Tetra Tech Launched Its 2030 Vision at Its Inaugural Investor Day

Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, hosted its inaugural Investor Day at Nasdaq’s Global Headquarters in New York City on Tuesday, May 14, 2024.

Tetra Tech presented its 2030 vision for long-term growth drivers and financial targets.

Key Growth Drivers

• Leveraging its technical leadership in water and environment to address new regulatory requirements for emerging contaminants, including PFAS
• Increasing funding in research and development and new technologies to address greater complexity in watershed management, coastal protection and decarbonization
• Further use of proprietary data analytic tools and artificial intelligence augmented consulting services to increase productivity and enhance margin
• Higher recurring revenue from software subscriptions provides potential upside opportunities

2030 Financial Targets

• Total compounded annual revenue growth in the range of 10% to 15%
  • Organic revenue growth in the range of 6% to 10%
  • Acquisitive revenue growth in the range of 4% to 5%
• EBITDA¹ margin expansion of more than 50bps per year
• Annual cash flow from operations greater than net income

Executive Management Comments

Dan Batrack, Chairman and CEO, commented, “As we look to 2030, Tetra Tech’s services are better aligned today than ever before to address global priorities in the water, environment and sustainable infrastructure markets. We expect regulatory requirements, economic drivers, and government priorities to drive our future performance to an even higher level from our current record results. Our strategy builds on more than five decades of Leading with Science in high-end consulting, augmented by the benefits of adding recurring revenue from our proprietary suite of software applications.”

Steve Burdick, Chief Financial Officer, said, “The strategic plan presented at our inaugural Investor Day represents a doubling of our revenue by 2030 along with a consistent expansion in EBITDA margin that will compound to generate cash flow at an even higher level to support our capital allocation programs and shareholder returns.”

The replay of the webcast is available on the Company’s website at tetratech.com/investors.

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1Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results.