Crawford & Company's Q2 2025 Earnings Call: Unraveling Contradictions in GTS Growth, Workers' Compensation, and Pricing Strategies

Global Technical Services (GTS) growth drivers, workers' compensation trends, GTS growth and headcount, Broadspire margin and investments, and international operations pricing strategy are the key contradictions discussed in Crawford & Company's latest 2025Q2 earnings call.



Revenue Growth and Segment Performance:
- Crawford & Company reported consolidated revenue growth of 2.8% for Q2 2025, with North America Loss Adjusting, International Operations, and Broadspire contributing to the top-line growth.
- The growth was driven by a diversified business model, strong new business momentum, and the effectiveness of strategic investments in technology and talent.

Impact of Weather Dynamics on Claims Frequency:
- The company experienced a 3.8% decline in weather-related revenue, primarily due to a lower frequency of U.S. property claims, which was attributed to affordability challenges and increased insurance deductibles.
- Despite this, non-weather segments grew by 5.2%, enabling consolidated revenue growth, highlighting the resilience of the company's diversified model.

International Operations and Margin Expansion:
- International Operations reported revenue growth of 6.6% (6.9% in constant currency), with particularly strong performance in the U.K., Europe, and Asia.
- The growth was supported by organic new business growth and margin expansion by 143 basis points, driven by disciplined execution in pricing and productivity.

Broadspire's New Business Momentum and Investments:
- Broadspire achieved record quarterly revenues of $100.6 million, reflecting year-over-year growth of 3.6%, driven by new client wins and strong retention rates.
- The segment's strategic headcount additions and technology investments impacted operating earnings and margin temporarily, positioning the segment for future growth.

Capital Allocation and Dividend Increase:
- Crawford & Company announced an increase in the quarterly dividend to $0.075 per share for both CRD-A and CRD-B, reflecting confidence in its financial health and growth prospects.
- The capital allocation strategy remains focused on long-term growth, operational excellence, and shareholder return, with no share repurchases in the quarter but maintaining an appetite for opportunistic buybacks.