Q2 2026 Crawford & Co Earnings Call Transcript
Key Points
- Consolidated operating earnings increased 34% year-over-year, marking the best quarterly performance since Q3 2023.
- Non-GAAP EPS rose to $0.38 per share from $0.22 in the prior-year quarter, a substantial improvement.
- Broadspire delivered strong results with revenue up 1.2% and operating earnings up 10.8%, driven by new disability clients and improved medical management revenues.
- International operations saw a 48.2% increase in operating earnings, boosted by weather-related claims in Australia and Asia, with operating margins up 240 basis points.
- The company increased its quarterly dividend to $0.08 per share, reflecting confidence in cash generation and profitability.
- Leverage ratio remained low at 1.45 times EBITDA, providing financial flexibility for strategic investments and acquisitions.
- Total revenues declined slightly year-over-year to $321.4 million, impacted by softer performance in the U.S. Property and Casualty segment.
- U.S. Property and Casualty revenues decreased 10.2% due to weaker networks business, with claims frequency tracking below historical levels.
- The company recognized a $2.3 million impairment charge related to two software assets, negatively impacting earnings.
- The exit of Crawford Legal Services resulted in a net loss of $1.3 million, with an additional $1.3 million in expenses expected when closing the UK entity.
- Weather-related revenues in international markets are expected to moderate in Q3 and Q4, potentially reducing future earnings contributions.
- The U.S. severe storm activity declined 6.8% in Q2, and the property market remains soft, pressuring demand for claims services.
Good morning. My name is Carly and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford and Company Second 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 speaker's 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, August 4th, 2026.
Now I would like to introduce Tammy Stevenson, Crawford and Company's General Counsel.
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