HighGravityData

Tetra Tech — Nov 12, 2025 release

Fiscal 2025 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-110537
Open on SEC.gov ↗
Showing in the filing
EPS
“$0.30 to $0.33”
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.