Fortrea (FTRE) Investor presentation summary

Strategic positioning and market overview

• Operates as a pure-play global CRO with over 30 years of leadership in the sector, offering comprehensive Phase I-IV clinical trial services and deep expertise in high-growth therapeutic areas.

• Addresses a large, resilient addressable market, with pharma and biotech Phase I-IV development spend estimated at ~$140B and a total addressable market of ~$40B.

• Outsourced clinical development spend is expected to grow at ~4% CAGR, driven by increasing regulatory, trial design, and operational complexity.

• Maintains a diversified client base, with 57% of YTD Q3 2025 revenue from large pharma and 43% from biotech and other clients.

• Top 10 clients represent ~60% of revenue, and the company has seen steady improvements in Net Promoter Scores since 2023.

Operational capabilities and innovation

• Delivered 5,900+ trials over five years, with support from 116,000+ clinical investigators and over 1 million participants across ~100 countries.

• Employs more than 14,500 staff globally, with significant presence in APAC (47%), EMEA (27%), and the Americas (26%).

• Offers integrated solutions including consulting, data and technology services, and full service, FSP, and hybrid models.

• Proprietary Xcellerate platform leverages AI/ML for trial execution, providing portfolio oversight, risk management, and seamless eClinical solutions.

Financial performance and transformation

• Q3 2025 revenue and adjusted EBITDA were in line with expectations, with a solid book-to-bill ratio of 1.13x and trailing 12-month book-to-bill of 1.07x.

• Achieved $95M gross and $53M net savings YTD, with strong operating and free cash flow and a 13-day improvement in DSO versus the prior quarter.

• Raised FY2025 revenue guidance to $2.70–2.75B and narrowed adjusted EBITDA guidance to $175–195M.

• Q3 2025 operating cash flow was $86.8M, free cash flow $79.5M, net debt $1.01B, and net leverage 5.3x; liquidity stood at $579M.

• Ongoing transformation includes exiting transition service agreements, asset divestitures, debt reduction, and organizational right-sizing.