rose to $485 million, a 7% increase compared to Q1 2024, primarily due to higher incentive compensation[13] - Personnel and other operating expenses were $731.2 million, up from $686.2 million, resulting in a success ratio of 51%[47] - The ratio of personnel and other operating expenses to net operating revenues improved to 88.7% from 93.2%[47] Orders and Operations - Title orders opened reached 163,900, representing an increase of 5.5% from 155,500 in Q1 2024[31] - Total open orders per day increased to 2,687, compared to 2,271 in Q4 2024, marking a significant growth[50] - Average Revenue per Order (ARPO) for total orders decreased to $3,920 from $4,343 in Q4 2024[50] - Closed orders per day totaled 1,728, down from 1,902 in the previous quarter[50] - Refinance orders accounted for 24% of residential orders, a decrease from 28% in Q4 2024[50] Shareholder Returns - The company declared cash dividends of $0.54 per share, slightly up from $0.53 per share in Q1 2024[31] - The company repurchased 447,812 shares for $28 million at an average price of $62.99[6]