Financial Data and Key Metrics Changes - Tetra Tech reported record net revenue of $1.07 billion for Q4 2025, a 10% increase from the previous year [6] - Operating income reached $168 million, up 23%, with earnings per share growing by 29% to $0.44 for the quarter [6][7] - Fiscal year 2025 revenue increased by 7%, while operating income rose by 18%, and EBITDA increased by 13% [13][14] Business Line Data and Key Metrics Changes - Government Services Group (GSG) revenue grew by 17% to $396 million in Q4, with a margin performance of 22.9%, up 330 basis points from the prior year [8] - Commercial International Group revenue increased by 7% to $676 million, with margins excluding Australia up by about 60 basis points [8] - U.S. federal work accounted for 21% of total business, up 22% from the prior year, primarily driven by contracts with the U.S. Army Corps of Engineers [9] Market Data and Key Metrics Changes - International work constituted about 45% of overall business, growing at a 9% rate, with notable increases in the UK water business and Canadian clean energy [9] - U.S. state and local markets grew by 19%, driven by municipal water treatment and digital water modernization [9] - U.S. commercial work saw a slight decline, impacted by reductions in renewable energy work, but high-voltage transmission work is rapidly growing due to increased energy demand [9] Company Strategy and Development Direction - Tetra Tech focuses on high-end consulting and leadership in water services, which are expected to be in higher demand in the fastest-growing markets [4][20] - The company aims to capitalize on large global investments in water-reliant infrastructure, with a total addressable market in the hundreds of billions [20] - Tetra Tech is positioned to benefit from increased defense budgets and infrastructure projects, particularly in coastal resiliency and flood protection [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes in U.S. federal government priorities and maintain record financial performance [4] - The outlook for fiscal year 2026 includes expected growth rates of 5-10% for international and U.S. commercial work, and 10-15% for state and local work [30][32] - The company anticipates a strong start to fiscal year 2026, supported by ongoing demand for high-end water services [33] Other Important Information - Tetra Tech's backlog reached $4.14 billion, with a strong quarter of contract awards, including over $1.2 billion in new contracts with U.S. defense agencies [11] - The company announced a 12% increase in its quarterly dividend, marking the 42nd consecutive quarterly dividend with annual double-digit increases [18] - Tetra Tech's net debt amounted to about $600 million, with a leverage ratio of 0.9 times EBITDA, indicating a strong balance sheet [16] Q&A Session Summary Question: Why is revenue growth expected to decouple from backlog growth this year? - Management explained that the U.S. federal government's funding has become shorter in duration, leading to smaller task orders, while state and local work continues to grow, keeping the backlog flat [36][38] Question: Can you provide details on international business performance? - The strongest growth was seen in the UK and Europe, particularly in water programs, while Canada is expected to improve due to recent infrastructure spending [42][44] Question: How was the fiscal 2026 guidance range built? - The guidance reflects expected growth rates across various sectors, with potential deviations based on clarity in international markets and U.S. state department funding [51][57]

Tetra Tech (NasdaqGS:TTEK) Q4 2025 Earnings Call November 13, 2025 11:00 AM ET Speaker2Good morning, and thank you for joining the Tetra Tech earnings call. As a reminder, Tetra Tech is also simulcasting this presentation with slides in the investor section of its website at tetratech.com. This call is being recorded at the request of Tetra Tech, and this broadcast is the copyrighted property of Tetra Tech. Any rebroadcast of this information in whole or in part without the prior written permission of Tetra ...

Group 1 - The core viewpoint of the news is that Tongji Technology has experienced a significant stock price increase, rising 5.08% on September 11, with a total market capitalization of 7.241 billion yuan and a cumulative increase of 8.99% over four consecutive days [1] - Tongji Technology's main business segments include engineering consulting services (86.88% of revenue), environmental engineering and operation (10.21%), real estate development (2.57%), and other services (0.34%) [1] - The company is located in Shanghai and was established on June 11, 1993, with its stock listed on March 11, 1994 [1] Group 2 - Among the top ten circulating shareholders of Tongji Technology, a fund under Huatai-PineBridge holds a position, with the China Securities Shanghai State-Owned Enterprises ETF (510810) newly entering the top ten in the second quarter, holding 4.1373 million shares, accounting for 0.66% of circulating shares [2] - The China Securities Shanghai State-Owned Enterprises ETF (510810) has a total scale of 7.942 billion yuan, with a year-to-date return of 4.14% and a one-year return of 35.71% [2] - The fund manager of the China Securities Shanghai State-Owned Enterprises ETF is Wu Zhenxiang, who has a cumulative tenure of 15 years and 222 days, with the fund's total asset scale at 18.478 billion yuan [3]

Group 1 - The core viewpoint of the report is that Jianda Hucheng (603909.SH) is rated as a buy due to significant growth in revenue and profit, along with a substantial increase in engineering construction orders [2] - The company's revenue and profit have shown a year-on-year increase, and its operating cash flow has turned positive compared to the previous year [2] - Although there is a slight contraction in revenue from engineering consulting services, the orders for engineering construction have increased significantly [2]

Financial Data and Key Metrics Changes - The company reported a record performance in NSR, margins, EBITDA, EPS, backlog, and pipeline, leading to a raised annual financial guidance for the third consecutive time this year [7][18]. - Organic NSR growth accelerated to 6%, with an 8% growth in The Americas, the highest margin segment [8][26]. - Adjusted EBITDA and EPS increased by 1016%, with year-to-date figures up 920% [10][30]. - Free cash flow increased by 27% year-to-date, with nearly $240 million returned to shareholders this year [11][29]. Business Line Data and Key Metrics Changes - In The Americas, NSR grew by 8%, and adjusted operating margin increased by 120 basis points to 20.5% [26]. - The International segment saw NSR growth of 3%, driven by The UK and The Middle East, while Australia experienced a decline [27]. - The adjusted operating margin for the International segment increased by 20 basis points to 11.9%, with backlog growing by 8% [27]. Market Data and Key Metrics Changes - The company noted strong growth in The UK, The Middle East, and The UAE, while Australia faced near-term budgetary constraints [15][16]. - In the US, only 36% of IIJA funding targeted to the markets has been spent, indicating continued growth opportunities [16]. - The US federal government is prioritizing investments in critical infrastructure, enhancing growth prospects [17]. Company Strategy and Development Direction - The company focuses on returns-based capital allocation, investing in organic growth initiatives, technical capabilities, and building trusted client relationships [9]. - The advisory business is expected to double to $400 million of NSR within three years, positioning it as a significant growth platform [23]. - The company aims to maintain a high level of business development investment to capitalize on a record pipeline [28]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued long-term investment in US infrastructure, supported by government initiatives and funding clarity [36][37]. - The company anticipates further margin expansion driven by critical investments aligned with long-term objectives [10][30]. - Management highlighted the importance of AI in enhancing operational efficiency and client service delivery [50][51]. Other Important Information - The company achieved a segment adjusted operating margin of 17.1%, a 90 basis point improvement over the prior year [25]. - Backlog increased both sequentially and year-over-year, reaching an all-time high [12]. - The company maintains a strong balance sheet with net leverage of 0.6 and no debt maturities until 2029 [29]. Q&A Session Summary Question: Update on the US Market - Management noted stability in the US market, with clarity on funding agendas and increased infrastructure investment expected [35][37]. Question: Drivers of Margin Improvement - Management attributed margin improvement to high-return organic growth investments and operational focus on cost management [41][42]. Question: AI and Automation Initiatives - Management confirmed that AI initiatives are already impacting margins and will have a material effect over the next three years [50][51]. Question: Book to Bill Ratio Sustainability - Management expressed confidence in maintaining a book to burn ratio greater than one, supported by a healthy pipeline and high win rates [67][70]. Question: Advisory Business Growth - The advisory business is expected to grow double digits, capturing more market share and providing additional services to existing clients [94][95].