Fortrea (FTRE) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue was $697.0 million, a decrease of 1.9$709.7 million in Q4 2023[3] - Full year revenue for 2024 was $2,696.4 million, down 5.1$2,842.5 million in 2023[5] Net Loss and Earnings - Fourth quarter GAAP net loss was $(73.9) million, compared to a loss of$(48.6) million in Q4 2023, resulting in a diluted loss per share of $(0.82)[3] - Full year GAAP net loss was$(271.5) million, significantly higher than the $(31.7) million loss in 2023, with a diluted loss per share of$(3.03)[5] - Net income loss for the twelve months ended December 31, 2024, was $328.5 million, compared to a loss of$25.2 million in 2023, representing a significant increase in losses[24] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $56.0 million, down from$58.9 million in Q4 2023[3] - Full year adjusted EBITDA was $202.5 million, compared to$245.8 million in 2023, reflecting a decrease of 17.6%[5] - Adjusted EBITDA from continuing operations for the twelve months ended December 31, 2024, was $202.5 million, down from$245.8 million in 2023, a decrease of about 17.6%[25] Cash and Debt Position - Cash and cash equivalents were $118.5 million, with gross debt of$1,142.0 million as of December 31, 2024[8] - Cash and cash equivalents increased to $118.5 million at the end of December 2024, up from$108.6 million at the end of December 2023, an increase of approximately 8.7%[24] Assets and Liabilities - Total assets decreased from $4,332.6 million in December 2023 to$3,579.2 million in December 2024, a decline of approximately 17.4%[22] - Total current liabilities rose from $778.4 million in December 2023 to$949.5 million in December 2024, an increase of about 21.9%[22] Impairments and Charges - The company recorded $24.0 million in goodwill and other asset impairments during the twelve months ended December 31, 2024[24] - Restructuring and other charges amounted to$51.2 million for the twelve months ended December 31, 2024, compared to $23.8 million in 2023, indicating increased restructuring efforts[25] Future Guidance - The company targets 2025 revenues in the range of$2,450 million to $2,550 million, with adjusted EBITDA guidance of$170 million to $200 million[9] - The company expects to complete its restructuring plan to reduce overcapacity by the end of 2025, with$21.3 million recorded in the fourth quarter related to this plan[26] Cash Flow and Investments - Proceeds from the sale of business amounted to $276.6 million in 2024, contributing positively to cash flows from investing activities[24] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was$262.8 million[37] - Capital expenditures for the same period amounted to $25.5 million[37] - Free cash flow for the twelve months ended December 31, 2024, was$237.3 million[37] Operational Independence - The company has largely exited its Transition Services Agreement with its former parent company, enhancing operational independence[2]