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 ...

EARNINGS CALL Q1-22February 3, 2022 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO 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 ...

Tetra Tech, Inc. (NASDAQ:TTEK) Q1 2022 Earnings Conference Call February 3, 2022 11:00 AM ET Company Participants Dan Batrack – Chairman and CEO Steven Burdick – Chief Financial Officer Conference Call Participants Marc Riddick – Sidoti Noelle Dilts – Stifel Sean Eastman – KeyBanc Capital Markets Tate Sullivan – Maxim Group Michael Dudas – Vertical Research Operator Good morning, and thank you for joining the Tetra Tech Earnings Call. By now, you should have received a copy of the press release. If you have ...

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]

EARNINGS CALL Q4-21November 18, 2021 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO WATER ENVIRONMENT SUSTAINABLE INFRASTRUCTURE RENEWABLE ENERGY 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 ...

For the quarterly period ended June 27, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19655 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 TETRA TECH, INC. (Exact name of registrant as specified in its charter) Delaware 95-4148514 (State or other jurisdiction of i ...

Tetra Tech, Inc. (NASDAQ:TTEK) Q2 2021 Earnings Conference Call April 29, 2021 11:00 AM ET Company Participants Dan Batrack - Chairman & CEO Steven Burdick - CFO, EVP & Treasurer Conference Call Participants Sean Eastman - KeyBanc Capital Markets Samuel England - Berenberg Andrew Wittmann - Baird Tate Sullivan - Maxim Group Operator Good morning, and thank you for joining the Tetra Tech Earnings Call. By now, you should have received a copy of the press release. If you have not, please contact the compa ...

Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show increased assets to $2.46 billion, a 17.0% rise in net income, and a significant increase in operating cash flow Financial Metric | Financial Metric | March 28, 2021 (in thousands) | September 27, 2020 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $225,330 | $157,515 | | Total current assets | $1,064,111 | $999,785 | | Goodwill | $1,029,573 | $993,498 | | Total assets | $2,455,062 | $2,378,558 | | **Liabilities & Equity** | | | | Total current liabilities | $796,702 | $793,456 | | Long-term debt | $238,339 | $242,395 | | Total liabilities | $1,307,834 | $1,341,185 | | Total stockholders' equity | $1,147,228 | $1,037,373 | Metric (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended Mar 28, 2021 | Three Months Ended Mar 29, 2020 | Six Months Ended Mar 28, 2021 | Six Months Ended Mar 29, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $754,764 | $734,133 | $1,519,868 | $1,531,756 | | Gross Profit | $112,484 | $97,000 | $228,794 | $206,737 | | Income from Operations | $60,807 | $47,530 | $127,059 | $110,832 | | Net Income Attributable to Tetra Tech | $45,517 | $36,397 | $97,953 | $83,707 | | Diluted EPS | $0.83 | $0.66 | $1.79 | $1.51 | Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended Mar 28, 2021 | Six Months Ended Mar 29, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,424 | $83,199 | | Net cash used in investing activities | ($7,283) | ($27,299) | | Net cash used in financing activities | ($91,129) | ($39,257) | | Net increase in cash | $67,815 | $14,234 | [Revenue and Contract Balances](index=9&type=section&id=Note%203.%20Revenue%20and%20Contract%20Balances) Revenue was primarily driven by the U.S. federal government sector, with $3.1 billion in Remaining Unsatisfied Performance Obligations (RUPOs) Revenue by Client Sector (Six Months Ended) | Revenue by Client Sector (Six Months Ended) | March 28, 2021 | March 29, 2020 | | :--- | :--- | :--- | | U.S. state and local government | $254,747 | $227,507 | | U.S. federal government | $533,561 | $488,564 | | U.S. commercial | $301,508 | $342,278 | | International | $430,052 | $473,407 | | **Total (in thousands)** | **$1,519,868** | **$1,531,756** | - As of March 28, 2021, Remaining Unsatisfied Performance Obligations (RUPOs) totaled **$3.13 billion**[42](index=42&type=chunk) - Of the total RUPOs, **$1.83 billion** is expected to be recognized as revenue within the next 12 months[43](index=43&type=chunk) [Acquisitions](index=12&type=section&id=Note%204.%20Acquisitions) The company acquired Coanda Research and Development in Q2 2021 and holds a potential $66.9 million in outstanding contingent consideration - Acquired Coanda Research and Development Corporation (CRD) in Q2 2021, which is part of the CIG segment[44](index=44&type=chunk) - Acquired Segue Technologies, Inc. (SEG) and BlueWater Federal Solutions, Inc. (BWF) in fiscal 2020, both part of the GSG segment[45](index=45&type=chunk)[46](index=46&type=chunk) - The total potential maximum outstanding contingent consideration for acquisitions was **$66.9 million** as of March 28, 2021, with a fair value of **$28.7 million** recorded as a liability[52](index=52&type=chunk) [Goodwill and Intangible Assets](index=13&type=section&id=Note%205.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to $1.03 billion due to acquisitions, while a $15.8 million impairment charge was recorded for the former ASP unit Goodwill by Segment (in thousands) | Goodwill by Segment (in thousands) | Balance at Sep 27, 2020 | Balance at Mar 28, 2021 | | :--- | :--- | :--- | | GSG | $516,315 | $524,189 | | CIG | $477,183 | $505,384 | | **Total** | **$993,498** | **$1,029,573** | - In September 2020, a goodwill impairment charge of **$15.8 million** was recorded for the former ASP reporting unit due to economic conditions in Australia[57](index=57&type=chunk) [Stock Repurchase and Dividends](index=15&type=section&id=Note%207.%20Stock%20Repurchase%20and%20Dividends) The company repurchased $30 million in stock and paid $18.4 million in dividends during the first half of fiscal 2021 - Repurchased **$30 million** of common stock in the first half of fiscal 2021, with **$177.8 million** remaining under the authorized program[60](index=60&type=chunk) - Paid total dividends of **$18.4 million** ($0.34 per share) in the first half of fiscal 2021[61](index=61&type=chunk) - A subsequent quarterly cash dividend of **$0.20 per share** was declared on April 26, 2021[61](index=61&type=chunk) [Reportable Segments](index=18&type=section&id=Note%2012.%20Reportable%20Segments) The GSG segment drove revenue and operating income growth, while the CIG segment saw lower revenue but higher operating income Segment Performance (Six Months Ended, in thousands) | Segment Performance (Six Months Ended, in thousands) | Revenue (FY21) | Revenue (FY20) | Income from Operations (FY21) | Income from Operations (FY20) | | :--- | :--- | :--- | :--- | :--- | | GSG | $942,451 | $894,307 | $93,809 | $77,395 | | CIG | $604,152 | $659,576 | $55,869 | $53,309 | | RCM | $470 | $150 | $1 | $1 | [Commitments and Contingencies](index=22&type=section&id=Note%2016.%20Commitments%20and%20Contingencies) A subsidiary faces a significant legal complaint from the U.S. Attorney's Office, with an currently indeterminable outcome - A subsidiary, TtEC, is facing a complaint from the U.S. Attorney's Office alleging False Claims Act violations concerning work at the Hunters Point Naval Shipyard[90](index=90&type=chunk) - The company is currently unable to determine the probability of the outcome or the range of reasonably possible loss for this matter[90](index=90&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Despite a slight revenue decline, operating income and EPS grew significantly, driven by government sector strength and strong liquidity - The company's high-end consulting focus and technology allowed staff to support clients remotely without interruption during the COVID-19 pandemic[108](index=108&type=chunk) - For the first half of fiscal 2021, revenue declined **0.8%** year-over-year, while operating income increased **14.6%** and diluted EPS grew **18.5%**[109](index=109&type=chunk)[114](index=114&type=chunk) - Adjusted EPS for the first half of fiscal 2021 was **$1.79**, a **14.0% increase** from $1.57 in the prior-year period[118](index=118&type=chunk) [Overview of Results and Business Trends](index=26&type=section&id=Overview%20of%20Results%20and%20Business%20Trends) Strong growth in U.S. government client sectors offset declines in commercial and international markets impacted by the COVID-19 pandemic - U.S. state and local government revenue increased **12.0%** in H1 2021, driven by municipal water infrastructure projects[110](index=110&type=chunk) - U.S. federal government revenue grew **9.2%** in H1 2021, aided by acquisitions and increased advanced analytics activity[111](index=111&type=chunk) - U.S. commercial revenue decreased **11.9%** and international revenue decreased **9.2%** in H1 2021, largely due to the COVID-19 pandemic's impact[112](index=112&type=chunk)[113](index=113&type=chunk) [Segment Results of Operations](index=29&type=section&id=Segment%20Results%20of%20Operations) The GSG segment showed strong revenue and profit growth, while the CIG segment's revenue fell but operating margin improved - **GSG Segment (H1 FY21)**: Revenue grew **5.4%** to $942.5M and operating income grew **21.2%** to $93.8M, with operating margin improving to **13.6%** from 11.9% YoY[122](index=122&type=chunk)[123](index=123&type=chunk) - **CIG Segment (H1 FY21)**: Revenue decreased **8.4%** to $604.2M, but operating income increased **4.8%** to $55.9M, with operating margin improving to **10.9%** from 9.7% YoY[125](index=125&type=chunk)[126](index=126&type=chunk) [Backlog](index=30&type=section&id=Backlog) The company's backlog of future revenue from awarded contracts stood at $3.15 billion at the end of the reporting period - Backlog was **$3.15 billion** as of March 28, 2021, compared to **$3.24 billion** as of September 27, 2020[129](index=129&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with robust operating cash flow, ample credit availability, and compliance with all debt covenants - Primary sources of liquidity are cash from operations (**$157.4 million** in H1 FY21) and borrowings under the credit facility[131](index=131&type=chunk)[137](index=137&type=chunk) - As of March 28, 2021, the company had **$250.8 million** in outstanding borrowings and **$419.6 million** of available credit under its Amended Revolving Credit Facility[141](index=141&type=chunk) - The company was in compliance with its debt covenants, with a consolidated leverage ratio of **1.03x** (max 3.00x) and an interest coverage ratio of **23.06x** (min 3.00x)[142](index=142&type=chunk) [Market Risk Disclosures](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and foreign currency risks, which it manages through swaps and currency matching strategies - The company is exposed to interest rate risk on its **$1 billion** Amended Credit Agreement, which has a variable interest rate[156](index=156&type=chunk) - To manage interest rate risk, the company entered into interest rate swap agreements, fixing the rate on a notional principal of **$221.9 million** as of March 28, 2021[157](index=157&type=chunk) - The company is subject to foreign currency exchange risk, as **28.3%** of its consolidated revenue in H1 2021 was generated by its international business[159](index=159&type=chunk)[160](index=160&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 28, 2021[162](index=162&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter[163](index=163&type=chunk) Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company's primary legal proceeding involves a complaint against its subsidiary TtEC, as detailed in the financial statement notes - Information regarding legal proceedings is incorporated by reference from Note 16, "Commitments and Contingencies"[90](index=90&type=chunk)[164](index=164&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported since the 2020 Annual Report on Form 10-K - **No material changes** in risk factors were reported since the 2020 Annual Report on Form 10-K[166](index=166&type=chunk) [Share Repurchases](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $30 million of its shares in H1 2021, with $177.8 million remaining under its repurchase program Share Repurchase Activity | Period (FY 2021) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep 28 - Oct 25, 2020 | 45,574 | $102.67 | | Oct 26 - Nov 22, 2020 | 46,975 | $110.67 | | Nov 23 - Dec 27, 2020 | 42,864 | $119.50 | | Dec 28 - Jan 24, 2021 | 33,790 | $125.46 | | Jan 25 - Feb 21, 2021 | 37,992 | $132.50 | | Feb 22 - Mar 28, 2021 | 42,519 | $134.69 | - As of March 28, 2021, approximately **$177.8 million** remained available for purchase under the company's stock repurchase program[167](index=167&type=chunk)[168](index=168&type=chunk)