Tetra Tech — Nov 12, 2025 release
Fiscal 2025 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-110537
Showing in the filing
Net revenue
“$950 million to $1.0 billion”
Period
Q1 FY2026
Measure
GAAP-tied
Source
Prose
All guidance in this release · 5
Quarterly dividend
“$0.065 per share”
Net revenue for FY2026
“$4.05 billion to $4.25 billion”
EPS for FY2026
“$1.40 to $1.55”
Net revenue for Q1 FY2026
“$950 million to $1.0 billion”
EPS for Q1 FY2026
“$0.30 to $0.33”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
NEWS RELEASE
November 12,
2025
Tetra Tech Reports
Strong Fourth Quarter and Fiscal 2025 Results
· Fourth
Quarter 2025 Results
‒ Record Net Revenue $1.16 billion
‒ Record Operating Income of $181 million, up 26% Y/Y
‒ Record EPS $0.48, up 37% Y/Y
· Fiscal
2025 Results
‒ Record
Annual Revenue $5.44 billion
‒ Record
Annual Net Revenue $4.62 billion
‒ Annual
EPS $0.93; Record Adjusted Annual EPS $1.56, up 24% Y/Y
‒ Record
Operating Cash Flow $458 million, up 28% Y/Y
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
fourth quarter and fiscal year ended September 28, 2025.
Fourth Quarter 2025 Highlights (Excluding USAID
and Dept. of State (DOS))
· Revenue increased 6% Y/Y to $1.23 billion
· Net
Revenue 1 increased 10% Y/Y to $1.07 billion
· Adjusted 1
Operating Income increased 23% Y/Y to $168 million
· Adjusted EPS increased 29% Y/Y to $0.44
Fiscal 2025 Highlights (Excluding USAID and
DOS)
· Revenue increased 9% Y/Y to $4.79 billion
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.
· Net Revenue increased 10% Y/Y to $4.06 billion
· Adjusted Operating Income increased 24% Y/Y to $563 million
· Adjusted EPS increased 31% Y/Y to $1.45
Recent Key Wins
· $500 million multiple-award contract for environmental services for
USACE Baltimore District
· $249 million multiple-award contract for planning and engineering
services for USACE Mobile District
· $240 million single-award contract for environmental assessment services
for U.S. Navy
· $240 million multiple-award contract for planning and engineering
services for USACE Norfolk District
· $38 million multiple-award contract for transmission and distribution
services for an Irish grid operator
· $23 million single-award contract for water engineering services for
Portsmouth Water in the U.K.
· $18 million single-award contract for high-voltage energy design services
for a U.S. commercial client
Quarterly Dividend and Share Repurchase Program
On November 10, 2025, Tetra Tech’s
Board of Directors approved the Company’s 46 th consecutive quarterly dividend at an amount of $0.065 per share, a 12%
increase year-over-year, payable on December 12, 2025, to stockholders of record as of December 1, 2025. In the fourth quarter,
Tetra Tech repurchased $50 million of common stock. Additionally, as of September 28, 2025, the Company had $598 million remaining
under the approved share repurchase programs.
Executive Management Comments
Dan Batrack, Chairman and CEO, commented, “We
finished fiscal 2025 with another strong quarter resulting in record net revenue, record operating income, and significant operating margin
expansion. These all-time high results were driven by the continued strong demand for our differentiated high-end consulting services
in resilient water management and digital water automation. Our strategy focused on essential water and environmental services has allowed
us to successfully navigate the recent changes in U.S. federal government priorities as we achieved record financial performance for 2025.”
Roger Argus, President, stated, “Looking forward to fiscal 2026 and beyond, we see increased demand for our high-end services to
address the development of water-reliant infrastructure, including data centers and industrial manufacturing. Our high-voltage engineering
practice has benefited from these projects with its backlog doubling in the fourth quarter. In addition, our front-end consulting services
are critical to the expansion and protection of coastal and marine infrastructure for defense clients around the world.”
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 expects net revenue 2
to range from $4.05 billion to $4.25 billion and EPS guidance to range from $1.40 to $1.55. The fiscal 2026 guidance for net revenue projects
a range of 5% to 11% year-over-year growth, excluding fiscal 2025 USAID / DOS and episodic disaster recovery activities. For
the first quarter of fiscal 2026, Tetra Tech expects net revenue to range from $950 million to $1.0 billion and EPS to range from $0.30
to $0.33.
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.
2
Webcast
Investors will have the opportunity to access
a live audio-visual webcast and supplemental financial information concerning the fourth quarter of fiscal 2025 results through a link
posted on the Company’s website at tetratech.com on November 13, 2025, at 8:00 a.m. (PT).
Reconciliation of GAAP and Non-GAAP Items
In thousands (except EPS data)
Three Months Ended
Fiscal Year Ended
Sep. 28, 2025
Sep. 29, 2024
Sep. 28, 2025
Sep. 29, 2024
Revenue
$ 1,330,100
$ 1,374,474
$ 5,442,590
$ 5,198,679
USAID / DOS
(97,771 )
(215,267 )
(650,344 )
(793,029 )
Revenue excl. USAID / DOS
$ 1,232,329
$ 1,159,207
$ 4,792,246
$ 4,405,694
Revenue
$ 1,330,100
$ 1,374,474
$ 5,442,590
$ 5,198,679
Subcontractor costs
(166,791 )
(229,989 )
(825,230 )
(876,817 )
Net revenue
$ 1,163,309
$ 1,144,485
$ 4,617,360
$ 4,321,862
USAID / DOS
(91,351 )
(174,379 )
(555,456 )
(644,672 )
Net revenue excl. USAID / DOS
$ 1,071,958
$ 970,106
$ 4,061,904
$ 3,677,190
Operating Income
$ 181,305
$ 143,343
$ 408,419
$ 500,737
Contingent consideration
(9,873 )
2,064
(12,228 )
2,541
Legal contingency
-
-
115,000
-
Goodwill impairment
-
-
92,416
-
Acq. / Integration
-
7,138
-
7,138
Adjusted Operating Income
$ 171,432
$ 152,545
$ 603,607
$ 510,416
USAID / DOS
(3,795 )
(16,063 )
(40,433 )
(55,497 )
Adjusted OI excl. USAID / DOS
$ 167,637
$ 136,482
$ 563,174
$ 454,919
EPS
$ 0.48
$ 0.35
$ 0.93
$ 1.23
Contingent consideration
(0.03 )
0.01
(0.03 )
0.01
Legal contingency
-
-
0.35
-
Goodwill impairment
-
-
0.31
-
Acq. / Integration
-
0.02
-
0.02
Adjusted EPS
$ 0.45
$ 0.38
$ 1.56
$ 1.26
USAID / DOS
(0.01 )
(0.04 )
(0.11 )
(0.15 )
Adj. EPS excl. USAID / DOS
$ 0.44
$ 0.34
$ 1.45
$ 1.11
3
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 29, 2024. 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.
4
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.
5
Tetra Tech, Inc
Balance Sheet - Unaudited
(unaudited - in thousands, except par value)
September 28,
September 29,
2025
2024
Assets
Current assets:
Cash and cash equivalents
167,459
232,689
Accounts receivable, net
1,158,928
1,051,461
Contract assets
138,232
129,678
Prepaid expenses and other current assets
83,434
91,585
Assets held-for-sale
61,305
-
Income taxes receivable
15,334
21,970
Total current assets
1,624,692
1,527,383
Property and equipment, net
66,148
73,065
Right-of-use assets, operating leases
197,618
177,950
Goodwill
2,049,874
2,046,569
Intangible assets, net
121,160
160,585
Deferred tax assets
106,238
105,529
Other non-current assets
116,444
101,595
Total assets
4,282,174
4,192,676
Liabilities and Equity
Current liabilities:
Accounts payable
204,725
197,440
Accrued compensation
346,912
332,096
Contract liabilities
420,254
351,738
Short-term lease liabilities, operating leases
69,099
63,419
Current contingent earn-out liabilities
24,826
26,934
Liabilities held-for-sale
28,461
-
Other current liabilities
288,113
247,900
Total current liabilities
1,382,390
1,219,527
Deferred tax liabilities
21,333
30,162
Long-term debt
763,363
812,634
Long-term lease liabilities, operating leases
154,695
140,095
Non-current contingent earn-out liabilities
32,135
21,812
Other non-current liabilities
148,094
138,033
Total liabilities
2,502,010
2,362,263
Equity:
Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at
September 28, 2025 and September 29, 2024
-
-
Common stock - authorized, 750,000 shares of $0.01 par value; issued and outstanding,
261,418 and 267,717 shares at September 28, 2025 and
September 29, 2024, respectively
2,614
2,677
Additional paid-in capital
-
35,900
Accumulated other comprehensive loss
(95,777 )
(78,875 )
Retained earnings
1,872,948
1,870,620
Tetra Tech stockholders' equity
1,779,785
1,830,322
Noncontrolling interests
379
91
Total stockholders' equity
1,780,164
1,830,413
Total liabilities and stockholders' equity
4,282,174
4,192,676
6
Tetra Tech, Inc
Consolidated Statements of Income
(unaudited - in thousands, except per share data)
Three Months Ended
Fiscal Year Ended
September 28,
September 29,
September 28,
September 29,
2025
2024
2025
2024
Revenue
$ 1,330,100
$ 1,374,474
$ 5,442,590
$ 5,198,679
Subcontractor costs
(166,791 )
(229,989 )
(825,230 )
(876,817 )
Other costs of revenue
(889,163 )
(899,209 )
(3,656,016 )
(3,455,422 )
Gross profit
274,146
245,276
961,344
866,440
Selling, general and administrative expenses
(102,714 )
(92,731 )
(357,737 )
(356,024 )
Contingent consideration - fair value adjustments
9,873
(2,064 )
12,228
(2,541 )
Legal contingency costs
-
-
(115,000 )
-
Impairment of goodwill
-
-
(92,416 )
-
Acquisition and integration expenses
-
(7,138 )
-
(7,138 )
Income from operations
181,305
143,343
408,419
500,737
Interest expense, net
(6,806 )
(7,898 )
(30,802 )
(37,271 )
Income before income tax expense
174,499
135,445
377,617
463,466
Income tax expense
(46,623 )
(39,265 )
(129,668 )
(130,023 )
Net income
127,876
96,180
247,949
333,443
Net income attributable to noncontrolling interests
(131 )
(26 )
(225 )
(61 )
Net income attributable to Tetra Tech
$ 127,745
$ 96,154
$ 247,724
$ 333,382
Earnings per share attributable to Tetra Tech:
Basic
$ 0.49
$ 0.36
$ 0.94
$ 1.25
Diluted
$ 0.48
$ 0.35
$ 0.93
$ 1.23
Weighted-average common shares outstanding:
Basic
262,184
267,687
264,713
267,364
Diluted
264,247
271,656
267,123
270,042
Cash dividends paid per share
0.065
0.058
0.246
0.220
7
Tetra Tech, Inc.
Consolidated Statements of Cash Flows
(unaudited
- in thousands)
Fiscal Year Ended
September 28,
September 29,
2025
2024
Cash flows from operating activities:
Net income
$ 247,949
$ 333,443
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
58,276
73,677
Amortization of stock-based awards
33,946
31,155
Deferred income taxes
(11,297 )
(19,980 )
Provision for losses on accounts receivables
3,150
-
Impairment of goodwill
92,416
-
Fair value adjustments to contingent consideration
(12,228 )
2,541
Acquisition and integration expenses
-
7,138
Other non-cash items
9,024
5,369
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures:
Accounts receivable and contract assets
(112,755 )
(40,188 )
Prepaid expenses and other assets
(30,563 )
(20,894 )
Accounts payable
2,398
18,091
Accrued compensation
18,879
6,657
Contract liabilities
73,489
4,704
Cash settled contingent earn-out liability
(11,170 )
(7,943 )
Income taxes receivable/payable
23,227
(35,530 )
Other liabilities
72,944
468
Net cash provided by operating activities
457,685
358,708
Cash flows from investing activities:
Payments for business acquisitions, net of cash acquired
(97,263 )
(93,650 )
Capital expenditures
(18,633 )
(18,135 )
Proceeds from sale of assets
919
742
Proceeds from company-owned life insurance policies
1,934
-
Proceeds from divested business, net
2,406
-
Proceeds from loan repayment from divested business
3,883
-
Net cash used in investing activities
(106,754 )
(111,043 )
Cash flows from financing activities:
Proceeds from borrowings
715,000
217,000
Repayments on long-term debt
(771,027 )
(287,000 )
Payment of debt issuance costs
(2,738 )
-
Repurchases of common stock
(249,984 )
-
Shares repurchased for tax withholdings on share-based awards
(14,047 )
(12,982 )
Payments of contingent earn-out liabilities
(15,055 )
(46,107 )
Stock options exercised
469
3,067
Dividends paid
(65,039 )
(58,828 )
Principal payments on finance leases
(7,823 )
(6,530 )
Net cash used in financing activities
(410,244 )
(191,380 )
Effect of exchange rate changes on cash and cash equivalents
(5,004 )
7,573
Net increase (decrease) in cash and cash equivalents
(64,317 )
63,858
Cash and cash equivalents at beginning of year
232,689
168,831
Cash and cash equivalents at end of year
$ 168,372
$ 232,689
Supplemental information:
Cash paid during the period for:
Interest
$ 34,956
$ 36,855
Income taxes, net of refunds received of $17.2 million and $4.2 million
$ 110,830
$ 180,707
Non-cash financing activities:
Excise taxes accrued but not paid
$ 2,010
$ -
Reconciliation of cash and cash equivalents to consolidated balance sheets:
Cash and cash equivalents
$ 167,459
$ 232,689
Cash and cash equivalents included in assets held-for-sale
913
-
Consolidated cash and cash equivalents
$ 168,372
$ 232,689
8
Tetra Tech, Inc.
Regulation G Information
September 28, 2025
Reconciliation of Revenue to Revenue, Net of Subcontractor Costs ("Net Revenue")
(in millions)
2024
2025
2022
2023
1st
Qtr
2nd
Qtr
6
Mos
3rd
Qtr
9
Mos
4th
Qtr
Total
1st
Qtr
2nd
Qtr
6
Mos
3rd
Qtr
9
Mos
4th Qtr
Total
Consolidated
Revenue
3,504.0
4,522.6
1,228.3
1,251.6
2,479.9
1,344.3
3,824.2
1,374.5
5,198.7
1,420.6
1,322.1
2,742.7
1,369.8
4,112.5
1,330.1
5,442.6
Subcontractor
Costs
(668.5 )
(771.5 )
(213.1 )
(199.0 )
(412.1 )
(234.7 )
(646.8 )
(230.0 )
(876.8 )
(223.3 )
(218.4 )
(441.7 )
(216.8 )
(658.5 )
(166.8
)
(825.3
)
Net Revenue
2,835.5
3,751.1
1,015.2
1,052.6
2,067.8
1,109.6
3,177.4
1,144.5
4,321.9
1,197.3
1,103.7
2,301.0
1,153.0
3,454.0
1,163.3
4,617.3
GSG
Segment
Revenue
1,820.9
2,158.9
575.0
597.1
1,172.2
640.6
1,812.7
670.6
2,483.4
751.8
661.4
1,413.2
673.0
2,086.2
587.7
2,673.9
Subcontractor
Costs
(484.4 )
(523.4 )
(132.3 )
(130.6 )
(263.0 )
(152.3 )
(415.3 )
(158.1 )
(573.4 )
(150.6 )
(140.5 )
(291.1 )
(152.6 )
(443.6 )
(100.5
)
(544.1
)
Net Revenue
1,336.5
1,635.5
442.7
466.5
909.2
488.3
1,397.4
512.5
1,910.0
601.2
520.9
1,122.1
520.4
1,642.6
487.2
2,129.8
CIG
Segment
Revenue
1,738.4
2,424.6
669.1
671.2
1,340.3
723.6
2,063.9
722.9
2,786.7
688.2
678.9
1,367.1
715.8
2,082.8
761.9
2,844.6
Subcontractor
Costs
(239.3 )
(309.0 )
(96.6 )
(85.1 )
(181.7 )
(102.2 )
(283.9 )
(90.9 )
(374.8 )
(92.1 )
(96.1 )
(188.2 )
(83.2 )
(271.4 )
(85.7
)
(357.1
)
Net
Revenue
1,499.1
2,115.6
572.5
586.1
1,158.6
621.4
1,780.0
632.0
2,411.9
596.1
582.8
1,178.9
632.6
1,811.4
676.2
2,487.5
Reconciliation of Net Income Attributable to Tetra Tech to Adjusted EBITDA
(in thousands)
2024
2025
2022
2023
1st
Qtr
2nd
Qtr
6
Mos
3rd
Qtr
9
Mos
4th
Qtr
Total
1st
Qtr
2nd
Qtr
6
Mos
3rd
Qtr
9
Mos
4th Qtr
Total
Net Income Attributable
to Tetra Tech
263,125
273,420
74,972
76,446
151,418
85,810
237,228
96,154
333,382
747
5,388
6,135
113,844
119,979
127,745
247,724
Income Tax Expense
85,602
127,526
26,523
31,341
57,864
32,894
90,757
39,266
130,023
14,530
25,700
40,230
42,815
83,045
46,624
129,668
Interest
Expense
11,584
46,537
9,578
9,883
19,461
9,912
29,374
7,897
37,271
7,218
8,491
15,709
8,287
23,996
6,806
30,802
Depreciation
13,859
19,980
6,951
5,637
12,588
5,713
18,301
5,421
23,722
5,402
5,248
10,650
5,410
16,059
5,115
21,175
Amortization
13,174
41,226
12,533
12,094
24,627
13,790
38,417
11,538
49,955
10,660
8,629
19,289
8,287
27,577
9,524
37,101
FX Hedge
Gain
(19,904 )
(89,402 )
-
-
-
-
-
-
-
-
-
-
-
-
-
-
EBITDA
367,440
419,287
130,557
135,401
265,958
148,119
414,077
160,276
574,353
38,557
53,456
92,013
178,643
270,656
195,814
466,470
Contingent Consideration
-
12,255
(37 )
14
(22 )
500
477
2,064
2,541
(366 )
(1,931 )
(2,297 )
(58 )
(2,355 )
(9,873
)
(12,228
)
Goodwill Impairment
-
-
-
-
-
-
-
-
-
-
92,416
92,416
-
92,416
-
92,416
Acquisition
& Integration Expenses
-
49,554
-
-
-
-
-
7,138
7,138
-
-
-
-
-
-
-
Legal Contingency Costs
-
-
-
-
-
-
-
-
-
115,000
-
115,000
-
115,000
-
115,000
COVID-19 Credits
(6,486 )
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Adjusted
EBITDA
360,954
481,096
130,520
135,415
265,936
148,619
414,554
169,478
584,032
153,191
143,941
297,132
178,585
475,717
185,941
661,658
9
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.