Fortrea Holdings Inc. reported its third‑quarter 2025 financial results on November 5, 2025. Revenue for the quarter was $701.3 million, up 3.9% year‑over‑year, while GAAP net loss narrowed to $15.9 million and diluted loss per share was $0.17. Adjusted net income reached $11.7 million and adjusted EBITDA was $50.7 million. The company’s backlog stood at $7.644 billion, and the book‑to‑bill ratio for the quarter was 1.13x, indicating healthy demand for its services.
Year‑to‑date figures for 2025 show revenue of $2.0629 billion, a GAAP net loss of $953.7 million, adjusted net income of $31.2 million, and adjusted EBITDA of $135.9 million. No goodwill impairment was recorded in the third quarter, although a prior $797.9 million impairment impacted year‑to‑date results, underscoring the company’s focus on maintaining a strong balance sheet.
Comparing Q3 2025 to Q3 2024, revenue grew 3.9% versus 1% in the prior year, but adjusted net income fell from $20.7 million to $11.7 million and adjusted EBITDA declined from $64.2 million to $50.7 million. The drop in adjusted EBITDA reflects higher operating expenses, including cost inflation and investments in post‑spin projects, while the narrowing GAAP net loss signals improved cost control.
Management highlighted pricing power and a favorable mix of post‑spin projects as key drivers of revenue growth. Cost‑reduction initiatives helped narrow the GAAP net loss, and the company raised its full‑year revenue guidance to $2.700 billion–$2.750 billion, up from the previous $2.600 billion–$2.650 billion range. Adjusted EBITDA guidance was narrowed to $175 million–$195 million, reflecting confidence in margin expansion and the company’s ability to manage operating costs.
The strong backlog and book‑to‑bill ratio demonstrate sustained demand for Fortrea’s contract research services, even amid macro‑economic headwinds. The company’s ability to maintain a healthy backlog while improving pricing power suggests resilience in its core CRO business and positions it to capitalize on post‑spin opportunities.
Overall, Fortrea’s Q3 2025 results show steady revenue growth, improved cost control, and a positive outlook for the remainder of the year, reinforcing its competitive advantage in the CRO market.
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