Fortrea (FTRE.O): 2Q26 Recap: Continued Cautious Optimism into 2H Following Solid 1H

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Fortrea (FTRE.O): 2Q26 Recap: Continued Cautious Optimism into 2H Following Solid 1H

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30 Jul 2026 22:57:22 ET │ 14 pages

Fortrea (FTRE.O)

2Q26 Recap: Continued Cautious Optimism into 2H Following Solid 1H

CITI'S TAKE

Buy Focus of the call centered around the 2H26 assumptions after reporting

healthy 2Q results which included strong bookings supporting an Price (30 Jul 26 16:00) US$19.08

increased FY26 outlook. 2Q’s B2B of 1.06x was driven by improved large Target price US$22.00↑

pharma trends and continued momentum in biotech, reinforcing the from US$20.00

underlying recovery (albeit gradual) within the market. Management called Expected share price return 15.3%

out seeing an increase in RFP volumes and value. FTRE increased the FY26 Expected dividend yield 0.0%

guide to factor in the strong 1H performance on top of improved mix within

Expected total return 15.3% the backlog. Total revenue is now expected to fall between $2.62-2.69bn

Market Cap US$1,815M with adj. EBITDA now between $205-220mn. Guidance continues to

assume similar revenues in 2H. Management reaffirmed their cautiously

optimistic stance following the 2Q results and pipeline into 2H. We update

our model, maintain Buy rating, and increase our TP to $22 from $20 as Brendan DiganAC

numbers move higher. +1-212-816-8742

brendan.digan@citi.com

FY26 Guidance — FTRE updated the FY26 guide which now calls for total revenue Albert Hu

of $2.62-2.69bn ($2.55-2.65bn prior) representing a $55mn increase from the prior +1-212-816-2277

range and (2.5%) Y/Y decline at the midpoint. This outlook continues to assume albert.hu@citi.com

relatively flat revenue in 2H. We anticipate a return to growth in 4Q as stronger

projects from late 2025/early 2026 begin to flow through. The higher margin trials Nicole Dragotta