NYSE:CRD-A
CRAWFORD & CO
A global leader in industrial lifting and rigging services offering comprehensive solutions to energy and construction sectors with robust operational cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors may view CRD-A as an attractive defensive play within the industrial services sector due to its diversified revenue streams across multiple geographies and end-markets. The company's strong operating cash flow of $51.6M provides ample liquidity to fund capital expenditures of $6.2M and return capital to shareholders through dividends and buybacks. As global infrastructure spending increases, the demand for specialized rigging and inspection services is expected to grow, offering long-term upside potential.
Bear Case
Bearish investors will point to the company's heavy reliance on the cyclical energy sector, which could suffer from prolonged oversupply or regulatory headwinds affecting project volumes. The accumulated other comprehensive loss of $217.1M and significant retained earnings deficit suggest historical volatility or past accounting adjustments that may warrant caution. With current liabilities at $299.7M exceeding current assets less non-current items, leverage ratios may tighten if interest rates remain elevated, impacting the ability to service debt.
About CRAWFORD & CO
Crawford & Co. (CRD-A) is a leading provider of industrial services including rigging, hoisting, lifting, and welding solutions serving the energy, construction, and mining sectors globally. The company leverages its extensive network of service centers to deliver turnkey project support for complex infrastructure developments and heavy equipment operations. With strong cash flow generation from operations exceeding $51M, the firm maintains a resilient balance sheet while navigating capital-intensive industry cycles.
Analysis
Management Discussion
Management successfully stabilized profitability after 2022 losses, delivering net income of $26.5M in 2024 despite a slight revenue deceleration from $1.32B in 2023 to $1.34B. Operational cash flow of $51.6M significantly exceeds net income, indicating high quality earnings supported by working capital management that increased receivables by $10.7M. However, the company faced a substantial non-cash loss of $326,000 from foreign exchange effects and utilized $41.6M in investing cash flows, likely for strategic equipment upgrades or facility expansions.
Industry Overview
The industrial rigging and lifting services industry is characterized by high barriers to entry due to stringent safety regulations, specialized equipment requirements, and the need for certified personnel. Global demand fluctuates with energy prices and construction cycles, yet the sector remains essential for maintaining critical infrastructure in mining, power generation, and oil and gas. Consolidation trends favor established players with global footprints like Crawford & Co. who can offer bundled solutions to large-scale project owners.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $1.23B | $1.32B | $1.34B |
| Cost of Revenue | $924.9M | $957.8M | $973.4M |
| Gross Profit | $306.4M | $359.1M | $367.5M |
| Operating Expenses | $301.3M | $311.7M | $326.4M |
| Operating Income | $5.0M | $47.4M | $41.1M |
| G&A | $255.8M | $286.5M | $299.7M |
| Stock-Based Comp | $4.9M | $5.6M | $5.8M |
| D&A | $36.1M | $35.7M | $36.2M |
| Depreciation | $11.9M | $10.0M | $8.9M |
| Other OpEx | $45.6M | $25.2M | $26.8M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $10.3M | $17.0M | $16.9M |
| Interest Income | $655.0K | $2.8M | $3.4M |
| Pre-Tax Income | $5.0M | $47.4M | $41.1M |
| Income Tax | $23.6M | $17.1M | $14.6M |
| Continuing Ops | $-18.5M | $30.3M | $26.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-18.5M | $30.3M | $26.5M |
| Minority Interest | $-227.0K | $-349.0K | $-67.0K |
| Net to Common | $-18.3M | $30.6M | $26.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $351.3M | $369.3M | $374.2M |
| Cash & Equivalents | $46.0M | $58.4M | $55.4M |
| Accounts Receivable | $141.1M | $131.4M | $142.1M |
| Prepaid Expenses | $28.8M | $58.2M | $40.3M |
| Other Current Assets | $135.4M | $121.5M | $136.4M |
| Long-Term Assets | $440.2M | $429.9M | $429.5M |
| PP&E (Net) | $27.8M | $22.7M | $20.6M |
| Intangibles | $88.0M | $81.8M | $74.5M |
| Goodwill | $76.6M | $76.7M | $76.4M |
| Operating Leases | $93.3M | $88.6M | $78.8M |
| Other LT Assets | $154.4M | $160.0M | $179.3M |
| Total Assets | $791.5M | $799.2M | $803.8M |
| Current Liabilities | $279.5M | $299.3M | $299.7M |
| Accounts Payable | $50.8M | $45.1M | $50.6M |
| Current Leases | $22.9M | $24.4M | $24.5M |
| Deferred Revenue | $29.3M | $35.5M | $36.1M |
| Other Current Liab | $176.4M | $194.3M | $188.5M |
| Long-Term Liabilities | $388.6M | $360.1M | $348.5M |
| LT Operating Leases | $84.6M | $78.0M | $66.8M |
| Other LT Liab | $279.3M | $257.2M | $258.1M |
| Total Liabilities | $668.1M | $659.4M | $648.2M |
| Shareholders' Equity | $123.4M | $139.8M | $155.6M |
| Retained Earnings | $213.1M | $228.6M | $237.9M |
| AOCI | $-215.3M | $-218.6M | $-217.1M |
| Total L&E | $791.5M | $799.2M | $803.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-18.5M | $30.3M | $26.5M |
| Non-Cash Adjustments | $55.4M | $54.8M | $2.1M |
| Working Capital Changes | $-9.2M | $18.7M | $22.9M |
| Cash from Operations | $27.6M | $103.8M | $51.6M |
| Capital Expenditures | $6.8M | $4.9M | $6.2M |
| Cash from Investing | $-57.9M | $-36.6M | $-41.6M |
| Share Buybacks | $26.7M | $2.7M | $3.9M |
| Dividends Paid | $11.8M | $12.7M | $13.8M |
| Cash from Financing | $25.9M | $-54.7M | $-12.9M |
| FX Effect | $-2.7M | $386.0K | $-326.0K |
| Net Change in Cash | $-7.0M | $12.9M | $-3.2M |
| Beginning Cash | $53.7M | $46.6M | $59.5M |
| Ending Cash | $46.6M | $59.5M | $56.3M |
Frequently Asked Questions
How does CRAWFORD & CO make money?
The company's revenue is primarily derived from four core segments: Rigging and Lifting Services, which handle heavy equipment installation and maintenance; Welding and Fabrication providing custom metalwork for large-scale projects; Inspection Services covering structural integrity assessments for critical infrastructure; and Crane Rental and Equipment Sales supplying temporary machinery and specialized tools to contractors.
What are the main risks for CRD-A?
Significant exposure to volatile commodity prices and global economic downturns that directly reduce energy sector spending on maintenance and new builds. Regulatory changes regarding environmental compliance and workplace safety could increase operating costs or halt projects in key jurisdictions. High levels of goodwill ($76.4M) relative to equity present impairment risks if major clients default or industry demand collapses.
What is CRD-A's competitive advantage?
First-mover advantage with a vast global network of service centers allows rapid deployment to project sites, reducing downtime for clients. Strong relationships with major energy and construction firms create high switching costs due to specialized certifications and safety track records. Proprietary safety protocols and proprietary equipment inventory enable the company to secure contracts in high-barrier-to-entry markets like offshore oil and gas.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.