Tetra Tech Reports Record Second Quarter Results and Raises Full Fiscal Year Guidance

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 its second quarter ended March 31, 2024.

Second Quarter Highlights

• Net Revenue¹ increased 9% to $1.05 billion
• EBITDA¹ increased 28% to $135 million
• EPS increased 34% Y/Y to $1.42
• Largest second quarter backlog ever of $4.74 billion, up 11% Y/Y
• Cashflow from operations of $103 million, up 17% Y/Y
• Industry-leading DSO of 55 days

Recent Key Wins

• $464 million multiple-award U.S. Army Environmental Remediation Services contract, investigating and remediating harmful contaminants, including PFAS at Army installations throughout the U.S.
• $375 million multiple-award NASA Environmental contract, providing technical consultation and assessing innovative approaches to restore contaminated sites and improve climate resiliency
• $150 million multiple-award U.S. Army Corps of Engineers contract, providing architect-engineering services to support sustainable infrastructure
• $55 million single-award Environmental Services contract, closing and dewatering ponds and remediating combusted coal residuals
• $22 million single-award U.K. Government Project Management and Design Services contract, designing building systems to reduce emissions and increase energy efficiency

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¹Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables in the Regulation G Information for reconciliations to the comparable GAAP metrics.

Executive Management Comments

Dan Batrack, Chairman and CEO, commented, “Tetra Tech continued our strong performance through the second quarter, including the expansion of our margins in GSG by 170 basis points and CIG by 320 basis points over the second quarter of last year. With increased profitability and record second quarter backlog, we are raising our full year guidance for net revenue and earnings, which represents forecasted EPS growth of 22% for fiscal 2024. We are looking forward to sharing our long-term strategy and 2030 vision for further revenue growth and margin expansion at our upcoming inaugural Investor Day on May 14th.”