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Fortrea Reports Second Quarter 2025 Results
Fortrea Fortrea (US:FTRE) Globenewswireยท2025-08-06 10:30

Core Insights - Fortrea reported a revenue of $710.3 million for Q2 2025, an increase from $662.4 million in Q2 2024, indicating a year-over-year growth of approximately 7.5% [4][21] - The company experienced a GAAP net loss of $(374.9) million in Q2 2025, which included a non-cash goodwill impairment charge of $309.1 million, compared to a net loss of $(99.3) million in Q2 2024 [5][21] - Adjusted net income for Q2 2025 was $17.6 million, with diluted earnings per share of $0.19, contrasting with an adjusted net loss of $(2.3) million and a diluted loss per share of $(0.03) in Q2 2024 [5][34] - The backlog as of June 30, 2025, was $7,547 million, with a book-to-bill ratio of 0.79x for the quarter [6][9] - The company raised its revenue guidance for the full year 2025 to a range of $2,600 million to $2,700 million, while affirming adjusted EBITDA guidance between $170 million and $200 million [11][9] Financial Performance - For the first half of 2025, Fortrea reported revenues of $1,361.6 million, up from $1,324.5 million in the first half of 2024 [7][21] - The GAAP net loss for the first half of 2025 was $(937.8) million, which included a non-cash goodwill impairment charge of $797.9 million, compared to a net loss of $(179.1) million in the first half of 2024 [8][21] - Adjusted EBITDA for Q2 2025 was $54.9 million, slightly down from $55.2 million in Q2 2024 [5][29] Leadership Transition - Anshul Thakral joined Fortrea as CEO on August 4, 2025, succeeding Interim CEO Peter M. Neupert, who remains chairman of the Board [2][3] - Thakral expressed confidence in the company's position to assist customers in navigating the development landscape and emphasized the value of the company's team and operational excellence [3][2] Operational Highlights - The company is on track with cost-saving initiatives, which are expected to enhance operational efficiency [9] - Fortrea's leadership is focused on creating value for customers, employees, and shareholders, as stated by CFO Jill McConnell [2][3]