Tetra Tech beats Q3 expectations with 34% EPS growth

Published 30/07/2025, 21:16
 Tetra Tech beats Q3 expectations with 34% EPS growth

PASADENA - Tetra Tech , Inc. (NASDAQ:TTEK), a provider of consulting and engineering services, reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.43, surpassing the consensus estimate of $0.38 by 13%.

The company reported revenue of $1.37 billion for the quarter ended June 29, 2025, significantly above the analyst consensus of $1.15 billion. Net revenue reached $1.15 billion, with $1.06 billion excluding USAID and DOS contracts, representing an 11% YoY increase. Operating income grew 28% YoY to $165 million, while earnings per share rose 34% YoY to $0.43.

"Tetra Tech delivered another strong quarter with increasing revenue, record operating income, and significant operating margin expansion over the third quarter of last year," said Dan Batrack, Chairman and CEO. "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."

The company’s backlog stood at $4.15 billion excluding USAID and DOS contracts, showing both sequential and YoY growth. Operating cash flow surged 148% YoY to $350 million.

For the fourth quarter of fiscal 2025, Tetra Tech expects net revenue between $1.0 billion and $1.1 billion, slightly below the consensus estimate of $1.125 billion. The company forecasts EPS of $0.38 to $0.43, compared to the analyst consensus of $0.41.

For the full fiscal year 2025, Tetra Tech projects net revenue between $4.454 billion and $4.554 billion, with adjusted EPS guidance ranging from $1.49 to $1.54.

The company’s board approved a quarterly dividend of $0.065 per share, representing a 12% increase YoY. During the third quarter, Tetra Tech repurchased $25 million of common stock and had $648 million remaining under approved share repurchase programs as of June 29, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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