Tetra Tech (TTEK) investor relations material

Executive summary

• Achieved strong third quarter results with net revenue of $1.11 billion, EPS of $0.42, and significant new contract wins across commercial and government sectors, driving backlog up by over $200 million sequentially to $4.49 billion.

• Record year-to-date cash from operations reached $467 million, an all-time high for the first three quarters.

• International revenue grew 12% year-over-year, now representing 47% of business, driven by water programs in the UK, Ireland, Netherlands, and mining/digital automation in Australia.

• Recent acquisitions contributed approximately $180 million in revenue, while the Norway divestiture provided a $12.4 million non-taxable gain.

• Year-to-date performance led to increased full-year 2026 guidance.

Financial highlights

• Q3 net revenue was $1.11 billion, exceeding guidance, and EPS was $0.42, above guidance.

• Year-to-date revenue was $3.74 billion, with net income of $308.8 million and diluted EPS of $1.18.

• Operating cash flow for Q3 was $229 million and $467 million year-to-date, up over 30% year-over-year.

• Adjusted EBITDA margin improved by 80 basis points year-over-year to 14.6%.

• Backlog increased by $208 million, or 5% sequentially, to $4.49 billion.

Outlook and guidance

• Q4 net revenue guidance: $1.12–$1.17 billion; adjusted EPS: $0.45–$0.48.

• FY 2026 net revenue guidance: $4.315–$4.365 billion; adjusted EPS: $1.56–$1.59.

• FY 2026 net revenue growth expected at 8% year-over-year at midpoint, with margin expansion of 70 basis points.

• Guidance assumes $34 million intangible amortization, $23 million depreciation, $30 million interest expense, and a 27.3% effective tax rate.