Fortrea Holdings Inc. (FTRE1) AI Stock Analysis

Fortrea Holdings Inc.

(BMV:FTRE1)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Cash GenerationPositive operating and free cash flow provide internal funding for debt reduction, investment and business execution even while reported net income remains negative. Continued cash conversion would improve financial resilience, though sustaining it depends on cost discipline and stable working capital.

Negative Factors

Revenue ContractionOngoing top-line contraction limits the benefits of cost reductions and makes margin recovery less durable. Lower revenue also reduces utilization and operating leverage, leaving Fortrea dependent on renewed service-fee growth to convert improving demand into consistent profitability.

Fortrea Holdings Inc. (FTRE1) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 2.02B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -28.2
Beta (1Y): 0.07
Revenue Growth: ―
EPS Growth: ―
Country: Mexico
Employees: 14,000
Sector: Healthcare
Sector Strength: 51
Industry: Biotechnology

Fortrea Holdings Inc. Business Overview & Revenue Model

Company Description

Fortrea Holdings Inc. functions as a global contract research organization (CRO), concentrating on providing development services for biopharmaceutical products and medical devices. The company's operations are divided into two main segments: Clinica...

Fortrea Holdings Inc. Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Mar 14, 2027

Earnings Call SentimentPositive

The call was broadly optimistic. Fortrea reported stronger bookings, improved profitability, positive cash flow, better working capital, raised full-year guidance and expanding demand across biotech, biopharma and China. The main concerns were the year-over-year revenue decline, the $558 million backlog adjustment, slightly elevated cancellations, a projected fourth-quarter revenue slowdown, ongoing compensation investments and still-elevated leverage. Management characterized the business as being in recovery and focused on converting improving demand into sustainable growth and margin expansion.

Positive Updates

Positive Third-Quarter Bookings and Book-to-Bill

Net new business awards were $773 million, producing a third-quarter book-to-bill ratio of 1.12x versus 1.06x in the second quarter of 2026 and 1.13x in the third quarter of 2025. The trailing 12-month book-to-bill ratio was also 1.12x.

Negative Updates

Revenue Declined Year-over-Year

Third-quarter revenue was $691.5 million, down 1.4% from $701.3 million in the third quarter of 2025, although it increased 2.0% sequentially from $678.2 million. The year-over-year decrease was driven primarily by slower conversion of the pass-through element of backlog.

Company Guidance

Fortrea now expects full year 2026 revenue of $2.665 billion to $2.690 billion and adjusted EBITDA of $210 million to $218 million, after raising the midpoint and narrowing both ranges; it continues to expect positive free cash flow in the fourth quarter and for the full year, with low single-digit service fee revenue growth expected to begin to produce incremental drop-through, operating leverage becoming even more apparent as growth moves towards the mid-single digits, and a continued objective of reaching mid-teens adjusted EBITDA margins. The company is not giving any guide on 2027 at this particular juncture.

Fortrea Holdings Inc. Risk Analysis

Fortrea Holdings Inc. disclosed 57 risk factors in its most recent earnings report. Fortrea Holdings Inc. reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Fortrea Holdings Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

MX:FTRE1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABCL	61Neutral	$3.98B	-22.72	-17.49%	―	101.28%	2.49%
MRVI	58Neutral	$2.03B	-14.58	-35.42%	―	-3.28%	61.09%
RXRX	55Neutral	$2.41B	-3.88	-50.41%	―	-15.08%	41.98%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MBX	47Neutral	$2.69B	-23.28	-26.01%	―	―	-4.40%
GENB	45Neutral	$1.86B	-8.56	-153.12%	―	―	―

* Healthcare Sector Average

Performance Comparison

MX:FTRE1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:FTRE1	Fortrea Holdings Inc.	373.00	0.00	0.00%
MRVI	Maravai Lifesciences Holdings, Inc.	7.81	4.87	165.65%
ABCL	Abcellera Biologics, Inc.	12.27	6.90	128.49%
RXRX	Recursion Pharmaceuticals, Inc	4.03	-1.41	-25.92%
MBX	MBX Biosciences, Inc.	55.87	35.26	171.08%
GENB	Generate Biomedicines, Inc.	14.46	1.81	14.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Fortrea Holdings Inc. AI Stock Analysis