CRAWFORD & CO (CRD-A)·Q4 2024 Earnings Summary

Executive Summary

• Q4 delivered a sharp top-line snapback on storm-driven volumes: revenues before reimbursements rose 17% year over year to $347.3M, while GAAP diluted EPS improved to $0.11 (CRD-A) from $(0.02) in Q4’23; non‑GAAP diluted EPS was $0.19 .
• Strength was broad: North America Loss Adjusting, International Operations, and Platform Solutions all expanded margins; Broadspire posted another growth quarter and a second consecutive record revenue year .
• Cash generation weakened in FY’24 (free cash flow $10.0M vs $67.2M in FY’23) amid working capital headwinds and higher capitalized software spend; total debt edged up to $218.1M, cash ended at $55.4M .
• Management cited increased claims tied to Hurricanes Helene and Milton as a Q4 catalyst and reiterated focus on operational excellence and technology investment; the Board maintained the $0.07 quarterly dividend in February 2025 .

What Went Well and What Went Wrong

• What Went Well

  • Weather-related surge boosted revenue and margins across three segments; CEO: “increased claims activity during the fourth quarter in the aftermath of Hurricanes Helene and Milton” and “margin expansion in our North America Loss Adjusting, International Operations and Platform Solutions segments” .
  • International Operations accelerated: Q4 revenues +15.8% YoY to $112.5M; operating margin rose to 7.5% from 2.3% on U.K. and Europe strength .
  • Broadspire momentum persisted: Q4 revenues +6% YoY to $97.7M; FY revenue a new record; FY operating margin 13.5% (+170 bps YoY) on new programs, medical management usage, and pricing .

• What Went Wrong

  • Platform Solutions still soft on the year: FY revenue down 23% YoY and FY margin compressed to 6.4% (12.7% in FY’23), reflecting lower Networks demand and Contractor Connection weakness despite a strong Q4 .
  • Corporate cost drag: unallocated corporate costs rose to $28.1M in 2024 (from $19.4M), driven by professional fees, compensation, and self-insurance .
  • Free cash flow contracted to $10.0M (from $67.2M), with operating cash flow down to $51.6M (from $103.8M), primarily from receivables changes and lower earnings .

Financial Results

Overall performance (oldest → newest)

Q4 year-over-year comparables (headline)

• Revenue +17% YoY ($347.3M vs $296.1M) .
• GAAP diluted EPS improved to $0.11 (from $(0.02)) .
• Non‑GAAP diluted EPS improved to $0.19 (from $0.06 CRD‑A) .

Segment performance and margins (oldest → newest)

KPIs and balance sheet

Non‑GAAP adjustments (Q4 2024 EPS bridge, CRD‑A)

• GAAP diluted EPS $0.11; addbacks: intangible amortization ~$0.03, non‑service pension ~$0.04, contingent earnout ~$0.01 → non‑GAAP diluted EPS $0.19 .

Guidance Changes

Crawford did not issue formal revenue/EPS margin guidance in the Q4 materials. The Board declared a dividend consistent with prior run-rate.

No other quantitative guidance provided in Q4 press materials .

Earnings Call Themes & Trends

Note: No Q4’24 transcript located; themes below draw from Q2, Q3, and Q4 CEO commentary/press releases.

Management Commentary

• “Our fourth quarter performance delivered a strong close to 2024, reflecting revenue growth across all business lines and margin expansion in our North America Loss Adjusting, International Operations and Platform Solutions segments.” — Rohit Verma, CEO .
• “As we expected…we saw increased claims activity during the fourth quarter in the aftermath of Hurricanes Helene and Milton…” — Rohit Verma, CEO .
• “As we move through 2025, we remain committed to delivering operational excellence, investing in our people, improving our technology, and embracing innovation…” — Rohit Verma, CEO .

Q&A Highlights

Crawford announced the Q4/FY’24 call for March 4, 2025, and provided the webcast/slide access, but no public transcript was found in the document set; therefore Q&A details and any guidance clarifications are unavailable from primary sources reviewed .

Estimates Context

• Wall Street consensus (S&P Global) for Q4’24 revenue and EPS could not be retrieved due to an S&P Global daily request limit; as a result, a formal beat/miss assessment versus consensus is unavailable at this time. Values would ordinarily be sourced from S&P Global.
• Directionally, Q4 showed strong YoY growth and sequential improvement in revenue, but non‑GAAP EPS was roughly in line with recent quarters ($0.19 vs $0.22 in Q3 and $0.25 in Q2) .

Key Takeaways for Investors

• Q4 weather surge drove a clear top-line inflection and margin improvements in three segments; monitor CAT cadence into 1H’25 as a near-term trading catalyst .
• Broadspire remains the structural growth engine (new programs, medical management, pricing), underpinning medium-term earnings durability independent of weather .
• International Operations turnaround is gaining traction with margin expansion; continued execution in U.K./Europe should support mix and profitability .
• Platform Solutions’ Q4 rebound shows operating leverage to event activity, but FY results highlight ongoing weather sensitivity; treat as a volatility amplifier rather than a core driver .
• Cash conversion was weak in FY’24 (FCF $10M), with higher capitalized software spend and receivables dynamics; improvement in working capital will be key to de‑risking the equity story .
• Capital returns steady (dividend maintained, opportunistic CRD‑B buybacks); balance sheet modestly more levered but manageable (debt $218.1M, cash $55.4M at YE) .
• Watch 2025 themes: technology/insurtech rollouts, pricing discipline, and corporate cost containment after a step-up in 2024 unallocated costs .

Appendix: Additional Details

• Balance Sheet and Cash Flow Highlights: YE cash $55.4M; total debt $218.1M; 2024 operating cash flow $51.6M; free cash flow $10.0M .
• Share Repurchases: 409,610 CRD‑B shares repurchased in 2024 at $9.44 average; no CRD‑A repurchases .
• Non‑GAAP EPS Bridge (Q4): GAAP EPS $0.11; +$0.03 amortization; +$0.04 non‑service pension; +$0.01 earnout → non‑GAAP $0.19 .