First American Financial (FAF) investor relations material

Financial performance and growth trends

• Total revenue reached $7.5B in 2025, with 19,100 employees and operations in 8 countries.

• Commercial segment growth offset residential market weakness, with commercial direct revenue up 32% in 2025 and a strong pipeline for 2026.

• Adjusted pretax margin improved to 12.2% in 2025, rebounding from a low of 10.3% in 2024.

• Investment income in the title segment is expected to grow moderately, supported by higher interest rates.

• Cash from operations was $1.22B in 2025, with a return on equity of 11.9%.

Market dynamics and segment performance

• Title market share stands at 25.9%, with the largest title plant and property record database in the industry.

• Purchase market remains at trough levels due to affordability constraints, while refinance activity is weak amid high mortgage rates.

• Commercial market shows broad-based strength, with 10 of 12 asset classes experiencing over 25% growth in 2026 YTD.

• Home warranty segment contributed $0.4B in revenue in 2025, representing 6% of total revenue.

• U.S. title segment accounted for 83% of total revenue, with agency and direct channels making up the majority.

Strategic priorities and capital management

• Strategy focuses on profitable growth in core title and settlement business, expanding data advantage, and investing in complementary businesses.

• Strong data foundation with proprietary title plants and comprehensive property data coverage across the U.S.

• Disciplined M&A approach targets title, data, and automation companies that fit strategic and cultural criteria.

• Capital management emphasizes value-creating investments, prudent capital structure, and returning excess capital via dividends and share repurchases.

• Dividend per share increased to $2.45 in 2025, with a payout ratio of 31%, and a new $300M share repurchase authorization approved in July 2025.