Tetra Tech (NASDAQ: TTEK) lifts 2026 outlook after record cash flow
Rhea-AI Filing Summary
Tetra Tech, Inc. reported third-quarter 2026 results with revenue of $1.31 billion and net revenue of $1.11 billion. Net revenue increased 8% year-over-year excluding USAID / DOS and episodic disaster response. Operating income was $158 million, EBITDA was $173 million, and EPS was $0.42. Backlog reached $4.49 billion, up 5% sequentially, supported by new data center and sediment restoration orders.
Cash from operations was $229 million in the quarter and $567 million over the trailing twelve months. For the first nine months of fiscal 2026, revenue was $3.74 billion, net revenue $3.20 billion, operating income $430 million, adjusted EBITDA $466 million, EPS $1.18, and net income attributable to Tetra Tech $308.2 million. Management highlighted $467 million of operating cash flow through three quarters as its strongest cash flow on record, funding acquisitions and share repurchases.
The Board declared a $0.072 per share quarterly dividend, an 11% year-over-year increase and the 45th consecutive double-digit raise, payable August 27, 2026 to holders of record August 13, 2026. Tetra Tech repurchased $100 million of stock in the quarter and had $398 million remaining under its authorization. For fourth-quarter 2026, it expects net revenue of $1.12–$1.17 billion and EPS of $0.45–$0.48, and it raised fiscal 2026 adjusted EPS guidance to $1.56–$1.59 with net revenue of $4.315–$4.365 billion.
Positive
- Fiscal 2026 guidance was strengthened, with adjusted EPS raised to $1.56–$1.59 and the net revenue outlook narrowed to $4.315–$4.365 billion, indicating higher expected profitability and more focused full-year expectations.
- Trailing twelve-month operating cash flow reached $567 million, and management cited $467 million from operations in the first three quarters as its strongest cash flow on record, supporting acquisitions, buybacks, and dividends while deleveraging net debt.
- The quarterly dividend was increased to $0.072 per share, an 11% year-over-year rise and the 45th consecutive double-digit increase, reinforcing a long-running pattern of growing cash returns to shareholders.
- Quarter-end backlog reached $4.49 billion, up 5% sequentially, supported by significant new orders in data center and sediment restoration projects, providing improved visibility into future revenue.
Negative
- None.
Filing Explained
At June 28, Tetra Tech reported 256,044 common shares, $230,835 thousand cash, and $801,057 thousand long-term debt.
As a Form 8-K, this filing reports the completed quarter ended
The company reported 256,044 common shares issued and outstanding at quarter-end, versus 261,418 at
At
8-K Event Classification
Key Figures
Key Terms
net revenue financial
backlog financial
DSO financial
adjusted EBITDA financial
contingent earn-out liabilities financial
forward-looking statements regulatory
Earnings Snapshot
For Q4 2026, Tetra Tech expects net revenue of $1.12–$1.17 billion and EPS of $0.45–$0.48; for fiscal 2026, it raised adjusted EPS guidance to $1.56–$1.59 and narrowed its net revenue range to $4.315–$4.365 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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What dividend did Tetra Tech (TTEK) declare and how does it compare year over year?
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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)) |
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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).
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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 July 29, 2026, Tetra Tech, Inc. (“Tetra Tech”) reported its financial results for the third fiscal quarter ended June 28, 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 July 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 August 27, 2026 to stockholders of record as of the close of business on August 13, 2026.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| 99.1 | Press Release, dated July 29, 2026, reporting the financial results for Tetra Tech’s third fiscal quarter ended June 28, 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: July 29, 2026 | By: | /s/ ROGER R. ARGUS |
| Roger R. Argus | ||
| Chief Executive Officer and President | ||
3
Exhibit 99.1
 |
NEWS RELEASE July 29, 2026 |
Tetra Tech Reports Strong Third Quarter 2026 Results
| · | Revenue $1.31 billion; Net Revenue $1.11 billion | |
| · | Operating Income $158 million; EBITDA $173 million | |
| · | EPS $0.42 | |
| · | Backlog $4.49 billion, up 5% sequentially | |
| · | YTD performance drives increased FY26 guidance |
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK), a global provider of high-end technical and engineering services, Leading with Science® in water, environment and sustainable infrastructure, today announced results for the third quarter ended June 28, 2026.
Revenue and revenue, net of subcontractor costs (net revenue)1, in the third quarter totaled $1.31 billion and $1.11 billion, respectively. Net revenue increased 8% Y/Y excluding USAID / DOS and episodic disaster response. Operating income was $158 million, EBITDA1 was $173 million, and EPS was $0.42. Backlog was $4.49 billion at the end of the third quarter, up 5% sequentially. Cash from operations was $229 million in the third quarter and $567 million over the trailing twelve months, resulting in a DSO of 56 days.
Recent Key Wins
| · | U.S. Army Corps of Engineers Norfolk District multiple-award contract for engineering services |
| · | U.S. Army Corps of Engineers Mobile District multiple-award contract for water infrastructure |
| · | U.S. EPA Office of Water single-award water quality and ecological monitoring contract |
| · | U.S. Federal Aviation Administration single-award airspace redesign task order contract |
| · | L.A. Department of Water & Power multiple-award environmental and digital automation contract |
| · | California Wastewater Authority digital systems integration contract |
| · | Scotland Excel engineering and technical consultancy framework contract |
| · | Chelan County Public Utility District hydropower dam modernization contract |
| · | City of Dayton Department of Water PFAS water treatment design contract |
| · | Hyperscale AI Data Center power system digital automation and cybersecurity contract |
| 1 | Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to Regulation G Information for reconciliations to the comparable GAAP metrics. |
Executive Management Comments
Roger Argus, Chief Executive Officer, commented, “We delivered a strong third quarter with growth primarily driven by U.S. federal and international end markets, both increasing at a double-digit rate. We received significant new orders during the quarter, including commercial orders for data center and sediment restoration projects, driving our backlog up by more than $200 million. The Company’s performance year-to-date resulted in our increasing guidance for fiscal 2026.”
Steve Burdick, Chief Financial Officer, stated, “Tetra Tech generated its strongest cash flow on record with $467 million from operations through the first three quarters of fiscal 2026. Our ability to consistently generate more cash than net income has allowed the Company to fund acquisitions, increase the stock buybacks, and pay higher dividends, while still deleveraging our net debt.”
Quarterly Dividend and Share Repurchase Program
On July 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 August 27, 2026, to stockholders of record as of August 13, 2026. This is the 45th consecutive double-digit increase in the Company’s quarterly dividend. In the third quarter of fiscal 2026, Tetra Tech repurchased $100 million of common stock. Additionally, as of June 28, 2026, the Company had $398 million remaining under its share repurchase program.
Nine-Month Results
Revenue for the nine-month period was $3.74 billion and net revenue was $3.20 billion. Net revenue increased 8% Y/Y excluding USAID / DOS and episodic disaster response. Operating income was $430 million, adjusted EBITDA was $466 million, and EPS was $1.18; cash flows generated from operations were $467 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 the fourth quarter of fiscal 2026, Tetra Tech expects net revenue2 to range from $1.12 billion to $1.17 billion and EPS to range from $0.45 to $0.48. For fiscal 2026, Tetra Tech is increasing adjusted EPS3 guidance to range from $1.56 to $1.59. Tetra Tech is narrowing the fiscal 2026 net revenue range to $4.315 billion to $4.365 billion, which represents an increased midpoint for the year.
Webcast
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the third quarter of fiscal 2026 results through a link posted on the Company’s website at tetratech.com on July 30, 2026, at 8:00 a.m. (PT).
| 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 nine months of fiscal 2026. |
About Tetra Tech
Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end technical 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 in this release.
Tetra Tech, Inc.
Balance Sheet - Unaudited
(unaudited - in thousands, except par value)
| June 28, | September 28, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 230,835 | $ | 167,459 | ||||
| Accounts receivable, net | 1,076,473 | 1,158,928 | ||||||
| Contract assets | 152,610 | 138,232 | ||||||
| Prepaid expenses and other current assets | 120,395 | 98,768 | ||||||
| Assets held-for-sale | - | 57,502 | ||||||
| Total current assets | 1,580,313 | 1,620,889 | ||||||
| Property and equipment, net | 63,154 | 66,148 | ||||||
| Right-of-use assets, operating leases | 200,447 | 197,618 | ||||||
| Goodwill | 2,216,319 | 2,049,874 | ||||||
| Intangible assets, net | 123,590 | 121,160 | ||||||
| Deferred tax assets | 64,925 | 106,238 | ||||||
| Other non-current assets | 139,551 | 120,247 | ||||||
| Total assets | $ | 4,388,299 | $ | 4,282,174 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 220,639 | $ | 204,725 | ||||
| Accrued compensation | 316,661 | 346,912 | ||||||
| Contract liabilities | 418,102 | 420,254 | ||||||
| Short-term lease liabilities, operating leases | 74,681 | 69,099 | ||||||
| Current contingent earn-out liabilities | 43,587 | 24,826 | ||||||
| Liabilities held-for-sale | - | 25,115 | ||||||
| Other current liabilities | 260,680 | 288,113 | ||||||
| Total current liabilities | 1,334,350 | 1,379,044 | ||||||
| Deferred tax liabilities | 21,831 | 21,333 | ||||||
| Long-term debt | 801,057 | 763,363 | ||||||
| Long-term lease liabilities, operating leases | 147,759 | 154,695 | ||||||
| Non-current contingent earn-out liabilities | 70,196 | 32,135 | ||||||
| Other non-current liabilities | 160,529 | 151,440 | ||||||
| Total liabilities | 2,535,722 | 2,502,010 | ||||||
| Equity: | ||||||||
| Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at June 28, 2026 and September 28, 2025 | - | - | ||||||
| Common stock - authorized, 750,000 shares of $0.01 par value; issued and outstanding, 256,044 and 261,418 shares at June 28, 2026 and September 28, 2025, respectively | 2,560 | 2,614 | ||||||
| Accumulated other comprehensive loss | (105,779 | ) | (95,777 | ) | ||||
| Retained earnings | 1,955,291 | 1,872,948 | ||||||
| Tetra Tech stockholders' equity | 1,852,072 | 1,779,785 | ||||||
| Noncontrolling interests | 505 | 379 | ||||||
| Total stockholders' equity | 1,852,577 | 1,780,164 | ||||||
| Total liabilities and stockholders' equity | $ | 4,388,299 | $ | 4,282,174 | ||||
| Tetra Tech, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (unaudited - in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 28, | June 29, | June 28, | June 29, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 1,308,555 | $ | 1,369,816 | $ | 3,739,374 | $ | 4,112,490 | ||||||||
| Subcontractor costs | (199,996 | ) | (216,800 | ) | (544,007 | ) | (658,439 | ) | ||||||||
| Other costs of revenue | (865,354 | ) | (901,477 | ) | (2,517,701 | ) | (2,766,854 | ) | ||||||||
| Gross profit | 243,205 | 251,539 | 677,666 | 687,197 | ||||||||||||
| Selling, general and administrative expenses | (85,203 | ) | (86,611 | ) | (254,653 | ) | (255,022 | ) | ||||||||
| Legal contingency costs | - | - | - | (115,000 | ) | |||||||||||
| Contingent consideration - fair value adjustments | (77 | ) | 58 | 7,429 | 2,355 | |||||||||||
| Impairment of goodwill | - | - | - | (92,416 | ) | |||||||||||
| Income from operations | 157,925 | 164,986 | 430,442 | 227,114 | ||||||||||||
| Interest expense, net | (7,158 | ) | (8,288 | ) | (23,124 | ) | (23,996 | ) | ||||||||
| Other non-operating income | - | - | 12,361 | - | ||||||||||||
| Income before income tax expense | 150,767 | 156,698 | 419,679 | 203,118 | ||||||||||||
| Income tax expense | (40,966 | ) | (42,815 | ) | (110,858 | ) | (83,045 | ) | ||||||||
| Net income | 109,801 | 113,883 | 308,821 | 120,073 | ||||||||||||
| Net income attributable to noncontrolling interests | (217 | ) | (39 | ) | (586 | ) | (94 | ) | ||||||||
| Net income attributable to Tetra Tech | $ | 109,584 | $ | 113,844 | $ | 308,235 | $ | 119,979 | ||||||||
| Earnings per share attributable to Tetra Tech: | ||||||||||||||||
| Basic | $ | 0.42 | $ | 0.43 | $ | 1.19 | $ | 0.45 | ||||||||
| Diluted | $ | 0.42 | $ | 0.43 | $ | 1.18 | $ | 0.45 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 258,151 | 263,026 | 259,685 | 265,589 | ||||||||||||
| Diluted | 259,779 | 264,855 | 261,459 | 268,113 | ||||||||||||
| Tetra Tech, Inc. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (unaudited - in thousands) | ||||||||
| Nine Months Ended | ||||||||
| June 28, | June 29, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 308,821 | $ | 120,073 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 43,103 | 43,636 | ||||||
| Amortization of stock-based awards | 27,438 | 25,789 | ||||||
| Deferred income taxes | 42,433 | (7,656 | ) | |||||
| Gain on sale of divested business | (12,361 | ) | - | |||||
| Impairment of goodwill | - | 92,416 | ||||||
| Fair value adjustments to contingent consideration | (7,429 | ) | (2,355 | ) | ||||
| Gain on cash surrender value of life insurance policies | - | (1,599 | ) | |||||
| Other non-cash items | 3,869 | 7,187 | ||||||
| Changes in operating assets and liabilities, net of effects of business acquisitions and divestiture: | ||||||||
| Accounts receivable and contract assets | 107,557 | (65,886 | ) | |||||
| Prepaid expenses and other assets | 791 | (21,720 | ) | |||||
| Accounts payable | 7,446 | 27,539 | ||||||
| Accrued compensation | (35,973 | ) | (15,991 | ) | ||||
| Contract liabilities | (1,501 | ) | 44,486 | |||||
| Income taxes receivable/payable | (8,028 | ) | 32,818 | |||||
| Cash settled contingent earn-out liability | - | (7,420 | ) | |||||
| Other liabilities | (9,613 | ) | 85,521 | |||||
| Net cash provided by operating activities | 466,553 | 356,838 | ||||||
| Cash flows from investing activities: | ||||||||
| Payments for business acquisitions, net of cash acquired | (191,870 | ) | (97,693 | ) | ||||
| Capital expenditures | (13,955 | ) | (12,514 | ) | ||||
| Proceeds from divested business, net | 40,263 | - | ||||||
| Proceeds from company-owned life insurance policies | - | 1,934 | ||||||
| Net cash used in investing activities | (165,562 | ) | (108,273 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings | 245,000 | 715,000 | ||||||
| Repayments on long-term debt | (210,000 | ) | (665,000 | ) | ||||
| Payment of debt issuance costs | - | (2,738 | ) | |||||
| Repurchases of common stock | (202,010 | ) | (199,984 | ) | ||||
| Shares repurchased for tax withholdings on share-based awards | (12,481 | ) | (13,942 | ) | ||||
| Payments of contingent earn-out liabilities | (2,842 | ) | (14,805 | ) | ||||
| Stock options exercised | 564 | 216 | ||||||
| Dividends paid | (52,473 | ) | (47,992 | ) | ||||
| Principal payments on finance leases | (5,791 | ) | (5,742 | ) | ||||
| Net cash used in financing activities | (240,033 | ) | (234,987 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,505 | (3,434 | ) | |||||
| Net increase in cash and cash equivalents | 62,463 | 10,144 | ||||||
| Cash and cash equivalents at beginning of period | 168,372 | 232,689 | ||||||
| Cash and cash equivalents at end of period | $ | 230,835 | $ | 242,833 | ||||
Tetra Tech, Inc.
Regulation G Information
June 28, 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 | 2025 | 1st Qtr | 2nd Qtr | 6 Mos | 3rd Qtr | 9 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 | 1,308.6 | 3,739.4 | ||||||||||||||||||||||||||||
| 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 | ) | (200.0 | ) | (544.0 | ) | ||||||||||||||
| 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 | 1,108.6 | 3,195.4 | ||||||||||||||||||||||||||||
| 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 | 598.4 | 1,683.3 | ||||||||||||||||||||||||||||
| 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 | ) | (124.1 | ) | (318.4 | ) | ||||||||||||||
| 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 | 474.3 | 1,364.9 | ||||||||||||||||||||||||||||
| 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 | 728.3 | 2,108.6 | ||||||||||||||||||||||||||||
| 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 | ) | (94.1 | ) | (278.1 | ) | ||||||||||||||
| 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 | 634.2 | 1,830.5 | ||||||||||||||||||||||||||||
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 | 2025 | 1st Qtr | 2nd Qtr | 6 Mos | 3rd Qtr | 9 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 | 109,584 | 308,235 | ||||||||||||||||||||||||||||
| 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 | 40,966 | 110,858 | ||||||||||||||||||||||||||||
| 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 | 7,158 | 23,124 | ||||||||||||||||||||||||||||
| 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 | 5,720 | 16,879 | ||||||||||||||||||||||||||||
| 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 | 9,046 | 26,224 | ||||||||||||||||||||||||||||
| FX Hedge Gain | (89,402 | ) | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Gain on sale of divested business | - | - | - | - | - | - | - | - | - | (7,710 | ) | (4,651 | ) | (12,361 | ) | - | (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 | 172,474 | 472,959 | ||||||||||||||||||||||||||||
| Contingent Consideration | 12,255 | 2,541 | (366 | ) | (1,931 | ) | (2,297 | ) | (58 | ) | (2,355 | ) | (9,873 | ) | (12,228 | ) | (7,447 | ) | (58 | ) | (7,506 | ) | 77 | (7,429 | ) | |||||||||||||||||
| 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 | 172,551 | 465,530 | ||||||||||||||||||||||||||||
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