Fortrea (NASDAQ:FTRE) Posts Earnings Results, Misses Estimates By $0.07 EPS

Fortrea (NASDAQ:FTRE) issued its earnings results on Thursday. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.07), FiscalAI reports. The company had revenue of $660.50 million during the quarter, compared to the consensus estimate of $665.22 million. Fortrea had a positive return on equity of 5.64% and a negative net margin of 36.77%.

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

• Fortrea delivered Q4 and full‑year 2025 results in line with guidance, reporting full‑year revenue of $2,723.4 million and adjusted EBITDA of $189.9 million, which management says validates their operating execution.
• The company generated positive Q4 and full‑year operating and free cash flow, improved DSO to 16 days, repaid approximately $76 million of senior secured notes in Q4, and finished the quarter with available liquidity in excess of $600 million.
• Fortrea exceeded its cost‑savings goals, delivering roughly $153 million in gross and $93 million in net savings for 2025 and is targeting incremental $70–$80 million gross (and $40–$50M net) savings in 2026 to help margin recovery.
• Commercial momentum improved late in 2025 with Q4 book‑to‑bill of 1.14x (TTM 1.02x), notable new wins including a long‑term clinical pharmacology partnership with a top‑5 pharma, and increased biotech RFP flow and full‑service opportunity mix.
• Near‑term risks remain from continued FSP headwinds and variability in pass‑through revenue (driven by episodic large clinical pharmacology studies), plus customer concentration (top 10 customers = 56.8% of 2025 revenue), which could pressure revenue and margins.

Fortrea Trading Up 4.4%

FTRE traded up $0.46 during midday trading on Thursday, reaching $10.80. 2,868,942 shares of the company’s stock traded hands, compared to its average volume of 1,959,941. Fortrea has a 52 week low of $3.97 and a 52 week high of $18.67. The company has a debt-to-equity ratio of 1.81, a current ratio of 1.00 and a quick ratio of 1.00. The firm has a fifty day moving average of $15.28 and a two-hundred day moving average of $12.28. The stock has a market capitalization of $997.92 million, a price-to-earnings ratio of -0.96, a P/E/G ratio of 0.30 and a beta of 1.59.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Robert W. Baird set a $19.00 price objective on shares of Fortrea in a research report on Wednesday, January 14th. Barclays set a $15.00 target price on shares of Fortrea and gave the company an “equal weight” rating in a report on Monday, December 15th. Weiss Ratings reissued a “sell (d-)” rating on shares of Fortrea in a research note on Thursday, January 22nd. Evercore set a $25.00 price objective on Fortrea and gave the company an “outperform” rating in a research note on Tuesday, January 6th. Finally, Citigroup raised Fortrea from a “neutral” rating to a “buy” rating and boosted their target price for the company from $12.00 to $21.00 in a research note on Thursday, December 11th. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Fortrea presently has an average rating of “Hold” and a consensus price target of $16.75.

Institutional Trading of Fortrea

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

Trending Headlines about Fortrea

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Management said full‑year revenue and adjusted EBITDA were delivered in line with previously stated targets, and full‑year cost savings exceeded prior commitments — a signal that operational discipline is supporting cash flow and margin recovery. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Company issued FY‑2026 revenue guidance around $2.6–$2.7B (consensus ~ $2.7B). The range is roughly in line with expectations but the lower bound leaves little room for upside, so guidance is more cautiously received than outright positive. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Management commentary and the Q4 earnings call transcript provide detail on drivers and cost programs investors should review to judge sustainability of improvements. Read the call for color on backlog, client demand, and margin timing. Fortrea (FTRE) Q4 2025 Earnings Call Transcript Fortrea Holdings Inc. (FTRE) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 GAAP EPS of $0.09 missed consensus ($0.16) and declined from $0.18 a year ago—an unexpected shortfall that raises near‑term growth and profitability concerns. Fortrea Holdings Inc. (FTRE) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Revenue of $660.5M slightly missed analyst estimates (~$665.2M), signaling demand softness or timing shifts in client programs that could pressure near‑term top‑line recovery. Fortrea (NASDAQ:FTRE) Reports Sales Below Analyst Estimates In Q4 CY2025 Earnings

Fortrea Company Profile

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.