Fortrea Holdings Inc. announced its fourth quarter and full-year 2024 financial results on March 3, 2025. The company reported fourth-quarter revenue of $697.0 million and a GAAP net loss of $(73.9) million, or $(0.82) diluted loss per share.
For the full year 2024, revenue was $2,696.4 million, missing its previously announced guidance of $2.7 billion to $2.725 billion. Full-year adjusted EBITDA was $202.5 million, falling below the company's guidance range of $220 million to $240 million.
Fortrea issued full-year 2025 guidance, targeting revenues in the range of $2,450 million to $2,550 million and adjusted EBITDA of $170 million to $200 million. Both projections represent declines from 2024 figures, reflecting anticipated negative impacts from the mix of pre-spin projects.
CEO Thomas Pike explained that pre-spin projects are 'late in their life cycle' with 'less revenue and less profitability than expected for 2025,' and that 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' This 'older versus newer mix issue' is expected to continue negatively impacting financial performance during 2025.
Despite these challenges, the company reported a Q4 book-to-bill ratio of 1.35x and a trailing twelve-month book-to-bill ratio of 1.16x, with backlog reaching $7,699 million as of December 31, 2024. However, the overall financial outlook for 2025 indicates significant headwinds.
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