Record Financial Performance
Tetra Tech reported record results for the fourth quarter and fiscal year 2025 with record highs across the board for net revenue, operating income, and earnings per share. Net revenue reached $1.07 billion, up 10% from the prior year, with operating income up 23% to $168 million and earnings per share up 29% to $0.44.
Strong Segment Performance
The Government Services Group (GSG) had an excellent year, with fourth quarter revenue growing 17% to $396 million. The Commercial/International Group also delivered strong results with fourth quarter revenue up 7% to $676 million.
International Growth
International work was about 45% of the overall business, growing at a 9% rate, driven by the UK's water business and Canadian clean energy practice. The U.S. federal work was up 22% from the prior year.
Backlog and New Contracts
Tetra Tech ended the quarter with $4.14 billion in backlog and was awarded over $1.2 billion in new contracts with U.S. defense agencies. The high-voltage transmission practice's backlog grew at a 120% rate year-on-year in the U.S.
Cash Flow and Capital Allocation
Cash from operations approached $0.5 billion, a 28% improvement over fiscal 2024. Tetra Tech increased its dividend by 12% and bought back $250 million in stock, with $598 million available in the stock buyback plan.