Tetra Tech (TTEK) AI Stock Analysis

• Market Cap: $9.29B
• Dividend Yield: 0.76%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.31
• Revenue Growth: 4.69%
• EPS Growth: -24.37%
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.45
• Shares Outstanding: 262,773,400
• 10 Day Avg. Volume: 3,600,310
• 30 Day Avg. Volume: 2,590,966
• PEG Ratio: -1.45
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 20.28
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 14.64
• 1Y Price Target: $44.50
• Price Target Upside: 26.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $4.16B

• Rating: 70 Outperform
• Price Target: $41.00 ▲(16.51% Upside)

Tetra Tech's overall stock score is driven by strong earnings performance and a robust backlog, which offset concerns about valuation and technical indicators suggesting overbought conditions. The company's solid profitability and efficient equity utilization are strengths, but liquidity risks from declining free cash flow growth and high P/E ratio are notable concerns.

Positive Factors

Strong Government Services Performance

The robust growth in government services indicates a strong market position and ability to secure significant contracts, which supports long-term revenue stability and growth.

Significant Federal Contract Wins

Securing large federal contracts enhances Tetra Tech's backlog and revenue visibility, providing a stable foundation for future growth and operational planning.

Leadership Succession Planning

Effective succession planning ensures leadership continuity and strategic alignment, which is crucial for maintaining operational stability and achieving long-term business objectives.

Negative Factors

Decline in U.S. Commercial and Renewable Energy Work

A decline in renewable energy projects could impact revenue growth and market positioning in the renewable sector, a key area for future expansion.

Challenges in Australian Market

Continued challenges in the Australian market may hinder international growth prospects and diversify revenue streams, affecting overall financial performance.

Impact of Federal Government Changes on Backlog

Delays in contract execution due to government changes can affect backlog conversion, impacting revenue realization and operational efficiency.

Tetra Tech Business Overview & Revenue Model

Company Description

Tetra Tech, Inc. provides consulting and engineering services worldwide. The company operates through two segments Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments, and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, project management, and operations and maintenance services. This segment serves natural resources, energy, and utilities markets, as well as sustainable infrastructure master planning and engineering design markets. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.

How the Company Makes Money

Tetra Tech generates revenue through a variety of channels, primarily by providing professional services in engineering and consulting. The company operates on a fee-for-service model, where it charges clients for its expertise and project-based work. Key revenue streams include government contracts, where Tetra Tech partners with federal, state, and local agencies for environmental assessments, water management solutions, and infrastructure projects. Additionally, Tetra Tech benefits from long-term contracts with clients in the private sector, which contribute to stable revenue. Strategic partnerships with technology firms enhance its service offerings and can lead to joint projects, further bolstering revenue. The company also invests in innovative technologies, allowing it to expand its service capabilities and tap into emerging markets, which is crucial for sustaining growth and profitability.

Tetra Tech Financial Statement Overview

Summary

Tetra Tech demonstrates solid profitability with a strong net profit margin and efficient equity utilization. However, challenges in revenue growth and a significant decline in free cash flow growth pose potential liquidity risks.

Income Statement

Tetra Tech's income statement shows a strong net profit margin of 9.32% for the latest year, indicating effective cost management and profitability. However, the revenue growth rate has declined by 0.81%, which is a concern for future growth prospects. The gross profit margin and EBIT margin are stable, reflecting consistent operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.55, suggesting a balanced approach to leveraging. The return on equity is robust at 28.50%, indicating efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth by 71.8%, which could impact liquidity. The operating cash flow to net income ratio is 0.33, indicating that cash generation is aligned with reported earnings. The free cash flow to net income ratio is strong at 0.96, suggesting good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	4.78B	5.44B	5.44B	5.20B	4.52B	2.84B
Gross Profit	961.34M	961.34M	961.34M	866.44M	725.03M	575.56M
EBITDA	657.48M	466.69M	466.69M	581.70M	514.62M	367.81M
Net Income	247.72M	247.72M	247.72M	333.38M	273.42M	263.13M
Balance Sheet
Total Assets	4.28B	4.28B	4.28B	4.19B	3.82B	2.62B
Cash, Cash Equivalents and Short-Term Investments	167.46M	167.46M	167.46M	232.69M	168.83M	185.09M
Total Debt	987.16M	987.16M	987.16M	1.02B	1.09B	462.90M
Total Liabilities	2.50B	2.50B	2.50B	2.36B	2.42B	1.44B
Stockholders Equity	1.78B	1.78B	1.78B	1.83B	1.40B	1.18B
Cash Flow
Free Cash Flow	439.05M	439.05M	439.05M	340.57M	341.56M	325.61M
Operating Cash Flow	457.69M	457.69M	457.69M	358.71M	368.46M	336.19M
Investing Cash Flow	-106.75M	-106.75M	-106.75M	-111.04M	-771.20M	-55.74M
Financing Cash Flow	-410.24M	-410.24M	-410.24M	-191.38M	382.38M	-249.61M

Tetra Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEK, the sentiment is Positive. The current price of 35.19 is above the 20-day moving average (MA) of 33.43, above the 50-day MA of 33.89, and above the 200-day MA of 33.64, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 64.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTEK.

Tetra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTEK	70 Outperform	$9.29B	38.01	13.72%	0.76%	4.69%	-24.37%
ACM	68 Neutral	$14.97B	26.82	27.29%	0.82%	0.21%	53.80%
J	68 Neutral	$17.34B	60.95	7.67%	0.83%	-22.98%	-61.88%
KBR	68 Neutral	$5.14B	13.26	27.77%	1.62%	9.66%	29.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	58 Neutral	$6.71B	2.12	91.03%	―	-1.81%	1228.51%

Tetra Tech Corporate Events

Tetra Tech Reports Record Fiscal 2025 Results

Tetra Tech, Inc., headquartered in Pasadena, California, is a prominent provider of high-end consulting and engineering services, specializing in water, environment, and sustainable infrastructure projects globally. The company is known for its scientific approach to solving complex problems in these sectors.

Tetra Tech’s Record Earnings Amid Challenges

Tetra Tech’s Earnings Call Highlights Record Performance Amid Challenges

Tetra Tech Announces Quarterly Dividend Amid Strong Results

On November 12, 2025, Tetra Tech announced a quarterly cash dividend of $0.065 per share, payable on December 12, 2025. The company reported record financial results for the fourth quarter and fiscal year 2025, with a net revenue of $1.16 billion for the quarter and $5.44 billion for the year. Tetra Tech also secured significant contracts, including a $500 million contract for environmental services with the USACE Baltimore District. The company’s strong performance was driven by demand for its consulting services in water management and digital water automation, positioning it well for future growth.

The most recent analyst rating on (TTEK) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.

Tetra Tech Announces Key Leadership Appointments

On October 7, 2025, Tetra Tech announced key leadership appointments as part of its succession planning. Roger R. Argus was promoted to President, and Jonathan S. Weiss was appointed President of the Commercial/International Services Group. These appointments aim to sustain the company’s performance and strategic growth, reflecting Tetra Tech’s commitment to operational excellence and talent development.

The most recent analyst rating on (TTEK) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.