Loading...
•
Jun 30, 2025
Fortrea Q2 2025 Earnings Report
Fortrea reported its second quarter 2025 financial results, including revenues of $710.3 million, a GAAP net loss of $(374.9) million, and adjusted diluted EPS of $0.19.
Key Takeaways
Fortrea delivered a solid second quarter performance, with revenue increasing to $710.3 million. Despite a significant GAAP net loss primarily due to a non-cash goodwill impairment charge, the company achieved positive adjusted net income and diluted EPS. The company also raised its full-year 2025 revenue guidance, reflecting confidence in its operational fundamentals.
Revenue for the second quarter of 2025 increased to $710.3 million, up from $662.4 million in the same period last year.
The company reported a GAAP net loss of $(374.9) million, largely impacted by a non-cash goodwill impairment charge of $309.1 million.
Adjusted net income for the quarter was $17.6 million, resulting in an adjusted diluted EPS of $0.19.
Fortrea's backlog stood at $7,547 million as of June 30, 2025, with a book-to-bill ratio of 0.79x for the quarter.
Forward Guidance
Fortrea is raising its full-year 2025 revenue guidance and affirming its adjusted EBITDA guidance, reflecting continued confidence in its business outlook.
Positive Outlook
- Raising 2025 revenue guidance to a range of $2,600 million to $2,700 million.
- Affirming 2025 adjusted EBITDA guidance in the range of $170 million to $200 million.
- Cost saving initiatives remain on track.
- Company is now positioned to fully focus on its future and create value for stakeholders.
- Business fundamentals are sound and cash flow is positive.
Challenges Ahead
- Guidance assumes foreign currency exchange rates as of December 31, 2024, remain in effect, which could introduce currency risk.
- The company's share price declines primarily resulted in goodwill impairments, indicating market perception challenges.
- The second quarter was impacted by a market-driven increase to the discount rate.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...