First American Financial (FAF) investor relations material

Executive summary

• Adjusted EPS reached $2.08, up 36% year-over-year, with GAAP EPS at $2.12 per diluted share.

• Total revenue grew 15% year-over-year to $2.1 billion, with adjusted revenue up 14%.

• Net income attributable to the company rose to $218.5 million ($2.12 per diluted share) for Q2 2026, up from $146.1 million ($1.41 per diluted share) in Q2 2025.

• Commercial revenue set a Q2 record, up 34%, with 14 transactions over $1 million in premium.

• AI initiatives drove operational efficiencies, reducing manual work and improving customer service metrics.

Financial highlights

• Adjusted total revenue in the title segment was $2 billion, up 14% year-over-year.

• Commercial revenue reached $314 million, up 34%, with average revenue per order at a record $19,980.

• Net investment gains of $12 million, compared to losses of $10 million last year.

• Free cash flow for the first six months was $285 million, up 32% year-over-year.

• Cash and cash equivalents at June 30, 2026: $2.6 billion.

Outlook and guidance

• Commercial business expected to deliver a record year, with a strong pipeline and open orders up 9% in July.

• Residential purchase market remains sluggish, with open purchase orders flat year-over-year in July.

• Management expects continued quarterly cash dividends at or above current levels.

• Sufficient liquidity and resources are anticipated to meet operational and capital requirements for at least the next twelve months.

• Continued investment in AI, people, and platforms to drive innovation and market leadership.