Tetra Tech Inc.
07/29/2026 | Press release | Distributed by Public on 07/29/2026 14:59
Tetra Tech Reports Strong Third Quarter 2026 Results (Form 8-K)
Tetra Tech Reports Strong Third Quarter 2026 Results
| · | Revenue $1.31 billion; Net Revenue $1.11 billion | |
| · | Operating Income $158 million; EBITDA $173 million | |
| · | EPS $0.42 | |
| · | Backlog $4.49 billion, up 5% sequentially | |
| · | YTD performance drives increased FY26 guidance |
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK), a global provider of high-end technical and engineering services, Leading with Science® in water, environment and sustainable infrastructure, today announced results for the third quarter ended June 28, 2026.
Revenue and revenue, net of subcontractor costs (net revenue)1, in the third quarter totaled $1.31 billion and $1.11 billion, respectively. Net revenue increased 8% Y/Y excluding USAID / DOS and episodic disaster response. Operating income was $158 million, EBITDA1 was $173 million, and EPS was $0.42. Backlog was $4.49 billion at the end of the third quarter, up 5% sequentially. Cash from operations was $229 million in the third quarter and $567 million over the trailing twelve months, resulting in a DSO of 56 days.
Recent Key Wins
| · | U.S. Army Corps of Engineers Norfolk District multiple-award contract for engineering services |
| · | U.S. Army Corps of Engineers Mobile District multiple-award contract for water infrastructure |
| · | U.S. EPA Office of Water single-award water quality and ecological monitoring contract |
| · | U.S. Federal Aviation Administration single-award airspace redesign task order contract |
| · | L.A. Department of Water & Power multiple-award environmental and digital automation contract |
| · | California Wastewater Authority digital systems integration contract |
| · | Scotland Excel engineering and technical consultancy framework contract |
| · | Chelan County Public Utility District hydropower dam modernization contract |
| · | City of Dayton Department of Water PFAS water treatment design contract |
| · | Hyperscale AI Data Center power system digital automation and cybersecurity contract |
| 1 | Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to Regulation G Information for reconciliations to the comparable GAAP metrics. |
Executive Management Comments
Roger Argus, Chief Executive Officer, commented, "We delivered a strong third quarter with growth primarily driven by U.S. federal and international end markets, both increasing at a double-digit rate. We received significant new orders during the quarter, including commercial orders for data center and sediment restoration projects, driving our backlog up by more than $200 million. The Company's performance year-to-date resulted in our increasing guidance for fiscal 2026."
Steve Burdick, Chief Financial Officer, stated, "Tetra Tech generated its strongest cash flow on record with $467 million from operations through the first three quarters of fiscal 2026. Our ability to consistently generate more cash than net income has allowed the Company to fund acquisitions, increase the stock buybacks, and pay higher dividends, while still deleveraging our net debt."
Quarterly Dividend and Share Repurchase Program
On July 27, 2026, Tetra Tech's Board of Directors approved a quarterly dividend in the amount of $0.072 per share, an 11% increase year-over-year, payable on August 27, 2026, to stockholders of record as of August 13, 2026. This is the 45th consecutive double-digit increase in the Company's quarterly dividend. In the third quarter of fiscal 2026, Tetra Tech repurchased $100 million of common stock. Additionally, as of June 28, 2026, the Company had $398 million remaining under its share repurchase program.
Nine-Month Results
Revenue for the nine-month period was $3.74 billion and net revenue was $3.20 billion. Net revenue increased 8% Y/Y excluding USAID / DOS and episodic disaster response. Operating income was $430 million, adjusted EBITDA was $466 million, and EPS was $1.18; cash flows generated from operations were $467 million.
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 the fourth quarter of fiscal 2026, Tetra Tech expects net revenue2 to range from $1.12 billion to $1.17 billion and EPS to range from $0.45 to $0.48. For fiscal 2026, Tetra Tech is increasing adjusted EPS3 guidance to range from $1.56 to $1.59. Tetra Tech is narrowing the fiscal 2026 net revenue range to $4.315 billion to $4.365 billion, which represents an increased midpoint for the year.
Webcast
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the third quarter of fiscal 2026 results through a link posted on the Company's website at tetratech.com on July 30, 2026, at 8:00 a.m. (PT).
| 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. | |
| 3 | The only adjustments in our guidance for EPS are to exclude the gain on business disposition and contingent consideration in the first nine months of fiscal 2026. |
About Tetra Tech
Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end technical 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
Tetra Tech Inc. published this content on July 29, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 29, 2026 at 20:59 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]