Crawford & Company · NYSE:CRD.A
Crawford & — Q1 2025 Earnings Presentation
35 slides from Crawford &'s earnings presentation, May 6, 2025
Slide 1: First Quarter 2025 Financial Results
® CRD-A & CRD-B (NYSE) Crawford & Company First Quarter 2025 Financial Results
Slide 2: Forward-Looking Statements & Additional Information
2 Forward-Looking Statements & Additional Information Forwa rd-Looking Statements This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative
Slide 3: Strategic Update
3 STRATEGIC UPDATE Rohit Verma President & Chief Executive Officer Q1 2025 FINANCIAL RESULTS
Slide 4: Global Reach; Trusted Partner
4 Global Reach; Trusted Partner 70 $20B+ Countries Claims Managed Annually 10,000+ 50,000+ Employees Field Resources Q1 2025 FINANCIAL RESULTS
Slide 5: Multiple Growth Drivers Benefitting Crawford
5 Multiple Growth Drivers Benefitting Crawford Increasing weather Increased presence in Gaining market share Growing and Industry-leading volatility continues to rapidly growing P&C within fragmented U.S. strengthening strategic expertise and drive global demand in insurance markets with independent
Slide 6: First Quarter 2025 Highlights
• First Quarter 2025 Highlights YoY Revenue Growth 66 • Consolidated revenue growth of 3.4% YoY • Revenue growth in North America Loss Adjusting, $301.7M $312.0 International Operations and Broadspire segments • Margin expansion and improved profitability in North America Loss Adjusting, Internation
Slide 7: Balanced Revenue Model with Weather and Non-Weather Growth Drivers
7 Balanced Revenue Model with Weather and Non-Weather Growth Drivers U.S. Severe Storm Reports1,2 Consolidated Weather-Related vs. Non-Weather-Related Revenue +3.4% +74% $301.7M $312.0M 3,569 $77.8M +5.9% $82.4M 2,048 +2.5% $223.9M $229.6M Q1 ‘24 Q1 ‘25 Q1 ‘24 Q1 ‘25 Non-weather-related revenue Weat
Slide 8: Our Capital Allocation Strategy
8 Our Capital Allocation Strategy Committed to Industry-Leading Financial Strength and Employing a Disciplined Approach to Capital Allocation Investing in long-term growth Strong liquidity Paid quarterly dividend of $0.07 through Cap Ex and M&A Leverage ratio significantly below per share industry a
Slide 9: Operational Update
99 OPERATIONAL UPDATE Bruce Swain, Chief Financial Officer Q1 2025 FINANCIAL RESULTS
Slide 10: First Quarter 2025 Revenue Contribution
10 First Quarter 2025 Revenue Contribution North America International Broadspire Platform Solutions Loss Adjusting Operations (U.S.-only) (US-only) 26% 33% 31% 10% Comprised of the Following Comprised of All Service Lines Third Party Administration for: Comprised of the Following North American Ser
Slide 11: North America Loss Adjusting
11 11 North America Loss Adjusting First Quarter 2025 Results $79.7M $5.5M Revenues Operating Earnings • Revenue increased 3% • U.S. GTS revenues increased 12% YoY • U.S. Field Ops revenues increased 3% YoY • Operating earnings increased by 22% YoY • Operating margin expanded 108 bps • Destination f
Slide 12: International Operations
12 12 International Operations First Quarter 2025 Results $104.4M $3.5M Revenues Operating Earnings • Revenue growth of 6% or 9% when measured in constant currency • Strong performance with revenues increasing more than 10% in UK, Europe and Asia • Operating earnings more than doubled YoY • Operatin
Slide 13: Broadspire
13 13 Broadspire First Quarter 2025 Results $96.4M $12.2M Revenues Operating Earnings • Revenue growth of 2.2% with growth across all service lines driven by new business growth and pricing • Operating earnings decreased YoY related to increased expenses associated with intentional staffing addition
Slide 14: Platform Solutions First Quarter 2025 Results
14 14 Platform Solutions First Quarter 2025 Results $31.5M $2.9M Revenues Operating Earnings • Revenue down slightly YoY • Increased storm activity occurred late in the quarter • Operating earnings growth of 163% YoY • Driven by improved flow-through in Networks line • Operating margin expansion of
Slide 15: Financial Update
15 15 FINANCIAL UPDATE Bruce Swain, Chief Financial Officer Q1 2025 FINANCIAL RESULTS
Slide 16: Q1 2025 Financial Summary
16 Q1 2025 Financial Summary Quarter Ended Unaudited ($ in millions, except per share amounts) March 31, 2025 March 31, 2024 % Change Revenues $312.0 $301.7 3% Non-GAAP Revenues excluding foreign exchange fluctuations(1) $316.5 $301.7 5% Net Income Attributable to Shareholders of Crawford & Company
Slide 17: Balance Sheet Highlights
17 Balance Sheet Highlights Unaudited ($ in thousands) Mar 31, 2025 Dec 31, 2024 Change Cash and cash equivalents $ 57,367 $ 55,412 $ 1,955 Accounts receivable, net 134,140 142,064 (7,924) Unbilled revenues, net 136,596 131,080 5,516 Total receivables 270,736 273,144 (2,408) Goodwill 76,374 76,368 6
Slide 18: Net Debt and Pension Liability
18 Net Debt and Pension Liability Net Debt Pension Liability 250,000 70,000 $74.3M 60,000 200,000 $189.2M 50,000 150,000 $137.3M 40,000 30,000 100,000 $20.5M 20,000 50,000 10,000 - - 2019 2020 2021 2022 2023 2024 Q1 2025 2019 2020 2021 2022 2023 2024 Q1 2025 Net debt at $189.2 million Pension liabil
Slide 19: Operating and Free Cash Flow
Operating and Free Cash Flow 19 Unaudited ($ in thousands) 2025 2024 Change Net Income Attributable to Shareholders of Crawford & Company $ 6,684 $ 2,837 $ 3,847 Depreciation and Other Non-Cash Operating Items 11,657 10,378 1,279 Contingent Earnout Adjustments 363 151 212 Billed Receivables Change 6
Slide 20: Additional Financial Matters
20 Additional Financial Matters Unallocated • Unallocated corporate costs of $6.2 million in Q1 ‘25 compared to corporate costs of $8.0 million in Q1 ‘24 Corporate and Shared • Variance was primarily due to decreases in self-insurance expense and Costs and Credits professional fees. • During Q1 ‘25
Slide 21: Summary
21 Summary Leveraging strong relationships to enhance market position Leading the industry with next generation Insurtech capabilities Capitalizing on the changing landscape due to climate change and demographic shifts Financial strength and liquidity provide flexibility to pursue market opportuniti
Slide 22: Appendix: Segment Results and Non-GAAP Financial Information
22 22 Appendix: Segment Results and Non-GAAP Financial Information Q1 2025 FINANCIAL RESULTS
Slide 23: North America Loss Adjusting
23 North America Loss Adjusting Three months ended Unaudited (in thousands, except percentages) March 31, 2025 March 31, 2024 Variance Revenues $79,740 $77,365 3.1% Direct expenses 63,913 62,853 1.7% Gross profit 15,827 14,512 9.1% Indirect expenses 10,351 10,033 3.2% Operating earnings $5,476 $4,47
Slide 24: International Operations
24 International Operations Three months ended Unaudited (in thousands, except percentages) March 31, 2025 March 31, 2024 Variance Revenues $104,394 $98,092 6.4% Direct expenses 85,473 82,111 4.1% Gross profit 18,921 15,981 18.4% Indirect expenses 15,465 14,291 8.2% Operating earnings $3,456 $1,690
Slide 25: Broadspire
25 Broadspire Three months ended Unaudited (in thousands, except percentages) March 31, 2025 March 31, 2024 Variance Revenues $96,384 $94,298 2.2% Direct expenses 71,885 69,993 2.7% Gross profit 24,499 24,305 0.8% Indirect expenses 12,296 11,501 6.9% Operating earnings $12,203 $12,804 (4.7)% Gross p
Slide 26: Platform Solutions
26 Platform Solutions Three months ended Unaudited (in thousands, except percentages) March 31, 2025 March 31, 2024 Variance Revenues $31,514 $31,899 (1.2)% Direct expenses 23,696 24,668 (3.9)% Gross profit 7,818 7,231 8.1% Indirect expenses 4,891 6,116 (20.0)% Operating earnings $2,927 $1,115 162.5
Slide 27: Non-GAAP Financial Information
27 Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to
Slide 28: Non-GAAP Financial Information (cont.)
28 Non-GAAP Financial Information (cont.) Segment and Consolidated Operating Earnings Operating earnings is the primary financial performance measure used by our senior management and chief operating decision ma ker to evaluate the financial performance of our Company and operating segments and make
Slide 29: Total Revenue Before Reimbursements by Major Currency
Total Revenue Before Reimbursements by Major Currency 29 The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Three Months Ended Unaudited (in thousands) March 31, 2025 March 31, 2024 Geographic Area
Slide 30: Reconciliation of Non-GAAP Item
30 Reconciliation of Non-GAAP Item Revenues and Costs of Services Provided Quarter Ended Quarter Ended Unaudited ($ in thousands) March 31, 2025 March 31, 2024 Revenues Before Reimbursements Total Revenues $ 323,339 $ 313,073 Reimbursements (11,307) (11,419) Revenues Before Reimbursements 312,032 30
Slide 31: Reconciliation of Non-GAAP Items (cont.)
31 Reconciliation of Non-GAAP Items (cont.) Operating Earnings Quarter Ended Quarter Ended March 31, 2025 March 31,2024 Unaudited ($ in thousands) North America Loss Adjusting $ 5,476 $ 4,479 International Operations 3,456 1,690 Broadspire 12,203 12,804 Platform Solutions 2,927 1,115 Unallocated cor
Slide 32: Reconciliation of Non-GAAP items (cont.)
32 Reconciliation of Non-GAAP items (cont.) Adjusted EBITDA Quarter Ended Quarter Ended March 31, 2025 March 31, 2024 Unaudited ($ in thousands) Net Income Attributable to Shareholders of Crawford & Company $ 6,684 $ 2,837 Add: Depreciation and amortization 9,647 9,299 Stock-based compensation 1,390
Slide 33: Non-GAAP Financial Information (cont.)
33 Non-GAAP Financial Information (cont.) Net Debt March 31, 2025 December 31, 2024 Unaudited ($ in thousands) Short-term borrowings $ 41,248 $ 17,750 Current installments of finance leases and other obligations 47 72 Long-term debt and finance leases, less current installments 205,274 200,315 Total
Slide 34: Non-GAAP Financial Information (cont.)
Non-GAAP Financial Information (cont.) 34 Segment Gross Profit Three months ended Unaudited ($ in thousands) March 31, 2025 March 31, 2024 North America Loss Adjusting $ 15,827 $ 14,512 International Operations 18,921 15,981 Broadspire 24,499 24,305 Platform Solutions 7,818 7,231 Segment gross profi
Slide 35: Reconciliation of First Quarter Non-GAAP Results
Reconciliation of First Quarter Non-GAAP Results 35 Three Months Ended March 31, 2025 Net Income Attributable to Crawford & Diluted Earnings Diluted Earnings Unaudited ($ in thousands) Pretax Earnings Company per CRD-A Share per CRD-B Share GAAP $ 9,220 $ 6,684 $ 0.13 $ 0.13 Adjustments: Amortizatio