• Revenue $1.22 billion; Net Revenue $1.05 billion
• Operating Income $132 million; EBITDA $146 million
• EPS $0.36; Adjusted EPS $0.34
• Backlog $4.28 billion, up 8% sequentially
• Raising FY26 Net Revenue and EPS guidance

PASADENA, Calif.--(BUSINESS WIRE)--Apr. 29, 2026-- Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, today announced results for the second quarter ended March 29, 2026.

Revenue and revenue, net of subcontractor costs (net revenue)¹, in the second quarter totaled $1.22 billion and $1.05 billion, respectively. Net revenue increased 8% Y/Y excluding USAID / DOS and disasters. Operating income was $132 million and EBITDA¹ was $146 million; EBITDA margin was up 90 basis points Y/Y. EPS was $0.36 and adjusted EPS¹ was $0.34. Backlog was $4.28 billion at the end of the second quarter, up 8% sequentially. Cash from operations was $165 million in the second quarter and $688 million over the trailing twelve months, resulting in a DSO of 58 days.

Recent Key Wins

• $400 million multiple-award contract for consulting and engineering services for USACE Huntsville District

• $100 million multiple-award contract for environmental services for U.S. Air Force

• $99 million single-award contract for engineering and technical consulting services for U.S. Navy

• $49 million multiple-award contract for engineering and technical consulting services for USACE Portland District

• £18 million single-award contract for consulting services for Northern Ireland Water

• $14 million task order contractfor technology consulting services for Defense Logistics Agency

• Netherlands Water frameworkcontracts for engineering and technical consulting services

• Port of Los Angeles master services agreement for environmental engineering services

• United Utilities contract for WaterNet™ SaaS water network management solution services

Executive Management Comments

Roger Argus, Chief Executive Officer, commented, “We delivered a strong second quarter, driven by growth across our end markets in water, environment, and sustainable infrastructure. In U.S. federal, we saw increased orders from defense agencies related to new facilities and infrastructure modernization. Our high-end consulting services for providing water supplies and mitigating environmental impacts are increasingly critical to gaining community support for the establishment of data centers. Our international operations grew due to demand for front-end water and infrastructure consulting services. These positive trends led to backlog growth and improved revenue visibility for the remainder of the year, leading to our increased guidance for fiscal 2026.”

Steve Burdick, Chief Financial Officer, stated, “Tetra Tech has started off the first half of fiscal 2026 with the strongest cash flow generation on record with $238 million from operations. These exceptional cash flows have consequently provided better returns for shareholders through our stock buyback program, which has returned $100 million so far this year, and our cash dividend program. Our ability to consistently generate cash in excess of net income has allowed the Company to once again increase our quarterly cash dividends by an additional 11% over last year. Cash generated over the last twelve months of $688 million has allowed us to fund acquisitions, complete stock buybacks, and pay dividends, while deleveraging our net debt by more than 25% from this time last year.”

Quarterly Dividend and Share Repurchase Program

On April 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 June 2, 2026, to stockholders of record as of May 14, 2026. This is the 44^th consecutive double-digit increase in the Company’s quarterly dividend. In the second quarter of fiscal 2026, Tetra Tech repurchased $50 million of common stock. Additionally, as of March 29, 2026, the Company had $498 million remaining under its share repurchase program.

Six-Month Results

Revenue for the six-month period was $2.43 billion and net revenue was $2.09 billion. Net revenue increased 8% Y/Y excluding USAID / DOS and disasters. Operating income was $273 million, EPS was $0.76, and cash flow from operations was $238 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 fiscal 2026, Tetra Tech is increasing the full year guidance for net revenue² to range from $4.25 billion to $4.40 billion and adjusted EPS³ to range from $1.50 to $1.58. For the third quarter of fiscal 2026, Tetra Tech expects net revenue to range from $1.05 billion to $1.10 billion and EPS to range from $0.38 to $0.41.

Webcast

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the second quarter of fiscal 2026 results through a link posted on the Company’s website at tetratech.com on April 30, 2026, at 8:00 a.m. (PT).

About Tetra Tech

Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting 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.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on current expectations and beliefs of Tetra Tech’s management and currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscal policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; the impact of global pandemics; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in bank and capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended September 28, 2025. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.

Non-GAAP Financial Measures

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth above in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429110006/en/

Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

Source: Tetra Tech, Inc.