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Jun 30, 2024

Fortrea Q2 2024 Earnings Report

Reported financial results for the second quarter ended June 30, 2024.

Key Takeaways

Fortrea reported a revenue of $662.4 million for the second quarter of 2024. The GAAP net loss was $(99.3) million, with a diluted loss per share of $(1.11). Adjusted EBITDA stood at $55.2 million. The company revised its full-year guidance due to lower pass-through and service-fee revenues.

Revenues for the second quarter were $662.4 million.

GAAP net loss was $(99.3) million, with a loss per share of $(1.11).

Adjusted EBITDA was $55.2 million, reflecting a 103.7% sequential increase.

Book-to-bill ratio for the quarter was 0.96x, with a backlog of $7.366 billion.

Total Revenue
$662M
Previous year: $793M
-16.5%
EPS
-$0.03
Previous year: $0.52
-105.8%
Adjusted EBITDA
$55.2M
Previous year: $72.5M
-23.9%
Gross Profit
$116M
Previous year: $144M
-19.4%
Cash and Equivalents
$126M
Previous year: $114M
+10.4%
Free Cash Flow
$228M
Previous year: $128M
+77.3%
Total Assets
$3.57B
Previous year: $4.36B
-18.2%

Fortrea

Fortrea

Forward Guidance

For the full year 2024, the company is revising its revenue guidance to a range of $2,700 million to $2,750 million and adjusted EBITDA guidance to a range of $220 million to $240 million.

Challenges Ahead

  • The reduction in revenue is primarily due to lower pass-through revenues.
  • Lower service-fee revenues in the second half as a result of lower net new business in the first half of 2024.
  • Update to the adjusted EBITDA range is driven by the lower service-fee revenues.