Tetra Tech Reports Record Third Quarter Results, Raises Guidance and Announces Five-for-One Stock Split
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Record Quarterly Revenue
, up$1.34 billion 11% Y/Y -
Record Q3 Operating Income
, up$129 million 32% Y/Y -
Record Q3 EPS
, up$1.59 42% Y/Y -
Record Backlog
, up$5.23 billion 19% Y/Y - Increasing FY 2024 Net Revenue and EPS guidance
Third Quarter Highlights
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Revenue increased
11% Y/Y to$1.34 billion -
Net Revenue1 increased
12% Y/Y to$1.11 billion -
Operating Income increased
32% Y/Y to$129 million -
EPS increased
42% Y/Y to$1.59 -
Backlog increased
19% Y/Y to$5.23 billion - Industry-leading DSO of 54 days
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Cash Flow from Operations of
$141 million -
Net Debt / EBITDA reduced
34% Y/Y to 1.15x
Recent Key Wins
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for expanding energy resiliency through innovative solutions for diversified generation, delivery and storage of energy in$439 million Ukraine -
to increase energy resiliency and support sustainable infrastructure throughout$73 million West Africa -
for disaster preparedness associated with impacts from climate change and rising sea levels across vulnerable areas in the$65 million Asia Pacific region -
for supporting sustainable land and infrastructure systems including water resource management and irrigation in developing countries$64 million -
to design advanced water treatment and PFAS removal solution for a new facility in$56 million Virginia -
for sustainable infrastructure programs addressing climate change adaptation in$54 million Southeast Asia -
for assessment and restoration for water and environmental impacts associated with fire recovery in$35 million Hawaii -
for investigation and evaluation of contaminated sediments within the Anacostia River in the Potomac River Basin$32 million -
to assess and design water leachate treatment solutions in municipal landfills in$27 million California
Executive Management Comment
Dan Batrack, Chairman and CEO, commented, “Tetra Tech continued our strong performance through the third quarter with increasing demand for our high-end water, environment, and sustainable infrastructure services, resulting in record quarterly revenue and an all-time high backlog. We continued to grow our services for front-end advisory and consulting work, resulting in the expansion of our margins in GSG by 60 basis points and CIG by 230 basis points over the third quarter of last year. With increased profitability and record backlog, we are raising our full year guidance for net revenue and earnings, which represents forecasted EPS growth of
Quarterly Dividend and Share Repurchase Program
On July 29, 2024, Tetra Tech’s Board of Directors approved the Company’s 41st consecutive quarterly dividend at an amount of
Five-for-One Stock Split
On July 29, 2024, Tetra Tech’s Board of Directors approved a five-for-one stock split of the Company’s common stock. The split will be effected through an amendment to Tetra Tech’s Restated Certificate of Incorporation, which will result in a proportionate increase in the number of shares of authorized common stock. The stock split is intended to make shares more accessible to a broader base of investors and enhance liquidity in the trading of the Company’s shares. Each record holder of common stock as of the close of market on September 5, 2024, will receive four additional shares of common stock. The stock split is expected to be effective after close of trading on September 6, 2024. Trading is expected to commence on a split-adjusted basis at market open on September 9, 2024.
Nine-Month Results
Revenue for the nine-month period was
Business Outlook
The following statements are based on current expectations. These statements are forward-looking, and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.
For fiscal 2024, Tetra Tech is raising EPS guidance to range from
Third Quarter Earnings Webcast
Investors will have the opportunity to access a live audio-visual webcast on the Company’s Investor Relations website at tetratech.com/investors on August 1, 2024, at 8:00 a.m. (PT). The webcast replay will be available following the call.
About Tetra Tech
Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With 28,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science® to address the entire water cycle, protect and restore the environment, design sustainable and resilient infrastructure, and support the clean energy transition. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.
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1 Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables in the Regulation G Information for reconciliations to the comparable GAAP metrics.
2 Reconciliation of the net revenue guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict the magnitude and timing of all the components required to provide such reconciliation with sufficient precision.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements that address our forward stock split and the use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on current expectations and beliefs of Tetra Tech’s management and currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: continuing worldwide political and economic uncertainties; the
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with generally accepted accounting principles in
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Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844
Source: Tetra Tech, Inc.