Tetra Tech, Inc. (TTEK) has secured a $249 million contract from the U.S. Army Corps of Engineers (USACE) Omaha District to offer environmental evaluation and design services for facilities and sites across the United States. Per the seven-year, multiple-award deal, TTEK's scientists, engineers and technical experts will deliver various environmental services. This includes creating water resource management plans, evaluating and protecting ecosystems and designing sustainable building features to enhance w ...

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Financial Data and Key Metrics Changes - Tetra Tech reported record quarterly revenue of $1.11 billion, a 12% increase year-over-year [6] - EBITDA increased by 32% to $129 million, resulting in a 13.3% EBITDA margin, up 120 basis points from the previous year [6] - Earnings per share reached an all-time high of $1.59, up 42% from the prior year [6][11] - Year-to-date net revenues increased by 18% to over $3 billion, with EBITDA up 41% to $414 million [12][13] - The company raised its full-year guidance for fiscal year 2024, projecting revenue between $4.27 billion and $4.32 billion [25] Performance by Business Segments - Government Services Group (GSG) revenue increased by 25% to $488 million, with a margin of 14.6%, up 60 basis points [6][11] - Commercial International Group (CIG) grew net revenue by 4% year-over-year, achieving a margin of 13.9%, up 230 basis points [7][11] - RPS activities within CIG reached an 11% margin, up 400 basis points from the previous year [7] - Excluding disaster response work, state and local revenues grew by 8%, driven by advanced water treatment projects [9] Market Data and Key Metrics Changes - U.S. federal client work increased by 34%, with underlying growth at 18% excluding extraordinary work in Ukraine [8][9] - International revenue represented about 40% of total company revenue, growing at a rate of 5% during the quarter [9] - The backlog reached an all-time high of $5.23 billion, up 19% year-over-year, with a book-to-bill ratio of 1.4 [11] Company Strategy and Industry Competition - The company focuses on high-end consulting and sustainable infrastructure, particularly in water and environmental sectors [4] - Tetra Tech aims to enhance margins through front-end advisory and consulting work [4][5] - The company is actively pursuing acquisitions in technology innovations, especially in water and environmental spaces [17][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for differentiated services across water and environmental markets [27] - The company anticipates continued organic growth rates of 6% to 10% over the next several years [40] - Management noted that the recent Supreme Court ruling on Chevron deference may create new opportunities for Tetra Tech [34] Other Important Information - Tetra Tech announced a 5-for-1 stock split to increase liquidity and lower trading costs for investors [19] - The company approved a quarterly dividend of $0.29, marking a 12% increase year-over-year [17] Q&A Session Summary Question: How should investors interpret the healthy backlog in terms of visibility for hitting annual organic growth targets? - Management cautioned that backlog growth may not directly translate into net revenue growth, noting that extraordinary contributions from Ukraine were included in the backlog [30] Question: Are there areas of the business exposed to changes in regulation due to the Chevron ruling? - Management indicated that most environmental compliance work is regulated at the state and local level, minimizing the impact of federal regulatory changes [31][32] Question: What is the revenue contribution from high-performance buildings and data centers? - The company is tracking towards a $100 million revenue target for advanced manufacturing and data centers, expecting a 20% CAGR for that market [35] Question: How does the company view M&A opportunities in light of rising uncertainty in U.S. policy? - Management emphasized that the U.S. remains the largest market for environmental stewardship and clean water, and they will continue to focus on technology acquisitions [36][44] Question: What is the visibility on the Ukraine contribution to revenue? - Management confirmed that they have significant contract capacity in Ukraine, with $160 million booked in the quarter and expectations for continued work [47] Question: How long will the transition away from lower-margin work in RPS take? - Management indicated that the transition is expected to complete within one to two quarters, after which higher-margin contributions from RPS will be realized [49]

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Revenues are expected to be $1.09 billion, up 10.4% from the year-ago quarter. Earnings Whisper The earnings report, which is expected to be released on July 31, 2024, might help the stock move higher if these key numbers are better than expectations ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Tetra Tech (TTEK) , which belongs to the Zacks Pollution Control industry. This consulting and engineering services company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.05%. For the most recent quarter, Tetra was expected to post earnings of $1.3 ...

Other Notable Contracts Zacks Rank and Price Performance Other Stocks to Consider Tetra Tech, Inc. (TTEK) announced that it secured an additional $84 million to its single-award contract from the U.S. Agency for International Development ("USAID"). The deal aims to strengthen energy security in the Republic of Moldova. Tetra Tech currently carries a Zacks Rank #2 (Buy). Shares of the company have risen 30.7% in a year compared with the industry's 5.6% growth. Tetra Tech benefits from its focus on providing ...

Tetra Tech, Inc. (TTEK) is poised to gain from strength in the Government Services Group (GSG) segment, accretive acquisitions and shareholder-friendly moves. Let's delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment. Business Strength: Tetra Tech expects key factors, including U.S. administration priorities, U.S. infrastructure stimulus and its focus on climate change on a global basis, to drive markets in the quarters ahead. The U.S. administration tar ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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 March 31, 2024 OR Commission File Number 0-19655 TETRA TECH, INC. (Exact name of registrant as specified in its charter) Delaware 95-4148514 (State or other jurisdiction of ...

Tetra Tech, Inc. (NASDAQ:TTEK) Q2 2024 Earnings Conference Call May 2, 2024 11:00 AM ET Company Participants Dan Batrack – Chairman and Chief Executive Officer Steve Burdick – Chief Financial Officer Leslie Shoemaker – Chief Sustainability Officer Conference Call Participants Tim Mulrooney – William Blair Sangita Jain – KeyBanc Capital Markets Sabahat Khan – RBC Capital Markets Tate Sullivan – Maxim Group Operator Good morning, and thank you for joining the Tetra Tech Earnings Call. As a reminder, Tetra Tec ...

Exhibit 99.1 NEWS RELEASE May 1, 2024 Tetra Tech Reports Record Second Quarter Results and Raises Full Fiscal Year Guidance Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, today announced results for its second quarter ended March 31, 2024. Second Quarter Highlights Recent Key Wins Non-GAAP financial measures which the Company believes provide valuable perspectives on its business ...