Investor Presentation June 2022 WATER ENVIRONMENT SUSTAINABLE INFRASTRUCTURE Leading with Science® Forward Looking Statements & Non-GAAP Financial Measures Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as those related to fluctuations in the Company's quarterly operating results and stock price, and the other risks detailed from time to time in ...

Q2-22 Financial Performance - Net revenue increased by 17% year-over-year, from $600 million in Q2-21 to $700 million in Q2-22 [6, 22] - Operating income increased by 23% year-over-year, from $61 million in Q2-21 to $75 million in Q2-22 [8] - Earnings per share (EPS) increased by 18% year-over-year, from $0.83 in Q2-21 to $0.98 in Q2-22 [9, 23] - Revenue increased by 13% year-over-year, from $755 million in Q2-21 to $853 million in Q2-22 [20] Segment Performance (Q2-22) - GSG (Government Services Group) net revenue was $338 million, a 9% increase from $310 million in Q2-21, with an operating income (OI) margin of 14.9% [12] - CIG (Commercial/International Group) net revenue was $362 million, a 25% increase from $289 million in Q2-21, with an OI margin of 11.2% [12] Revenue by Customer (Q2-22) - U S State and Local revenue increased 29% year-over-year and accounted for 34% of net revenue [11] - U S Federal revenue increased 2% year-over-year and accounted for 27% of net revenue [11] Cash Flow and Capital Allocation - Cash flow from operations year-to-date (YTD) was $178 million, a 13% increase year-over-year [26] - The company had $61 million in dividends and buybacks in Q2-22 [29] - The company has over $1 billion available from a sustainability-linked credit facility [29] Fiscal 2022 Outlook - The company expects U S Federal revenue to increase by 5% to 10% year-over-year [36] - The company expects U S State & Local revenue to increase by 10% to 15% year-over-year [36] - The company expects net revenue for Q3-22 to be between $665 million and $715 million, and EPS to be between $1.00 and $1.05 [40] - The company expects net revenue for FY-22 to be between $2.72 billion and $2.82 billion, and EPS to be between $4.30 and $4.40 [40]

Financial Data and Key Metrics Changes - The company achieved record second quarter revenue, net revenue, and operating income, with net revenue increasing 17% year-over-year from $600 million to $700 million [9] - Operating income rose 23% year-over-year, reaching a record $75 million, while earnings per share increased 18% to $0.98 [9][19] - Cash flows from operations totaled $95 million for the quarter, with year-to-date cash from operations amounting to $178 million, a 13% increase from the previous year [21] Business Line Data and Key Metrics Changes - The Commercial/International Group (CIG) grew by 25% year-on-year, with a margin increase of 50 basis points [13] - The Government Services Group (GSG) expanded its net revenue by 9% in the quarter, achieving a margin of 14.9%, an increase of 150 basis points [14][19] - U.S. commercial net revenue was up 14% year-over-year, while state and local revenues increased by 25% [11][12] Market Data and Key Metrics Changes - International net revenue grew by 29%, driven by sustainable infrastructure programs in Canada, Australia, and the UK [10] - The U.S. federal government work remained stable, accounting for 27% of net revenue, with a 7% year-over-year growth when excluding the Afghanistan wind-down impact [12] Company Strategy and Development Direction - The company focuses on high-end differentiated services in water and environmental markets, addressing climate change and resiliency challenges [5][28] - Recent acquisitions, including Piteau Associates and Axiom Data Science, aim to enhance capabilities in hydraulic modeling and big data analysis [31][32] - The company anticipates continued growth in state and local markets, supported by federal funding from the Infrastructure Investment and Jobs Act [78] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong growth rates, projecting double-digit growth for the remainder of the year [42] - The company expects to see increased demand for consulting and engineering services due to new federal budgets and climate change programs [28][29] - Management highlighted the importance of technology in enhancing productivity and reducing reliance on headcount for revenue growth [57][59] Other Important Information - The company reported a backlog of $3.61 billion, up 15% year-over-year, indicating strong future revenue potential [15] - A dividend of $0.23 per share was announced, representing a 15% increase over the previous year [24] Q&A Session Summary Question: Context on growth rate adjustments for the second half - Management clarified that the extra week in the fourth quarter impacts growth comparisons, but growth rates are expected to remain strong [41][42] Question: Durability of commercial growth amid recession concerns - Management indicated that commercial growth is broad-based and less vulnerable to economic downturns due to reduced exposure to volatile sectors like oil and gas [44][47] Question: Growth rate and margin expectations for segments - Management expects continued margin expansion in both CIG and GSG, with higher margins anticipated in the upcoming quarters [50][52] Question: Employee attrition and retention - Management reported a voluntary turnover rate of just under 10%, with a very low turnover rate for employees with over five years of service [70][74] Question: Impact of Afghanistan-related revenues - Minimal revenues were recognized from Afghanistan, with an expected headwind of $8 million to $10 million per quarter in 2022 due to the withdrawal [80]

Revenue Growth - Revenue increased by 12.6% in the first half of fiscal 2022 compared to the prior-year period, driven by increased activity with U.S. state and local government clients and commercial clients [114]. - U.S. state and local government revenue rose by 23.7% in the first half of fiscal 2022, particularly from municipal water infrastructure projects in California, Texas, and Florida [115]. - U.S. federal government revenue decreased by 2.5% in the first half of fiscal 2022, primarily due to reduced international development activity, especially in Afghanistan [116]. - U.S. commercial revenue increased by 15.6% in the first half of fiscal 2022, attributed to more activity on environmental programs and high performance buildings [117]. - International revenue increased by 22.7% in the first half of fiscal 2022 compared to the prior-year period, driven by government stimulus spending and sustainability initiatives [118]. - Total revenue for the second quarter of fiscal 2022 was $852.7 million, a 13.0% increase from $754.8 million in the same quarter of the previous year [120]. - Revenue for Q2 fiscal 2022 was $416.9 million, a 24.3% increase from $335.4 million in Q2 fiscal 2021; for the first half, revenue was $833.2 million, up 20.4% from $692.0 million [130]. - For the first half of fiscal 2022, revenue increased by $191.4 million, or 12.6%, compared to the prior-year period [122]. Profitability - Net income for the second quarter of fiscal 2022 was $53.0 million, reflecting a 16.5% increase from $45.5 million in the same quarter of fiscal 2021 [120]. - Diluted earnings per share (EPS) increased to $0.98 in the second quarter of fiscal 2022, up 18.1% from $0.83 in the prior-year period [120]. - Adjusted EPS for the first half of fiscal 2022 was $2.17, reflecting a 21.2% increase from the prior-year period [124]. - Operating income increased by $8.9 million (17.0%) in Q2 and $17.4 million (28.9%) in the first half of fiscal 2022 compared to the prior-year periods [129][132]. - The operating margin improved to 15.3% in the first half of fiscal 2022 from 13.7% in fiscal 2021; excluding ERCs, the margin was 14.8% [129]. Segment Performance - The Government Services Group (GSG) accounted for 52.6% of revenue in the three months ended April 3, 2022, while the Commercial/International Services Group (CIG) accounted for 48.9% [106]. - The Government Services Group (GSG) segment reported revenue of $448.9 million in the second quarter of fiscal 2022, a 3.8% increase from $432.6 million in the same quarter of fiscal 2021 [128]. - The Commercial/International Services Group (CIG) segment's revenue increased by $81.5 million, or 24.3%, in the second quarter of fiscal 2022 compared to the same quarter of fiscal 2021 [120]. Cash Flow and Financial Position - The company generated $177.5 million in cash from operations in the first half of fiscal 2022, an increase of $20.1 million compared to the prior-year period [141]. - As of April 3, 2022, the company had $194.4 million in cash and cash equivalents and access to an additional $799.3 million in borrowings under its credit facility [134]. - The company had $250.0 million in outstanding borrowings under the Amended Credit Agreement as of April 3, 2022, with a year-to-date weighted-average interest rate of 1.27% [146]. - The company maintained a consolidated leverage ratio of 0.82x and a consolidated interest coverage ratio of 28.09x as of April 3, 2022, in compliance with its credit agreement covenants [147]. - The company repurchased 618,236 shares at an average price of $161.75 per share for a total cost of $100.0 million in the first half of fiscal 2022 [137]. Tax and Interest Rates - The effective tax rate for the first half of fiscal 2022 was 21.9%, compared to 19.2% in the first half of fiscal 2021 [126]. - The company is exposed to interest rate risk under its Amended Credit Agreement, with borrowing options based on a benchmark rate plus a margin ranging from 1.000% to 1.875% per annum [160]. - The notional principal of the company's outstanding interest rate swap agreements was $206.3 million, with an average effective interest rate of 3.50% on borrowings [161]. Foreign Currency and International Business - For the first half of fiscal 2022, 30.8% of the company's consolidated revenue was generated by international business, compared to 28.3% in the first half of fiscal 2021 [164]. - The effect of foreign exchange rate translation on the consolidated balance sheets for the first half of fiscal 2022 resulted in an increase in equity by $2.1 million, compared to an increase of $43.4 million in the first half of fiscal 2021 [164]. - The company reported $1.3 million of foreign currency losses in the first half of fiscal 2021, while the impact for the first half of fiscal 2022 was immaterial [163]. Strategic Focus - The company continuously evaluates acquisition opportunities to strengthen its market leadership and expand service offerings [110]. - The company remains focused on providing high-end consulting and engineering services, leveraging advanced analytics, artificial intelligence, and digital technology solutions [98]. - The company utilizes off-balance sheet arrangements, including letters of credit and bank guarantees, to support project performance and insurance programs [155]. - The company has entered into various agreements related to unconsolidated subsidiaries and joint ventures, where it is jointly and severally liable for project execution commitments [156]. - The company does not enter into derivative financial instruments for trading or speculation purposes, focusing instead on managing interest rate and foreign currency transaction risks [159].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the transition period from to Commission File Number 0-19655 TETRA TECH, INC. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 95-4148514 (State or other jurisdiction of ...

Q1-22 Financial Performance - Net revenue increased by 12% from $605 million in Q1-21 to $679 million in Q1-22[6] - Operating income increased by 25% from $66 million in Q1-21 to $83 million in Q1-22 (adjusted basis)[8, 10] - Earnings per share (EPS) increased by 24% from $0.96 in Q1-21 to $1.19 in Q1-22 (adjusted basis)[9, 10] - GAAP Revenue increased by 12% Y/Y from $765 million to $859 million[19] - GAAP Operating Income increased by 32% Y/Y from $66 million to $87 million[20] - GAAP Diluted EPS increased by 30% Y/Y from $0.96 to $1.25[20] Revenue Breakdown by Customer (Q1-22) - U S State and Local net revenue accounted for 18% of total net revenue, with a 29% year-over-year increase[12] - U S Commercial net revenue accounted for 34% of total net revenue, with a 20% year-over-year increase[12] - International net revenue accounted for 21% of total net revenue, with a 7% year-over-year increase[12] - U S Federal net revenue accounted for 27% of total net revenue, with a 1% year-over-year decrease[12] Performance by Segment (Q1-22) - GSG (Government Services Group) net revenue increased by 7% from $305 million in Q1-21 to $327 million in Q1-22, with an operating income (OI) margin increase of 70 bps to 14 7%[13] - CIG (Commercial/International Group) net revenue increased by 17% from $301 million in Q1-21 to $352 million in Q1-22, with an OI margin increase of 100 bps to 12 5%[13] Backlog and Guidance - The company's backlog was $3 45 billion in Q1-22[15] - Q2-22 net revenue guidance is $620 million - $670 million, and EPS guidance is $0 86 - $0 91[43] - FY-22 net revenue guidance is $2 65 billion - $2 80 billion, and EPS guidance is $4 15 - $4 30[43]

Financial Data and Key Metrics Changes - The company reported record first-quarter revenue of $679 million, a 12% increase year-over-year from $605 million [2][3] - Operating income rose 25% year-over-year to $83 million, with a collective operating margin expansion of 120 basis points [2][3] - Adjusted earnings per share (EPS) reached $1.19, the highest quarterly EPS in the company's history, while GAAP EPS was $1.25, up 30% year-over-year [3][7] Business Line Data and Key Metrics Changes - State and local revenues increased organically by 29% year-over-year, with continued strength in municipal water businesses [3][4] - International revenues grew by 20%, benefiting from the addition of the high-performance buildings group and strong organic growth in sustainable infrastructure programs [4] - U.S. commercial net revenue accounted for 21% of total business, up 7% from the previous year, driven by sustainability services [4][5] Market Data and Key Metrics Changes - The Government Services Group (GSG) segment revenue increased by 7% year-over-year, with an operating income margin of 14.7%, up 70 basis points [5][7] - The Commercial International Group (CIG) grew by 17% year-over-year, with a margin increase of 100 basis points to 12.5% [6][7] - The company's backlog rose 8% year-over-year to $3 billion, with strong orders across global businesses [6] Company Strategy and Development Direction - The company is focused on high-end services in water and environmental markets, aligning with government priorities on climate change and infrastructure [12][14] - The Infrastructure Investment and Jobs Act (IIJA) is expected to create long-term increases in spending for water and resilient infrastructure services [12][16] - The company aims to leverage its strong balance sheet and liquidity to invest in technical capabilities and strategic growth areas [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in state and local markets, expecting a double-digit growth rate of 10% to 15% [15] - International work is projected to grow at a rate of 10% to 15%, supported by sustainable infrastructure and climate change services [15] - The company anticipates a stable growth rate of 5% to 10% for U.S. Federal work, with significant contributions from IIJA funding expected in fiscal year 2023 [16][19] Other Important Information - The company generated $82 million in cash flow from operations, a 148% increase, with a decrease in days sales outstanding (DSO) to 61 days [8][9] - A dividend of $0.20 per share was approved, marking an 18% increase over the previous year, alongside $50 million utilized for stock buybacks [10][11] - The company is focused on strategic acquisitions to enhance competitiveness in the water, environment, and renewable energy markets [30][60] Q&A Session Summary Question: Can you expand on margin expectations for GSG and CIG? - Management noted that GSG margins benefited from disaster activities and increased utilization, with expectations for annualized margins of 13% to 14% for GSG and 11.5% to 12.5% for CIG [23][25] Question: What are the priorities for capital allocation? - The company prioritizes funding organic growth, maintaining dividends, and pursuing strategic acquisitions, with a focus on returning cash to shareholders [27][30] Question: What growth opportunities exist in the commercial sector? - Management highlighted increased commitments from multinational clients in sustainability and water management, with expectations for higher margins in the commercial sector [33][37] Question: How is the acquisition pipeline compared to last year? - The acquisition pipeline remains consistent with the previous year, with a balanced approach to international and U.S. opportunities [57][60] Question: What is the outlook on labor availability and turnover? - The company has not experienced labor shortages and reported a slight decrease in voluntary turnover rates, indicating stability in workforce availability [61][63]

Investor Presentation December 2021 WATER ENVIRONMENT SUSTAINABLE INFRASTRUCTURE Leading with Science® Forward Looking Statements & Non-GAAP Financial Measures Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as those related to fluctuations in the Company's quarterly operating results and stock price, and the other risks detailed from time to tim ...

Company Performance - Revenue for fiscal 2021 increased by 7.3% to $3,213.5 million compared to $2,994.9 million in fiscal 2020[203]. - Net income attributable to Tetra Tech for fiscal 2021 was $232.8 million, reflecting a 33.9% increase from $173.9 million in fiscal 2020[203]. - Diluted earnings per share for fiscal 2021 rose to $4.26, a 34.8% increase from $3.16 in fiscal 2020[203]. - Operating income increased by $37.6 million, or 15.6%, in fiscal 2021 compared to fiscal 2020, reaching $278.7 million[206]. - Adjusted income from operations rose by $32.2 million, or 13.2%, in fiscal 2021, totaling $275.4 million[206]. - U.S. state and local government revenue increased by 22.2% in fiscal 2021, driven by growth in municipal water infrastructure projects[198]. - U.S. federal government revenue grew by 8.8% in fiscal 2021, supported by acquisitions and increased analytics activity[199]. - U.S. commercial revenue decreased by 5.4% in fiscal 2021 due to reduced industrial activity amid the COVID-19 pandemic[200]. - International revenue increased by 7.9% in fiscal 2021, reflecting government stimulus spending and increased commercial activity[201]. Business Segments - Revenue distribution by reportable segment in fiscal 2021: Government Services Group (GSG) at 60.5% and Commercial/International Services Group (CIG) at 41.2%[27]. - GSG provides services in water, environment, sustainable infrastructure, and disaster management, supporting U.S. government clients and development agencies[28]. - CIG supports U.S. commercial clients and international clients, focusing on renewable energy, industrial, and aerospace markets[37]. - CIG created a new High Performance Buildings division, transferring operations with annual revenue of approximately $170 million from the GSG reportable segment to the CIG reportable segment[50]. - Revenue net of subcontractor costs for GSG increased by $120.3 million, or 9.3%, in fiscal 2021, reaching $1.42 billion[210]. Strategic Initiatives - Tetra Tech's growth strategy includes selective acquisitions to broaden service offerings and expand geographic presence[65]. - The company regularly evaluates acquisition opportunities to enhance strategic growth, focusing on strengthening market leadership and driving organic growth[70]. - Acquisitions are funded through cash, debt, or equity, and are seen as a key component of the growth strategy[71]. - Business development activities are supported by centralized resources to enhance corporate branding and marketing efforts[61]. - The company has completed two strategic acquisitions, expected to generate $25 million in synergies annually[110]. Sustainability and Innovation - Tetra Tech aims to be Climate Positive & Carbon Negative by 2030, with a commitment to develop Science Based Targets[69]. - The company has established a Sustainability Program with metrics aligned to the Global Reporting Initiative (GRI) framework, focusing on environmental, economic, and governance impacts[68]. - Tetra Tech's proprietary technologies, known as Tetra Tech Delta, enhance competitive advantage through advanced data analytics and AI-enabled solutions[22]. - The company is investing $30 million in research and development for new technologies aimed at enhancing service delivery[108]. - A new sustainability initiative is projected to reduce operational costs by 15% over the next three years[111]. Workforce and Culture - The company had approximately 21,000 employees at fiscal 2021 year-end, with a significant percentage holding technical and professional degrees[89]. - The company is committed to diversity, equity, and inclusion, with initiatives monitored by a dedicated council[91]. - The company maintains a strong internal networking program to facilitate collaboration and access to technical solutions across its operations[63]. - The company’s ability to attract and retain qualified personnel is critical for providing services and conducting business effectively[132]. Financial Health and Risks - The company's backlog at the end of fiscal 2021 was $3.5 billion, an increase of $241 million, or 7.4%, compared to fiscal 2020[77]. - Approximately two-thirds of the backlog is expected to be recognized as revenue in fiscal 2022, although there are uncertainties regarding realization and profitability[76]. - The company faces risks related to international operations, including legal, political, and economic risks, as well as currency exchange rate fluctuations[111]. - The company must comply with various procurement laws and regulations, and violations could result in sanctions or loss of government contractor status, significantly affecting profits and revenue[120]. - The company is exposed to collection risks if clients in specific geographic areas or industries face adverse conditions, potentially impacting revenue[121][122]. Market Conditions - Ongoing economic uncertainties may impact client spending, with potential revenue fluctuations of up to 10%[113]. - The demand for U.S. government-related services is driven by government program funding, and any significant reduction in federal spending could adversely impact the company's business[115]. - Economic downturns and reductions in government spending could lead to project delays, cancellations, and increased credit losses for the company[108]. - The competitive landscape includes a wide range of firms, from small regional companies to large international firms, impacting service delivery and pricing strategies[73]. Legal and Compliance - Legal proceedings and disputes could result in substantial monetary penalties, potentially exceeding existing insurance coverage[162]. - The company faces significant risks related to employee misconduct and non-compliance with laws, which could lead to fines, penalties, and a negative impact on revenue and profits[165]. - The company must comply with stringent environmental laws, which could result in substantial liabilities if not adhered to[170]. Stock and Shareholder Information - The company repurchased 479,369 shares at an average price of $125.16 per share for a total cost of $60.0 million in fiscal 2021[191]. - The remaining balance under the stock repurchase program as of October 3, 2021, was $147.8 million[191]. - Dividends declared and paid in fiscal 2021 totaled $0.74 per share, with $0.34 in the first two quarters and $0.40 in the last two quarters[190].

Financial Data and Key Metrics Changes - The company achieved record results in Q4 and for the fiscal year 2021, with full year revenue of $3.21 billion and operating income of $275 million, representing a 13% increase from the previous year [10] - Adjusted EPS was $3.79, up 16% year-over-year, while GAAP EPS was $4.26, reflecting a 35% increase from last year [10] - Q4 net revenue increased 20% year-over-year to $709 million, with operating income of $79 million and EPS of $1.05, marking the highest quarterly EPS in the company's history [13] Performance by Business Lines - Revenue from state and local clients increased organically by 30% year-over-year, marking the sixth consecutive year of double-digit growth [14] - US Federal revenue accounted for 28% of total revenue, up 11% from the same quarter last year, driven by climate change-related services [15] - International revenue grew by 35% year-over-year, benefiting from the addition of the high-performance buildings group in the UK and a 24% growth in other international operations [16] Market Data and Key Metrics Changes - The company reported a backlog of $3.48 billion, up 7% year-over-year and sequentially, indicating strong future revenue visibility [13][18] - The Government Services Group (GSG) segment grew 13% year-over-year to $372 million, while the Commercial International Group (CIG) grew by 30% with a margin of 12.4% [17][18] Company Strategy and Industry Competition - The company is aligned with global priorities in water, environment, sustainable infrastructure, and renewable energy, which are driving new projects and funding commitments [7][33] - The recent $1.2 trillion infrastructure bill in the U.S. is expected to create new opportunities for the company, particularly in water and renewable energy sectors [37][110] - The company is focused on leveraging technology and data analytics to enhance margins and operational efficiency across its segments [90] Management's Comments on Operating Environment and Future Outlook - Management noted that the Biden administration's focus on climate change and infrastructure aligns well with the company's services, providing a favorable outlook for growth [33][34] - The company anticipates continued growth in the U.S. Federal sector in the high-single digits, with state and local growth expected between 10% and 15% [43][40] - Management expressed confidence in margin expansion, projecting an operating margin of 11.2% for fiscal year 2022 [46] Other Important Information - The company generated $304 million in cash flow from operations for fiscal 2021, allowing for strategic acquisitions and shareholder returns [28][31] - The Board of Directors approved a dividend increase of 18% for the upcoming payment, marking the 30th consecutive dividend [29] Q&A Session Summary Question: What is the impact of wage inflation and staff attrition? - Management reported little to no impact from wage inflation and noted a decrease in turnover rates since the pandemic began, attributing this to competitive pay and meaningful work [54][56] Question: Are there any benefits from COP26 for the international business? - Management highlighted increased funding commitments from countries like Canada, the UK, and Australia, which could lead to significant investment in climate change initiatives [59][60] Question: What are the long-term margin opportunities for the business? - Management indicated that they are reevaluating margin targets and see potential for higher margins due to technology improvements and operational efficiencies [62][63] Question: Can you elaborate on the high-performance building opportunities in the UK? - The addition of Hoare Lea is expected to enhance the company's capabilities in high-performance buildings, with anticipated growth driven by regulatory mandates and client preferences [68][72] Question: What are the utilization opportunities moving forward? - Management noted a current utilization rate of about 70% with a 10% to 15% surge capacity, allowing the company to handle increased demand without significant staffing changes [79][80]