Crawford & Company reported a decline in first-quarter profit and revenue on Monday, as reduced weather-related claims activity in the United States weighed on its results.
The Atlanta-based claims management firm posted net income of US$4.9 million, or US$0.10 per diluted share, for the three months ended March 31, 2026, down 27% from US$6.7 million, or US$0.13 per diluted share, in the same period a year earlier.
Revenue before reimbursements fell 1% to US$309.5 million from US$312.0 million in the first quarter of 2025. On a constant-currency basis, revenue dropped 3% to US$301.7 million. Consolidated adjusted EBITDA declined 16% to US$22.4 million, while consolidated adjusted operating earnings fell 23% to US$13.7 million.
President and CEO Bruce Swain attributed the softer performance to conditions across the broader industry. “We saw a mixed environment in the first quarter, with revenue growth and margin improvement in our International Operations tempered by lower claims activity in US property & casualty,” Swain said. “Across our industry, outsourced claims activity has continued to be below historical levels, largely related to an extended period of benign weather.”
Crawford’s US Property & Casualty segment bore the brunt of the slowdown. Revenue in that division fell 11.3% to US$72.9 million, driven by continued decreases in weather-driven services within Claims Solutions and Catastrophe Services. Operating earnings in the segment dropped to US$7.6 million from US$9.8 million, with the operating margin narrowing to 10.4% from 11.9%.
The Broadspire segment posted modest growth, with revenue rising 1% to US$104.8 million, supported by increases in disability claims. However, operating earnings eased to US$10.9 million from US$12.0 million, reflecting a shift in product mix and higher employee costs.
International operations provided a relative bright spot, with revenue climbing 4.5% to US$131.9 million. Operating earnings more than doubled to US$4.0 million from US$2.2 million, with the operating margin improving to 3.0% from 1.8%, driven by stronger results in Canada, Australia, and Asia.
Despite the headline declines, Swain struck a measured tone on the company’s outlook. “Despite a challenging first quarter environment, we won nearly $24 million in new and enhanced business, and our balance sheet and liquidity remain strong,” he said. He added that the company remained “focused on delivering excellent service execution and client outcomes, leveraging the strength of our capabilities to attract and win new customers and capturing additional market share.”
Crawford’s cash and cash equivalents stood at US$54.5 million as of March 31, compared with US$64.1 million at the end of 2025, while total debt rose to US$194.1 million from US$189.1 million. The company repurchased 468,314 shares of CRD-A and 59,555 shares of CRD-B during the quarter.
