Contract research organization Fortrea beats Q3 revenue expectations, raises 2025 guidance

Reuters
Nov 05, 2025
Contract research organization Fortrea beats Q3 revenue expectations, raises 2025 guidance

Overview

  • Fortrea Q3 revenue of $701.3 mln beats analyst expectations

  • Adjusted EBITDA for Q3 beats estimates at $50.7 mln

Outlook

  • Fortrea raises 2025 revenue guidance to $2,700 mln-$2,750 mln

  • Company narrows 2025 adjusted EBITDA guidance to $175 mln-$195 mln

  • Guidance assumes foreign exchange rates as of Dec 31, 2024, remain stable

Result Drivers

  • REVENUE GROWTH - Q3 revenue increased to $701.3 mln from $674.9 mln in Q3 2024, indicating growth in demand

  • COST SAVINGS - Cost-saving initiatives remain on track, contributing to financial performance

  • STRONG DEMAND - Book-to-bill ratio of 1.13x indicates strong demand for services

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$701.30 mln

$645.70 mln (8 Analysts)

Q3 EPS

-$0.17

Q3 Net Income

-$15.90 mln

Q3 Adjusted EBITDA

Beat

$50.70 mln

$47 mln (8 Analysts)

Q3 Operating Income

-$8.60 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the biotechnology & medical research peer group is "buy."

  • Wall Street's median 12-month price target for Fortrea Holdings Inc is $8.50, about 14.1% below its November 4 closing price of $9.70

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXbJYdJ8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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