Tetra Tech Achieves Remarkable Growth in First Quarter Results

Tetra Tech Reports Strong First Quarter Results

Tetra Tech, Inc. (NASDAQ: TTEK), a prominent provider of high-end consulting and engineering services, has announced impressive results for its first quarter. The company specializes in critical sectors covering water, the environment, and sustainable infrastructure.

Highlights of the First Quarter

Tetra Tech's financial performance for the first quarter showcases a remarkable increase in revenue and earnings:

• Revenue saw a significant 16% year-over-year increase to $1.42 billion.
• Net Revenue advanced 18% year-over-year to $1.20 billion.
• Operating Income stood at $23 million, with adjusted Operating Income up by 24% year-over-year to $138 million.
• While EPS reported at $0.00, the adjusted EPS grew by 25% year-over-year to $0.35.
• The backlog surged by 15% compared to the previous year, totaling $5.44 billion.
• Tetra Tech achieved an industry-leading Days Sales Outstanding (DSO) of just 55.9 days.

Strategic Wins and Acquisitions

Furthermore, Tetra Tech secured several strategic contracts:

• One notable win includes a $498 million, five-year multiple award contract, aimed at providing architect-engineering services and civil works support for the U.S. Army Corps of Engineers in both Los Angeles and Japan districts.
• They also won a $249 million contract over five years for planning and engineering services designated for the U.S. Army Corps of Engineers Mobile District.
• A separate contract valued at $100 million focuses on research and analysis of advanced environmental technologies for the Office of Land and Emergency Management over a five-year span.
• Additionally, a $66 million single award contract for disaster and emergency response services in the Midwest highlights their expanding response capabilities.
• The firm solidified its position with a $46 million multiple award contract, emphasizing architect-engineering services for flood and emergency response.

CEO's Perspective on Performance

Chairman and CEO Dan Batrack expressed optimism regarding the company’s growth, stating, "Tetra Tech began this fiscal year with a stellar first quarter that highlights our strengths. We've achieved record high quarterly revenues and backlogs, as well as first-quarter adjusted operating income and EPS levels. Our unique offerings attract significant demand, and we added over $1 billion in new contract capacity within this timeframe."

Batrack further noted the vital contracts coming in for water supply and flood control initiatives, affirming that their robust backlog places Tetra Tech in a strong position to assist both domestic and international clients effectively.

Quarterly Dividend and Share Repurchase Initiative

Tetra Tech's Board of Directors has also taken proactive steps in shareholder returns by approving the company’s 43rd consecutive quarterly dividend. The dividend is set at $0.058 per share, which represents a 12% increase year-over-year. Additionally, on January 27, the firm repurchased $25 million of its common stock. Currently, Tetra Tech has a remaining $323 million under its $400 million share repurchase program, further demonstrating commitment to creating shareholder value.

Future Outlook and Guidance

Looking ahead, Tetra Tech has established guidance for fiscal 2025, expecting net revenues to range between $4.365 billion and $4.765 billion, alongside adjusted EPS in the range of $1.37 to $1.52. Regarding second-quarter expectations, net revenues are anticipated to be between $1.0 billion and $1.1 billion, while EPS is forecasted between $0.30 and $0.33.

Investor Communication and Resources

Investors will have access to a live audio-visual webcast on January 30, providing insights into fiscal 2025 first-quarter performance. It will be available through the company's website, making it easy for stakeholders to stay informed.

About Tetra Tech

Tetra Tech stands as a leader in consulting and engineering, focusing on water, environment, and sustainable infrastructure projects worldwide. With a workforce comprising 30,000 dedicated professionals, Tetra Tech follows a scientific approach to deliver innovative solutions to intricate challenges. Their mission encompasses addressing the entire water cycle, protecting the environment, designing resilient infrastructure, and supporting the transition towards clean energy.

Frequently Asked Questions

What is Tetra Tech known for?

Tetra Tech is recognized for delivering high-end consulting and engineering services focusing on water, environment, and sustainable infrastructure solutions.

What were Tetra Tech's first quarter revenue results?

The company reported a revenue increase of 16% year-over-year, reaching $1.42 billion.

How has Tetra Tech performed in terms of adjusted EPS?

The adjusted EPS for the first quarter increased by 25% year-over-year to $0.35.

What contracts has Tetra Tech recently secured?

Tetra Tech secured multiple significant contracts, including a $498 million award for architect-engineering services for U.S. Army Corps of Engineers.

What is Tetra Tech’s vision for the future?

Tetra Tech aims to continue expanding its services in water and environmental management while enhancing sustainable infrastructure projects globally.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

Contact Dylan Bailey privately here. Or send an email with ATTN: Dylan Bailey as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.