Crawford & Company (CRD-A) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 17% year-over-year to $347.3 million, driven by core business strength and increased weather-related claims from Hurricanes Helene and Milton.

• All business segments reported revenue growth and margin expansion in Q4, with operating earnings rising 140% year-over-year to $18.7 million.

• Achieved record annual revenues of $1.293 billion in 2024, with Broadspire and International segments delivering record results.

• Maintained a strong balance sheet, low leverage ratio (1.85x EBITDA), and paid $0.28 per share in dividends for 2024.

• Margin expansion and improved profitability were seen in North America Loss Adjusting, International, and Platform Solutions.

Financial highlights

• Q4 net income attributable to shareholders was $5.7 million, reversing a prior year loss; Q4 adjusted EBITDA rose 78% year-over-year to $27.9 million (8% margin).

• Q4 diluted EPS: $0.11 (CRD-A), $0.12 (CRD-B); non-GAAP/adjusted EPS: $0.19 for both classes.

• Free cash flow for 2024 was $10 million, down from $67.2 million in 2023, mainly due to timing of receivables and higher capex.

• Cash and equivalents at year-end were $55.4 million; net debt $162.7 million; total debt $218.1 million.

• Full-year adjusted EBITDA was $108.7 million, down 8% year-over-year; full-year net income declined 13% to $26.6 million.

Outlook and guidance

• Entering Q1 2025 with relatively quiet weather; no significant revenue impact expected from California wildfires.

• Core non-weather businesses expected to maintain strong trajectory; weather-related revenue outlook depends on event frequency.

• Focus on technology, innovation, and insurtech capabilities to drive future growth and enhance customer experience.