Fortrea (NASDAQ:FTRE – Get Free Report) posted its earnings results on Wednesday. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.05, FiscalAI reports. Fortrea had a negative net margin of 16.50% and a positive return on equity of 9.51%. The business had revenue of $678.20 million for the quarter, compared to analysts’ expectations of $647.53 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 Price Performance
Shares of Fortrea stock traded down $0.52 during trading on Wednesday, hitting $20.18. 1,266,423 shares of the stock traded hands, compared to its average volume of 1,502,375. The stock has a market cap of $1.91 billion, a price-to-earnings ratio of -4.11, a PEG ratio of 0.58 and a beta of 2.03. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 1.98. Fortrea has a 52 week low of $5.26 and a 52 week high of $21.39. The firm’s fifty day moving average is $16.68 and its 200-day moving average is $13.77.
Hedge Funds Weigh In On Fortrea
Analysts Set New Price Targets
Several research analysts have recently weighed in on the stock. Robert W. Baird set a $20.00 price target on shares of Fortrea in a report on Wednesday, May 6th. Truist Financial set a $19.00 price objective on Fortrea in a research note on Wednesday, May 6th. Citigroup boosted their target price on Fortrea from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. TD Cowen reaffirmed a “buy” rating on shares of Fortrea in a report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fortrea in a report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.75.
View Our Latest Stock Analysis on Fortrea
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.
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