Tetra Tech(US:TTEK)2025-11-12 22:31Revenue and Earnings - Revenue increased 9% year-over-year to $4.79 billion for fiscal 2025[3] - Fourth quarter net revenue reached a record $1.16 billion, with operating income up 26% year-over-year to $181 million[4] - Annual EPS was $0.93, with adjusted annual EPS at a record $1.56, reflecting a 24% increase year-over-year[4] - Total revenue for 2025 reached $5,442.6 million, a 4.7% increase from 2024's total of $5,198.7 million[26] - Net revenue for 2025 was $4,617.3 million, up from $4,321.9 million in 2024, reflecting a growth of 6.9%[26] - Adjusted EBITDA for 2025 increased to $661.7 million, a rise of 13.4% from $584.0 million in 2024[27] - The GSG segment generated $2,673.9 million in revenue for 2025, up from $2,483.4 million in 2024, marking an increase of 7.7%[26] - The CIG segment reported revenue of $2,844.6 million in 2025, compared to $2,786.7 million in 2024, reflecting a growth of 2.1%[26] Cash Flow and Dividends - Operating cash flow for the year was a record $458 million, up 28% year-over-year[4] - The company paid cash dividends of $0.065 per share in the three months ended September 28, 2025, compared to $0.058 in the prior year, an increase of 12.1%[21] - Tetra Tech's Board approved a quarterly dividend of $0.065 per share, a 12% increase year-over-year[7] - Cash flows from operating activities for the fiscal year ended September 28, 2025, were $457,685, an increase of 27.6% compared to $358,708 in 2024[24] Financial Position - Cash and cash equivalents decreased to $168,372 at the end of the fiscal year 2025 from $232,689 in 2024, a decline of 27.6%[24] - Total assets increased to $4,282,174 as of September 28, 2025, compared to $4,192,676 in 2024, representing a growth of 2.1%[19] - Total liabilities rose to $2,502,010 in 2025, up from $2,362,263 in 2024, indicating an increase of 5.9%[19] - Long-term debt decreased to $763,363 in 2025 from $812,634 in 2024, a reduction of 6.1%[19] Profitability - Net income attributable to Tetra Tech for the fiscal year ended September 28, 2025, was $247,724, down 25.7% from $333,382 in 2024[21] - Basic earnings per share attributable to Tetra Tech for the three months ended September 28, 2025, was $0.49, up from $0.36 in the same period of 2024, reflecting a growth of 36.1%[21] - The company reported a net income tax expense of $129.7 million for 2025, compared to $130.0 million in 2024, a slight decrease of 0.2%[27] - Interest expense for 2025 was $30.8 million, up from $37.3 million in 2024, indicating a decrease of 17.4%[27] Future Outlook - For fiscal 2026, net revenue is expected to range from $4.05 billion to $4.25 billion, indicating a year-over-year growth of 5% to 11%[10] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[26] - The backlog for high-voltage engineering projects doubled in the fourth quarter, indicating strong demand for services[8] Stock Repurchase - The company repurchased $50 million of common stock in the fourth quarter, with $598 million remaining under approved repurchase programs[7] Subcontractor Costs - Subcontractor costs for 2025 totaled $825.3 million, an increase from $876.8 million in 2024, showing a decrease of 5.9%[26]