Revenue $1.37 billion and Net Revenue $1.15 billion
Net Revenue of $1.06 billion, up 11% Y/Y excluding USAID and DOS
Operating Income $165 million, up 28% Y/Y
EPS $0.43, up 34% Y/Y
Operating Cash Flow $350 million, up 148% 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 third quarter ended June 29, 2025.

$ million (except EPS data)	Q3 FY25				YTD FY25
$ million (except EPS data)	Reported		Excluding USAID / DOS		Adjusted¹		Excluding USAID / DOS
Revenue	$	1,370	$	1,264	$	4,112	$	3,560
Net Revenue¹	$	1,153	$	1,062	$	3,454	$	2,990
Operating Income	$	165	$	159	$	432	$	396
EPS	$	0.43	$	0.41	$	1.11	$	1.01
Backlog	$	4,277	$	4,149	$	4,277	$	4,149

Third Quarter Highlights (Excluding USAID and DOS)

Revenue increased 10% Y/Y to $1.26 billion
Net Revenue increased 11% Y/Y to $1.06 billion
Operating Income increased 37% Y/Y to $159 million
EPS increased 46% Y/Y to $0.41
Backlog $4.15 billion, up Y/Y and sequentially
Days sales outstanding: 54 days

Year to Date Highlights (Excluding USAID and DOS)

Revenue increased 10% Y/Y to $3.56 billion
Net Revenue increased 10% Y/Y to $2.99 billion
Adjusted Operating Income increased 24% Y/Y to $396 million
Adjusted EPS increased 31% Y/Y to $1.01

Recent Key Wins

$990 million multiple-award contract for engineering design for NAVFAC Pacific
$249 million multiple-award contract for energy resilience for USACE Huntsville District
$248 million multiple-award contract for planning and engineering services for USACE Europe District
$190 million multiple-award contract for planning and engineering services for USACE Honolulu District
$94 million single-award contract for emergency preparedness and response services for U.S. EPA
$45 million multiple-award contract for environmental services for U.S. Department of the Interior
$22 million single-award contract for disaster recovery services for the State of Georgia
$10 million single-award contract for water digital automation systems for Los Angeles County

Quarterly Dividend and Share Repurchase Program

On July 28, 2025, Tetra Tech's Board of Directors approved the Company's 45^th consecutive quarterly dividend at an amount of $0.065 per share, a 12% increase year-over-year, payable on August 29, 2025, to stockholders of record as of August 15, 2025. In the third quarter, Tetra Tech repurchased $25 million of common stock. Additionally, as of June 29, 2025, the Company had $648 million remaining under the approved share repurchase programs.

Chairman and CEO Comments

Dan Batrack, Chairman and CEO, commented, "Tetra Tech delivered another strong quarter with increasing revenue, record operating income, and significant operating margin expansion over the third quarter of last year. This performance is being driven by our high-end water, environmental and sustainable infrastructure services, which includes our clients' increased funding for preparing and responding to natural disasters. Although the financial results for fiscal 2025 to date have exceeded our initial expectations, we are continuing to navigate the near-term financial impacts from the changes in U.S. federal government priorities and the related secondary impacts to our end markets."

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 2025, Tetra Tech expects net revenue² to range from $4.454 billion to $4.554 billion and adjusted EPS³ guidance to range from $1.49 to $1.54. For the fourth quarter of fiscal 2025, Tetra Tech expects net revenue to range from $1.0 billion to $1.1 billion and EPS to range from $0.38 to $0.43.

Webcast

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the third quarter of fiscal 2025 results through a link posted on the Company's website at tetratech.com on July 31, 2025, at 8:00 a.m. (PT).

__________________
¹		Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. The reported adjusted operating income and EPS exclude non-cash goodwill impairment related to USAID in Q2-25 and legal contingency in Q1-25. 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.
³		The adjustments in our guidance for EPS exclude legal contingency of $0.35 in Q1-25 and goodwill impairment of $0.31 in Q2-25.

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

	Three Months Ended						Nine Months Ended
	June 29, 2025			June 30, 2024			June 29, 2025			June 30, 2024

Revenue	$	1,369,816		$	1,344,323		$	4,112,490		$	3,824,205
USAID / DOS		(106,084	)		(194,753	)		(552,572	)		(577,762	)
Revenue excl. USAID / DOS	$	1,263,732		$	1,149,570		$	3,559,918		$	3,246,443

Revenue	$	1,369,816		$	1,344,323		$	4,112,490		$	3,824,205
Subcontractor costs		(216,800	)		(234,742	)		(658,439	)		(646,828	)
Net revenue	$	1,153,016		$	1,109,581		$	3,454,051		$	3,177,377
USAID / DOS		(91,305	)		(154,503	)		(464,104	)		(470,294	)
Net revenue excl. USAID / DOS	$	1,061,711		$	955,078		$	2,989,947		$	2,707,083

Operating Income	$	164,986		$	128,630		$	227,114		$	357,395
Legal contingency		-			-			115,000			-
Goodwill impairment		-			-			92,416			-
Contingent consideration		(58	)		500			(2,355	)		477
Adjusted Operating Income	$	164,928		$	129,130		$	432,175		$	357,872
USAID / DOS		(5,492	)		(12,918	)		(36,638	)		(39,434	)
Adjusted OI excl. USAID / DOS	$	159,436		$	116,212		$	395,537		$	318,438

EPS	$	0.43		$	0.32		$	0.45		$	0.88
Legal contingency		-			-			0.35			-
Goodwill impairment		-			-			0.31			-
Adjusted EPS	$	0.43		$	0.32		$	1.11		$	0.88
USAID / DOS		(0.02	)		(0.04	)		(0.10	)		(0.11	)
Adj. EPS excl. USAID / DOS	$	0.41		$	0.28		$	1.01		$	0.77

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 30,000 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/20250730882238/en/

Jim Wu, Investor Relations

Charlie MacPherson, Media & Public Relations

(626) 470-2844

Tetra Tech Reports Strong Third Quarter 2025 Results