Record-Breaking Operating Income and EPS
Tetra Tech achieved all-time highs for operating income and earnings per share (EPS), not just for the third quarter but for any quarter in the company's history. Operating income was $159 million, an increase of 37% from the prior year, and EPS was $0.41, up 46% from the prior year.
Strong Government Services Segment Performance
The Government Services Group (GSG) segment increased its net revenue by 29% year-over-year to $429 million, with a margin of 19.9%, up 230 basis points from the prior year.
Significant Federal Contract Wins
Nearly $2 billion in new contract capacity was added with the U.S. federal government, including contracts with the Army Corps of Engineers and the Environmental Protection Agency.
Improved Cash Flow and Debt Leverage
Cash flows from operations were $462 million, a 23% improvement over the previous 12 months, and net debt on EBITDA was at a leverage of 0.96x, lower than the previous year.
Positive Outlook for Digital Automation
Tetra Tech's digital automation sector is seeing some of the fastest growth, catalyzed by the adoption of AI, with a target to reach $500 million in annual revenues by 2030.