Luke Sergott's questions to Fortrea Holdings Inc (FTRE) leadership • Q4 2024
Question
Luke Sergott asked what catalyst prompted the deep analysis of the backlog and whether SG&A cuts could create resource constraints that hinder the ramp-up of newly won business.
Answer
CEO Tom Pike explained that potential revenue shortfalls identified during the 2025 budgeting process triggered the deeper analysis. He acknowledged the risk of under-resourcing and detailed that the operations team is now engaged in a highly granular, month-by-month resource optimization process to ensure they can deliver on new work while executing cost-saving initiatives.