First American Financial | 8-K: FY2026 Q2 Revenue: USD 2.117 B

Revenue: As of FY2026 Q2, the actual value is USD 2.117 B.

EPS: As of FY2026 Q2, the actual value is USD 2.12, beating the estimate of USD 1.8433.

EBIT: As of FY2026 Q2, the actual value is USD 329.6 M.

Consolidated Financial Results

Net Income

• Net income was $218.5 million in 2026, compared to $146.1 million in 2025.
• Adjusted net income was $214.4 million in 2026, compared to $158.4 million in 2025.

Income Before Taxes

• Income before taxes was $283.9 million in 2026, compared to $195.2 million in 2025.

Net Investment Gains (Losses)

• Net investment gains were $12.0 million in 2026, compared to net investment losses of - $9.7 million in 2025.

Purchase-Related Intangible Amortization

• Purchase-related intangible amortization was $6.7 million in 2026, compared to $6.6 million in 2025.

Effective Tax Rate

• The effective tax rate was 22.8 percent in 2026.

Debt-to-Capital Ratio

• The debt-to-capital ratio was 31.4 percent, or 21.5 percent excluding secured financings payable of $1.0 billion.

Share Repurchases

• First American Financial Corporation repurchased 330,405 shares for a total of $20 million at an average price of $61.99.

Cash Dividends Declared Per Share

• Cash dividends declared per share were $0.55 in 2026, compared to $0.54 in 2025.

Balance Sheet Information (as of June 30, 2026 vs. December 31, 2025)

Cash and Cash Equivalents

• Cash and cash equivalents were $2,624.8 million in 2026, compared to $1,387.3 million in 2025.

Investments

• Investments were $10,733.7 million in 2026, compared to $9,394.3 million in 2025.

Goodwill and Other Intangible Assets, Net

• Goodwill and other intangible assets, net, were $1,903.7 million in 2026, compared to $1,919.3 million in 2025.

Total Assets

• Total assets were $18,941.0 million in 2026, compared to $16,228.8 million in 2025.

Reserve for Claim Losses

• Reserve for claim losses was $1,151.6 million in 2026, compared to $1,169.6 million in 2025.

Notes and Contracts Payable

• Notes and contracts payable were $1,546.5 million in 2026, compared to $1,545.4 million in 2025.

Total Stockholders’ Equity

• Total stockholders’ equity was $5,620.8 million in 2026, compared to $5,499.5 million in 2025.

Title Insurance and Services Segment (Three Months Ended June 30, 2026 vs. 2025)

Revenues

• Total revenues were $2,014.6 million in 2026, up 17 percent from $1,722.9 million in 2025.
• Adjusted total revenues were $1,967.9 million in 2026, compared to $1,728.3 million in 2025.
• Direct premiums and escrow fees were $689.2 million in 2026, compared to $600.4 million in 2025.
• Agent premiums were $819.7 million in 2026, compared to $716.5 million in 2025.
• Information and other revenues were $295.0 million in 2026, up 12 percent from $264.3 million in 2025.
• Net investment income was $164.0 million in 2026, up 11 percent from $147.1 million in 2025.
• Net investment gains were $46.7 million in 2026, compared to net investment losses of - $5.4 million in 2025.

Operational Metrics

• Income before taxes was $315.9 million in 2026, compared to $216.7 million in 2025.
• Pretax margin was 15.7 percent in 2026, compared to 12.6 percent in 2025.
• Adjusted pretax margin was 14.0 percent in 2026, compared to 13.2 percent in 2025.
• Personnel costs were $572.5 million in 2026, up 9 percent from $523.0 million in 2025.
• Other operating expenses were $319.0 million in 2026, up 15 percent from $277.8 million in 2025.
• Provision for policy losses and other claims was $45.3 million in 2026, compared to $39.5 million in 2025.
• Depreciation and amortization was $52.3 million in 2026, compared to $51.6 million in 2025.
• Interest expense was $30.4 million in 2026, up 33 percent from $22.8 million in 2025.
• Paid title claims were $61.9 million in 2026, compared to $47.3 million in 2025.

Operational Metrics - Orders

• Title open orders were 188,200 in 2026, compared to 186,907 in 2025.
• Title closed orders were 137,300 in 2026, compared to 138,324 in 2025.
• Average revenue per direct title order (ARPO) was $4,572 in 2026, compared to $3,897 in 2025.

U.S. Commercial (Three Months Ended June 30, 2026 vs. 2025)

• Total revenues were $314.1 million in 2026, up 34 percent from $234.2 million in 2025.
• Open orders were 29,700 in 2026, compared to 27,900 in 2025.
• Closed orders were 15,700 in 2026, compared to 15,300 in 2025.
• Average revenue per order was $19,980 in 2026, compared to $15,267 in 2025.

Home Warranty Segment (Three Months Ended June 30, 2026 vs. 2025)

Revenues

• Total revenues were $113.8 million in 2026, up 3 percent from $110.2 million in 2025.
• Adjusted total revenues were $112.3 million in 2026, compared to $110.8 million in 2025.

Operational Metrics

• Income before taxes was $24.2 million in 2026, up 9 percent from $22.3 million in 2025.
• Pretax margin was 21.3 percent in 2026, compared to 20.2 percent in 2025.
• Adjusted pretax margin was 20.2 percent in 2026, compared to 20.7 percent in 2025.
• The claim loss rate declined to 40 percent in 2026, compared to 41 percent in 2025.

Corporate Segment (Three Months Ended June 30, 2026 vs. 2025)

Operational Metrics

• The Corporate segment pretax loss was - $56.2 million in 2026, compared to a loss of - $43.8 million in 2025.
• Excluding net investment gains and losses, the Corporate pretax loss was - $20 million in 2026, compared with a - $40 million loss in 2025.

Outlook

First American Financial Corporation plans to leverage AI across its business to enhance employee effectiveness, deliver improved customer experience, and optimize operations. The company intends to continue investing in its people, platforms, and products to drive innovation and strengthen its market leadership. These investments aim to evolve capabilities and maintain market position.