Tetra Tech Stock Earnings Reports

Tetra Tech reported a strong start to fiscal 2026 with Q1 net revenue of $987M (up 8% YoY), operating income of $131M (up 12%), and GAAP EPS $0.40 (adjusted EPS $0.35). Both segments performed well: Government Services (Q1 revenue $382M, margins 18%) and Commercial & International (Q1 revenue $605M, margins 13%). International revenue was 48% of total and grew 13%, with particularly strong performance in the U.K. & Ireland, solid contributions from Canada, and recovering activity in Australia. Federal work grew ~7% driven by U.S. Army Corps of Engineers flood/coastal and inland waterways work despite a lengthy U.S. government shutdown. Backlog remained stable with higher quality (more front-end work and higher embedded margins). Cash flow and balance sheet improved: Q1 operating cash flow $72M, DSO ~51 days (best in >10 years), net debt ~$565M with leverage ~0.86x. Capital allocation: continued buybacks ($50M repurchased in FY26 so far; $548M remaining authorization), 47th consecutive quarterly dividend with a 12% YoY increase, and active M&A (Halvik and Providence announced; non-core Norway divestiture). Management raised FY26 guidance: revenue $4.15B–$4.30B and adjusted EPS $1.46–$1.56 (midpoint ≈ +9% revenue, +80 bps EBITDA margin expansion). Strategic priorities emphasize water, environmental, coastal resiliency and defense-related opportunities, with capacity and willingness to execute larger transformational M&A using available debt capacity.