Crawford & Company

Good morning. My name is Dustin, and I will be your conference operator facilitated today. At this time, I would like to welcome everyone to the Crawford & Company First Quarter 2026 Earnings Release Conference Call. In conjunction with this call, a supplementary financial presentation is available on our website at www.focall.com under the Investor Relations section. All lines will be placed on mute to prevent any background noise. After the speaker 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, May the 5th, 2026. Now, I would like to introduce Tammy Stevenson. Profit and Companies General Counsel.

Thank you, Dustin. 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 build and unbuild accounts receivable, financial results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, 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-Q for the quarter ended March 31, 2026, 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 Wayne, Chief Executive Officer of Crawford & Company. Bruce?

Good morning and welcome to our first quarter 2026 earnings call. I'm honored to be speaking with you today as President and CEO of Crawford & Company. Joining me today is Holly Boudreau, our Chief Financial Officer, and Tammy Stevenson, our General Counsel. After our prepared remarks, we will open the call for your questions. As a reminder, Crawford is a global provider of claims management and outsourcing solutions, serving large insurance carriers and self-insured entities with industry-leading expertise across the claims landscape. Our purpose is to restore lives, businesses, and communities by providing our clients with dependable and comprehensive claim solutions and outcomes. As we mentioned on our fourth quarter call, effective January 1, 2026, we began operating under two divisions. U.S. operations, comprised of our U.S. property and casualty and broadspire businesses, and international operations, which includes all service lines outside of the U.S. We believe this streamlined operating model will strengthen execution, improve client outcomes, and drive continued growth across the business. As we've consistently demonstrated, our ability to deliver at scale across more than 70 countries with a team of 10,000 professionals and over $20 billion in claims managed annually sets us apart in a competitive and evolving marketplace. This global reach, combined with over eight decades of deep technical expertise and an unwavering commitment to service excellence and client success, allows us to meet the needs of the world's leading insurers and corporations, regardless of the size or complexity of the program. This combination of global presence, technical depth, and proven experience positions Crawford & Company as a trusted partner of choice for clients navigating an increasingly complex risk landscape across a variety of geographies and market conditions. Our organic growth opportunities are underpinned by a combination of favorable industry dynamics and core capabilities. First, risk is becoming increasingly complex. As a result, clients are seeking partners with a demonstrated ability to handle high severity claims with speed and efficiency, something that we're uniquely positioned to do globally. Second, as I just touched upon, we streamlined our operating structure at the start of 2026 to further improve efficiency and support continued scalable growth. It's our belief that this strengthened operating model in the US will allow us to be a more agile, and unified organization as we look to provide further value to our clients and partners. Third, our deep expertise and technology capabilities remain a true differentiator. Our ongoing commitment to our people and cutting edge technology translates into service excellence and performance differentiation in the markets we serve. Fourth, natural disasters remain a significant driver of sustained demand for our services while individual weather events are inherently unpredictable, as we've experienced the last few quarters. The broader trajectory points towards an active and complex loss environment in which Crawford service offerings are increasingly needed. Finally, growing complexity across the claims landscape is prompting more carriers and self-insured clients to search for dependable third-party administrators. Our global TPA operations have the scope scale, and specialized knowledge required to help clients in today's increasingly challenging claims environment. Let me take a moment to discuss our first quarter 2026 results. We executed well in the quarter despite weather-related headwinds in the U.S. that we discussed on our 2025 year-end earnings call. First quarter revenues were $309.5 million, down slightly compared to last year and reflected the continued trend of lower industry-wide property claims activity in the U.S. as we saw a continuation of relatively benign weather conditions to start the year. Importantly, our non-weather-dependent businesses reflected quarter-over-quarter growth, with Broad Spire and international operations reporting increased revenues compared to the prior year period, highlighting the benefit of our diversified operations. Consolidated operating earnings decreased by 23.2% year-over-year as a result of lower results in our U.S. property and casualty business and higher unallocated and corporate costs, partially offset by improved operating earnings in international operations. Our non-GAAP EPS was $0.16 for both CRDA and CRDB, compared to $0.21 for both share classes in the prior year quarter. Operating cash flow was $3.3 million in the first quarter of 2026, improving by $17.2 million year-over-year and providing us with continued financial strength and flexibility. We added $24 million in new and enhanced business during the first quarter. Pipeline activity in the quarter was encouraging and we have a continued focus on further sharpening our go-to-market approach to turn these opportunities into wins. Our leverage ratio was 1.62 times EBITDA, well below industry levels, reflecting our disciplined capital management approach. We continue to have a thoughtful approach to capital allocation, strategically investing in our business with an eye towards long-term growth, while ensuring continued balance sheet and liquidity strength. We maintained our quarterly dividend and opportunistically engaged in share repurchases during the quarter. Beyond organic investment and returning capital to shareholders, we continually evaluate external growth opportunities, including targeting acquisitions and acqui-hires that can meaningfully broaden our capabilities and strengthen our position in the market. With that, I'll turn the call over to Holly for a deeper look at our first quarter financial performance.