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 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 4, 2026. Now I would like to introduce Tami 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 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 end in June 30, 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 Sprain, Mr. Bruce Swain, Chief Executive Officer of Crawford & Company. Bruce, you can begin the conference.

Good morning and welcome to our second quarter 2026 earnings call. Joining me today are Holly Boudreau, our Chief Financial Officer, and Tami Stevenson, our General Counsel. After our prepared remarks, we will open the call for your questions. As you know, Crawford is a global provider of claims management and outsourcing solutions. bringing deep expertise across the full spectrum of claim services to major insurance carriers and self-insured organizations. At the heart of what we do is a commitment to restore lives, businesses, and communities by delivering reliable and comprehensive claim solutions and outcomes. We have a long and successful track record operating across more than 70 countries, backed by 10,000 professionals, and managing over $20 billion in claims each year. It's this global footprint, paired with more than eight decades of technical expertise and a steadfast focus on service excellence and client success that enables us to serve the world's top insurers and corporations, no matter the size or complexity of the program. Our blend of global presence, deep technical knowledge, and proven performance make Crawford & Company the partner clients turn to as they work through an ever-shifting risk environment, no matter where they operate or what market conditions they face. There are several favorable industry dynamics that combine with our core capabilities to form the foundation of our organic growth strategy. First, as risk grows more complex, the major and complex loss market continues to expand, prompting clients to seek partners that combine a deep technical skill set with speed and efficiency in handling high severity claims. Second, the start of 2026 marked the unification of our U.S. operating structure. aimed at improving efficiency and supporting scalable growth going forward. We believe this strengthened, client-centric operating model will allow us to be a more nimble and cohesive organization as we continue delivering value-added outcomes to our clients and partners. Third, the depth of our experience and our investment in technology continue to set us apart. By prioritizing our people and staying at the forefront of technological innovation, were able to stand out across every market we operate in. Fourth, natural disasters continue to fuel steady demand for our services. While the timing and severity of weather events can't always be anticipated, the overall long-term trends suggest a more active and complex loss environment where Crawford is uniquely positioned to serve. Finally, as the claims environment becomes more difficult to navigate, more carriers and self-insured clients are turning to third-party administrators as strategic partners. Our worldwide TPA footprint offers the reach, scale, and expertise needed to successfully support clients as they navigate the evolving claims landscape. Let me take a moment to discuss our second quarter 2026 results. We delivered a solid second quarter, driven primarily by weather-related claims volume in international and growth in Broad Spire. In fact, this quarter had the best overall operating earnings since the 2023 third quarter. Second quarter revenues were $321.4 million, which was down slightly year-over-year. Our consolidated operating earnings increased 34% over the prior year quarter related to strong performance in Broad Spire and International, the latter of which was driven by heightened weather-related revenues in Australia and Asia. Our non-GAAP EPS was 38 cents for both CRDA and CRDB, up substantially from 22 cents for both share classes in the prior year quarter. Operating cash flow was $23.1 million year-to-date, improving over the 2025 period and providing us with continued financial resilience and flexibility. We added nearly $22 million in new and enhanced business during the second quarter. I'm encouraged by the number and size of opportunities we're seeing in the marketplace, and the team is focused on closing the deals currently in play. Our leverage ratio is 1.45 times EBITDA at the low end of our targeted range and well below industry levels, and our liquidity remains very strong. Our disciplined capital allocation approach reflects a commitment to steadily building long-term growth. We continue to strategically invest in the business while maintaining a strong balance sheet and continued liquidity strength. In addition to organic investments and opportunistic share repurchases, we actively evaluate inorganic growth opportunities such as selective acquisitions or acqui-hires that can sharpen our capabilities and expand our competitive positioning in the marketplace. We are committed to paying a quarterly dividend and given our consistent profitability and strong cash generation, the Board has approved an increase to the quarterly dividend to $0.08 per share. With that, I'll turn the call over to Holly for a deeper look at our second quarter financial and operational performance.