First American Q2 results top forecasts, approves $300 mln share buyback

First American Financial

23/07/2025 21:43

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/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.84 bln
$1.76 bln (3 Analysts)
Q2 Adjusted EPS
Beat
$1.53
$1.36 (5 Analysts)
Q2 EPS
$1.41
Q2 Net Income
$146.10 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 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: ID:nBwb0vs0Ya

(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.)