Tetra Tech (TTEK) Q4 2026 earnings summary

Executive summary

• FY26 net revenue grew 7% excluding USAID/DOS and episodic disaster response; funded backlog reached $4.67B, up 13% YoY, supporting continued growth and margin expansion.

• FY26 reported EPS reached a record $1.69; adjusted EPS was $1.60. Q4 adjusted EPS was $0.49, up 9% YoY.

• Broad-based demand across government and commercial markets was led by water, infrastructure, and digital automation work.

Financial highlights

• Q4 revenue was $1.337B and net revenue was $1.153B; FY26 revenue was $5.077B and net revenue was $4.348B.

• FY26 reported net revenue declined from $4.617B to $4.348B; excluding USAID/DOS and episodic disaster response, it rose 7% to $4.077B from $3.802B.

• FY26 operating income was $618.9M versus $408.4M in FY25; net income attributable to shareholders was $440.0M versus $247.7M.

• Q4 adjusted EBITDA was $194.5M; FY26 adjusted EBITDA was $660.0M.

• FY26 operating cash flow was $523M, up 14% YoY from $458M; it exceeded net income for the 21st consecutive year.

Outlook and guidance

• FY27 net revenue guidance is $4.425B–$4.625B and EPS guidance is $1.65–$1.80; guidance excludes future acquisition contributions.

• Q1 FY27 net revenue guidance is $1.04B–$1.08B and EPS guidance is $0.36–$0.38.

• FY27 market outlook: U.S. Commercial +10%, International +5%, U.S. Federal +5%, and U.S. State & Local flat.

• FY27 assumptions include $24M intangible amortization, $25M depreciation, $30M–$35M interest expense, a 27.5% effective tax rate, and 255M average diluted shares.

• Federal growth guidance is all-in; lower Department of State/Ukraine revenue is a headwind, while backlog includes amounts expected to convert during FY27.