Tetra Tech (TTEK)
NASDAQ:TTEK
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Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.4Last Year’s EPS
0.43Same Quarter Last Year
Moderate Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly positive operational and financial picture: strong revenue growth (+8% YoY), record Q2 EBITDA, improved margins (Q2 margin +90 bps; YTD EBITDA margin +110 bps), significant backlog expansion (+8% sequential to $4.28B) and record cash generation with a stronger balance sheet (net debt/EBITDA ~1.0x). Management raised FY26 guidance and highlighted disciplined capital allocation (dividend increase, buybacks, selective M&A). Headwinds include a modest decline in U.S. commercial revenue, shorter-term backlog dynamics after USAID reductions, reduced near-term state & local guidance, and some seasonality-driven softness in CIG. On balance, the positive results, improved cash flows, margin expansion, and proactive capital allocation outweigh the transient and market-driven lowlights.Company Guidance
Top-Line Growth and Record Q2 Profitability
Net revenue increased 8% year-over-year in Q2. Reported EBITDA was $146 million with margin expansion of 90 basis points versus prior year (an all-time record for a second quarter). Reported EPS was $0.36 (including $0.02 from a Norway divestiture) and adjusted EPS was $0.34, which exceeded the high end of guidance and was the highest-ever Q2 adjusted EPS.
Backlog Expansion and High-Quality Bookings
Backlog rose 8% sequentially to $4.28 billion. Management notes a conservative backlog definition (only contracted, funded, authorized) and added more than $650 million in U.S. defense contract capacity in Q2, plus notable awards including a £18 million contract in Northern Ireland, a Netherlands framework, a Port of Los Angeles master service agreement, and expanded Waternet work with United Utilities.
Strong Segment Performance
Government Services Group (GSG) revenue grew 5% YoY with margin of 16.3% (+220 bps YoY). Commercial International Group (CIG) revenue grew 10% YoY with margin of 12.2%.
Geographic Revenue Drivers
U.S. federal revenue increased 11% YoY and represented 20% of business; U.S. state & local grew 9% YoY (14% of business); international revenue was up 12% YoY driven by water work in U.K./Ireland/Netherlands, infrastructure in Canada, and digital automation in Australia.
Improved Margins and YTD Profitability Trends
Adjusted EBITDA on net revenue year-to-date increased 110 basis points to 14% for FY26 YTD, supporting management’s goal of ~50 bps annual EBITDA margin improvement going forward.
Record Cash Generation and Strong Balance Sheet
Operating cash flows for the first half were a record $238 million, TTM operating cash flow was $688 million, net debt was ~$657 million, and net debt/EBITDA leverage was ~1.0x (down from 1.36x a year ago). Return on capital employed exceeded 20%.
Capital Allocation: Dividends, Buybacks, M&A
Board approved an 11% YoY increase in the quarterly dividend (44th consecutive quarterly dividend with double-digit increases). $100 million of share repurchases completed in 2026 with $498 million remaining authorization. Completed acquisitions in the quarter (Halvik in the U.S., Providence in Australia) to strengthen defense and international capabilities.
Raised Guidance for FY26
Management raised FY26 net revenue guidance to $4.25–4.40 billion and adjusted EPS guidance to $1.50–1.58. At the midpoint, FY26 net revenue growth implies ~9% YoY with ~70 bps of margin expansion year-over-year at the midpoint.
Contract Mix Shift Toward Fixed-Price Work
Fixed-price exposure has increased materially (roughly +900 bps YoY to ~48% YTD from ~37% in 2023). In GSG fixed-price exposure rose from ~29% to ~42% YoY, contributing to higher margins and lower working capital needs.
Working Capital Improvements
Days sales outstanding (DSO) improved to 58 days (9 days better than Q2 last year). Management believes DSO can be taken closer to ~50 days with continued mix shift to fixed-price work.
TTEK Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TTEK Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $31.87 | $32.32 | +1.41% |
Jan 28, 2026 | $37.04 | $38.16 | +3.02% |
Nov 12, 2025 | $32.34 | $37.28 | +15.28% |
Jul 30, 2025 | $36.94 | $36.55 | -1.08% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Tetra Tech (TTEK) report earnings?
Tetra Tech (TTEK) is schdueled to report earning on Aug 05, 2026, After Close (Confirmed).
What is Tetra Tech (TTEK) earnings time?
Tetra Tech (TTEK) earnings time is at Aug 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TTEK EPS forecast?
TTEK EPS forecast for the fiscal quarter 2026 (Q3) is 0.4.