EarningsQ2 2026 Earnings Report
MX:FTRE1 Q2 2026 EPS Results
Actual EPS$4.14
Consensus EPS$3.24
Beat/MissBeat by +$0.90
One Year Ago EPS$3.42
MX:FTRE1 Q2 2026 Revenue Results
Actual Revenue$12.21B
Expected Revenue$11.66B
Beat/MissBeat by +$551.56M
YoY Revenue Growth-4.52%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
MX:FTRE1 Upcoming Earnings
Fortrea Holdings Inc.'s next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:FTRE1 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted substantial commercial momentum (bookings up, net new business +19% H1), improved profitability metrics (adjusted EBITDA growth, cost savings, SG&A reduction), stronger cash generation and an upgraded full-year guidance, alongside early operational wins from FIT/AI and CPS strength. Key risks discussed include a modest YoY revenue decline driven by pass-through/FSP dynamics, elevated customer concentration, a CFO transition related to a restrictive covenant matter, and the early-stage nature of AI benefits. On balance, the positive operational, commercial and financial traction and the guidance raise outweigh the listed challenges.Company Guidance
Revenue and Adjusted EBITDA
Q2 revenue of $678.2M and adjusted EBITDA of $58.7M. Despite a 4.5% year-over-year revenue decline (driven by lower pass-throughs and FSP headwinds), adjusted EBITDA increased to $58.7M (up ~6.9% YoY). Management also raised full-year 2026 guidance to revenue of $2.62B–$2.69B and adjusted EBITDA of $205M–$220M.
Strong Bookings and Commercial Momentum
Net new business of $720.4M in the quarter, book-to-bill of 1.06x (fourth consecutive quarter >1.0x) and trailing 12-month book-to-bill of 1.12x. First-half 2026 net new business awards increased 19% year-over-year, with bookings weighted toward biotech.
Positive Cash Flow and Improved Liquidity
Operating cash flow of $28.9M (vs. $21.8M prior year) and free cash flow of $19.9M (vs. $14.3M prior year). Net accounts receivable and unbilled services reduced to $654.4M (from $739.2M) and available liquidity (including undrawn revolver) exceeded $0.5B. No revolver borrowings during the quarter.
Backlog and Balance Sheet Progress
Backlog of $7.8B. Since the spin, the company has paid down approximately 35% of its original debt, and interest expense for the quarter declined to $19.3M (down $4.0M YoY), reflecting debt repurchases and lower variable rates.
Operational and Cost Efficiency Gains
Direct costs decreased 6.6% YoY and SG&A decreased 18.2% YoY. Delivered $18M in new gross cost savings in the quarter (YTD gross savings $34M) and $10M in new net cost savings in the quarter (YTD net savings $19M), supporting margin expansion.
Clinical Pharmacology Services (CPS) Outperformance
CPS identified as an area of strength with service fee growth driven by increased net new business and favorable study mix; CPS momentum contributing to revenue conversion as later-phase awards ramp.
Digital/AI Investments and Early Efficiency Wins
Launched Fortrea Intelligent Technology (FIT) externally in April. CRA mobile app deployed in >50 countries with an early example showing ~30 minutes saved in site visit preparation per visit in a Spain study. Microsoft Copilot rolled out to ~14,000 employees and an AI literacy program launched to scale productivity gains.
Improving Receivables and Customer Experience Metrics
Customer DSOs improved to 20 days (26 days lower YoY). Net AR and unbilled services reduced to $654.4M, and customer satisfaction and on-time delivery metrics were reported as improving quarter-over-quarter.
MX:FTRE1 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed