<span item_type="fundamental" item_id="c2177599da97936dec677d939457065c" counter_id="ST/US/TTEK" env="prod"></span><span item_type="announcement" item_id="643053468252901377" env="prod"></span><p>Revenue: As of FY2026 Q2, the actual value is USD 1.22 B, beating the estimate of USD 1.005 B.</p><p>EPS: As of FY2026 Q2, the actual value is USD 0.36, beating the estimate of USD 0.3233.</p><p>EBIT: As of FY2026 Q2, the actual value is USD 136.17 M.</p><p></p><h3>Second Quarter Fiscal Year 2026 Financial Highlights</h3><h4>Revenue and Profitability</h4><p>Tetra Tech, Inc. reported total revenue of $1.22 billion and net revenue of $1.05 billion for the second quarter ended March 29, 2026. Net revenue, excluding USAID/DOS and disasters, increased by 8% year-over-year. Operating income for the quarter was $132 million, while EBITDA stood at $146 million. The EBITDA margin improved by 90 basis points year-over-year. Gross profit was $214,091 thousand. Selling, general and administrative expenses were - $82,626 thousand. Interest expense, net, was - $8,838 thousand, and income tax expense was - $33,538 thousand. Net income attributable to Tetra Tech, Inc. was $93,623 thousand.</p><h4>Cash Flow and Liquidity</h4><p>Cash from operations reached $165 million in the second quarter and $688 million over the trailing twelve months, resulting in a Days Sales Outstanding (DSO) of 58 days. For the six months ended March 29, 2026, net cash provided by operating activities was $237,611 thousand. Net cash used in investing activities was - $144,881 thousand, and net cash used in financing activities was - $39,517 thousand. Cash and cash equivalents at the end of the period were $223,612 thousand. The company has returned $100 million through its stock buyback program year-to-date and deleveraged its net debt by more than 25% from the previous year.</p><h4>Backlog and Key Wins</h4><p>Backlog at the end of the second quarter was $4.28 billion, marking an 8% sequential increase. Recent key contract wins included a $400 million multiple-award contract for consulting and engineering services for USACE Huntsville District, a $100 million multiple-award contract for environmental services for the U.S. Air Force, and a $99 million single-award contract for engineering and technical consulting services for the U.S. Navy. Other significant wins included a $49 million multiple-award contract for USACE Portland District, a £18 million single-award contract for Northern Ireland Water, and a $14 million task order contract for the Defense Logistics Agency. The company also secured Netherlands Water framework contracts and a Port of Los Angeles master services agreement for environmental engineering services, alongside a United Utilities contract for its WaterNet™ SaaS solution.</p><h4>Quarterly Dividend and Share Repurchase Program</h4><p>Tetra Tech, Inc.’s Board of Directors approved a quarterly dividend of $0.072 per share, an 11% increase year-over-year, payable on June 2, 2026. In the second quarter of fiscal 2026, the company repurchased $50 million of common stock, with $498 million remaining under its share repurchase program as of March 29, 2026.</p><h4>Six-Month Results</h4><p>For the six-month period, revenue totaled $2.43 billion and net revenue was $2.09 billion, representing an 8% year-over-year increase in net revenue excluding USAID/DOS and disasters. Operating income for this period was $273 million, and cash flow from operations was $238 million.</p><h4>Segment Net Revenue (Six Months Ended March 29, 2026)</h4><ul><li><strong>Government Services Group (GSG) Segment Net Revenue:</strong> $890.6 million.</li><li><strong>Commercial/International Services Group (CIG) Segment Net Revenue:</strong> $1,196.2 million.</li></ul><h3>Business Outlook</h3><p>For fiscal year 2026, Tetra Tech, Inc. has raised its full-year guidance, expecting net revenue to range from $4.25 billion to $4.40 billion and adjusted EPS to be between $1.50 and $1.58. For the third quarter of fiscal 2026, the company anticipates net revenue to range from $1.05 billion to $1.10 billion and EPS to be between $0.38 and $0.41.</p>

Tetra Tech | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.22 B