Fortrea (NASDAQ:FTRE) Issues Quarterly Earnings Results

Fortrea (NASDAQ:FTRE) announced its earnings results on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.07), FiscalAI reports. Fortrea had a positive return on equity of 5.97% and a negative net margin of 36.21%.The business had revenue of $660.50 million for the quarter, compared to analyst estimates of $665.22 million.

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 Down 0.7%

Shares of FTRE stock opened at $10.72 on Friday. The firm has a market cap of $990.53 million, a P/E ratio of -0.98, a PEG ratio of 0.33 and a beta of 1.59. Fortrea has a 1-year low of $3.97 and a 1-year 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’s 50-day simple moving average is $15.14 and its 200-day simple moving average is $12.31.

Analysts Set New Price Targets

Several research analysts recently issued reports on FTRE shares. Barclays cut their price objective on Fortrea from $15.00 to $12.00 and set an “equal weight” rating for the company in a research report on Friday. Truist Financial set a $22.00 price target on Fortrea and gave the stock a “buy” rating in a report on Thursday, January 8th. TD Cowen upped their price objective on Fortrea from $7.00 to $15.00 and gave the company a “hold” rating in a research report on Thursday, January 22nd. Robert W. Baird dropped their price objective on Fortrea from $19.00 to $16.00 and set an “outperform” rating for the company in a research report on Friday. Finally, Citigroup raised shares of 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 given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $16.15.

Hedge Funds Weigh In On Fortrea

A number of large investors have recently bought and sold shares of FTRE. Royal Bank of Canada boosted its holdings in shares of Fortrea by 48.9% in the 1st quarter. Royal Bank of Canada now owns 121,707 shares of the company’s stock valued at $920,000 after purchasing an additional 39,944 shares during the last quarter. Caxton Associates LLP purchased a new position in shares of Fortrea in the 1st quarter worth $196,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Fortrea by 10.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 282,780 shares of the company’s stock valued at $2,135,000 after acquiring an additional 27,746 shares during the last quarter. Focus Partners Wealth purchased a new stake in Fortrea during the first quarter valued at about $80,000. Finally, Acadian Asset Management LLC purchased a new stake in Fortrea during the first quarter valued at about $65,000.

More Fortrea News

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Management said full?year revenue and adjusted EBITDA delivered in line with targets and that full?year cost savings exceeded prior targets — a reassurance on operational execution. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Positive Sentiment: Robert W. Baird kept an “outperform” rating and a $16 price target (implying ~49% upside vs. current levels), signaling some analysts remain bullish on the company’s longer?term outlook. Baird price target note
• Neutral Sentiment: Several full transcripts and earnings?call highlights were published (useful for parsing management commentary and client/contract trends), giving investors primary?source detail on drivers and margin dynamics. Fortrea Holdings Inc (FTRE) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Analyst coverage remains active — a recent Benzinga roundup reviews seven ratings, which can amplify volatility as differing views are disseminated. Deep Dive Into Fortrea Holdings Stock: Analyst Perspectives (7 Ratings)
• Negative Sentiment: Q4 results missed consensus: reported EPS $0.09 vs. $0.16 expected, and revenue $660.5M vs. ~$665M expected — the headline misses are driving the immediate negative reaction. Fortrea Q4 Earnings and Revenues Lag Estimates (Zacks)
• Negative Sentiment: Barclays cut its price target to $12 and set an “equal weight” rating — a formal shift toward neutrality/less bullishness that can pressure sentiment and weaken near?term buyer conviction. Barclays price target cut
• Negative Sentiment: FY?2026 revenue guidance was given in a range (~$2.6B–$2.7B), which sits slightly below consensus at the top end — the cautious top?line outlook and an unclear EPS guide left some investors wanting more upside visibility. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance

About Fortrea

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.