Tetra Tech (TTEK) AI Stock Analysis

• Market Cap: $8.58B
• Dividend Yield: 0.74%
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.39
• Revenue Growth: 4.69%
• EPS Growth: -24.37%
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.35
• Shares Outstanding: 260,807,560
• 10 Day Avg. Volume: 3,553,414
• 30 Day Avg. Volume: 2,984,965
• 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: 1.09
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 9.75
• Enterprise Value/Ebitda: 13.75
• 1Y Price Target: $45.50
• Price Target Upside: 38.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): $4.23B

• Rating: 72 Outperform
• Price Target: $40.00 ▲(21.65% Upside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

The score is driven primarily by strong financial performance and a constructive earnings outlook (raised FY2026 guidance, margin expansion, improved cash flow/leverage). Offsetting factors are a mixed technical picture with limited near-term momentum and a valuation that looks relatively expensive with a low dividend yield.

Positive Factors

Strong cash generation

High FCF conversion indicates the business reliably turns accounting earnings into cash, supporting debt reduction, M&A and sustained capital returns. Over 2–6 months this cash profile provides flexibility to fund strategic investments and absorb project timing volatility without stressing liquidity.

Improving margins

Consistent operating- and gross-margin expansion signals scalable delivery and pricing power in advisory/engineering work. Sustained margin improvement enhances free cash flow and resilience to project cost swings, underpinning durable profitability as revenue scales across segments.

Favorable structural demand & diversification

Long-term secular tailwinds in water, environmental remediation, resilience and defense create persistent addressable markets. Broad geographic mix and government/commercial client base reduce single-market cyclicality and support multi-year revenue runway from recurring program and AMP cycles.

Negative Factors

Federal order timing risk

Heavy exposure to U.S. federal work makes revenue and cash timing sensitive to appropriations and shutdowns. Even with healthy fundamentals, repeated funding disruptions can push results toward guidance lows and complicate resource planning and utilization across quarters.

Flat backlog

A flat backlog limits revenue visibility and weakens near-term growth certainty despite better backlog mix. Without backlog expansion, sustaining revenue growth relies on higher win rates or pricing, increasing execution risk and making guidance more dependent on timing of large awards.

Client/geography concentration risks

Relying on a few large federal clients and weaker geographies (e.g., Australia softness) concentrates downside if budgets or regional demand falter. This structural concentration elevates the impact of any single program delay or market downturn on revenue and utilization.

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

Strong overall fundamentals supported by rapid recent revenue growth and solid operating profitability (TTM operating margin ~13%, gross margin ~20%). Balance sheet leverage is moderate (debt-to-equity ~0.55) with healthy returns, while key watch-outs are net-margin variability and some cash-flow timing/working-capital volatility despite good free-cash-flow conversion (FCF/NI ~0.96).

Income Statement

TTEK shows solid top-line momentum, with revenue up ~28% in TTM (Trailing-Twelve-Months) and multi-year expansion versus earlier periods. Profitability is steady-to-improving at the operating level, with TTM operating margin around 13% and gross margin around 20%. The key watch-out is that net margin in TTM (~5%) is not consistently higher than prior years (it was stronger in FY2024), indicating some variability below the operating line even as revenue scales.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.55 in the latest periods, improved from the higher leverage seen in FY2023. Returns on equity are healthy (mid-teens in the latest periods, and higher in prior years), supporting the view that the company is using its capital base effectively. The main risk is that total debt remains sizable (about $1.1B), so continued earnings consistency is important to keep balance-sheet flexibility strong.

Cash Flow

Cash generation is a clear strength: free cash flow is close to reported earnings (free cash flow to net income ~0.96 in TTM (Trailing-Twelve-Months)), and free cash flow dollars are meaningfully higher in the latest periods. That said, the provided operating-cash-flow coverage figure is relatively low (~0.33), which points to some potential working-capital or timing volatility despite good overall conversion to free cash flow.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	4.80B	5.44B	5.20B	4.52B	2.84B	3.21B
Gross Profit	960.24M	961.34M	866.44M	725.03M	575.56M	498.40M
EBITDA	681.23M	466.69M	581.70M	514.62M	367.81M	303.42M
Net Income	352.20M	247.72M	333.38M	273.42M	263.13M	232.81M
Balance Sheet
Total Assets	4.26B	4.28B	4.19B	3.82B	2.62B	2.58B
Cash, Cash Equivalents and Short-Term Investments	269.45M	167.46M	232.69M	168.83M	185.09M	166.57M
Total Debt	1.06B	987.16M	1.02B	1.09B	462.90M	454.24M
Total Liabilities	2.42B	2.50B	2.36B	2.42B	1.44B	1.34B
Stockholders Equity	1.85B	1.78B	1.83B	1.40B	1.18B	1.23B
Cash Flow
Free Cash Flow	497.54M	439.05M	340.57M	341.56M	325.61M	295.80M
Operating Cash Flow	516.89M	457.69M	358.71M	368.46M	336.19M	304.37M
Investing Cash Flow	-65.86M	-106.75M	-111.04M	-771.20M	-55.74M	-92.99M
Financing Cash Flow	-440.51M	-410.24M	-191.38M	382.38M	-249.61M	-210.10M

Tetra Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEK, the sentiment is Negative. The current price of 32.88 is below the 20-day moving average (MA) of 37.94, below the 50-day MA of 36.25, and below the 200-day MA of 35.38, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTEK.

Tetra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	83 Outperform	$12.41B	42.20	21.90%	―	13.19%	33.58%
PRIM	74 Outperform	$8.21B	33.02	17.79%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.13B	13.11	27.77%	1.65%	9.66%	29.01%
TTEK	72 Outperform	$8.58B	25.16	19.90%	0.74%	4.69%	-24.37%
STRL	71 Outperform	$14.12B	45.08	35.73%	―	6.20%	72.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55 Neutral	$7.78B	-42.32	-1.42%	―	-1.81%	1228.51%

Tetra Tech Corporate Events

Tetra Tech Stockholders Approve Governance Proposals at Annual Meeting

On February 19, 2026, Tetra Tech Inc. held its annual stockholders’ meeting, where investors voted to elect six directors to the board and endorsed an advisory resolution approving compensation for the company’s named executive officers, signaling broad support for the current leadership and pay practices. Stockholders also approved an amendment to the Employee Stock Purchase Plan and ratified the appointment of PricewaterhouseCoopers LLP as independent auditor for fiscal 2026, reinforcing the firm’s employee ownership structure and external financial oversight framework.

The substantial majorities in favor of all four proposals suggest continued stability in Tetra Tech’s governance arrangements and alignment between management and shareholders on strategic direction and executive incentives. These outcomes help maintain continuity in board composition and audit relationships, which may support consistent execution of the company’s long-term operational and financial plans.

The most recent analyst rating on (TTEK) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.

Tetra Tech Delivers Strong Q1 Results, Raises 2026 Guidance

On January 28, 2026, Tetra Tech reported strong results for its first quarter ended December 28, 2025, posting revenue of $1.21 billion and net revenue of $1.04 billion, with net revenue up 8% excluding USAID/DOS and prior-year hurricane work. Operating income reached $141 million, adjusted EBITDA rose to $147 million with margins improving, EPS came in at $0.40 with adjusted EPS of $0.35, and backlog stood at $3.95 billion, supported by solid cash generation of $72 million in the quarter and $517 million over the prior 12 months. The company highlighted improved margins and a 17% year-over-year EPS increase excluding USAID/DOS, closed or announced the Halvik and Providence acquisitions to expand high-end data analytics, resilient infrastructure optimization and front-end advisory for defense clients, and secured a series of sizable government and defense-related contracts, including work for the U.S. Missile Defense Agency, U.S. Army Corps of Engineers and Australia’s defense authorities. Reflecting this momentum and sustained demand from water, environmental and sustainable infrastructure markets, Tetra Tech raised its full-year fiscal 2026 guidance for net revenue to $4.15–$4.30 billion and adjusted EPS to $1.46–$1.56, while also announcing on January 26, 2026 a 12% year-over-year increase in its quarterly dividend to $0.065 per share and continuing to return capital through $50 million of share repurchases in the first quarter, leaving $548 million authorized for future buybacks.

The most recent analyst rating on (TTEK) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.

Tetra Tech Announces CEO Succession and Leadership Transition

On January 6, 2026, Tetra Tech announced a planned leadership transition in which long-time executive Roger Argus will be appointed chief executive officer, effective February 19, 2026, concurrent with the company’s annual shareholder meeting. Argus, who has been with Tetra Tech for over 30 years and most recently served as president, is credited with helping shape the firm’s strategy, drive operational excellence, lead major water, infrastructure, environmental, and emergency management programs, and integrate key acquisitions that expanded its global footprint and technical capabilities. Current chairman and CEO Dan Batrack, who has led the company’s transformation over more than two decades from a primarily U.S.-based consulting engineer to a $5 billion global enterprise, will transition to executive chairman for at least two years, maintaining involvement in long-term strategy and ensuring continuity. The board framed the move as the culmination of a long-term succession plan designed to preserve Tetra Tech’s culture and performance while positioning the company for continued global growth and long-term value creation for stakeholders.

The most recent analyst rating on (TTEK) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.

Tetra Tech Appoints Susan Hardwick to Board of Directors

On December 22, 2025, Tetra Tech announced that M. Susan Hardwick, the recently retired CEO and former CFO of American Water, will join its Board of Directors effective December 29, 2025, serving on the Audit Committee and the Nominating and Corporate Governance Committee. Her extensive experience in water and energy utilities, financial strategy, capital planning, and large-scale utility operations is expected to strengthen Tetra Tech’s governance and support its strategic push to expand high-end water consulting services globally, aligning board expertise more closely with the company’s core water-market clientele and long-term growth focus.

The most recent analyst rating on (TTEK) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Tetra Tech stock, see the TTEK Stock Forecast page.