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Fortrea Holdings Inc. (FTRE)
NASDAQ:FTRE
Earnings Data
Report Date
Aug 18, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
0.07Last Year’s EPS
-0.03Same Quarter Last Year
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Date:May 12, 2025
|% Change Since: -23.74%
|Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment|Neutral
Fortrea demonstrated resilience with strong pipeline management and cost-reduction initiatives, reaffirming guidance despite significant challenges such as goodwill impairment and a demanding biotech market environment. The integration of AI and technological advancements are promising for future operational efficiency. However, the financial strain from goodwill impairment and cash flow challenges pose concerns.Company Guidance
In the Fortrea First Quarter 2025 Earnings Conference Call, the company reaffirmed its guidance for the year, projecting revenues in the range of $2.45 billion to $2.55 billion, with adjusted EBITDA expected to fall between $170 million and $200 million. The call highlighted a book-to-bill ratio of 1.02 times for the quarter and 1.14 times on a trailing 12-month basis, with a backlog exceeding $7.7 billion, reflecting a 4% growth year-over-year. Despite facing a challenging macroeconomic environment, the company expressed optimism about its pipeline, particularly in the biotech sector, and is targeting a long-term book-to-bill ratio of 1.2 times. Fortrea is implementing a $150 million cost reduction initiative, with an anticipated net benefit of $90 million to $100 million in 2025, aiming to improve margins through operational efficiencies and SG&A cost reductions. The effective tax rate for the quarter was reported at negative 2.7%, impacted by a goodwill impairment charge. Fortrea also highlighted a strong focus on maintaining a balanced customer mix, with the top 10 customers representing 56% of first-quarter revenues and the largest customer accounting for 15.4%.Strong Pipeline and Book-to-Bill Ratio
The company reported a book-to-bill ratio of 1.02 times for the quarter and 1.14 times for the trailing 12 months, with a solid pipeline of opportunities expected to produce attractive book-to-bills for the remainder of the year.
Successful Cost Reduction Initiatives
Fortrea achieved a more than 8% reduction in permanent headcount over the last 12 months, leading to year-over-year growth in adjusted EBITDA and adjusted EPS for the first time since the spin. SG&A costs showed a 3% sequential reduction from Q4 2024.
Technological Innovations and AI Integration
The company is integrating AI tools like Microsoft Copilot across its operations to improve productivity, already observing more than a 50% increase in usage week-by-week.
Reaffirmed Guidance for 2025
Fortrea reaffirmed its guidance for the year, targeting revenues between $2.45 billion to $2.55 billion and adjusted EBITDA between $170 million to $200 million.
Recognition and Customer Satisfaction
Fortrea was named a leader in pharmacovigilance operations by Everest Group, and customer Net Promoter Scores continued to trend upwards, meeting Q1 targets.
FTRE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FTRE Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 12, 2025 | $6.15 | $5.19 | -15.61% |
Mar 03, 2025 | $13.85 | $10.38 | -25.05% |
Nov 08, 2024 | $18.05 | $23.50 | +30.19% |
Aug 12, 2024 | $25.16 | $20.04 | -20.35% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Fortrea Holdings Inc. (FTRE) report earnings?
Fortrea Holdings Inc. (FTRE) is schdueled to report earning on Aug 18, 2025, TBA Not Confirmed.
What is Fortrea Holdings Inc. (FTRE) earnings time?
Fortrea Holdings Inc. (FTRE) earnings time is at Aug 18, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FTRE EPS forecast?
FTRE EPS forecast for the fiscal quarter 2025 (Q2) is 0.07.