Tetra Tech
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Tetra Tech (TTEK) investor relations material

Tetra Tech Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary29 Jan, 2026

Executive summary

  • Achieved strong start to FY2026 with 8% net revenue growth and 12% operating income growth year-over-year, driven by demand for water, environmental, and defense services, and supported by strategic acquisitions in analytics and advisory.

  • Raised FY2026 guidance for net revenue and EPS, positioning for 2030 goals and reflecting robust backlog and major contract wins.

  • Backlog reached $5.44 billion ($4.31 billion excluding USAID/DOS), with international revenue comprising up to 48% and growing 13%.

  • Board approved a 12% increase in quarterly dividend and completed $50 million in share repurchases in Q1.

  • CEO transition announced, with Roger Argus to become CEO after the annual meeting.

Financial highlights

  • Q1 FY2026 net revenue was $987 million (excluding USAID/DOS), up 8% year-over-year; as reported, revenue was $1.21 billion.

  • Operating income reached $141 million, up 12% year-over-year; adjusted EBITDA margin increased 140 basis points to 14.2%.

  • Adjusted EPS was $0.34, GAAP EPS was $0.40, up 17% from Q1 last year.

  • Cash flow from operations was $72 million in Q1, with trailing 12-month cash flow over $500 million.

  • DSO improved to 51 days, the lowest in over 10 years.

Outlook and guidance

  • FY2026 net revenue guidance: $4.15–$4.3 billion; adjusted EPS: $1.46–$1.56.

  • Q2 FY2026 net revenue guidance: $975 million–$1.025 billion; adjusted EPS: $0.30–$0.33.

  • Guidance includes Providence acquisition but excludes future acquisitions; no significant USAID/DOS revenue expected for the remainder of FY2026.

  • International, U.S. commercial, and U.S. federal sectors forecasted to grow 5%-10%; U.S. state and local expected to grow 10%-15%.

  • U.S. commercial revenue (excluding renewable energy) anticipated to grow in the second half of FY2026.

Explain Q1 $115M legal contingency impact
What drives double-digit front-end consulting growth
Future plans for $548M share repurchase program
M&A strategy: What type of deals justify 4x leverage?
International growth drivers by region
Key assumptions for FY26 guidance range
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Frequently asked questions

Tetra Tech Inc provides consulting and engineering services in areas such as water, environment, infrastructure, resource management, and energy. The company offers project management, technical services, and sustainable solutions to government and commercial clients. The company is headquartered in Pasadena, California, and its shares are listed on the NASDAQ.

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