Fortrea Holdings Inc (FTRE) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fortrea second quarter 2025 earnings conference call (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Fortrea 2025 年第二季財報電話會議（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Hima Inguva, Head of Investor Relations and Corporate Development. Please go ahead.

現在，我想將會議交給今天的發言人、投資者關係和企業發展主管 Hima Inguva。請繼續。

Good morning and thank you for joining Fortrea second quarter 2025 earnings conference call. I am Hima Inguva, Head of Investor Relations and Corporate Development in Fortrea. Before we begin, I want to share that this has been my last call leading Fortrea earnings call as I have decided to leave the company to pursue other opportunities. I'm incredibly proud of what we've built here and deeply grateful for the support of our investors, the commitment of our teams and the opportunity to work alongside such a high-caliber team.

早安，感謝您參加 Fortrea 2025 年第二季財報電話會議。我是 Hima Inguva，Fortrea 投資者關係和企業發展主管。在我們開始之前，我想告訴大家，這是我最後一次主持 Fortrea 財報電話會議，因為我決定離開公司尋求其他機會。我對我們在這裡所取得的成就感到無比自豪，並深深感謝我們投資者的支持、我們團隊的承諾以及與這樣一支高素質團隊一起工作的機會。

We have a robust transition plan for Investor Relations. It's my pleasure to introduce Tracy Krumme, a new Head of IR, who will be joining the call. Welcome, Tracy. I'd also like to welcome our new CEO, Anshul Thakral, who joined Fortrea on Monday. Anshul, we're excited to have you here.

我們針對投資者關係制定了強而有力的過渡計畫。我很高興介紹新任投資者關係主管 Tracy Krumme，她將參加這次電話會議。歡迎光臨，特蕾西。我還要歡迎我們的新任執行長 Anshul Thakral，他於週一加入 Fortrea。安舒爾，我們很高興你能來。

With all that said, I'm pleased to introduce our Chairman, Peter Neupert, who served as our interim CEO in the second quarter; and CFO, Jill McConnell, as our speakers of the call today. The call is being webcasted, and the slides accompanying today's presentations have been posted to the Investor Relations page of our website fortrea.com.

綜上所述，我很高興介紹我們的董事長 Peter Neupert（他曾擔任我們第二季的臨時執行長）和財務長 Jill McConnell，他們是今天電話會議的發言人。該電話會議正在進行網路直播，今天簡報的幻燈片已發佈到我們網站 fortrea.com 的投資者關係頁面。

During this call, we'll make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties that could cause actual results to differ materially from our current expectations.

在本次電話會議中，我們將根據 1995 年《私人證券訴訟改革法案》的含義做出某些前瞻性陳述。這些聲明受到重大風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。

We strongly encourage you to review the reports we file with the SEC regarding these risks and uncertainties, in particular, those that are described in the cautionary statement concerning forward-looking statements and risk factors in our press release and presentation that we posted on the website. Please note that any forward-looking statements represent our views as of today, August 6, 2025, and that we assume no obligation to update the forward-looking statements even if estimates change.

我們強烈建議您查看我們向美國證券交易委員會提交的有關這些風險和不確定性的報告，特別是我們在網站上發布的新聞稿和演示文稿中有關前瞻性陳述和風險因素的警示聲明中所述的報告。請注意，任何前瞻性聲明均代表我們截至 2025 年 8 月 6 日的觀點，即使估計發生變化，我們也不承擔更新前瞻性聲明的義務。

During this call, we'll also be referring to certain non-GAAP financial measures. These non-GAAP measures are not superior to or replacement for the comparable GAAP measures, but we believe these measures help investors stay a more complete understanding of results. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available in the earnings press release and earnings call presentation slides provided in connection with today's call.

在本次電話會議中，我們也會參考某些非公認會計準則財務指標。這些非公認會計準則指標並不優於或取代可比較的公認會計準則指標，但我們相信這些指標有助於投資者更全面地了解結果。在今天的電話會議上提供的收益新聞稿和收益電話簡報幻燈片中，可以找到此類非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳。

With that, I'd like to turn it over to our Chairman, Peter Neupert. Peter?

接下來，我想將發言權交給我們的主席 Peter Neupert。彼得？

Thank you, Hima, and good morning, everyone. I'll add my welcome to Anshul and Tracy today. We're very pleased to have you both on board and hitting the ground running.

謝謝你，Hima，大家早安。今天我要向 Anshul 和 Tracy 表示歡迎。我們非常高興你們能加入我們並開始努力。

Now let's turn to the second quarter, which showed another solid quarter of delivery. Fortrea revenue for the second quarter was $710.3 million, with adjusted EBITDA of $54.9 million supported by our continued progress against the company's margin optimization initiatives. The team continues to make progress with its transformation efforts, including reshaping the organization to align with its evolving pipeline mix and customer needs.

現在讓我們來看看第二季度，該季度的交付量又表現穩健。Fortrea 第二季的營收為 7.103 億美元，調整後的 EBITDA 為 5,490 萬美元，這得益於公司利潤率優化計畫的持續進展。該團隊在轉型方面繼續取得進展，包括重塑組織以適應不斷變化的管道組合和客戶需求。

Backlog as of June 30, 2025, stood at $7.5 billion and the book-to-bill ratio for the quarter was 0.79x, resulting in a 1.1 times book-to-bill for the trailing 12 months. While Fortrea did not achieve the level of net new business wins we would have wanted, there are positive signals in the quarter. The volume of RFP opportunities remains high and cancellations continued to be in line with our historical trends. Although the company experienced some customer hesitancy in the quarter, primarily in new to Fortrea biotech customers as the team navigated the CEO leadership transition.

截至 2025 年 6 月 30 日的積壓訂單為 75 億美元，本季的訂單出貨比為 0.79 倍，導致過去 12 個月的訂單出貨比為 1.1 倍。儘管 Fortrea 的淨新業務勝利沒有達到我們所希望的水平，但本季還是出現了積極的信號。RFP 機會的數量仍然很高，取消的數量仍然符合我們的歷史趨勢。儘管公司在本季度遇到了一些客戶猶豫，主要是在團隊進行執行長領導過渡期間，Fortrea 生物技術客戶出現了新的猶豫。

Win rates remain consistent for existing large pharma and biotech customers, but declined for new to Fortrea biotech customers. Fortrea experienced a similar phenomenon prior to the spin and then saw that in a reasonably brief period of time, it was able to return to solid net new business wins with new customers once they saw that the focus on delivery remains strong and Fortrea's leaders and employees were committed to their best interest.

對於現有的大型製藥和生物技術客戶來說，中標率保持一致，但對於 Fortrea 生物技術新客戶來說，中標率有所下降。Fortrea 在分拆之前也經歷過類似的現象，然後發現，在相當短的時間內，只要他們看到對交付的關注仍然強勁，並且 Fortrea 的領導和員工致力於他們的最大利益，他們就能夠重新獲得穩定的淨新業務和新客戶。

Other highlights from the second quarter include positive cash flow as expected. The company's liquidity is sound and its capital structure is balanced. Further, Fortrea provided updated guidance for the remainder of the year, increasing the revenue range and reaffirming its EBITDA range.

第二季的其他亮點包括預期的正現金流。公司流動性良好，資本結構均衡。此外，Fortrea 還提供了今年剩餘時間的最新指導，提高了收入範圍並重申了其 EBITDA 範圍。

Fortrea's business fundamentals are steadily improving as demonstrated in this quarter's performance. This progress reflects its strengthened operational delivery and position. Fortrea's leading clinical pharmacology services reporting unit is in high demand with a combination of leading science and robust delivery.

Fortrea 的業務基本面正在穩步改善，本季的業績證明了這一點。這一進展反映了其業務交付和地位的加強。Fortrea 領先的臨床藥理學服務報告部門因其領先的科學和強大的交付能力而備受青睞。

For example, the team delivered a bioequivalence trial ahead of schedule from first subject in to database lock for more than 500 participants in exactly one year, earlier than expected. The trial will enable regulatory submission for oral formulations of life-changing therapeutic that is currently only available in injectable form.

例如，團隊提前一年完成了一項生物等效性試驗，從第一個受試者入組到資料庫鎖定，共有超過 500 名參與者參與，比預期提前了整整一年。該試驗將使改變生活的治療藥物的口服製劑能夠提交監管申請，而目前該藥物僅以注射形式提供。

In later phase clinical projects, second quarter delivery also was strong. The team had a flawless track record. And by that, I mean early on time in its delivery of site initiation visits as well as patient enrollment at the halfway mark of the study.

在後期臨床項目中，第二季的交付也很強勁。該隊有著完美的戰績。我的意思是，在研究進行到一半時，儘早進行現場啟動訪問以及患者登記。

Similarly, the metrics for ready to enroll sites and last patient in were all better than our benchmark targets. In an environment of global complex studies, this level of operational performance stands out and is reflected in our strong customer NPS scores.

同樣，準備入組站點和最後入組患者的指標都優於我們的基準目標。在全球複雜研究的環境中，這種營運績效水準脫穎而出，並反映在我們強大的客戶 NPS 分數中。

The company continues to invest in innovation and in its people. The second quarter saw the introduction of three new modules in the award-winning Accelerate software platform. One example, Risk Radar is an AI-powered agent designed to enhance risk-based quality management in clinical trials. It uses AI and machine learning to automate risk identification and suggest mitigation strategies. Risk Radar reduces manual effort, improves operational efficiency and strengthens patient safety protection.

該公司持續投資於創新和人才。第二季度，屢獲殊榮的 Accelerate 軟體平台推出了三個新模組。例如，Risk Radar 是一個人工智慧代理，旨在增強臨床試驗中基於風險的品質管理。它使用人工智慧和機器學習來自動識別風險並提出緩解策略。風險雷達減少了人工工作量，提高了操作效率並加強了病人安全保護。

I'll wrap up my prepared remarks by thanking Fortrea employees for their commitment and hard work over the quarter. I've seen this organization involved over many years now in my role on the Board. Over the past few months, I've gained a unique perspective serving as its Interim CEO. I can tell you that this team is not only dedicated to advancing research, but is also remarkably resilient.

最後，我要感謝 Fortrea 員工在本季所做的貢獻和辛勤工作。在我擔任董事會成員的這些年裡，我看到這個組織參與其中。在過去的幾個月裡，作為臨時首席執行官，我獲得了獨特的視角。我可以告訴大家，這個團隊不僅致力於推進研究，而且非常有韌性。

They have definitely navigated a challenging journey to independents by staying focused on what matters most, motivated by a shared mission to bring new treatments to patients faster. Supported by a seasoned and collaborative leadership team of industry veterans, they are forward-facing and looking to the future with optimism.

他們始終專注於最重要的事情，並以更快地為患者帶來新療法的共同使命為動力，毫無疑問地走過了通往獨立的充滿挑戰的旅程。在由業界資深人士組成的經驗豐富、團結協作的領導團隊的支持下，他們面向未來，樂觀地展望未來。

I'm very pleased to have Anshul joining the team as CEO this week. Let me just say a few words about Anshul. He brings deep experience in life sciences, knows the CRO industry from the inside out, not only as an executive, but also as a customer. He also has a proven record of building companies and delivering profitable growth.

我很高興 Anshul 本週加入團隊並擔任執行長。讓我簡單談談安舒爾 (Anshul)。他在生命科學領域擁有豐富的經驗，不僅作為一名高階主管，而且作為一名客戶，他對 CRO 行業有著透徹的了解。他在創建公司和實現盈利增長方面也有著良好的記錄。

Once is an outstanding and hands-on leader, and I know the entire Board joins me in welcoming him to Fortrea. Anshul, now that you've been here for a full 48 hours.

Once 是一位傑出且親力親為的領導者，我知道整個董事會都會和我一起歡迎他加入 Fortrea。安舒爾，你已經在這裡待了整整 48 小時。

Would you like to make any comments before we hand the call over to Jill.

在我們將電話轉給吉爾之前，您想發表什麼評論嗎？

Peter, thank you for that introduction. I'm very appreciative of the warm welcome from the Board and from the Fortrea team. While I've only served as CEO for a couple of days, I've already had some opportunities to speak with executives in the pharma and biotech industries whom I have worked with for many years. In the near term, I will be focusing my time on engaging both our customers and colleagues around the world.

彼得，謝謝你的介紹。我非常感謝董事會和 Fortrea 團隊的熱烈歡迎。雖然我擔任執行長才幾天，但我已經有機會與我合作多年的製藥和生物技術行業的高管進行交談。短期內，我將專注於與世界各地的客戶和同事進行交流。

For the past few years, I have been on the customer side of our industry and a consumer of CRO services. That, coupled with my time as an executive at PPD, I hope to bring a fresh perspective and energy to help drive our ambitions at Fortrea. The fundamental value proposition for CROs remains solid even as market conditions have been a headwind for the industry in the recent past.

過去幾年，我一直處於我們行業的客戶方和CRO服務的消費者。再加上我在 PPD 擔任高階主管的經歷，我希望能帶來新的視角和活力，幫助實現 Fortrea 的雄心壯志。儘管近期市場狀況對 CRO 產業造成了不利影響，但 CRO 的基本價值主張仍然穩固。

For me, it's exciting to see how scientific and technological innovation is shaping the future of clinical development. Having delivered growth in this environment in my past career, I know what it takes for us to be successful. Having spoken with current Fortrea customers, both large pharma and biotech, I know they are pleased with how we deliver for them.

對我來說，看到科技創新如何塑造臨床發展的未來是令人興奮的。在我過去的職業生涯中，我曾在這種環境中實現成長，因此我知道我們需要什麼才能取得成功。在與 Fortrea 的現有客戶（包括大型製藥公司和生物技術公司）交談後，我知道他們對我們為他們提供的服務感到滿意。

My role will be to add fuel to our growth engine, bringing energy and discipline in a way that will yield value for our customers, our people, our investors and ultimately, and most importantly, for patients. I'm ready for this opportunity.

我的職責是為我們的成長引擎注入動力，帶來活力和紀律，為我們的客戶、員工、投資者以及最終、最重要的是為患者創造價值。我已經為這個機會做好準備了。

I too want to thank Hima for all her efforts at Fortrea over the past few years. Additionally, I'd like to welcome Tracy to the team. Tracy, I look forward to working with you once again.

我也要感謝 Hima 過去幾年在 Fortrea 所做的一切努力。此外，我歡迎 Tracy 加入團隊。特蕾西，我期待再次與您合作。

But for now, let's return the call to the second quarter results and hand it over to Jill for a deeper dive. Jill, back over to you.

但現在，讓我們把注意力轉回到第二季的業績上，並將其交給吉爾進行更深入的探討。吉爾，回到你身邊。

Thank you, Anshul, and thank you to everyone for joining us today. As a reminder, all my remarks relate to continuing operations of Fortrea following the divestiture of our Enabling Services businesses last year, unless I note otherwise.

謝謝你，安舒爾，也謝謝大家今天加入我們。提醒一下，除非另有說明，我的所有言論均與 Fortrea 在去年剝離支援服務業務後的持續營運有關。

I will start by saying that I warmly welcome Anshul and Tracy to Fortrea and look forward to working with them to demonstrate the excellence I know this organization can achieve. I also want to thank Hima for her many contributions as we launch Fortrea as a stand-alone company.

首先，我要熱烈歡迎 Anshul 和 Tracy 加入 Fortrea，並期待與他們合作，展現我所知道的這個組織可以實現的卓越成就。我還要感謝 Hima 在我們推出 Fortrea 作為獨立公司時所做的許多貢獻。

As we put the two year spin transition firmly behind us, we welcome this next period as a time to take the grit and resilience we built from the separation efforts and apply it fully towards enabling our customers to develop their life-changing treatments and make them a reality for patients around the globe. It is time.

隨著我們徹底擺脫為期兩年的旋轉過渡期，我們歡迎接下來的這段時間，我們將充分利用分離工作中積累的勇氣和韌性，全力幫助我們的客戶開發改變生活的治療方法，讓全球患者都能從中受益。是時候了。

In my prepared remarks, I'll cover the primary factors that influenced our second quarter performance and share an update on the steps we're taking toward achieving our 2025 guidance. I'll highlight our progress against our previously shared cost optimization initiatives.

在我的準備好的演講中，我將介紹影響我們第二季業績的主要因素，並分享我們為實現 2025 年目標所採取的最新措施。我將重點介紹我們先前分享的成本優化計劃所取得的進展。

Additionally, I'll spend a few minutes highlighting improvements in our cash flow this quarter and our expectations regarding liquidity going forward. By the end of this call, I wanted to be clear that we are continuing to take appropriate actions to improve our financial performance and capital profile.

此外，我將花幾分鐘時間重點介紹本季現金流的改善情況以及我們對未來流動性的預期。在本次電話會議結束時，我想明確表示，我們將繼續採取適當行動來改善我們的財務表現和資本狀況。

As Peter highlighted, we delivered a solid second quarter as demonstrated in our financial results. For the quarter, we delivered revenue growth along with sequentially higher adjusted EBITDA following continued execution of our margin optimization initiatives, including delivering one-third of our $150 million in gross savings targets in the first half.

正如彼得所強調的，我們的財務表現表明，第二季我們表現穩健。本季度，我們繼續實施利潤率優化計劃，實現了收入成長，調整後 EBITDA 也隨之上升，包括在上半年實現了 1.5 億美元總節省目標的三分之一。

As expected, we generated positive operating and free cash flow, and we delivered a five day improvement in DSO versus the first quarter as we began to unwind the temporary impact of the invoicing pause related to the implementation of our new ERP system during the first quarter. These results reflect focused execution across the organization and continued momentum toward our financial goals.

正如預期的那樣，我們產生了正的營運和自由現金流，隨著我們開始消除第一季度實施新 ERP 系統相關的發票暫停所帶來的暫時影響，我們的 DSO 與第一季相比改善了五天。這些結果反映了整個組織的專注執行力以及我們朝向財務目標的持續動力。

This quarter marked the two year anniversary of our spin along with successful exit from our former parent, TSA. This milestone is reflected in the year-over-year decline in onetime spin-related costs as we move towards a more efficient cost structure for Fortrea.

本季是我們分拆兩週年，也是我們成功脫離原母公司 TSA 的兩週年。隨著我們逐步實現 Fortrea 更有效率的成本結構，這項里程碑體現在一次性旋轉相關成本的逐年下降。

Now I'll cover the financial results in more detail. Second quarter revenue was $710.3 million, growing 7.2% versus the prior year quarter, driven primarily by an increase in revenue in our clinical pharmacology reporting unit, along with a small benefit from foreign exchange rates. Clinical development revenue was relatively flat as increases driven by recent net new business awards, including higher pass-through costs were offset by lower FSP revenue.

現在我將更詳細地介紹財務結果。第二季營收為 7.103 億美元，較去年同期成長 7.2%，主要得益於臨床藥理學報告部門營收的成長，以及外匯匯率的小幅上漲。臨床開發收入相對持平，因為近期淨新業務獎勵（包括更高的轉嫁成本）推動的成長被較低的 FSP 收入所抵消。

On a GAAP basis, direct costs in the quarter increased 9.8% year-over-year, primarily due to increases in pass-through and stock compensation costs, along with a reduction in R&D tax credits, partially offset by lower personnel costs from our ongoing restructuring actions.

根據 GAAP 計算，本季直接成本年增 9.8%，主要原因是轉嫁成本和股票薪酬成本增加，以及研發稅收抵免減少，但我們正在進行的重組行動降低了人員成本，從而部分抵消了這一增長。

The reductions in direct personnel costs in the quarter continued to more than offset the investments in merit and variable compensation that we've highlighted previously. Permanent headcount across all of Fortrea is down more than 8% over the last 12 months as we carefully balance the need to reduce our cost base while continuing to deliver high-quality services to our customers.

本季直接人事成本的減少繼續抵消了我們先前強調的績效和浮動薪酬的投資。由於我們在降低成本基礎的需求與繼續向客戶提供高品質服務之間進行了仔細的平衡，因此 Fortrea 的永久員工人數在過去 12 個月中下降了 8% 以上。

SG&A in the quarter was lower year-over-year by 20.1%, primarily due to lower TSA and IT-related costs, partially offset by the yield costs related to the receivable securitization program, along with an increase in personnel costs related to the reinstatement of merit and variable compensation.

本季銷售、一般及行政費用年減 20.1%，主要原因是 TSA 和 IT 相關成本降低，但被應收帳款證券化計畫相關的收益成本部分抵消，同時與恢復績效和可變薪酬相關的人員成本增加。

If you look at SG&A sequentially, excluding the impact of onetime costs and the securitization yield costs, SG&A in the second quarter is 4% lower than in the first quarter of 2025 and 15% lower than our fourth quarter 2024 run rate. This includes the absorption of merit and variable compensation noted above. I'll discuss more about our ongoing transformation efforts across the organization later in my remarks.

如果按順序查看銷售、一般和行政費用 (SG&A)，不包括一次性成本和證券化收益成本的影響，第二季度的銷售、一般和行政費用比 2025 年第一季低 4%，比 2024 年第四季的運行率低 15%。這包括吸收上述績效工資和可變薪酬。我將在稍後的演講中進一步討論我們整個組織正在進行的轉型努力。

Net interest expense in the quarter was $23.3 million, a decrease of $21.9 million versus the prior year quarter, primarily due to the $475 million debt paydown across our term loans made in June 2024. Because of that large paydown, our interest expense in Q2 of last year included a $12.2 million write-down of debt issuance costs. To better compare the year-on-year reduction, taking the combination of cash interest expense plus recurring securitization costs, it provides a spend that is approximately 18% lower in the second quarter of this year.

本季淨利息支出為 2,330 萬美元，較去年同期減少 2,190 萬美元，主要原因是我們在 2024 年 6 月償還了 4.75 億美元的定期貸款債務。由於償還金額龐大，我們去年第二季的利息支出中包括了 1,220 萬美元的債務發行成本減記。為了更好地比較年減情況，將現金利息支出加上經常性證券化成本結合起來，今年第二季的支出減少了約 18%。

Turning to our tax rate. The effective tax rate for continuing operations for the quarter was negative 1.1%. The rate was adversely impacted by an impairment of goodwill that has no tax benefit, an increase in our valuation allowance, the impact of BEAT, nondeductible compensation expenses and withholding taxes for 2025 non-US earnings that are not permanently reinvested.

談談我們的稅率。本季持續經營業務的有效稅率為-1.1%。該稅率受到沒有稅收優惠的商譽減損、估值準備金增加、BEAT 的影響、不可扣除的薪酬費用以及未永久再投資的 2025 年非美國收益的預扣稅的不利影響。

Adjusted EBITDA for the quarter was relatively flat at $54.9 million compared to adjusted EBITDA of $55.2 million in the prior year period. Sequentially, adjusted EBITDA margin in the quarter was positively impacted by higher service fee revenue, along with lower personnel costs and operations as we continue to execute against our margin expansion initiatives.

本季調整後 EBITDA 為 5,490 萬美元，與去年同期的調整後 EBITDA 5,520 萬美元相比基本持平。連續，由於我們繼續執行利潤率擴大計劃，本季調整後的 EBITDA 利潤率受到服務費收入增加以及人員成本和營運成本降低的正面影響。

Moving to net income and adjusted net income. In the second quarter of 2025, net loss was $374.9 million, compared to a net loss of $99.3 million in the prior year period, primarily due to a noncash pretax goodwill impairment charge of $309.1 million related to our clinical development reporting unit.

轉向淨收入和調整後淨收入。2025 年第二季淨虧損為 3.749 億美元，而去年同期淨虧損為 9,930 萬美元，主要原因是與我們的臨床開發報告部門相關的非現金稅前商譽減損費用為 3.091 億美元。

The charge was primarily a result of the decline in our share price since March 31, 2025, and to a lesser extent, a market-based increase in the discount rate used for the valuation. There is no indicator of impairment in our clinical pharmacology reporting unit. Excluding the impact of the impairment charge, the quarterly net loss decreased year-on-year, driven by the targeted reductions in our cost base.

此項費用主要是由於我們自 2025 年 3 月 31 日以來股價下跌所致，其次是因市場原因估值所使用的折現率上升所致。我們的臨床藥理學報告單位沒有受損跡象。排除減損費用的影響，季度淨虧損年減，這得益於我們目標成本基礎的降低。

In the second quarter of 2025, adjusted net income was $17.6 million compared to adjusted net loss of $2.3 million in the prior year period. For the current quarter, adjusted basic and diluted earnings per share were $0.19.

2025 年第二季度，調整後淨收入為 1,760 萬美元，去年同期調整後淨虧損為 230 萬美元。本季調整後每股基本收益和稀釋收益為 0.19 美元。

Turning to customer concentration. Our top 10 customers represented 59% of second quarter 2025 revenues. Our largest customer accounted for 13.2% of revenues during the quarter ending June 30, 2025.

轉向客戶集中度。我們的前十大客戶佔 2025 年第二季營收的 59%。截至 2025 年 6 月 30 日的季度，我們最大的客戶佔營收的 13.2%。

As I comment on cash flows, note that all references to prior year cash flows are for the entirety of Fortrea as we had not segregated cash flows from discontinued operations for the businesses sold in June 2024. To more clearly see year-to-date and second quarter cash flow metrics, please refer to Slide 6 in the investor presentation we released this morning.

當我評論現金流時，請注意，所有對上一年現金流的引用都是針對整個 Fortrea 的，因為我們沒有將 2024 年 6 月出售的業務的已終止經營的現金流分離出來。為了更清楚地了解年初至今和第二季度的現金流指標，請參閱我們今天上午發布的投資者簡報中的幻燈片 6。

For the six months ended June 30, 2025, we reported negative operating cash flow of $102.4 million, compared to positive operating cash flow of $248.1 million in the prior year period. The $350.5 million reduction in year-over-year cash flow can largely be attributed to a few key factors related to our receivables.

截至 2025 年 6 月 30 日的六個月，我們報告的經營現金流為負 1.024 億美元，而去年同期的經營現金流為正 2.481 億美元。現金流年減 3.505 億美元，主要歸因於與我們的應收帳款相關的幾個關鍵因素。

The year-to-date figure for 2024 included $298 million in proceeds from our initial sale of receivables under our securitization program in June of 2024. While 2025 includes the remaining negative impact of the temporary pause in invoicing in the first quarter of 2025 to support our ERP transition. For the second quarter of 2025, we generated positive operating cash flow of $21.8 million and free cash flow of $14.3 million, in line with our expectations.

2024 年年初至今的數據包括我們於 2024 年 6 月根據證券化計畫首次出售應收帳款所得的 2.98 億美元。而 2025 年則包括 2025 年第一季為支持我們的 ERP 轉型而暫停開票的剩餘負面影響。2025 年第二季度，我們產生了 2,180 萬美元的正營運現金流和 1,430 萬美元的自由現金流，符合我們的預期。

Days sales outstanding from continuing operations was 46 days as of June 30, 2025, 5 days lower than March 31, 2025, and 8 days lower than the same period last year. The reduction versus the first quarter demonstrates our progress towards catching up on the delayed invoicing from our ERP transition.

截至 2025 年 6 月 30 日，持續經營業務應收帳款週轉天數為 46 天，比 2025 年 3 月 31 日減少 5 天，比去年同期減少 8 天。與第一季相比的減少表明我們在彌補 ERP 轉型延遲開票方面取得了進展。

Net accounts receivable and unbilled services for continuing operations were $739 million as of June 30, 2025, compared to $660 million as of December 31, 2024, with the increase versus year-end primarily driven by the increase in DSO and to a lesser extent, higher revenue.

截至 2025 年 6 月 30 日，持續經營的淨應收帳款和未開票服務為 7.39 億美元，而截至 2024 年 12 月 31 日為 6.6 億美元，與年底相比有所增長，主要原因是 DSO 增加，其次是收入增加。

We ended the quarter with $50 million outstanding on the revolver. This balance improved sequentially compared to the $89 million of borrowing outstanding as of March 31, 2025. We are targeting operating cash flow to be positive across the remaining quarters of 2025, driven by lower cash outlays for restructuring and spin-related costs as well as incremental cash generation from working capital.

本季末，我們的循環貸款未償還金額為 5,000 萬美元。與截至 2025 年 3 月 31 日的 8,900 萬美元未償還借款相比，這一餘額有所改善。我們的目標是，在重組和分拆相關成本的現金支出減少以及營運資本產生的現金增量的推動下，2025 年剩餘幾季的營運現金流將為正值。

I want to be clear about this point. We believe that Fortrea has ample liquidity with $400 million available on our revolver as of June 30, 2025, plus more than $80 million of cash on hand. We generated positive operating cash flow in the quarter and currently project to do so for the remaining quarters of 2025.

我想明確這一點。我們相信 Fortrea 擁有充足的流動性，截至 2025 年 6 月 30 日，我們的循環信貸額度為 4 億美元，另外還有超過 8,000 萬美元的現金。我們在本季產生了正的經營現金流，目前預計 2025 年剩餘幾季也將維持這一狀態。

Everything we have done and are doing from our operational execution, our progress against our cost savings initiatives and reaffirmation of our 2025 guidance underscores the continued improvement in our underlying financial performance. With our projected EBITDA and significant add-backs available under the credit agreement, we expect that we will continue to have ample liquidity for the foreseeable future.

我們已經做和正在做的一切，從營運執行、成本節約計劃的進展到對 2025 年指導的重申，都凸顯了我們基礎財務業績的持續改善。憑藉我們預期的 EBITDA 和信貸協議下的大量附加回報，我們預計在可預見的未來我們將繼續擁有充足的流動性。

As an important reminder, our credit agreement includes add-backs well beyond what we include in our definition of adjusted EBITDA, such as pro forma benefits from in-flight cost savings initiatives, Fortrea's public company costs and costs necessitated by the spin. The maximum net leverage ratio under the amended credit agreement ranges from 5.5 times to 6 times over the years 2025 and 2026 and reverts to 5.3 times as of the first quarter of 2027.

需要提醒的是，我們的信用協議包含的附加價值遠遠超出了我們對調整後 EBITDA 的定義，例如飛行中成本節約計畫的備考收益、Fortrea 的上市公司成本以及分拆所需的成本。修訂後的信貸協議規定，2025年和2026年最高淨槓桿率為5.5倍至6倍，自2027年第一季起恢復為5.3倍。

While we do not disclose our covenant calculations, we have considerable headroom and our covenant leverage ratio under our credit agreement is significantly better than our reported leverage ratio, generally at least one turn better than our reported leverage. We are currently and anticipate that we will remain fully compliant with the financial maintenance ratios of the credit agreement for the foreseeable future. With our TSA exit behind us, we plan to focus our capital allocation priorities on driving organic growth and improving productivity along with debt repayment.

雖然我們沒有揭露我們的契約計算，但我們有相當大的空間，而且我們信貸協議下的契約槓桿率明顯優於我們報告的槓桿率，通常至少比我們報告的槓桿率高出一倍。我們目前並預期在可預見的未來我們將繼續完全遵守信貸協議的財務維持比率。隨著我們退出 TSA，我們計劃將資本配置重點放在推動有機成長、提高生產力以及償還債務。

Backlog burn this quarter was higher than the first quarter, supported by growth in our faster burning clinical pharmacology reporting unit, along with our progress to move clinical development awards into more intensive phases of their life cycle. We anticipate continuation of these first half trends in the second half.

本季積壓訂單量高於第一季度，這得益於我們更快的臨床藥理學報告部門的成長，以及我們將臨床開發獎項推向其生命週期更密集階段的進展。我們預計下半年將延續上半年的趨勢。

Although we are still seeing some delays in the start-up of biotech projects, our analysis shows that once underway, these projects tend to burn more quickly than large pharma studies. As previously noted, FSP revenue is anticipated to be a headwind in 2025, but we are rekindling our efforts in FSP, including the launch of a dedicated sales team at the start of the third quarter because we believe we can win attractive FSP work that can benefit both our margins and our customer base.

儘管我們仍然看到生物技術計畫的啟動存在一些延遲，但我們的分析表明，一旦啟動，這些計畫往往比大型製藥研究燒得更快。如前所述，預計 2025 年 FSP 收入將面臨阻力，但我們正在重新加大在 FSP 方面的努力，包括在第三季度初成立專門的銷售團隊，因為我們相信我們可以贏得有吸引力的 FSP 工作，這將有利於我們的利潤率和客戶群。

We continue to target driving our commercial team towards achieving book-to-bill ratios in line with our peer set. But given the ongoing uncertainty in the macroeconomic environment and the recent leadership transition, it is not prudent to give guidance on book-to-bill.

我們將繼續致力於推動我們的商業團隊實現與同行一致的訂單出貨比。但鑑於宏觀經濟環境持續存在的不確定性以及最近的領導層過渡，對訂單出貨比給予指引並不明智。

The pricing environment remains competitive, and we are monitoring pricing feedback closely as we attempt to balance winning new business with achieving attractive margins. As previously shared, we are making targeted investments this year to expand our commercial coverage of biotech, recognizing that over time, biotech organizations are expected to remain a compelling source of innovation and growth.

定價環境仍然具有競爭力，我們正在密切關注定價回饋，試圖在贏得新業務和實現有吸引力的利潤率之間取得平衡。正如之前所分享的，我們今年正在進行有針對性的投資，以擴大我們對生物技術的商業覆蓋範圍，我們認識到隨著時間的推移，生物技術組織有望繼續成為創新和成長的強大來源。

Now I'll give an update on how we're executing against our transformation plans for 2025. As previously shared, we continue to execute against our target of gross cost reductions of $150 million in 2025 with the expected net benefit of $90 million to $100 million this year as some of the cost reductions are being offset by the reintroduction of merit and variable compensation. This $90 million to $100 million will be split, with roughly $50 million improving gross margin and $40 million to $50 million leading to lower SG&A.

現在我將介紹我們 2025 年轉型計畫的執行情況。如同先前所述，我們將繼續執行到 2025 年削減 1.5 億美元的總成本的目標，預計今年的淨收益為 9,000 萬至 1 億美元，因為部分成本削減被重新引入績效薪酬和浮動薪酬所抵銷。這 9,000 萬至 1 億美元將被分割，其中約 5,000 萬美元可提高毛利率，而 4,000 萬至 5,000 萬美元可降低銷售、一般及行政費用 (SG&A)。

Year-to-date, we have captured more than $50 million in gross savings with roughly $30 million in net savings contributing to improvements in EBITDA. These savings have largely benefited gross margin as we are targeting the SG&A savings to be more heavily weighted to the second half.

年初至今，我們已實現超過 5000 萬美元的總節省，其中約 3000 萬美元的淨節省有助於提高 EBITDA。由於我們計劃將銷售、一般及行政費用 (SG&A) 節省的重點更多地放在下半年，因此這些節省對毛利率有很大幫助。

Building on what we discussed back in May, through the second quarter, we have increased our reduction in office square footage by a further 10% and rationalize a further 5% of the applications we inherited with the spin. We expect these optimization programs will extend into 2026 as we continue our efforts to bring our SG&A spend more in line with peers.

基於我們 5 月討論的內容，到第二季度，我們將辦公室面積的減少量進一步增加了 10%，並對分拆後繼承的應用程式進一步進行了 5% 的合理化。我們預計這些優化計劃將延續到 2026 年，因為我們將繼續努力使我們的銷售、一般及行政開支與同業更加一致。

For full year 2025, we are raising our revenue guidance and reaffirming our adjusted EBITDA outlook. Based on exchange rates as of December 31, 2024, we are increasing our revenue target to a range of $2.6 billion to $2.7 billion. At the same time, we are reaffirming our adjusted EBITDA target in the range of $170 million to $200 million reflecting continued operational discipline.

對於 2025 年全年，我們將提高收入預期並重申調整後的 EBITDA 前景。根據截至 2024 年 12 月 31 日的匯率，我們將營收目標提高至 26 億美元至 27 億美元。同時，我們重申調整後的 EBITDA 目標在 1.7 億美元至 2 億美元之間，以反映持續的營運紀律。

In terms of cash flow, for full year 2025, we are targeting operating cash flow to be marginally negative with positive cash flow generated in the remaining quarters of 2025.

就現金流而言，我們的目標是 2025 年全年的經營現金流略為負值，2025 年剩餘季度產生正值現金流。

In terms of modeling the second half of 2025, we are targeting revenues in the third and fourth quarter to be more in line with the first quarter. The team at Fortrea has shown phenomenal resilience. We've come through a complex spin, exited the TSA on time, and laid the operational and financial groundwork for the future.

在預測 2025 年下半年時，我們的目標是讓第三季和第四季的營收與第一季更加一致。Fortrea 的團隊展現了非凡的韌性。我們度過了複雜的困境，按時退出了 TSA，並為未來奠定了營運和財務基礎。

The level of commitment and focus I've seen from our employees is extraordinary. We've endured uncertainty, work through significant change and emerged with clarity and stability. And now we are exclusively focused on what is most important, delighting our customers and executing against our plans to improve our overall financial results.

我看到我們的員工表現出非凡的奉獻精神和專注力。我們經歷了不確定性，經歷了重大變化，最終獲得了清晰和穩定的局面。現在，我們只專注於最重要的事情：讓客戶滿意，並執行我們的計劃以改善我們的整體財務表現。

As we enter the next phase of our journey as a global leader in clinical development, we are closing the door to our transition phase and embracing our transformation phase. Through it all, we have maintained strong engagement scores from our employees, delivered improved Net Promoter Scores and built the discipline we need to steadily improve. We are excited about the future of Fortrea.

隨著我們作為臨床開發領域的全球領導者進入下一階段，我們正在關閉過渡階段的大門並迎接轉型階段。透過這一切，我們保持了員工的良好敬業度，提高了淨推薦值，並建立了穩步改進所需的紀律。我們對 Fortrea 的未來充滿期待。

Operator, please open the line for Q&A.

接線員，請打開問答線。

(Operator Instructions)

（操作員指示）

Eric Caldwell of Baird.

貝爾德的埃里克·考德威爾。

Thanks very much. Good morning. I have a two parter, both related. First, I'm just curious on these smaller newer to Fortrea hesitant biotech clients. Did they go a different direction? Or did they simply delay decisions? Is there some kind of commentary around what was lost versus what was delayed coming out of 2Q as there was some hesitancy?

非常感謝。早安.我有兩個部分，都是相關的。首先，我只是對這些規模較小、對 Fortrea 猶豫不決的生物技術客戶感到好奇。他們走向了不同的方向嗎？或者他們只是推遲做出決定？有沒有關於第二季度因猶豫而導致的損失和延遲的評論？

And then more importantly, welcome to Anshul and Tracy. Anshul, I'm hoping you can make some additional comments on your commercial style, the skills you bring, relationships you bring to the company, how you approach building a successful commercial operation and whether you've any 48 hours in, whether you have any initial views on how your approach to building and developing the sales force and commercial marketing team, how that might differ from where Fortrea is today? Thanks very much.

更重要的是，歡迎 Anshul 和 Tracy。Anshul，我希望您能對您的商業風格、您帶來的技能、您為公司帶來的關係、您如何建立成功的商業運營以及您是否有 48 小時的時間，對於您如何建立和發展銷售隊伍和商業營銷團隊的方法有任何初步看法，這與 Fortrea 現在的情況有何不同？非常感謝。

Thanks, Eric. I'll take the first part of that question, then I'll turn it over to Anshul for the second part.So with regard to the new to Fortrea biotech, I think candidly, those are biotechs that made a decision to go in a different direction. It's not uncommon. As we had mentioned and Peter mentioned in his remarks, we saw the same thing, if you recall, prior to the spin when there was some uncertainty about leadership.

謝謝，埃里克。我先回答這個問題的第一部分，然後交給 Anshul 回答第二部分。關於 Fortrea 生物技術的新產品，我坦率地認為，這些是決定朝不同方向發展的生物技術公司。這並不罕見。正如我們和彼得在他的評論中提到的那樣，如果您還記得的話，在領導層存在一些不確定性之前，我們也看到了同樣的事情。

And we saw that very quickly dissipate once the leadership was in place and we removed. So while unfortunate, we're not expecting to have those same uncertainty concerns with customers going forward. So we're hopeful that, that is a relatively short period in transition.

我們看到，一旦領導層到位並且我們撤走，這種情況就會迅速消失。因此，儘管不幸，但我們並不認為未來客戶還會面臨同樣的不確定性擔憂。因此，我們希望這是一個相對較短的過渡期。

Anshul, I'll turn it over to you.

安舒爾，我會把它交給你。

Sure. Eric, thanks for the question. It's day three. So I'll answer what I can. In terms of commercial style, a couple of important things to point out. To me, this is a professional services business, and I approach the CRO industry like a professional services business. It's to figure out what our customers' needs are, figure out what tools and capabilities we have to meet those needs. And more often than not, it's about delivering high-quality results and trying to bend the time cost curve, everything we did in my prior career.

當然。艾瑞克，謝謝你的提問。這是第三天。所以我會盡力回答。就商業風格而言，有幾點重要的事情需要指出。對我來說，這是一項專業服務業務，我以專業服務業務的方式對待 CRO 產業。這是為了弄清楚客戶的需求是什麼，弄清楚我們有什麼工具和能力來滿足這些需求。通常情況下，這是為了提供高品質的結果並試圖降低時間成本曲線，這就是我在之前的職業生涯中所做的一切。

To me, achieving the commercial excellence here is about commercial excellence, financial excellence and operational excellence. And that's what it will take to win the hearts and minds of our customers. But Eric, it's day three. Ask me again in Q3, and I'll have spent a lot more time with our customers by then, and I'll have a deeper answer for you.

對我來說，在這裡實現商業卓越意味著商業卓越、財務卓越和營運卓越。這就是我們贏得客戶青睞的關鍵。但是艾瑞克，這是第三天了。請在第三季再次詢問我，到那時我將花更多的時間與我們的客戶在一起，我會為您提供更深入的答案。

Justin Bowers of Deutsche Bank.

德意志銀行的賈斯汀·鮑爾斯。

Hi, good morning, everyone, and welcome, Anshul. So also a two parter for me. Number one, can you discuss the overall demand environment in pharma and biotech and how that's evolved throughout the year? And then part two is just an update on the Phase I business. That's been fairly robust for you guys. Are you still leaning on third party for capacity support? And if so, when do you expect that to normalize?

大家早安，歡迎安舒爾。所以對我來說這也是兩個部分。首先，您能討論一下製藥和生物技術領域的整體需求環境以及全年的發展嗎？第二部分只是第一階段業務的更新。這對你們來說相當強勁。您是否仍依賴第三方提供容量支援？如果是這樣，您預計什麼時候會恢復正常？

Justin, thanks for the question. Let me take the first part about sort of our demand environment, and I'll hand it over to Jill to talk about specifics in our Phase I business.

賈斯汀，謝謝你的提問。讓我先談談我們的需求環境，然後我會把它交給吉爾來談談我們第一階段業務的具體細節。

Look, I'm cautiously optimistic. We are seeing our fair share of RFPs. I agree with the broader market sentiment that's been expressed by others in the industry as well. We too are seeing our pipelines trending upwards, both across biotech and large pharma. Now our lack of exposure to vaccines or government-funded programs is a positive in this macro environment for us. In addition, as Jill has indicated and as Peter has indicated, our strong biotech pipeline is another positive for us and not being over-indexed to any one customer segment is something I'm excited about here at Fortrea.

瞧，我持謹慎樂觀的態度。我們正在收到相當多的 RFP。我也同意業內其他人表達的更廣泛的市場情緒。我們也看到我們的產品線呈現上升趨勢，無論是在生物技術領域還是大型製藥領域。現在，我們缺乏接觸疫苗或政府資助項目，這對我們來說在宏觀環境下是一個積極因素。此外，正如吉爾和彼得所指出的，我們強大的生物技術管道對我們來說是另一個積極因素，而我對 Fortrea 公司沒有過度依賴任何一個客戶群感到興奮。

So with that, I'll turn it over to Jill to talk a little bit more about how our CPS business is performing.

因此，我將讓吉爾進一步談談我們的 CPS 業務的表現。

Thanks, Anshul. Justin, our clinical pharmacology business continues to be an industry leader and perform incredibly well. In fact, as we have shared previously, our biggest challenge at the moment is capacity constraints.

謝謝，安舒爾。賈斯汀，我們的臨床藥理學業務繼續保持行業領先地位，並且表現非常出色。事實上，正如我們之前所分享的，我們目前面臨的最大挑戰是產能限制。

And so that has caused us to have to shift some of that work to third parties, and we're continuing to refine scheduling to try to improve that. And we're hopeful in the future, we'll be able to bring more of those awards in-house. But continue to have great success there, both operationally and scientifically, and we're very excited about the continued building of that business.

因此，這導致我們不得不將部分工作轉移給第三方，我們正在繼續優化日程安排，試圖改善這種情況。我們希望未來我們能夠獲得更多這樣的獎項。但在營運和科學方面繼續取得巨大成功，我們對繼續發展該業務感到非常興奮。

Patrick Donnelly of Citi.

花旗銀行的派崔克唐納利。

Hey guys, thank you for taking the questions maybe just a follow-up on the bookings environment. Can you just talk a bit about what you're seeing on the cancellation side? It sounds like, again, the visibility, you don't want to talk too much about the go-forward book-to-bill. But just trying to feel out, again, what you saw in the quarter, what the right way to just think about that cancel pieces just competitively, again, how you guys are doing on the win rates would be helpful just to talk through that a bit.

嘿，大家好，感謝您回答這些問題，也許只是想跟進一下預訂環境。您能否簡單談談您在取消方面看到的情況？聽起來，再一次，從可見性來看，你不想過多談論未來的訂單出貨比。但只是想再次感受一下，你在本季度看到了什麼，如何正確地思考取消部分的競爭力，再一次，你們在勝率方面的表現如何，這將有助於稍微討論一下。

Sure, Patrick. I'll take that one. So in terms of cancellations, we have fortunately continued to see cancellations in line with our historic trends, which are relatively low. Our cancellations are actually even slightly lower than they were in the first quarter. So from a cancellation perspective, we've been pleased to see that trend continue.

當然，派崔克。我要那個。因此，就取消而言，我們很幸運地看到取消量繼續符合我們的歷史趨勢，相對較低。我們的取消量實際上比第一季略低。因此，從取消的角度來看，我們很高興看到這種趨勢持續下去。

In terms of win rates, they were relatively consistent with our existing large pharma and biotech customers. But as we called out, we did see a drop in the new to Fortrea biotech customers. And again, hopefully, we'll see that start to turn around as we go through the second half.

就中標率而言，他們與我們現有的大型製藥和生技客戶相對一致。但正如我們所呼籲的，我們確實看到 Fortrea 生物技術新客戶數量下降。再次，我們希望在下半場看到情況開始好轉。

Okay. Understood. And then, Jill, maybe just on the margin side, can you just talk about the moving pieces there? Obviously, that has moved around a little bit over the last few quarters. What the right way to think about just that launching point into next year is? And similarly, inside that, the pricing environment, it sounds like it's competitive, what that could mean on margins and maybe just a little more color on pricing.

好的。明白了。然後，吉爾，也許只是在邊緣方面，你能談談那裡的移動部分嗎？顯然，過去幾季的情況有所變化。思考明年的起點的正確方法是什麼？同樣，在定價環境中，聽起來競爭很激烈，這可能意味著利潤率，也可能意味著定價會更加透明。

Yeah, maybe I'll take pricing first. I mean I think many folks have called out that the pricing environment is very competitive. We think that we're competing well. We continue to watch that. Our goal has never been to be the lowest price. We want to be priced at market. So we're monitoring those trends and adjusting as and where we need to. But I think at the moment, we're handling that well. But we don't see anything incredibly aggressive, but I know it continues to be competitive, as you know.

是的，也許我會先考慮定價。我的意思是，我認為很多人都指出定價環境競爭非常激烈。我們認為我們的競爭力很強。我們將繼續關注此事。我們的目標從來都不是最低價格。我們希望按照市場價格定價。因此，我們正在監測這些趨勢並根據需要進行調整。但我認為目前我們處理得很好。但我們沒有看到任何令人難以置信的激進行為，但我知道它仍然具有競爭力，正如你所知。

And in terms of margin, we're not at a point where we're going to talk about 2026 yet. But you can you will expect continuation and annualization, for example, of the initiatives that we put in place, in particular, as we've shared, those SG&A ones that are more weighted towards the second half. So you'll have the benefit of those fully in 2026. And we also have talked previously about continuing to drive additional savings out of SG&A next year while we continue to try to improve gross margin.

就利潤率而言，我們還沒有到談論 2026 年的地步。但是，您可以期待我們所實施的舉措能夠延續並年度化，特別是正如我們所分享的，那些更側重於下半年的銷售、一般和行政費用 (SG&A) 舉措。因此，您將在 2026 年充分享受這些好處。我們之前也談到明年將繼續從銷售、一般和行政費用中節省更多資金，同時繼續努力提高毛利率。

So I'm expecting to be able to share a little bit more about that in the future. But I think where we are today for the year, it's a little bit too early to talk about '26 margins.

因此我希望將來能夠分享更多有關這方面的資訊。但我認為，就今年的現狀而言，談論 26 年的利潤率還為時過早。

Understood thank you guys.

明白了，謝謝大家。

Elizabeth Anderson of Evercore ISI. Your line is open.

Evercore ISI 的伊麗莎白·安德森 (Elizabeth Anderson)。您的線路已開通。

Hi guys, thanks for the question and welcome, Anshul. It's nice to catch up with you. I had a question just in terms of the outlook for the back half of the year. I think you called out that the guidance raise in terms of revenue is largely driven by FX.

大家好，感謝您的提問，歡迎 Anshul。很高興見到你。我對今年下半年的前景有一個疑問。我認為您所說的收入預期成長主要是由外匯推動的。

And I just wanted to make sure I understood all the moving pieces on the EBITDA line. Could you just talk about sort of your FX exposure on sort of like a revenue versus EBITDA basis? And I know, obviously, you have the cost-cutting benefits, but some planned investments. So could you just walk us through that to make sure we have all of our ducks in a row on that point?

我只是想確保我理解了 EBITDA 線上的所有變動部分。您能否從收入與 EBITDA 的角度談談您的外匯風險敞口？我知道，顯然你們獲得了成本削減的好處，但也有一些計畫中的投資。那麼，您能否向我們簡單介紹一下這一點，以確保我們在這一點上已經做好了一切準備？

Sure, Elizabeth. I'm happy to. No, the raise is not related to FX. We talked about it having a very minor impact. I think it was 60 basis points in this quarter. We're expecting it to be fairly similar as we go forward. I mean, obviously, no one can predict where rates will go, but that is not the driver of the guidance range on the revenue side. So I think it's moving our projects more into intensive phases, especially some of the newer awards that we've won. And there is also some there's impact of pass-throughs in there as well.

當然，伊麗莎白。我很樂意。不，此次加薪與外匯無關。我們討論過它的影響非常小。我認為本季是 60 個基點。我們預計，隨著我們不斷前進，情況將會變得相當相似。我的意思是，顯然沒有人能夠預測利率會走向何方，但這並不是收入方面的指導範圍的驅動因素。因此我認為這會讓我們的專案更加深入地進入密集階段，尤其是我們贏得的一些新獎項。其中也存在一些傳遞的影響。

Got it. And so just in terms of how that flows down to EBITDA, if that's the case, is that sort of a reflection of some like incremental investments or just some conservatism around the call? Just, I guess, with the revenue increase being more operationally driven, I'm just surprised not to see a little bit more flow-through into EBITDA. So I just want to make sure I have that organized in my head.

知道了。那麼，就其如何影響 EBITDA 而言，如果是這樣的話，這是否反映了一些增量投資，還是只是一些保守的呼籲？我只是覺得，由於收入成長更多是由營運驅動的，我很驚訝地看到流入 EBITDA 的收入沒有增加一點。所以我只是想確保我已經把這些想法整理好了。

Yeah, sure. Elizabeth, a very fair question, but I think at this point, it's most prudent for us to maintain our guidance, and we'll see how the year plays out. We're pleased with our progress against the margin expansion initiatives, but felt like it was appropriate to maintain our adjusted EBITDA guidance at this point.

是的，當然。伊莉莎白，這是一個非常公平的問題，但我認為目前我們最謹慎的做法是維持我們的指導方針，然後看看今年的情況如何。我們對利潤率擴大計畫所取得的進展感到滿意，但認為此時維持調整後的 EBITDA 指引是合適的。

Yeah, that makes sense thank you very much for.

是的，這很有道理，非常感謝。

Tucker Remmers of Jeffries.

傑弗里斯的塔克·雷默斯。

Hello, thanks for the question just kind of drilling into the second half guidance here. So it sounds like you guys expect a step down in revenue from the second quarter, but maybe more in line with the first quarter. So I guess I'm just trying to put the pieces together of why is kind of burn rate maybe dropping back down in the second half? And how do pass-throughs play a role into that?

您好，感謝您的提問，只是想深入探討下半年的指導。所以聽起來你們預期第二季的營收會下降，但可能與第一季更一致。所以我想我只是想把這些零散的信息整合起來，看看為什麼下半年燒錢率可能會再次下降？那麼傳遞機制在其中扮演什麼角色呢？

Sure, Tucker. So I think we are expecting a little bit, especially towards the end of the year and moderation in pass-throughs. They're still going to be elevated in the second half, but we actually have a very large, very heavy pass-through driven study that was successfully ended early. And so one of the things that's been driving some of the higher one as that winds down will impact revenues in the back end of the year.

當然，塔克。所以我認為我們期待一點，特別是到年底和傳遞速度會有所緩和。它們在下半年仍會升高，但實際上我們有一項非常大、非常重的傳遞驅動研究，並且已提前成功結束。因此，推動部分成本上漲的因素之一就是成本下降將影響年底的收入。

I think what you'll see is revenues more in line with the first quarter, but with better margins on them, as you can see relative to the maintaining of the adjusted EBITDA guidance as the cost savings initiatives continue to deliver.

我認為您會看到收入與第一季更加一致，但利潤率更高，正如您所看到的，由於成本節約計劃繼續發揮作用，調整後的 EBITDA 指導得以維持。

Got it. And then one more, if I could. Just unlike the large pharma environment, sort of it seems like that environment has been getting a little bit better, but maybe more stuck in the butt in second quarter versus earlier in the year. So I guess, can you explain like what large pharma customers are telling you and kind of where your win rate has been with those larger customers, not the biotechs that sort of, say, went somewhere else because of the CEO transition? And then that's all for me.

知道了。如果可以的話，再來一個。與大型製藥環境不同的是，這種環境似乎有所好轉，但與今年稍早相比，第二季的情況可能更糟。所以我想，您能否解釋一下大型製藥客戶告訴您的情況，以及您從這些大型客戶（而不是那些由於首席執行官變動而轉向其他地方的生物技術公司）中獲得的勝率是多少？對我來說，這就是全部了。

Sure, Tucker. With our large pharma, existing large pharma customers, the relationships are strong. The win rates are consistent. We're continuing to get and win new work from them, and we're pleased with that.

當然，塔克。我們與大型製藥公司以及現有的大型製藥公司客戶的關係非常牢固。勝率是一致的。我們不斷從他們那裡獲得並贏得新的工作，我們對此感到高興。

I think in terms of the conversations, everyone is dealing with the uncertainty and not knowing exactly where the environment is going to land. There's I think there was talk on the news on the way this morning that we're going to hear some more news in the next couple of weeks. So we'll all wait and see what that looks like. But I think at this point, people are moving forward with making decisions, and we've been pleased to see them continuing to award us new business.

我認為就對話而言，每個人都在應對不確定性，並且不知道環境究竟會走向何方。我認為今天早上的新聞有傳言說我們將在接下來的幾週內聽到更多消息。因此，我們將拭​​目以待，看看結果會如何。但我認為此時人們正在向前邁進，做出決策，我們很高興看到他們繼續為我們帶來新業務。

Luke Sergott from Barclays.

巴克萊銀行的 Luke Sergott。

This is Jake on for Luke. So you've given an initial 2026 framework around pre- and post-spin backlog and sales mix. But given the bookings this quarter, does the framework still stand? And also, what are you doing to increase confidence in those newer to Fortrea customers?

這是傑克為盧克表演的。因此，您已經圍繞分拆前後的積壓訂單和銷售組合給出了初步的 2026 年框架。但考慮到本季的預訂情況，該框架是否仍然有效？此外，您正在採取什麼措施來增強 Fortrea 新客戶的信心？

So I think in terms of the pre- and post-spin, we did see continued improvement in post-spin awards adding to revenue this quarter. You saw that a little bit in the uptick in the revenues here in the quarter. I think we're continuing to monitor that situation closely, and they're progressing in the same direction that we expected.

因此，我認為就分拆前和分拆後而言，我們確實看到分拆後獎勵的持續改善增加了本季的收入。您可以看到本季度收入略有上升。我認為我們正在繼續密切關注這一情況，而且他們正朝著我們預期的方向發展。

They were of our full service clinical development revenue, they're about 30% of that portion of the revenue in the quarter. So a little bit higher than they were in the first quarter. So the guidance we had talked about previously about that reaching more than 50% of that subset of revenue in the back half of next year holds.

它們是我們全方位服務臨床開發收入的一部分，約佔本季該部分收入的 30%。因此比第一季略高一點。因此，我們之前談到的關於明年下半年該部分收入達到 50% 以上的指導方針是成立的。

I think and sorry, this was the second it was this yes, you want to take that Anshul?

我認為，很抱歉，這是第二次了，是的，你想接受這個安舒爾嗎？

Yeah, sure. Jake, the second question was about how we think about the new to Fortrea customers. This is where getting to the other side of the CEO transition is extremely important for us as a company. And this is where I see having the greatest impact here in the coming months. My role, as I said earlier, in the next few months is going to be to really engage our customers, both perspective as well as current and our colleagues around the world, and that's how we plan to address it.

是的，當然。傑克，第二個問題是我們如何看待 Fortrea 的新客戶。對我們公司來說，完成 CEO 的過渡是極為重要的。我認為這將是未來幾個月影響最大的領域。正如我之前所說，在接下來的幾個月裡，我的職責將是真正地與我們的客戶、現有客戶以及我們在世界各地的同事接觸，這就是我們計劃解決的問題。

Max Smock of William Blair.

威廉·布萊爾的馬克斯·斯莫克。

Hey, good morning and thanks for taking our questions.Anshul, I know you've only been in the seat a couple of days here, but just thinking through or maybe a strategic one from our end, talked about leaning into FSP, making yourself more competitive in large pharma, but at the same time, your win rates and down in small biotech. How do you think about prioritizing these opportunities moving forward? And where do you really want to lean in or see the most opportunity for share gains in the near future?

嘿，早上好，感謝您回答我們的問題。 Anshul，我知道您才在這裡任職幾天，但只是從我們的角度考慮，或者可能是戰略性的，談到傾向於 FSP，讓自己在大型製藥公司中更具競爭力，但與此同時，您的勝率在小型生物技術公司中下降。您認為今後應如何優先考慮這些機會？您真正希望關注的領域是什麼？或者在不久的將來您最想看到哪些領域有最大的市佔率成長機會？

Max, happy to take that question. Look, I think with the uncertainty in the market, we did see a dip in the win rates. But as Jill has said, that's been with new to Fortrea biotech customers. Our win rates have been fairly consistent with our existing customers in both customer segments.

馬克斯，很高興回答這個問題。看，我認為由於市場不確定性，我們確實看到勝率下降。但正如吉爾所說，這對 Fortrea 生物技術客戶來說是新的。我們的贏單率與兩個客戶群中的現有客戶相當一致。

And so where I see opportunity is what I talked about earlier is continue to sharpen our commercial discipline, our financial discipline and our operational discipline. But give me the 90 days to get out there and talk to our customers and colleagues and come back to you, and ask me that same question again in 90 days, Max.

因此，我看到的機會就是我之前談到的，那就是繼續加強我們的商業紀律、財務紀律和營運紀律。但給我 90 天的時間去與我們的客戶和同事交談，然後再回來找你，90 天後再問我同樣的問題，馬克斯。

Fair enough. I'll hold you to that. Maybe, Jill, just a quick one for me, and apologies if you covered this. I know we've talked about burn rate a little bit already. But can you just walk through what exactly drove that big step-up here in the quarter? And what's really changed as we head into the back half of the year? I think even with your guide anticipating revenue comes down a little bit, still elevated burn in the back half.

很公平。我會讓你信守諾言。也許，吉爾，對我來說這只是一個快速的問題，如果你涉及到了這一點，我很抱歉。我知道我們已經討論過一點燒錢率了。但是您能否具體解釋本季實現如此大成長的具體原因？那麼，當我們進入下半年時，到底發生了哪些變化呢？我認為，即使你的指南預計收入會略有下降，但下半年的支出仍然會增加。

And before, I think we had talked pretty consistently about burn rate continuing to be under pressure. So can you just walk us through again the drivers in terms of what's really changed and what's driving that increase in burn rate here for the remainder of the year?

而之前，我想我們已經相當一致地談論過燒錢率持續承受壓力的問題。那麼，您能否再次向我們介紹真正改變的驅動因素，以及導致今年剩餘時間內資金消耗率上升的因素？

Sure, Max. I think in the quarter, we really benefited from the clinical pharmacology reporting unit as that continues to grow. We'll still see some benefit from that. As you know, it's faster burning, and we're continuing to try to find ways to leverage the capacity we have. And again, very pleased with how that business is performing.

當然，馬克斯。我認為在本季度，我們確實受益於臨床藥理學報告部門的持續成長。我們仍將從中看到一些好處。如您所知，它的燃燒速度更快，我們正在繼續嘗試尋找方法來利用我們現有的容量。再次，我對該業務的表現感到非常滿意。

With the parts of the clinical development business, it's really as we're moving some of the newer awards into more intensive phases of their life cycle, and some of the operational excellence that we've been able to drive. You heard Peter talk about some of those metrics in his remarks, I think is allowing us to see a path to a slightly improved burn rate in the back half compared to what we originally thought, probably in the 8.5% to 9% range, so relatively consistent with first half trends.

對於臨床開發業務的各個部分，我們實際上正在將一些較新的獎項轉移到其生命週期的更密集的階段，以及我們已經能夠推動的一些卓越營運。您聽到彼得在他的演講中談到了其中一些指標，我認為這讓我們看到下半年的燒錢率與我們最初想像的相比略有改善，可能在 8.5% 到 9% 的範圍內，因此與上半年的趨勢相對一致。

Michael Ryskin of Bank of America.

美國銀行的麥可‧里斯金。

Great, thanks for taking the question first, I want to ask on cancellations a little bit more. Really encouraging commentary given what we've seen from others, just especially the fact that you actually have cancellations improved from 1Q to 2Q.

太好了，首先感謝您回答這個問題，我想再問一些關於取消的問題。鑑於我們從其他人那裡看到的情況，這確實令人鼓舞，尤其是從第一季到第二季度，你們的取消率確實有所改善。

Just wondering why you think you're seeing better trends than we've seen elsewhere. Is this just a function of exposure and cancellations being a little bit more concentrated with certain specific large pharma sponsors where you may not have might not be as large a part of the mix or just anything you're executing differently, types of programs you're linked to? Just any additional color on why you've been more resilient there and why you think that might continue?

只是想知道為什麼您認為您看到的趨勢比我們在其他地方看到的要好得多。這是否僅僅是由於曝光和取消而更加集中於某些特定的大型製藥贊助商，而您可能沒有在這些贊助商中佔據那麼大的比例，或者只是您執行的任何不同的事情，與您相關的項目類型？您能否進一步解釋為什麼您在那裡表現得更有韌性，以及為什麼您認為這種情況可能會持續下去？

Sure. I'll take that. I think in terms of cancellations, you're right, it is about who you're exposed to. We don't do government work generally. We don't have really a book of business in the government-related or government-funded work, and we have very limited exposure on the vaccine side, which I think is some of the issue that our peers have faced.

當然。我會接受的。我認為就取消而言，你是對的，這取決於你接觸的人。我們一般不做政府工作。我們在政府相關或政府資助的工作方面實際上沒有業務記錄，而且我們在疫苗方面的曝光率非常有限，我認為這是我們同行面臨的一些問題。

We also have a relatively conservative bookings policy. So I think that also has helped us to keep our cancellation rates in check. But we monitor it constantly, and we've been pleased to see that it's really remained in line.

我們的預訂政策也相對保守。所以我認為這也幫助我們控制了取消率。但我們一直在監控它，並且很高興地看到它確實保持了正常。

Okay. And Jill, just piggybacking on I think it was Elizabeth's question earlier on the EBITDA outlook for the second half. Just thinking through the what you've seen in the first half so far? And then just the rest of the cost savings program, if that gets you another, I think, $60 million $70 million net in the second half, that alone should get you more or less to your EBITDA target for the year.

好的。吉爾，我想這只是伊莉莎白之前提出的關於下半年 EBITDA 前景的問題。只是想回顧一下到目前為止上半部所看到的內容？然後，剩下的成本節約計劃，如果能讓你下半年再獲得 6,000 萬美元至 7,000 萬美元的淨收入，那麼僅憑這一點，你就能或多或少地達到今年的 EBITDA 目標。

So is this just like you said, it's just a little bit of conservatism? Are those savings on the SG&A front coming later in the year, so you won't see the full benefit in the second half, you'll get them more in '26. Maybe you could talk about the timing of those coming through, that would be helpful.

那麼，這是否就像您所說的那樣，只是一點點保守主義？銷售、一般和行政費用方面的節省是否會在今年稍後出現，所以您不會在下半年看到全部收益，而是會在 26 年獲得更多收益。也許您可以談論一下這些事情發生的時間，這將會很有幫助。

Yeah, sure. I think you're right in that they're continuing to ramp, particularly in the SG&A functions. As you remember, we had to fully exit the TSA and get up and running in the new ERP system, for example, which takes a couple of quarters before you can start to make broader changes.

是的，當然。我認為您說得對，他們正在繼續加大力度，特別是在銷售、一般和行政管理職能方面。例如，正如您所記得的那樣，我們必須完全退出 TSA 並啟動並運行新的 ERP 系統，這需要幾個季度的時間才能開始進行更廣泛的變更。

So some of it is the timing and some of it's also a function of how the service fee revenue will play out in the back half of the year with revenue numbers being slightly lower than they were in this quarter, there's a little bit of that impact as well. And those are the major drivers.

因此，部分原因是時機問題，部分原因也取決於下半年服務費收入的表現，收入數字略低於本季度，這也有一點影響。這些就是主要的驅動因素。

Jailendra Singh of Truist Securities.

Truist Securities 的 Jailendra Singh。

Thank you and thanks for taking my questions and congrats and best wishes, Anshul and Tracy. Looking forward to working with you both. And Hima, best wishes to you as well, and thanks for all the help in recent years.

謝謝你們，也謝謝你們回答我的問題，向安舒爾和崔西表示祝賀和最美好的祝福。期待與你們合作。Hima，也祝你一切順利，謝謝你近年來的所有幫助。

I want to follow up on the win rate comments in biotech. It seems you were describing win rates outside of the impact of the CEO transition pretty stable. Just trying to better understand the market environment there.

我想跟進生物技術領域的勝率評論。看來您所描述的 CEO 過渡影響之外的勝率相當穩定。只是想更了解那裡的市場環境。

Are you seeing increased competition in the space with some of your peers calling out making a push in that market more aggressively? Have there been any shifts in the average RFP time from issuance to award? Just give us a little bit more flavor about the market environment you're seeing outside of the CEO transition impact.

您是否看到該領域的競爭日益激烈，一些同行呼籲更積極地進入該市場？從發佈到授予的平均 RFP 時間是否有任何變化？除了執行長過渡的影響之外，您還應該向我們詳細介紹您所看到的市場環境。

Yeah, I'm happy to take that question. I think in terms of win rates, we are I mentioned in my remarks, we're seeing still a little bit of the delays in the booking, although they seem to be kind of leveling off. So that's positive in terms of the time you see them until the time people are making decisions.

是的，我很高興回答這個問題。我認為就中標率而言，正如我在發言中提到的，我們看到預訂仍然有一點延遲，儘管它們似乎已經趨於平穩。因此，從你看到它們到人們做出決定的時間來看，這是正面的。

Good science is still getting funded. We did have the impact of the transition in the quarter, which creates a perception of uncertainty. And that, again, we were really pleased that, that transition period was very short, and we expect that to dissipate very quickly as we go through and have the competition.

優秀的科學研究仍能獲得資助。本季我們確實受到了轉型的影響，這造成了一種不確定性的感覺。而且，我們真的很高興，過渡期非常短，我們預計，隨著我們經歷並參與競爭，這種感覺會很快消失。

Yes, I think the market environment is competitive. All of our peers have talked about that. But again, with existing biotech customers, we're still winning consistently. So we think it's just a function of now that we can take some of that leadership transition off the table. We will be able to we'll be fine there in terms of the new to Fortrea customers. And with existing pharma, we're pleased to continue seeing good awards coming through and continuing to win at consistent rates in existing pharma.

是的，我認為市場環境競爭激烈。我們所有的同行都談論過這個問題。但同樣，對於現有的生物技術客戶來說，我們仍然在持續獲勝。因此我們認為，現在我們可以不再討論領導階層的過渡問題了。就 Fortrea 的新客戶而言，我們能夠做得很好。對於現有的製藥企業，我們很高興看到我們不斷獲得優秀獎項，並繼續在現有製藥企業中保持穩定的獲獎率。

Okay. And Anshul, one for you. Not asking anything specific to Fortrea, but given your strong background in the industry, I would love to get your thoughts on various transitional headwinds, tailwinds the industry is going through or has gone through recently. You're clearly positive on the CRO industry in longer term.

好的。還有 Anshul，給你一個。我不是問 Fortrea 什麼具體問題，但鑑於您在該行業的強大背景，我很想听聽您對該行業正在經歷或最近經歷的各種轉型逆風和順風的看法。您顯然對 CRO 行業的長期前景持樂觀態度。

But would you be willing to share some thoughts on the trying to put the current environment in some perspective, like what it takes the industry to navigate through these challenges, what the focus of technology, focus of transition, focus of clients. Just give us a little bit more flavor of putting the current environment in perspective given your experience.

但您是否願意分享一些想法，試著從某種角度看待當前環境，例如產業需要什麼來應對這些挑戰，科技的重點是什麼，轉型的重點是什麼，客戶的重點是什麼。請根據您的經驗，讓我們更清楚地了解當前的環境。

Sure. I'm happy to do that. I went through this decision-making process as I thought about this industry and its fundamentals before joining the team at Fortrea, and I'm extremely excited with the choice I made to join this team.

當然。我很樂意這麼做。在加入 Fortrea 團隊之前，我考慮了這個行業及其基本面，經歷了這個決策過程，我對加入這個團隊的選擇感到非常興奮。

I will tell you, yes, you see some headwinds. You see some headwinds due to many of the macro level environment. We've talked about that. All of our competitors have talked about that. But I remain steadfast in the market fundamentals.

我會告訴你，是的，你看到了一些阻力。您會看到，由於許多宏觀環境因素，存在一些阻力。我們已經討論過這個了。我們所有的競爭對手都談論過這個問題。但我對市場基本面依然堅定不移。

What Jill just said a couple of seconds ago, good science continues to get funded. And that's a statement that applies both at the pharmaceutical large pharma companies and it applies at the biotech companies. Good science, good drugs continue to get developed. And the CRO industry is a fundamental tool by which these drugs continue to get developed.

正如吉爾幾秒鐘前所說，好的科學會繼續獲得資助。這項聲明既適用於大型製藥公司，也適用於生技公司。好的科學、好的藥物不斷開發。而CRO產業是這些藥物持續開發的基本工具。

So I stay steadfast in the long-term fundamentals of the industry. And listen, that's really why I'm here, and that's why I'm excited to be here. And as I've said a couple of times, over the next few months, I'm going to be traveling, meeting with our colleagues and our customers and really getting a feel for how we're going to leverage Fortrea's strengths with that market backdrop that I just described.

因此，我堅定地看好該行業的長期基本面。聽著，這才是我來這裡的原因，也是我很高興來到這裡的原因。正如我多次說過的，在接下來的幾個月裡，我將四處奔波，與我們的同事和客戶會面，真正了解我們如何利用我剛才描述的市場背景來發揮 Fortrea 的優勢。

I'm showing no further questions at this time. I'd like to turn it back to Peter Neupert for closing remarks.

我目前沒有其他問題。我想請 Peter Neupert 做最後發言。

Thank you, everybody, for listening. It's an exciting time in the industry. As Anshul just said, we're excited to have him on board, and we look forward to sustaining our relationship with you.

謝謝大家的聆聽。這是業界令人興奮的時刻。正如安舒爾剛才所說，我們很高興他能加入我們，並期待與您保持良好的關係。

Thank you.

謝謝。

Thanks everyone.

謝謝大家。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接了。