First American(FAF) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $1,978.9 million, up 41% compared to Q3 2024[5] - Net income for Q3 2025 was $189.6 million, compared to a net loss of $104.0 million in Q3 2024[5] - Adjusted net income for Q3 2025 was $174.9 million, up from $138.4 million in Q3 2024[5] - Total revenues for Q3 2025 reached $1,978.9 million, a 40.6% increase from $1,406.1 million in Q3 2024[30] - Net income attributable to the Company for Q3 2025 was $189.6 million, compared to a net loss of $104.0 million in Q3 2024[30] - Basic and diluted net income per share for Q3 2025 was $1.84, a significant improvement from a loss of $1.00 per share in Q3 2024[30] - For the nine months ended September 30, 2025, net income was $409.9 million, compared to $58.7 million for the same period in 2024[30] - Adjusted total revenues for Q3 2025 were $1,952.6 million, compared to $1,717.6 million in Q3 2024, reflecting a 13.7% growth[41] - Net income for Q3 2025 was $189.6 million, a significant recovery from a net loss of $104.0 million in Q3 2024[41] - Earnings per diluted share (EPS) for Q3 2025 was $1.84, compared to a loss of $1.00 per share in Q3 2024[41] Segment Performance - Title Insurance and Services segment total revenues were $1,835.9 million, up 42% year-over-year[9] - The Title Insurance and Services Segment reported total revenues of $1,835.9 million in Q3 2025, up from $1,290.3 million in Q3 2024, marking a 42.4% increase[45] - Adjusted pretax income for the Title Insurance and Services Segment was $236.8 million in Q3 2025, compared to $185.4 million in Q3 2024, representing a 27.7% increase[45] - Home Warranty segment total revenues were $114.6 million, up 3% from last year[19] - The Home Warranty Segment generated total revenues of $114.6 million in Q3 2025, slightly up from $110.9 million in Q3 2024[45] Revenue and Orders - Commercial revenues increased to $246 million, a 29% rise compared to the previous year[6] - Title orders opened in Q3 2025 totaled 191,300, up 15.2% from 166,100 in Q3 2024[30] - Direct premiums and escrow fees for Q3 2025 were $708.0 million, compared to $601.5 million in Q3 2024, reflecting an 17.7% increase[35] - Total open orders per day increased to 2,989 in Q3 2025, compared to 2,805 in Q2 2025, showing a positive trend in order volume[52] - Average revenue per order (ARPO) decreased to $3,801 in Q3 2025 from $4,112 in Q2 2025, reflecting changes in pricing or order mix[52] Financial Position - Total assets as of September 30, 2025, were $17,610.0 million, an increase from $14,908.6 million as of December 31, 2024[32] - Cash and cash equivalents increased to $2,911.5 million from $1,718.1 million year-over-year[32] - The debt-to-capital ratio was 33.0%, or 22.5% excluding secured financings payable of $1.1 billion[6] Shareholder Returns - The company declared cash dividends of $0.55 per share in Q3 2025, slightly up from $0.54 per share in Q3 2024[30] - The company repurchased 597,726 shares for a total of $34 million at an average price of $56.24[6] Tax and Costs - The effective tax rate for Q3 2025 was 23.1%[7] - Personnel costs for Q3 2025 were $574.9 million, up from $542.9 million in Q3 2024, indicating a 5.9% rise[35] Operational Efficiency - The success ratio improved to 62% in Q3 2025 from 60% in Q3 2024, indicating better operational efficiency[49]