FAF First American Financial Corp

Overview and Growth

First American Financial Corp generated $7.45B of revenue in fiscal 2025, with net income of $621.80M and an operating cash inflow of $950.80M. The $7.45B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 21.6% from $6.13B in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were $6.00, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 376.2% from $1.26 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Diluted shares averaged 103.70M; this is the reported share base over which the company’s diluted per-share earnings were spread. At period end, total assets were $16.23B, framing the scale of the company’s operating and financing commitments. The revenue-to-assets relationship was 0.46x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Net income came to $621.80M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 8.3%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $826.20M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 11.1%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $201.00M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 24.3% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 11.3%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 3.8%, showing earnings relative to the full balance sheet. Current net income of $621.80M was above fiscal 2024 net income of $131.10M, showing the direction of the bottom-line change.

Liquidity and Capital Structure

The company held $16.23B of assets against $10.70B of liabilities and $5.52B of equity, revealing how the asset base was financed. Cash and equivalents totaled $1.39B, identifying the most liquid reported component available within the broader current-asset balance. The equity-to-assets relationship was 34.0%, placing book capital against the total resource base. Relative to total assets, liabilities measured 66.0%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 8.5%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $14.91B in fiscal 2024, the current asset base moved 8.9% and finished higher. Book equity was 12.1% higher than fiscal 2024 equity of $4.93B, showing how shareholder capital changed year over year. Cash and equivalents were 19.3% lower than fiscal 2024 cash of $1.72B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported $950.80M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.53x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $188.30M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 19.8%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $762.50M, leaving a positive amount after capital expenditures. Free cash flow represented 10.2% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 4.7% of total assets, relating post-investment cash generation to the company’s resource base. Operating cash flow of $950.80M finished above fiscal 2024 operating cash flow of $897.50M, showing the year-over-year direction of cash generation.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.