Crawford & Company

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 & Company fourth quarter and full year 2025 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 the 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, March 3rd, 2026. Now I would like to introduce Tammy Stevenson, Crawford & Company's General Counsel.

Thank you, Carly. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectability of our billed and unbilled accounts receivable, financial results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreement, our long-term capital resource and liquidity requirements, and our ability to pay dividends in the future. The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward-looking statements. The company undertakes no obligation to publicly release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events. In addition, you are reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission, particularly the information under the headings Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations. as well as subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures. I would now like to introduce Mr. Bruce Swain, Interim Chief Executive Officer of Crawford & Company. Bruce?

Thank you, Tammy. Good morning and welcome to our fourth quarter and full year 2025 earnings call. I'm glad to join you on my first earnings call since being appointed Interim President and CEO, and I'm honored to have the opportunity to lead our company. Joining me today is Holly Boudreau, our Chief Financial Officer, and Tammy Stevenson, our General Counsel. We are pleased to have Holly join us on our first earnings call. She has been with Crawford since 2013 and was previously Senior Vice President of Tax, Treasury, and Finance Transformation. Holly's tenure with the company and our succession planning process has supported a seamless transition. Let me start with a brief reminder of the role we play in the claims process. Profit is a global provider of claims management and outsourcing solutions, serving insurers, corporations, and public entities with expertise across the full spectrum of claims. Our purpose is to restore lives, businesses, and communities. and support our clients by delivering trusted, efficient claim solutions when they need us most. Now turning to our results. Overall, we delivered solid performance in a benign weather year. Revenue was down slightly compared to full year 2024, but we improved our operating earnings and margins. Our core non-weather business delivered strong results, while our weather-related segments encountered a challenging landscape with lower claims activity due to the lack of severe storms throughout the year. This was particularly evident in the fourth quarter, where we faced a tough comparison to 2024, which included over $30 million in revenue from the claims activity related to Hurricanes Helene and Milton. However, the benefits of our diversified business model coupled with disciplined expense management and focused operational execution enabled us to end 2025 with a strong balance sheet near record cash flow, and excellent liquidity. Crawford & Company remains strongly positioned in the marketplace with a business model that leverages our global reach and specialized expertise to manage claims of all types and sizes. We have operations in over 70 countries and a team of approximately 10,000 professionals handling over $20 billion in claims annually. We have an 85-year history in the industry and have demonstrated success securing the trust of leading insurers, corporations, and partners. We place client success at the center of everything we do and believe our deep experience and global presence combined with our ability to offer reliable, tailored solutions across a diverse market gives us a distinct advantage in the claims management industry. Our growth opportunities stem from our ability to address several macro trends impacting the global claims management industry. First, the increasing complexity of risk is expanding the major and complex loss market. Clients are looking for partners with deep technical expertise, global coordination, and the ability to manage high severity complex claims efficiently. Crawford's global technical services team is among the leaders in this market. with the capabilities and demonstrated track record of service excellence that position us well in this segment. Second, with the start of 2026, we have streamlined our global operating structure. I'll provide more detail on this change later in the call, but at a high level, we have moved Canada under our international operations and established a new US operating structure to improve operational efficiency, enhance client outcomes, and support scalable growth. By aligning our businesses under a streamlined, client-centric structure, we believe we will have faster execution, better collaboration, and a more unified and differentiated value proposition to the markets we serve. Third, our industry-leading expertise and technology capabilities continue to enhance our competitive position. Investments in people, systems, and data enable us to deliver better outcomes for clients, deepen relationships, and capture profitable market share. Fourth, natural disasters continue to drive global demand for claims services. The timing and severity of events will always vary, as we saw in 2025, but the underlying long-term trend towards more frequent and complex loss events should drive demand for Crawford's technical expertise and global reach. And finally, the claims environment grows more complex every day, spanning medical management, regulatory requirements, and multi-party coordination. As a result, clients are increasingly turning to experienced third-party administrators such as Broadsfire to manage their needs. Broadsfire has the scale, expertise, and technology to support carriers and self-insured clients as they seek better outcomes in a more demanding claims environment. Together, these drivers represent a favorable environment for us to accelerate our long-term growth and create sustainable value. Now I'll provide a more detailed look at our full-year results. As I mentioned earlier, we delivered solid execution and achieved meaningful progress in many areas during 2025, although our overall performance reflected a mixed claims environment. Revenue of $1.27 billion was largely consistent year-over-year, despite reduced U.S. property claims activity related to the benign weather experience throughout the year. At the same time, we achieved record results in our non-weather-dependent businesses, with Broad Spire and International Operations both delivering record annual revenues, underscoring the strength of our balanced portfolio. From a profitability standpoint, consolidated operating earnings increased by just over 10% to $82.3 million, driven by improved performance in North America loss adjusting, international operations, and Broad Spire. Broad Spire delivered record operating earnings again this year, reinforcing its role as a core profit engine for Crawford. Our consolidated operating margin expanded to 6.5% for full year 2025. Our non-GAAP EPS was 91 cents for both CRDA and CRDB, increasing over 2024 earnings. Crawford added 98 million in new business in 2025, demonstrating the appeal of our value-added solutions, commitment to service excellence, and the strength of our reputation in the marketplace. We remain intent on continuously improving our go-to-market strategy with a disciplined focus on growing profitable market share. Our operating cash flow for 2025 was 102 million, improving 50 million over 2024. This is an important indicator of the strength of our business, providing us the ability to invest in our people, technology, and market-leading client solutions, all while maintaining a strong balance sheet. The company's strong liquidity and very low leverage ratio of 1.39 times EBITDA highlights our disciplined approach to capital management. and provides us with enhanced financial flexibility. Our company has built a strong foundation through our disciplined approach to deploying capital, with a commitment to investing back in the business to deliver long-term growth and returning value to shareholders through our quarterly dividend and opportunistic share repurchases. Additionally, we continue to evaluate inorganic growth opportunities for growth. including targeted M&A and ACWA hires to expand our capabilities, scale, and reach. During 2025, we paid an annual dividend of 29 cents per share, having increased the quarterly dividend to 7.5 cents per share in the 2025 third quarter. And we repurchased over 690,000 shares of CRDA and CRDB in the fourth quarter of 2025. With that, let me turn the call over to Holly for a deeper look at our fourth quarter financial performance.