Fourth Quarter 2025 Results

‒ Record Net Revenue $1.16 billion

‒ Record Operating Income of $181 million, up 26% Y/Y

‒ Record EPS $0.48, up 37% Y/Y

Fiscal 2025 Results

‒ Record Annual Revenue $5.44 billion

‒ Record Annual Net Revenue $4.62 billion

‒ Annual EPS $0.93; Record Adjusted Annual EPS $1.56, up 24% Y/Y

‒ Record Operating Cash Flow $458 million, up 28% Y/Y

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 fourth quarter and fiscal year ended September 28, 2025.

Fourth Quarter 2025 Highlights (Excluding USAID and Dept. of State (DOS))

Revenue increased 6% Y/Y to $1.23 billion
Net Revenue¹ increased 10% Y/Y to $1.07 billion
Adjusted¹ Operating Income increased 23% Y/Y to $168 million
Adjusted EPS increased 29% Y/Y to $0.44

Fiscal 2025 Highlights (Excluding USAID and DOS)

Revenue increased 9% Y/Y to $4.79 billion
Net Revenue increased 10% Y/Y to $4.06 billion
Adjusted Operating Income increased 24% Y/Y to $563 million
Adjusted EPS increased 31% Y/Y to $1.45

Recent Key Wins

$500 million multiple-award contract for environmental services for USACE Baltimore District
$249 million multiple-award contract for planning and engineering services for USACE Mobile District
$240 million single-award contract for environmental assessment services for U.S. Navy
$240 million multiple-award contract for planning and engineering services for USACE Norfolk District
$38 million multiple-award contract for transmission and distribution services for an Irish grid operator
$23 million single-award contract for water engineering services for Portsmouth Water in the U.K.
$18 million single-award contract for high-voltage energy design services for a U.S. commercial client

Quarterly Dividend and Share Repurchase Program

On November 10, 2025, Tetra Tech's Board of Directors approved the Company's 46^th consecutive quarterly dividend at an amount of $0.065 per share, a 12% increase year-over-year, payable on December 12, 2025, to stockholders of record as of December 1, 2025. In the fourth quarter, Tetra Tech repurchased $50 million of common stock. Additionally, as of September 28, 2025, the Company had $598 million remaining under the approved share repurchase programs.

Executive Management Comments

Dan Batrack, Chairman and CEO, commented, "We finished fiscal 2025 with another strong quarter resulting in record net revenue, record operating income, and significant operating margin expansion. These all-time high results were driven by the continued strong demand for our differentiated high-end consulting services in resilient water management and digital water automation. Our strategy focused on essential water and environmental services has allowed us to successfully navigate the recent changes in U.S. federal government priorities as we achieved record financial performance for 2025."

Roger Argus, President, stated, "Looking forward to fiscal 2026 and beyond, we see increased demand for our high-end services to address the development of water-reliant infrastructure, including data centers and industrial manufacturing. Our high-voltage engineering practice has benefited from these projects with its backlog doubling in the fourth quarter. In addition, our front-end consulting services are critical to the expansion and protection of coastal and marine infrastructure for defense clients around the world."

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 expects net revenue² to range from $4.05 billion to $4.25 billion and EPS guidance to range from $1.40 to $1.55. The fiscal 2026 guidance for net revenue projects a range of 5% to 11% year-over-year growth, excluding fiscal 2025 USAID / DOS and episodic disaster recovery activities. For the first quarter of fiscal 2026, Tetra Tech expects net revenue to range from $950 million to $1.0 billion and EPS to range from $0.30 to $0.33.

Webcast

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the fourth quarter of fiscal 2025 results through a link posted on the Company's website at tetratech.com on November 13, 2025, at 8:00 a.m. (PT).

__________________________
¹		Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables at the end of the release and Regulation G Information for reconciliations to the comparable GAAP metrics.
²		Reconciliation of the net revenue guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict the magnitude and timing of all the components, including subcontractor costs, required to provide such reconciliation with sufficient precision.

Reconciliation of GAAP and Non-GAAP Items In thousands (except EPS data)

	Three Months Ended						Fiscal Year Ended
	Sep. 28, 2025			Sep. 29, 2024			Sep. 28, 2025			Sep. 29, 2024

Revenue	$	1,330,100		$	1,374,474		$	5,442,590		$	5,198,679
USAID / DOS		(97,771	)		(215,267	)		(650,344	)		(793,029	)
Revenue excl. USAID / DOS	$	1,232,329		$	1,159,207		$	4,792,246		$	4,405,650

Revenue	$	1,330,100		$	1,374,474		$	5,442,590		$	5,198,679
Subcontractor costs		(166,791	)		(229,989	)		(825,230	)		(876,817	)
Net revenue	$	1,163,309		$	1,144,485		$	4,617,360		$	4,321,862
USAID / DOS		(91,351	)		(174,379	)		(555,456	)		(644,672	)
Net revenue excl. USAID / DOS	$	1,071,958		$	970,106		$	4,061,904		$	3,677,190

Operating Income	$	181,305		$	143,343		$	408,419		$	500,737
Contingent consideration		(9,873	)		2,064			(12,228	)		2,541
Legal contingency		-			-			115,000			-
Goodwill impairment		-			-			92,416			-
Acq. / Integration		-			7,138			-			7,138
Adjusted Operating Income	$	171,432		$	152,545		$	603,607		$	510,416
USAID / DOS		(3,795	)		(16,063	)		(40,433	)		(55,497	)
Adjusted OI excl. USAID / DOS	$	167,637		$	136,482		$	563,174		$	454,919

EPS	$	0.48		$	0.35		$	0.93		$	1.23
Contingent consideration		(0.03	)		0.01			(0.03	)		0.01
Legal contingency		-			-			0.35			-
Goodwill impairment		-			-			0.31			-
Acq. / Integration		-			0.02			-			0.02
Adjusted EPS	$	0.45		$	0.38		$	1.56		$	1.26
USAID / DOS		(0.01	)		(0.04	)		(0.11	)		(0.15	)
Adj. EPS excl. USAID / DOS	$	0.44		$	0.34		$	1.45		$	1.11

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 29, 2024. 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/20251112891078/en/

Jim Wu, Investor Relations

Charlie MacPherson, Media & Public Relations

(626) 470-2844

Tetra Tech Reports Strong Fourth Quarter and Fiscal 2025 Results