Fortrea Holdings Inc.FTRE

Fortrea Holdings Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
EARNINGS (LOSS) PER SHARE
Basic earnings per share is computed by dividing net earnings attributable to the Company by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net earnings including the impact of dilutive adjustments by the weighted average number of common shares outstanding plus potentially dilutive shares, as if they had been issued at the earlier of the date of issuance or the beginning of the period presented. Potentially dilutive common shares result primarily from the Company’s outstanding stock options, restricted stock awards, restricted stock units (“RSUs”), and performance share units (“PSUs”).
The following represents the computation of basic and diluted earnings (loss) per share from continuing operations per share.
Years Ended December 31,
202520242023
Earnings
Shares
Per Share Amount
Earnings
Shares
Per Share Amount
Earnings
Shares
Per Share Amount
Basic and diluted earnings (loss) from continuing operations per share:
Net earnings (loss)$(986.2)91.2$(10.81)$(271.5)89.5$(3.03)$(31.7)88.8$(0.36)
The following represents the computation of basic and diluted earnings (loss) per share from discontinued operations per share.
Years Ended December 31,
202520242023
Earnings
Shares
Per Share Amount
Earnings
Shares
Per Share Amount
Earnings
Shares
Per Share Amount
Basic and diluted earnings (loss) from discontinued operations per share:
Net earnings (loss)
$— —$— $(57.0)89.5$(0.64)$6.5 88.8$0.07 
Diluted earnings per share represent the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. These potential shares include dilutive stock options and unissued restricted stock awards. Potential common shares are also considered antidilutive in the event
of a net loss from operations. There were no dilutive common shares for any period presented as the inclusion would be antidilutive.
The following table summarizes the potential common shares not included in the computation of diluted earnings per share because their impact would have been antidilutive:
Years Ended December 31,
202520242023
Employee stock options and awards4.4 2.2 0.3 
Antidilutive employee stock options and awards excluded based on reporting a net loss for the period2.1 0.8 0.3 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2023Mar 13, 2024

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance