Fortrea Raises Full-Year Outlook Amid Strong Q2 Performance and Biotech Demand
Fortrea (NASDAQ:FTRE) reported second-quarter revenue of $678.2 million and adjusted EBITDA of $58.7 million, leading to an upward revision in its full-year outlook for both revenue ($2.62 billion–$2.69 billion) and adjusted EBITDA ($205 million–$220 million). The company attributed the performance to stronger clinical pharmacology services, cost savings initiatives, and improved commercial execution, particularly among biotechnology clients. Despite a 4.5% year-over-year revenue decline due to lower passthrough costs in its core businesses and FSP headwinds, Fortrea saw growth from higher service fees driven by increased net new business awards of $720.4 million during the quarter. The book-to-bill ratio reached 1.06x for Q2, with a trailing-12-month average of 1.12x. The company also reported strong cash generation, including $19.9 million in free cash flow and over $500 million in liquidity. However, leadership uncertainty persists as newly appointed CFO Jason Knoblauch is temporarily unable to serve due to a restrictive covenant from his former employer.
Tickers: $FTRE
Topics: book-to-bill ratio EBITDA outlook Fortrea Q2 earnings revenue growth