Cash strength lets Tetra Tech (NASDAQ: TTEK) raise outlook and dividend
Rhea-AI Filing Summary
Tetra Tech reported second-quarter 2026 results with revenue of $1.22 billion and net revenue of $1.05 billion. Operating income was $132 million, EBITDA was $146 million, and EPS was $0.36 with adjusted EPS of $0.34. Backlog reached $4.28 billion, up 8% sequentially.
Cash from operations was $165 million in the quarter and $688 million over the last twelve months. For fiscal 2026, the company raised net revenue guidance to $4.25–$4.40 billion and adjusted EPS guidance to $1.50–$1.58. The Board declared a $0.072 quarterly dividend, up 11% year-over-year, and the company repurchased $50 million of stock, with $498 million remaining under its repurchase program.
Positive
- Raised fiscal 2026 outlook: The company increased full-year 2026 guidance to net revenue of $4.25–$4.40 billion and adjusted EPS of $1.50–$1.58, signaling confidence in continued earnings strength and demand.
- Strong cash generation and capital returns: Cash from operations reached $165 million in Q2 and $688 million over the last twelve months, supporting $50 million of share repurchases and an 11% year-over-year increase in the quarterly dividend to $0.072 per share.
Negative
- None.
Insights
Stronger profitability, robust cash flow and a guidance raise highlight a solid quarter.
Tetra Tech delivered Q2 2026 revenue of $1.22 billion and net revenue of $1.05 billion. Operating income rose to $132 million, while EBITDA reached $146 million. EPS was $0.36 and adjusted EPS was $0.34, reflecting improved underlying profitability.
Backlog stood at $4.28 billion, up 8% sequentially, supporting revenue visibility. Cash from operations was $165 million in Q2 and $688 million over the trailing twelve months, enabling $50 million of share repurchases and an 11% higher quarterly dividend of $0.072 per share.
Management raised full-year fiscal 2026 guidance, targeting net revenue of $4.25–$4.40 billion and adjusted EPS of $1.50–$1.58. They also guided Q3 2026 net revenue to $1.05–$1.10 billion and EPS to $0.38–$0.41. Future filings and webcasts, including the April 30, 2026 webcast, will show how execution tracks against these higher targets.
8-K Event Classification
Key Figures
Key Terms
net revenue financial
EBITDA financial
adjusted EPS financial
backlog financial
DSO financial
Regulation G regulatory
Earnings Snapshot
For fiscal 2026, net revenue guidance is $4.25–$4.40 billion and adjusted EPS guidance is $1.50–$1.58. For Q3 2026, net revenue is expected at $1.05–$1.10 billion and EPS at $0.38–$0.41.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02. | Results of Operations and Financial Condition. |
On April 29, 2026, Tetra Tech, Inc. (“Tetra Tech”) reported its financial results for the second fiscal quarter ended March 29, 2026. A copy of the press release is attached to this report as Exhibit 99.1.
Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 8.01. | Other Events. |
On April 29, 2026, Tetra Tech announced that its Board of Directors has declared a $0.072 per share quarterly cash dividend. The dividend is payable on June 2, 2026 to stockholders of record as of the close of business on May 14, 2026.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| 99.1 | Press Release, dated April 29, 2026, reporting the financial results for Tetra Tech’s second fiscal quarter ended March 29, 2026, and the declaration of a quarterly cash dividend. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Tetra Tech has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TETRA TECH, INC. | ||
| Date: April 29, 2026 | By: | /s/ ROGER R. ARGUS |
| Roger R. Argus | ||
| Chief Executive Officer and President | ||
3
Exhibit 99.1
 |
NEWS
RELEASE April 29, 2026 |
Tetra Tech Reports Strong Second Quarter 2026 Results and
Raises Fiscal Year 2026 Guidance
| · | Revenue $1.22 billion; Net Revenue $1.05 billion | |
| · | Operating Income $132 million; EBITDA $146 million | |
| · | EPS $0.36; Adjusted EPS $0.34 | |
| · | Backlog $4.28 billion, up 8% sequentially | |
| · | Raising FY26 Net Revenue and EPS 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 the second quarter ended March 29, 2026.
Revenue and revenue, net of subcontractor costs (net revenue)1, in the second quarter totaled $1.22 billion and $1.05 billion, respectively. Net revenue increased 8% Y/Y excluding USAID / DOS and disasters. Operating income was $132 million and EBITDA1 was $146 million; EBITDA margin was up 90 basis points Y/Y. EPS was $0.36 and adjusted EPS1 was $0.34. Backlog was $4.28 billion at the end of the second quarter, up 8% sequentially. Cash from operations was $165 million in the second quarter and $688 million over the trailing twelve months, resulting in a DSO of 58 days.
Recent Key Wins
| · | $400 million multiple-award contract for consulting and engineering services for USACE Huntsville District |
| · | $100 million multiple-award contract for environmental services for U.S. Air Force |
| · | $99 million single-award contract for engineering and technical consulting services for U.S. Navy |
| · | $49 million multiple-award contract for engineering and technical consulting services for USACE Portland District |
| · | £18 million single-award contract for consulting services for Northern Ireland Water |
| · | $14 million task order contract for technology consulting services for Defense Logistics Agency |
| · | Netherlands Water framework contracts for engineering and technical consulting services |
| · | Port of Los Angeles master services agreement for environmental engineering services |
| · | United Utilities contract for WaterNet™ SaaS water network management solution services |
| 1 | Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables at the end of the release and Regulation G Information for reconciliations to the comparable GAAP metrics. |
Executive Management Comments
Roger Argus, Chief Executive Officer, commented, “We delivered a strong second quarter, driven by growth across our end markets in water, environment, and sustainable infrastructure. In U.S. federal, we saw increased orders from defense agencies related to new facilities and infrastructure modernization. Our high-end consulting services for providing water supplies and mitigating environmental impacts are increasingly critical to gaining community support for the establishment of data centers. Our international operations grew due to demand for front-end water and infrastructure consulting services. These positive trends led to backlog growth and improved revenue visibility for the remainder of the year, leading to our increased guidance for fiscal 2026.”
Steve Burdick, Chief Financial Officer, stated, “Tetra Tech has started off the first half of fiscal 2026 with the strongest cash flow generation on record with $238 million from operations. These exceptional cash flows have consequently provided better returns for shareholders through our stock buyback program, which has returned $100 million so far this year, and our cash dividend program. Our ability to consistently generate cash in excess of net income has allowed the Company to once again increase our quarterly cash dividends by an additional 11% over last year. Cash generated over the last twelve months of $688 million has allowed us to fund acquisitions, complete stock buybacks, and pay dividends, while deleveraging our net debt by more than 25% from this time last year.”
Quarterly Dividend and Share Repurchase Program
On April 27, 2026, Tetra Tech’s Board of Directors approved a quarterly dividend in the amount of $0.072 per share, an 11% increase year-over-year, payable on June 2, 2026, to stockholders of record as of May 14, 2026. This is the 44th consecutive double-digit increase in the Company’s quarterly dividend. In the second quarter of fiscal 2026, Tetra Tech repurchased $50 million of common stock. Additionally, as of March 29, 2026, the Company had $498 million remaining under its share repurchase program.
Six-Month Results
Revenue for the six-month period was $2.43 billion and net revenue was $2.09 billion. Net revenue increased 8% Y/Y excluding USAID / DOS and disasters. Operating income was $273 million, EPS was $0.76, and cash flow from operations was $238 million.
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 2026, Tetra Tech is increasing the full year guidance for net revenue2 to range from $4.25 billion to $4.40 billion and adjusted EPS3 to range from $1.50 to $1.58. For the third quarter of fiscal 2026, Tetra Tech expects net revenue to range from $1.05 billion to $1.10 billion and EPS to range from $0.38 to $0.41.
| 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, including subcontractor costs, required to provide such reconciliation with sufficient precision. |
| 3 | The only adjustments in our guidance for EPS are to exclude the gain on business disposition and contingent consideration in the first six months of fiscal 2026. |
Webcast
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the second quarter of fiscal 2026 results through a link posted on the Company’s website at tetratech.com on April 30, 2026, at 8:00 a.m. (PT).
Reconciliation of GAAP and Non-GAAP Items
In thousands (except EPS data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | |||||||||||||
| Revenue | $ | 1,220,157 | $ | 1,322,113 | $ | 2,430,820 | $ | 2,742,674 | ||||||||
| Subcontractor costs | (170,524 | ) | (218,408 | ) | (344,011 | ) | (441,639 | ) | ||||||||
| Net revenue | $ | 1,049,633 | $ | 1,103,705 | $ | 2,086,809 | $ | 2,301,035 | ||||||||
| Operating Income | $ | 131,523 | $ | 39,603 | $ | 272,517 | $ | 62,129 | ||||||||
| Contingent consideration | (58 | ) | (1,931 | ) | (7,506 | ) | (2,297 | ) | ||||||||
| Legal contingency | - | - | - | 115,000 | ||||||||||||
| Goodwill impairment | - | 92,416 | - | 92,416 | ||||||||||||
| Adjusted Operating Income | $ | 131,465 | $ | 130,088 | $ | 265,011 | $ | 267,248 | ||||||||
| EPS | $ | 0.36 | $ | 0.02 | $ | 0.76 | $ | 0.02 | ||||||||
| Contingent consideration | - | - | (0.02 | ) | - | |||||||||||
| Legal contingency | - | - | - | 0.35 | ||||||||||||
| Goodwill impairment | - | 0.31 | - | 0.31 | ||||||||||||
| Gain on divestiture | (0.02 | ) | - | (0.05 | ) | - | ||||||||||
| Adjusted EPS | $ | 0.34 | $ | 0.33 | $ | 0.69 | $ | 0.68 | ||||||||
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 more than 25,000 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, and design sustainable and resilient infrastructure. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.
CONTACTS:
Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 U.S. Administration’s potential changes to fiscal policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; the impact of global pandemics; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in bank and capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended September 28, 2025. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth above in this release.
Tetra Tech, Inc.
Balance Sheet
(unaudited - in thousands, except par value)
| March 29, | September 28, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 223,612 | $ | 167,459 | ||||
| Accounts receivable, net | 1,047,330 | 1,158,928 | ||||||
| Contract assets | 146,455 | 138,232 | ||||||
| Prepaid expenses and other current assets | 124,622 | 98,768 | ||||||
| Assets held-for-sale | - | 57,502 | ||||||
| Total current assets | 1,542,019 | 1,620,889 | ||||||
| Property and equipment, net | 65,367 | 66,148 | ||||||
| Right-of-use assets, operating leases | 206,527 | 197,618 | ||||||
| Goodwill | 2,209,588 | 2,049,874 | ||||||
| Intangible assets, net | 129,285 | 121,160 | ||||||
| Deferred tax assets | 78,763 | 106,238 | ||||||
| Other non-current assets | 130,682 | 120,247 | ||||||
| Total assets | $ | 4,362,231 | $ | 4,282,174 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 204,792 | $ | 204,725 | ||||
| Accrued compensation | 245,645 | 346,912 | ||||||
| Contract liabilities | 410,858 | 420,254 | ||||||
| Short-term lease liabilities, operating leases | 73,743 | 69,099 | ||||||
| Current contingent earn-out liabilities | 44,449 | 24,826 | ||||||
| Liabilities held-for-sale | - | 25,115 | ||||||
| Other current liabilities | 249,244 | 288,113 | ||||||
| Total current liabilities | 1,228,731 | 1,379,044 | ||||||
| Deferred tax liabilities | 20,022 | 21,333 | ||||||
| Long-term debt | 880,162 | 763,363 | ||||||
| Long-term lease liabilities, operating leases | 155,825 | 154,695 | ||||||
| Non-current contingent earn-out liabilities | 63,882 | 32,135 | ||||||
| Other non-current liabilities | 149,860 | 151,440 | ||||||
| Total liabilities | 2,498,482 | 2,502,010 | ||||||
| Equity: | ||||||||
| Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at March 29, 2026 and September 28, 2025 | - | - | ||||||
| Common stock - authorized, 750,000 shares of $0.01 par value; issued and outstanding, 259,525 and 261,418 shares at March 29, 2026 and September 28, 2025, respectively | 2,595 | 2,614 | ||||||
| Accumulated other comprehensive loss | (94,684 | ) | (95,777 | ) | ||||
| Retained earnings | 1,955,468 | 1,872,948 | ||||||
| Tetra Tech stockholders' equity | 1,863,379 | 1,779,785 | ||||||
| Noncontrolling interests | 370 | 379 | ||||||
| Total stockholders' equity | 1,863,749 | 1,780,164 | ||||||
| Total liabilities and stockholders' equity | $ | 4,362,231 | $ | 4,282,174 | ||||
Tetra Tech, Inc.
Consolidated Statements of Income
(unaudited - in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 29, | March 30, | March 29, | March 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 1,220,157 | $ | 1,322,113 | $ | 2,430,820 | $ | 2,742,674 | ||||||||
| Subcontractor costs | (170,524 | ) | (218,408 | ) | (344,011 | ) | (441,639 | ) | ||||||||
| Other costs of revenue | (835,542 | ) | (889,523 | ) | (1,652,347 | ) | (1,865,376 | ) | ||||||||
| Gross profit | 214,091 | 214,182 | 434,462 | 435,659 | ||||||||||||
| Selling, general and administrative expenses | (82,626 | ) | (84,094 | ) | (169,451 | ) | (168,411 | ) | ||||||||
| Legal contingency costs | - | - | - | (115,000 | ) | |||||||||||
| Contingent consideration - fair value adjustments | 58 | 1,931 | 7,506 | 2,297 | ||||||||||||
| Impairment of goodwill | - | (92,416 | ) | - | (92,416 | ) | ||||||||||
| Income from operations | 131,523 | 39,603 | 272,517 | 62,129 | ||||||||||||
| Interest expense, net | (8,838 | ) | (8,491 | ) | (15,966 | ) | (15,709 | ) | ||||||||
| Other non-operating income | 4,651 | - | 12,361 | - | ||||||||||||
| Income before income tax expense | 127,336 | 31,112 | 268,912 | 46,420 | ||||||||||||
| Income tax expense | (33,538 | ) | (25,700 | ) | (69,892 | ) | (40,230 | ) | ||||||||
| Net income | 93,798 | 5,412 | 199,020 | 6,190 | ||||||||||||
| Net income attributable to noncontrolling interests | (175 | ) | (24 | ) | (369 | ) | (55 | ) | ||||||||
| Net income attributable to Tetra Tech | $ | 93,623 | $ | 5,388 | $ | 198,651 | $ | 6,135 | ||||||||
| Earnings per share attributable to Tetra Tech: | ||||||||||||||||
| Basic | $ | 0.36 | $ | 0.02 | $ | 0.76 | $ | 0.02 | ||||||||
| Diluted | $ | 0.36 | $ | 0.02 | $ | 0.76 | $ | 0.02 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 260,144 | 265,728 | 260,635 | 266,819 | ||||||||||||
| Diluted | 261,919 | 267,439 | 262,483 | 269,691 | ||||||||||||
Tetra Tech, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Six Months Ended | ||||||||
| March 29, | March 30, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 199,020 | $ | 6,190 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 28,337 | 29,939 | ||||||
| Amortization of stock-based awards | 17,670 | 17,027 | ||||||
| Deferred income taxes | 27,069 | (6,164 | ) | |||||
| Provision for losses on accounts receivables | - | 3,331 | ||||||
| Gain on sale of divested business | (12,361 | ) | - | |||||
| Impairment of goodwill | - | 92,416 | ||||||
| Fair value adjustments to contingent consideration | (7,506 | ) | (2,297 | ) | ||||
| Gain on cash surrender value of life insurance policies | - | (1,599 | ) | |||||
| Other non-cash items | 2,387 | 4,267 | ||||||
| Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures: | ||||||||
| Accounts receivable and contract assets | 143,255 | (203,055 | ) | |||||
| Prepaid expenses and other assets | 1,371 | (28,322 | ) | |||||
| Accounts payable | (8,236 | ) | 66,917 | |||||
| Accrued compensation | (106,848 | ) | (83,088 | ) | ||||
| Contract liabilities | (9,539 | ) | 37,354 | |||||
| Income taxes receivable/payable | (14,047 | ) | (3,253 | ) | ||||
| Cash settled on contingent earn-out liability | - | (7,420 | ) | |||||
| Other liabilities | (22,961 | ) | 84,997 | |||||
| Net cash provided by operating activities | 237,611 | 7,240 | ||||||
| Cash flows from investing activities: | ||||||||
| Payments for business acquisitions, net of cash acquired | (175,000 | ) | (5,680 | ) | ||||
| Capital expenditures | (10,144 | ) | (9,022 | ) | ||||
| Proceeds from divested business, net | 40,263 | - | ||||||
| Proceeds from company-owned life insurance policies | - | 1,934 | ||||||
| Net cash used in investing activities | (144,881 | ) | (12,768 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings | 240,000 | 215,000 | ||||||
| Repayments on long-term debt | (125,000 | ) | (15,000 | ) | ||||
| Repurchases of common stock | (102,010 | ) | (174,984 | ) | ||||
| Shares repurchased for tax withholdings on share-based awards | (12,430 | ) | (13,848 | ) | ||||
| Payments of contingent earn-out liabilities | (2,842 | ) | (14,445 | ) | ||||
| Stock options exercised | 458 | 171 | ||||||
| Dividends paid | (33,852 | ) | (30,900 | ) | ||||
| Principal payments on finance leases | (3,841 | ) | (3,431 | ) | ||||
| Net cash used in financing activities | (39,517 | ) | (37,437 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 2,027 | (10,291 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 55,240 | (53,256 | ) | |||||
| Cash and cash equivalents at beginning of period | 168,372 | 232,689 | ||||||
| Cash and cash equivalents at end of period | $ | 223,612 | $ | 179,433 | ||||
Tetra Tech, Inc.
Regulation G Information
March 29, 2026
Reconciliation of Revenue to Revenue, Net of Subcontractor Costs ("Net Revenue")
(in millions)
| 2025 | 2026 | |||||||||||||||||||||||||||||||||||
| 2023 | 2024 | 1st Qtr | 2nd Qtr | 6 Mos | 3rd Qtr | 9 Mos | 4th Qtr | Total | 1st Qtr | 2nd Qtr | 6 Mos | |||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||
| Revenue | 4,522.6 | 5,198.7 | 1,420.6 | 1,322.1 | 2,742.7 | 1,369.8 | 4,112.5 | 1,330.1 | 5,442.6 | 1,210.7 | 1,220.2 | 2,430.8 | ||||||||||||||||||||||||
| Subcontractor Costs | (771.5 | ) | (876.8 | ) | (223.3 | ) | (218.4 | ) | (441.7 | ) | (216.8 | ) | (658.5 | ) | (166.8 | ) | (825.3 | ) | (173.5 | ) | (170.5 | ) | (344.0 | ) | ||||||||||||
| Net Revenue | 3,751.1 | 4,321.9 | 1,197.3 | 1,103.7 | 2,301.0 | 1,153.0 | 3,454.0 | 1,163.3 | 4,617.3 | 1,037.2 | 1,049.7 | 2,086.8 | ||||||||||||||||||||||||
| GSG Segment | ||||||||||||||||||||||||||||||||||||
| Revenue | 2,300.7 | 2,624.2 | 791.4 | 698.9 | 1,490.2 | 709.4 | 2,199.6 | 628.9 | 2,828.6 | 525.5 | 559.4 | 1,084.9 | ||||||||||||||||||||||||
| Subcontractor Costs | (484.3 | ) | (540.5 | ) | (144.0 | ) | (134.6 | ) | (278.5 | ) | (136.8 | ) | (415.3 | ) | (88.4 | ) | (503.7 | ) | (93.4 | ) | (100.9 | ) | (194.3 | ) | ||||||||||||
| Net Revenue | 1,816.4 | 2,083.7 | 647.4 | 564.3 | 1,211.7 | 572.6 | 1,784.3 | 540.5 | 2,324.9 | 432.1 | 458.5 | 890.6 | ||||||||||||||||||||||||
| CIG Segment | ||||||||||||||||||||||||||||||||||||
| Revenue | 2,292.7 | 2,634.4 | 644.9 | 637.8 | 1,282.6 | 676.6 | 1,959.1 | 721.2 | 2,680.2 | 704.2 | 676.2 | 1,380.3 | ||||||||||||||||||||||||
| Subcontractor Costs | (358.0 | ) | (396.2 | ) | (94.9 | ) | (98.3 | ) | (193.2 | ) | (96.1 | ) | (289.4 | ) | (98.3 | ) | (387.7 | ) | (99.1 | ) | (85.0 | ) | (184.1 | ) | ||||||||||||
| Net Revenue | 1,934.7 | 2,238.2 | 550.0 | 539.5 | 1,089.4 | 580.5 | 1,669.7 | 622.9 | 2,292.5 | 605.1 | 591.2 | 1,196.2 | ||||||||||||||||||||||||
Reconciliation of Net Income Attributable to Tetra Tech to Adjusted EBITDA
(in thousands)
| 2025 | 2026 | |||||||||||||||||||||||||||||||||||
| 2023 | 2024 | 1st Qtr | 2nd Qtr | 6 Mos | 3rd Qtr | 9 Mos | 4th Qtr | Total | 1st Qtr | 2nd Qtr | 6 Mos | |||||||||||||||||||||||||
| Net Income Attributable to Tetra Tech | 273,420 | 333,382 | 747 | 5,388 | 6,135 | 113,844 | 119,979 | 127,745 | 247,724 | 105,028 | 93,623 | 198,651 | ||||||||||||||||||||||||
| Income Tax Expense | 127,526 | 130,023 | 14,530 | 25,700 | 40,230 | 42,815 | 83,045 | 46,624 | 129,668 | 36,354 | 33,538 | 69,892 | ||||||||||||||||||||||||
| Interest Expense1 | 46,537 | 37,271 | 7,218 | 8,491 | 15,709 | 8,287 | 23,996 | 6,806 | 30,802 | 7,128 | 8,838 | 15,966 | ||||||||||||||||||||||||
| Depreciation | 19,980 | 23,722 | 5,402 | 5,248 | 10,650 | 5,410 | 16,059 | 5,115 | 21,175 | 5,608 | 5,550 | 11,159 | ||||||||||||||||||||||||
| Amortization | 41,226 | 49,955 | 10,660 | 8,629 | 19,289 | 8,287 | 27,577 | 9,524 | 37,101 | 8,387 | 8,791 | 17,178 | ||||||||||||||||||||||||
| FX Hedge Gain | (89,402 | ) | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
| Gain on sale of divested business | - | - | - | - | - | - | - | - | - | (7,710 | ) | (4,651 | ) | (12,361 | ) | |||||||||||||||||||||
| EBITDA | 419,287 | 574,353 | 38,557 | 53,456 | 92,013 | 178,643 | 270,656 | 195,814 | 466,470 | 154,795 | 145,689 | 300,485 | ||||||||||||||||||||||||
| Contingent Consideration | 12,255 | 2,541 | (366 | ) | (1,931 | ) | (2,297 | ) | (58 | ) | (2,355 | ) | (9,873 | ) | (12,228 | ) | (7,447 | ) | (58 | ) | (7,506 | ) | ||||||||||||||
| Goodwill Impairment | - | - | - | 92,416 | 92,416 | - | 92,416 | - | 92,416 | - | - | - | ||||||||||||||||||||||||
| Acquisition & Integration Expenses2 | 49,554 | 7,138 | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| Legal Contingency Costs | - | - | 115,000 | - | 115,000 | - | 115,000 | - | 115,000 | - | - | - | ||||||||||||||||||||||||
| Adjusted EBITDA | 481,096 | 584,032 | 153,191 | 143,941 | 297,132 | 178,585 | 475,717 | 185,941 | 661,658 | 147,348 | 145,631 | 292,979 | ||||||||||||||||||||||||
1 Includes write-off of deferred debt origination fees of $3.8M in fiscal 2023
2 Includes lease impairment charge of $16.4M in fiscal 2023