FTRE · Fortrea Q2 FY2026 earnings call record财报电话会记录

“Today, we are pleased to report another quarter of steady progress on that journey, improving our full-year revenue and adjusted EBITDA guidance.”

“With $720.4 million in net new business weighted towards biotech, our book-to-bill was 1.06x, representing our fourth consecutive quarter above 1.0x and resulting in a trailing 12-month book-to-bill of 1.12x.”

“CPS continues to benefit from strong scientific capabilities, an integrated global network, and increasing demand from customers.”

“We increased our full-year 2026 guidance Now expect revenue in the range of $2.62 billion-$2.69 billion, Adjusted EBITDA in the range of $205 million-$220 million.”

“We continue to expect positive free cash flow for the remainder of 2026 and for the full-year.”

“Notably, we saw strong contributions from new to Fortrea biotech customers, underscoring our progress towards broadening and diversifying our pipeline.”

“Interest expense for the quarter was $19.3 million, down $4 million versus the prior year quarter, reflecting the $75.7 million repurchase of senior secured notes in the fourth quarter of last year, lower interest rates on variable rate debt, and no revolver borrowings during the quarter.”

“Backlog burn of 8.6% in the second quarter was higher sequentially, in line with our expectations, driven primarily by service fee growth in our clinical pharmacology business, as well as sequentially higher passthrough revenue in both the clinical pharmacology and clinical development businesses.”

“In terms of customer concentration, our top 10 customers represented 55.4% of revenue for the quarter ended June 30th, 2026.”

“For the quarter ended June 30th, 2026, operating cash flow was +$28.9 million, compared to +$21.8 million in the prior year period, and free cash flow was +$19.9 million, compared to +$14.3 million in the second quarter of 2025.”

“That's where you're seeing the impact in gross margins as well.”

“We continue to build a backlog that I'm very happy with in terms of the diversity of what's going into the backlog and types of studies and types of customers and geographies, et cetera, but nothing to point out that would lead to any sort of shift in how you think about our business.”