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Tetra (TTEK) Up 12.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Tetra Tech (TTEK - Free Report) . Shares have added about 12.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tetra due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Tetra Tech, Inc. before we dive into how investors and analysts have reacted as of late.
Tetra Tech Q3 Earnings Beat Estimates on Core Market Growth
Tetra Tech posted third-quarter fiscal 2026 adjusted earnings of 42 cents per share, down 2.3% year over year but ahead of the Zacks Consensus Estimate of 40 cents by 5%.
Net revenues were $1.11 billion, down 3.9% year over year, but topped the consensus mark of $1.08 billion by 2.8%. Backlog ended the quarter at $4.49 billion, up 4.9% sequentially, supported by new wins across water infrastructure, defense and digital automation markets.
On a GAAP basis, Tetra Tech reported revenues of $1.31 billion compared with $1.37 billion in the year-ago quarter.
Tetra Tech Benefited From CIG Growth Offset by GSG
Revenues from U.S. federal customers, accounting for 20% of the quarter’s net revenues, increased 12% year over year, excluding USAID, Department of State and episodic disaster-response activities. Growth was supported by higher activity with the Navy and U.S. Army Corps of Engineers. U.S. commercial revenues, representing 20% of the total, rose 1% as gains in power transmission offset lower renewable-energy activity.
U.S. state and local revenues, accounting for 13% of net revenues, increased 5% year over year, driven by strength in municipal water treatment, partly offset by lower flood-protection work. International revenues, representing 47% of the total, advanced 12% on growth in U.K. water and digital water automation programs.
Tetra Tech reports revenues under the segments discussed below:
The Commercial/International Services Group delivered net revenues of $634.2 million, up 9.3% year over year. Government Services Group net revenues were $474.3 million, down 17.2% from the prior-year quarter on a reported basis. Excluding USAID, Department of State and episodic disaster-response activities, GSG net revenues increased 7%, reflecting strength in water infrastructure and defense programs.
Margin Profile
The company continued to manage its costs while maintaining capacity for growth investments. In the fiscal third quarter, Tetra Tech’s subcontractor costs totaled $200 million, down 7.8% from the year-ago quarter. Other costs of revenues (adjusted) were $865.4 million, down 4% from the third quarter of fiscal 2025. Selling, general and administrative expenses (adjusted) declined 1.6% year over year to $85.2 million.
Adjusted operating income decreased 4.2% year over year to $158 million, while the adjusted operating margin remained unchanged at 14.3%.
Tetra Tech’s Balance Sheet and Cash Flow
While exiting the fiscal third quarter, Tetra Tech had cash and cash equivalents of $230.8 million compared with $167.5 million recorded at the end of fiscal 2025. Long-term debt was $801.1 million compared with $763.4 million at fiscal 2025-end.
In the first nine months of fiscal 2026, Tetra Tech generated net cash of $466.6 million from operating activities compared with $356.8 million in the prior-year period. Capital expenditures were $14 million, up 11.5% year over year. Its proceeds from borrowings totaled $245 million, while repayments on long-term debt were $210 million.
Shareholder-Friendly Policies
Tetra Tech distributed dividends totaling $52.5 million in the first nine months of fiscal 2026, up from $48 million in the prior-year period. The company also repurchased shares worth $202 million compared with $200 million in the first nine months of fiscal 2025.
Fiscal 2026 Outlook
For fiscal 2026 (ending September 2026), Tetra Tech expects net revenues in the range of $4.315-$4.365 billion. At the midpoint, the outlook implies 8% year-over-year growth after excluding USAID, Department of State and episodic disaster-response activities.
Adjusted earnings are projected in the range of $1.56-$1.59 per share. The company expects adjusted EBITDA margin to expand 70 basis points year over year.
For the fiscal fourth quarter, management forecasts net revenues of $1.12-$1.17 billion. Adjusted earnings are expected in the range of 45-48 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Tetra has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Tetra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
View the Zacks #1 Rank List
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Tetra (TTEK) Up 12.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Tetra Tech (TTEK - Free Report) . Shares have added about 12.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tetra due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Tetra Tech, Inc. before we dive into how investors and analysts have reacted as of late.
Tetra Tech Q3 Earnings Beat Estimates on Core Market Growth
Tetra Tech posted third-quarter fiscal 2026 adjusted earnings of 42 cents per share, down 2.3% year over year but ahead of the Zacks Consensus Estimate of 40 cents by 5%.
Net revenues were $1.11 billion, down 3.9% year over year, but topped the consensus mark of $1.08 billion by 2.8%. Backlog ended the quarter at $4.49 billion, up 4.9% sequentially, supported by new wins across water infrastructure, defense and digital automation markets.
On a GAAP basis, Tetra Tech reported revenues of $1.31 billion compared with $1.37 billion in the year-ago quarter.
Tetra Tech Benefited From CIG Growth Offset by GSG
Revenues from U.S. federal customers, accounting for 20% of the quarter’s net revenues, increased 12% year over year, excluding USAID, Department of State and episodic disaster-response activities. Growth was supported by higher activity with the Navy and U.S. Army Corps of Engineers. U.S. commercial revenues, representing 20% of the total, rose 1% as gains in power transmission offset lower renewable-energy activity.
U.S. state and local revenues, accounting for 13% of net revenues, increased 5% year over year, driven by strength in municipal water treatment, partly offset by lower flood-protection work. International revenues, representing 47% of the total, advanced 12% on growth in U.K. water and digital water automation programs.
Tetra Tech reports revenues under the segments discussed below:
The Commercial/International Services Group delivered net revenues of $634.2 million, up 9.3% year over year. Government Services Group net revenues were $474.3 million, down 17.2% from the prior-year quarter on a reported basis. Excluding USAID, Department of State and episodic disaster-response activities, GSG net revenues increased 7%, reflecting strength in water infrastructure and defense programs.
Margin Profile
The company continued to manage its costs while maintaining capacity for growth investments. In the fiscal third quarter, Tetra Tech’s subcontractor costs totaled $200 million, down 7.8% from the year-ago quarter. Other costs of revenues (adjusted) were $865.4 million, down 4% from the third quarter of fiscal 2025. Selling, general and administrative expenses (adjusted) declined 1.6% year over year to $85.2 million.
Adjusted operating income decreased 4.2% year over year to $158 million, while the adjusted operating margin remained unchanged at 14.3%.
Tetra Tech’s Balance Sheet and Cash Flow
While exiting the fiscal third quarter, Tetra Tech had cash and cash equivalents of $230.8 million compared with $167.5 million recorded at the end of fiscal 2025. Long-term debt was $801.1 million compared with $763.4 million at fiscal 2025-end.
In the first nine months of fiscal 2026, Tetra Tech generated net cash of $466.6 million from operating activities compared with $356.8 million in the prior-year period. Capital expenditures were $14 million, up 11.5% year over year. Its proceeds from borrowings totaled $245 million, while repayments on long-term debt were $210 million.
Shareholder-Friendly Policies
Tetra Tech distributed dividends totaling $52.5 million in the first nine months of fiscal 2026, up from $48 million in the prior-year period. The company also repurchased shares worth $202 million compared with $200 million in the first nine months of fiscal 2025.
Fiscal 2026 Outlook
For fiscal 2026 (ending September 2026), Tetra Tech expects net revenues in the range of $4.315-$4.365 billion. At the midpoint, the outlook implies 8% year-over-year growth after excluding USAID, Department of State and episodic disaster-response activities.
Adjusted earnings are projected in the range of $1.56-$1.59 per share. The company expects adjusted EBITDA margin to expand 70 basis points year over year.
For the fiscal fourth quarter, management forecasts net revenues of $1.12-$1.17 billion. Adjusted earnings are expected in the range of 45-48 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Tetra has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Tetra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.