Fortrea (NASDAQ:FTRE) Posts Earnings Results, Beats Expectations By $0.05 EPS

Fortrea (NASDAQ:FTRE) posted its quarterly earnings results on Wednesday. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.05, FiscalAI reports. Fortrea had a positive return on equity of 10.72% and a negative net margin of 3.18%.The business had revenue of $678.20 million for the quarter, compared to analyst estimates of $647.57 million.

Here are the key takeaways from Fortrea’s conference call:

• Full-year guidance was raised, with 2026 revenue now expected at $2.62 billion–$2.69 billion and adjusted EBITDA at $205 million–$220 million, reflecting solid first-half execution and improving backlog mix.
• Commercial momentum continued: second-quarter net new business was $720.4 million, book-to-bill was 1.06x, and trailing 12-month book-to-bill reached 1.12x. First-half awards rose 19% year over year, driven particularly by biotech customers.
• Second-quarter adjusted EBITDA increased to $58.7 million from $54.9 million despite revenue declining 4.5% to $678.2 million, supported by cost savings and operational efficiencies. The company delivered $19 million of net cost savings year to date.
• Cash generation and the balance sheet improved, with quarterly free cash flow of $19.9 million, no revolver borrowings during the first half, more than $500 million of available liquidity, and approximately 35% of original debt repaid since the spin-off.
• New CFO Jason Knoblauch is unable to serve in the role while an employment restrictive-covenant proceeding involving his former employer is ongoing; board member David Smith is serving as interim CFO, creating an executive leadership transition and related uncertainty.

Fortrea Stock Performance

Shares of NASDAQ:FTRE traded up $0.01 during trading hours on Friday, hitting $19.09. The stock had a trading volume of 1,000,463 shares, compared to its average volume of 1,515,106. The stock’s fifty day simple moving average is $16.93 and its 200 day simple moving average is $13.80. The firm has a market capitalization of $1.81 billion, a price-to-earnings ratio of -20.99, a PEG ratio of 0.62 and a beta of 2.03. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.95 and a current ratio of 0.96. Fortrea has a 1-year low of $5.26 and a 1-year high of $21.39.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Fortrea in a research note on Friday, July 17th. Evercore reaffirmed an “outperform” rating on shares of Fortrea in a report on Wednesday. Truist Financial boosted their price objective on shares of Fortrea from $19.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday. TD Cowen reiterated a “buy” rating on shares of Fortrea in a research note on Wednesday, May 6th. Finally, Wall Street Zen cut shares of Fortrea from a “buy” rating to a “hold” rating in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $19.75.

Institutional Trading of Fortrea

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its stake in shares of Fortrea by 494.8% in the second quarter. AQR Capital Management LLC now owns 6,515,124 shares of the company’s stock worth $31,729,000 after purchasing an additional 5,419,842 shares in the last quarter. State Street Corp lifted its holdings in Fortrea by 1.0% in the fourth quarter. State Street Corp now owns 4,110,899 shares of the company’s stock worth $70,913,000 after purchasing an additional 39,777 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in Fortrea by 21.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,219,029 shares of the company’s stock worth $55,528,000 after purchasing an additional 565,891 shares during the period. Deutsche Bank AG grew its position in Fortrea by 0.3% in the 4th quarter. Deutsche Bank AG now owns 2,556,193 shares of the company’s stock valued at $44,094,000 after buying an additional 7,685 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Fortrea by 9.4% in the 4th quarter. Geode Capital Management LLC now owns 2,278,934 shares of the company’s stock valued at $39,318,000 after buying an additional 196,759 shares in the last quarter.

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific’s Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company’s comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea’s core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.