What were the key takeaways from Crawford A's earnings call?

What is Crawford A's gross profit margin?

What does Crawford A do and what are its main business segments?

What factors drove the changes in Crawford A's revenue and profit?

What is Crawford A's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Crawford A year over year?

What guidance did Crawford A's management provide for the next earnings period?

What is the market's earnings forecast for Crawford A next quarter?

- **Revenue Growth and Margin Expansion**: Consolidated operating earnings up 22% YoY, driven by Broadspire and International segments. North America Loss Adjusting margins expanded 215 basis points due to mix shift to higher-margin services.
- **New Business Wins**: Added $29M in Q3, bringing total to $78M year-to-date, reflecting strong client pipeline and retention (Broadspire at 93%).
- **Financial Strength**: Non-GAAP EPS of $0.32, up 45% YoY. Free cash flow improved to $24.1M vs. negative $18.4M in Q3 2024. Leverage ratio remains low at 1.64x EBITDA.
- **Share Repurchase**: Authorized additional 2M shares, with $275K repurchased in Q3, signaling confidence in intrinsic value.
- **Weather Impact**: Platform Solutions revenue down 36% YoY due to weather-related declines, but margins improved 47 basis points through cost management.

**【Management Opening Remarks】**
- Tami Stevenson provided standard forward-looking statements and reconciliations for non-GAAP financial measures, emphasizing risks related to weather claims, pension funding, and market conditions.

**【CEO Remarks】**
- **Overall Performance**: Consolidated operating earnings up 22% YoY to $26.6M, with margins expanding to 8.3% of revenues. Non-GAAP EPS of $0.32 vs. $0.22 prior year.
- **Segment Highlights**: 
  - **Broadspire**: Record $103.4M revenue (+4.4% YoY), operating earnings up 8.1%, driven by scale and client retention.
  - **International**: Revenue +6.7% YoY, operating earnings +45%, with margin expansion in Australia, U.K., and Asia.
  - **North America Loss Adjusting**: Revenue -2.9% YoY due to lower U.S. claims, but operating earnings +28% YoY, margins up 215 basis points.
- **Strategic Initiatives**: Investing in AI for efficiency, disciplined M&A, and capital deployment. Share repurchase program expanded to 2M shares.
- **Outlook**: Expect continued absence of significant weather in Q4 2025, but anticipate normalization in claims activity over 12-18 months.

**【CFO Commentary】**
- **Consolidated Results**: Revenues $322.2M (-2.2% YoY), GAAP net income $12.4M (+30% YoY). Adjusted EBITDA $36.3M (+23% YoY), free cash flow $24.1M vs. negative $18.4M prior year.
- **Segment Details**: 
  - **Platform Solutions**: Revenue -36% YoY due to weather, but operating margins improved 47 basis points to 11.3%.
  - **North America Loss Adjusting**: Operating margins 14.3% vs. 12.2% prior year, driven by GTS and Canada performance.
- **Balance Sheet**: Cash $68.8M, debt $218.1M, leverage ratio 1.64x EBITDA. U.S. pension funded at 93.1%.

**【Q&A Highlights】**
- **Margin Improvement in NA Loss Adjusting**: Mix shift to higher-margin GTS and Canada operations, despite 2.9% revenue decline.
- **Insurance Affordability Impact**: Higher deductibles suppressing residential claims, but commercial lines showing normalization.
- **Broadspire Pipeline**: 3-4% organic growth expected, with AI investments to enhance efficiency.
- **Platform Solutions**: Weather-related decline offset by cost management, targeting long-term recovery.
- **Share Repurchase**: Disciplined buyers, focusing on intrinsic value with $2M authorization added.

Crawford & Company (CRD.B) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: 2.8% YoY growth driven by non-weather segments, offsetting U.S. property claims decline.
- **Margin Expansion**: International Operations margin +143bps; Platform Solutions margin +500bps.
- **Dividend Boost**: 25% hike to $0.075/share, signaling confidence in cash flow stability.
- **Strategic Investments**: GTS talent expansion and Broadspire tech upgrades position for future growth.
- **Risk Outlook**: Temporary U.S. claims suppression expected to normalize over 12-18 months.

**【CEO Opening Remarks】**
- **Revenue Growth**: Consolidated revenue increased 2.8% YoY, driven by growth in North America Loss Adjusting (+2.7%), International Operations (+6.6%), and Broadspire (+3.6%).
- **Segment Performance**: North America Loss Adjusting faced headwinds from lower U.S. property claims, while International Operations and Platform Solutions saw margin expansion. Broadspire achieved record revenue of $100.6 million.
- **Dividend Increase**: Board approved a 25% dividend hike to $0.075 per share, reflecting confidence in long-term growth.
- **Strategic Focus**: Emphasized investment in GTS (Global Technical Services) talent and technology to capitalize on non-weather opportunities.
- **Market Outlook**: Anticipates normalization of U.S. property claims frequency over 12-18 months as reinsurance pricing stabilizes.

**【CFO Financial Commentary】**
- **GAAP Metrics**: Net income of $7.8 million vs. $8.6 million YoY; diluted EPS $0.16 vs. $0.17 YoY.
- **Non-GAAP Metrics**: Operating earnings $22 million (6.8% of revenue) vs. $22.1 million (7% of revenue) YoY; adjusted EBITDA $31.4 million vs. $30.6 million YoY.
- **Cash Flow**: Operating cash flow $21.1 million vs. ($8.3 million) YoY; free cash flow $2.6 million vs. ($26.7 million) YoY.
- **Balance Sheet**: Total debt $225.4 million; liquidity $58.5 million; leverage ratio 1.75x EBITDA.
- **Segment Breakdown**:
  - **North America Loss Adjusting**: Revenue +2.7%, operating margin -54bps due to U.S. property claims decline.
  - **International Operations**: Revenue +6.9% (constant currency), operating earnings +34%, margin +143bps.
  - **Broadspire**: Revenue +3.6%, operating earnings impacted by headcount and tech investments.
  - **Platform Solutions**: Revenue -9.2% (networks pullback), operating earnings +113%, margin +500bps.

**【Q&A Highlights】**
- **GTS Growth**: All North America Loss Adjusting growth driven by GTS; U.S. GTS modest due to claims suppression, but global expansion continues.
- **Weather Trends**: Q3 2025 weather activity flat YoY; U.S. property claims suppression expected to persist 12-18 months.
- **Broadspire Margins**: 13-16% margin range expected; investments in new business onboarding to drive future growth.
- **International Momentum**: U.K., Europe, and Asia leading growth; 140bps margin improvement YoY.
- **Capital Allocation**: Priority on organic growth and M&A; 1.1 million shares remaining in buyback authorization.


Crawford & Company (CRD.B) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: 3.4% YoY growth ($312M) with 5.7% operating margin, driven by balanced weather/non-weather model.
- **GTS Acceleration**: +12% GTS service line growth, tripled 5-year CAGR, fueled by expert talent and complex claims expertise.
- **International Expansion**: 6% YoY growth (9% FX-neutral) with margin +159bps, led by UK/Europe/Asia high-value services.
- **Profitability Boost**: Platform Solutions operating margin +579bps to 1.6%, Broadspire at 12.7% with 97.5% retention.
- **Weather Risk**: 20-30% storm claims underreporting due to higher deductibles, impacting Q2 outlook despite March surge.

**【CEO Opening Remarks】**
- Q1 2025 revenue grew 3.4% YoY ($312M), driven by 5% growth in constant currency and strong contributions from all segments.
- Operating earnings increased $5.7M YoY, with consolidated operating margin expanding 170bps to 5.7%.
- Non-weather business revenue grew 3.4%, while weather-related revenue rose 6% YoY due to severe storm activity in March.
- Capital allocation remains disciplined, with a 1.9x EBITDA leverage ratio and $0.07 quarterly dividend maintained.

**【CFO Financial Breakdown】**
- **North America Loss Adjusting**: +3% YoY to $79.7M, operating earnings up 22% to $5.5M (GTS service line +12%).
- **International Operations**: +6% YoY ($104.4M), operating margin +159bps to 3.3%.
- **Broadspire**: +2.2% YoY ($96.4M), operating margin 12.7% (97.5% client retention rate).
- **Platform Solutions**: Revenue down slightly, but operating profit +163% to $0.5M (storm-related mix shift).
- GAAP EPS $0.13 vs $0.06 prior year; Non-GAAP EPS $0.21 vs $0.13.
- Free cash flow negative $23.2M (seasonal) vs -$29.4M prior year.

**【Q&A Highlights】**
- **GTS Growth**: 12% YoY driven by expert talent expansion and complex claims wins (e.g., $1B+ property replacements).
- **International Momentum**: Double-digit growth in UK, Europe, Asia via pricing improvements and high-value services (e.g., TPA programs).
- **Broadspire Outlook**: New business pipeline strong, with 97.5% retention rate and anticipatory staffing for 2025 growth.
- **Weather Claims Underreporting**: 20-30% drop in storm claims due to higher deductibles and macroeconomic caution, impacting Q2 outlook.


Crawford & Company (CRD.B) Q1 2025 Earnings Call Transcript

- **Q4 2024 Highlights**: 17% revenue growth, $5.7M GAAP net income, and 78% EBITDA increase. Weather-related claims boosted Platform Solutions by 154%.
- **Segment Strength**: International operations tripled operating earnings, Broadspire grew 6%, and North America loss adjusting expanded 14%.
- **Key Trends**: Technology investment driving efficiency, disciplined capital allocation, and global expansion via acquihires.
- **2025 Outlook**: Focus on core growth, margin improvement, and weather as variable contributor.

**【CEO Summary Section】**
- **Revenue Growth**: 17% year-over-year (YoY) in Q4 2024, driven by strong core businesses and weather-related claims from Hurricanes Helene and Milton. Non-weather segments grew 7%, while weather-related revenue increased 45%.
- **Business Resilience**: Diversified model with 24% North America loss adjusting, 32% international operations, 30% Broadspire, and 14% Platform Solutions. International operating earnings tripled YoY, with margin expansion of 526 basis points.
- **Technology Investment**: Continued focus on AI and digital workflows to enhance claims management. Network segment revenue surged 154% YoY due to catastrophe response.
- **Capital Strategy**: Paid $0.07 quarterly dividend, maintained strong balance sheet with $55.4M cash and 1.85x EBITDA leverage. Acqui-hires in Spain expanded global expertise.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP net income of $5.7M vs. $0.8M loss in 2023. Non-GAAP EPS of $0.19 vs. $0.06 prior year. Adjusted EBITDA rose 78% to $27.9M (8% of revenue).
- **Segment Performance**: 
  - **North America Loss Adjusting**: 14% YoY revenue growth to $79.4M, operating earnings up to $3.4M.
  - **International Operations**: 16% YoY revenue growth to $112.5M, operating margin expanded 526bps.
  - **Broadspire**: 6% YoY revenue growth to $97.7M, operating margin 10.4%.
  - **Platform Solutions**: 55% YoY revenue growth to $57.6M, operating earnings up 144%.
- **Liquidity**: $55.4M cash, $218.1M debt, and $21.1M U.S. pension liability (92.4% funded ratio). Free cash flow $10M vs. $67.2M in 2023, due to receivables timing.

**【Q&A Key Takeaways】**
- **Broadspire Margin**: 10.4% in Q4, lower than mid-teens target due to hiring for new business. Expect stabilization with tech investments.
- **International Pricing**: Enhanced pricing discipline closed gaps, with continued focus on margin expansion.
- **Share Repurchases**: $1.1M shares remaining in 2021 authorization; disciplined buying based on market opportunities.
- **Weather Impact**: No significant carryover from Q4 storms. 2025 outlook focuses on core businesses, with weather as variable contributor.
- **Global Technical Services (GTS)**: 37% YoY growth to $29.2M, driven by acquihires and expanding market share in loss adjusting.


CRD.A

CRD.A fundamentals

Earnings Call

You can ask Aime