Crawford & Company

Crawford & Company

CRD-A·NYSE

$10.61

-2.8%
Financial ServicesInsurance - Brokers

Crawford & Company provides claims management and outsourcing solutions for carriers, brokers, and corporations in the United States, the United Kingdom, Europe, Canada, Australia, and internationally. The company's Crawford Loss Adjusting provides claims management services to insurance companies and self-insured entities risk including property, public liability, automobile, and marine insurances. Its Crawford TPA Solutions segment provides claims and risk management services for corporations in the self-insured or commercially-insured marketplace; desktop claim adjusting and claims evaluation services; initial loss reporting services for claimants; and loss mitigation and risk management information services, as well as administers loss funds established to pay claims. This segment also offers third party administration for workers' compensation, auto and liability, disability absence and medical management, and accident and health products. The company's Crawford Platform Solutions segment offers insurance through service lines, such as Contractor Connection and Networks, including losses caused by natural disasters, such as fires, hailstorms, hurricanes, earthquakes, floods, as well as man-made disasters, such as oil spills, and chemical releases. It also provides customer-centric solutions for various loss types comprising high-frequency and low-complexity claims to large complex repairs; and outsourced contractor management services to personal and commercial insurance carriers and consumer markets. The company was founded in 1941 and is headquartered in Atlanta, Georgia.

At a Glance

Live Snapshot
Market Cap$522.28M
EPS0.4000
P/E Ratio26.52
Earnings Date08/03/2026

Earnings Call Transcript

CRD-A • 2026 • Q1

Operator
Good morning. My name is Dustin, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company First Quarter 2026 earnings release conference call. In conjunction with this call, a supplementary financial presentation is available on our website at www.crawco.com under the Investor Relations section. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. Instructions will follow at that time. Should anyone need assistance at any time during this conference, please press star then zero, and an operator will assist you. As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, May 5th, 2026. Now, I would like to introduce Tami Stevenson, Crawford & Company's General Counsel.
Tami Stevenson
Thank you, Dustin. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectibility of our billed and unbilled accounts receivable, financial results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, our long-term capital resource and liquidity requirements, and our ability to pay dividends in the future. The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward-looking statements.
Tami Stevenson
The company undertakes no obligation to publicly release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events. In addition, you are reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10-Q for the quarter ended March 31, 2026, filed with the Securities and Exchange Commission, particularly the information under the headings Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under SEC rules.
Holly Boudreau
Thank you. As Bruce noted earlier, effective January 1st, 2026, we streamlined our operating structure and began operating under two divisions. U.S. Operations, which includes our U.S. Property and Casualty business and Broadspire. International Operations, which is made up of all service lines outside the U.S. In first quarter 2026, U.S. Property and Casualty, which consists of our U.S. loss adjusting and networks businesses, contributed 23% of revenues. Broadspire, our U.S.-based third-party administration business, represented 34% of revenues, and International Operations accounted for 43% of revenues. U.S. Property and Casualty revenues decreased 11.3% year-over-year, reflecting the absence of revenues associated with Hurricane Helene and Hurricane Milton, recognized in the first quarter of 2025, and continuing the trend of lower industry-wide property claims activity in the U.S.
Holly Boudreau
Operating earnings in the segment decreased by $2.2 million or 22.1% year-over-year, with operating margin down 150 basis points. Despite the extended trend of benign weather we're seeing, we remain well-positioned to serve our clients with a strong pool of high-caliber, experienced adjusters with expertise serving major and complex claims to drive future growth. Broadspire delivered quarterly revenues of $104.8 million, an increase of 1% from the prior year period, reflecting a slow ramp for certain new client wins. Our retention rate of 86% is related to the loss of a client in the quarter, and it's not indicative of any broader trends.
Holly Boudreau
The segment delivered operating earnings of $10.9 million, decreasing by $1.1 million or 9.4% year-over-year, with operating margin decreasing by 120 basis points, reflecting planned hiring in anticipation of new business wins. International Operations' first quarter 2026 revenue increased 4.5% to $131.9 million compared to the prior year. Revenue decreased 1.7% on a constant currency basis due to foreign exchange fluctuations. Operating earnings increased by $1.8 million or 80%, with operating margin increasing by 120 basis points. International's first quarter operating performance reflects the strong demand across key markets, as Australia and Asia specifically saw an increase in catastrophe-related claims events.
Holly Boudreau
Canada saw margin accretion from cost control initiatives started in 2025. For further context around the ongoing weather cycles, the first quarter of 2026 saw a 16% decline in U.S. severe storm support compared to the prior year, translating into a roughly 6% reduction in weather-related revenues to Crawford in the quarter. Notably, our weather-related revenues remained stable on a year-over-year basis, a testament to the balanced nature of our business and the strength of our underlying operation. Now for a look at our consolidated results. In the first quarter of 2026, company-wide revenues before reimbursements were $309.5 million, a decrease of 1% compared to the prior year period. Foreign exchange rates increased revenue before reimbursements by $7.8 million or 2.5%.
Holly Boudreau
GAAP net income attributable to shareholders totaled $4.9 million compared to net income of $6.7 million in the same period of 2025. GAAP diluted EPS in the 2026 first quarter was $0.10 for both CRDA and CRDB, a decrease from earnings of $0.13 for both share classes in the 2025 period. On a non-GAAP basis, diluted EPS was $0.16 for CRDA and CRDB, decreasing from $0.21 for both share classes in the prior year period. The company's non-GAAP operating earnings totaled $13.7 million in the 2026 first quarter, or 4.4% of revenues, compared to $17.8 million, or 5.7% of revenues in the prior year period.
Holly Boudreau
Consolidated adjusted EBITDA was $22.4 million in the 2026 first quarter, or 7.2% of revenues, decreasing from $26.8 million, or 8.6% of revenues in the 2025 quarter. The company's cash and cash equivalents as of March 31st, 2026 totaled $54.5 million compared to $64.1 million at December 31st, 2025. Total receivables were $260.8 million as of March 31st, 2026, up $18.2 million from 2025 year-end. The company's total debt outstanding as of March 31st, 2026 totaled $194.1 million, up $5 million from December 31st, 2025.
Holly Boudreau
Net debt was approximately $140 million as of March 31st, 2026, while our U.S. pension liability was $16.7 million, reflecting a funded ratio of 93.2%. We made no discretionary contributions to our U.S. defined pension benefit plan during the first quarter of 2026. Cash flows provided by operating activities for the first quarter of 2026 was $3.3 million, increasing from a use of cash of $13.9 million in the prior year quarter. Free cash flow was -$4.6 million in the 2026 first quarter, improving from -$23.2 million in the first quarter of 2025. Unallocated corporate costs were $8.8 million in the 2026 first quarter, compared to costs of $6.1 million in the 2025 period.
Operator
Thank you. At this time, if you'd like to ask a question, please press star then the number one on your telephone keypad. To withdraw your question, press the pound key. If you are using a speakerphone, please pick up your handset before asking your question. We'll pause for just a moment to compile the QA roster. Your first question comes from the line of Mark Hughes from Truist Securities. Please go ahead.
Holly Boudreau
Morning.
Mark Hughes
Then in the unallocated corporate, you had it looks like a bump in self-insurance expense. How much was that? I think you referred to a little higher administrative payroll. When you take those into account, how does that trend in the coming quarters?
Holly Boudreau
Yeah. That was about $800,000 in the quarter. I think trend in the coming quarters, I think it's probably, you know, no major increase expected.
Operator
Thank you. Again, if you would like to ask a question, please press star and the number one on your telephone keypad. Our next question comes from the line of Kevin M. Steinke from Barrington Research. Please go ahead.
Transcript from May 5, 2026

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crd-a Earnings Call Transcripts

CRD-A

2026

1
Q1
May 5
Q2
N/A
Q3
N/A
Q4
N/A

2025

1
Q4
Mar 3
Q1
N/A
Q2
N/A
Q3
N/A