Tetra Tech (TTEK)
NASDAQ:TTEK
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Tetra Tech
(NASDAQ:TTEK)
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Rating:74Outperform
Price Target:
$36.00
▲(13.89% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by strong financial performance (improving margins and high-quality free cash flow) and a supportive earnings call (raised guidance, backlog growth, and improved leverage). Offsetting this is weaker medium-term technical momentum (below key longer moving averages with negative MACD) and only moderate valuation support (P/E ~21 with a modest dividend yield).
Positive Factors
Strong cash generation
Tetra Tech’s trailing‑12‑month operating cash flow (~$688M) and free cash flow (~$669M), with FCF nearly matching net income, indicate durable cash conversion. This quality cash generation funds dividends, buybacks and selective M&A while reducing refinancing and liquidity risk across cycles.
Negative Factors
Revenue volatility / recent decline
Top‑line has shown uneven trends with revenue down from FY2025 to TTM. Persistent volatility complicates capacity planning and raises the risk that recent margin improvements are partly cyclical; sustained earnings strength depends on re‑accelerating stable revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Tetra Tech’s trailing‑12‑month operating cash flow (~$688M) and free cash flow (~$669M), with FCF nearly matching net income, indicate durable cash conversion. This quality cash generation funds dividends, buybacks and selective M&A while reducing refinancing and liquidity risk across cycles.
Read all positive factors
Tetra Tech (TTEK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.26B
Dividend Yield0.74%
Average Volume (3M)2.58M
Price to Earnings (P/E)20.7
Beta (1Y)0.47
Revenue Growth-6.06%
EPS Growth139.35%
CountryUS
Employees30,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.68
Shares Outstanding260,807,560
10 Day Avg. Volume2,553,453
30 Day Avg. Volume2,581,124
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)5.00
Price to Sales (P/S)1.64
P/FCF Ratio20.28
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.86
Enterprise Value/Gross Profit9.53
Enterprise Value/Ebitda13.58
Forecast
1Y Price Target
$38.33Price Target Upside21.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.51
Revenue Forecast (FY)$4.23B
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 ...
How the Company Makes Money
Tetra Tech makes money primarily by delivering professional services on client-funded projects and programs, recognizing revenue from fees for labor and specialized expertise, and (where applicable) reimbursement of allowable project expenses unde...
Tetra Tech Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
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.Positive Updates
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.
Negative Updates
U.S. Commercial Revenue Decline
U.S. commercial revenue, which represents 19% of the business, declined 2% YoY. Management cited an increase in energy and transmission services but an offset from reduced renewable energy revenue related to the wind-down of large offshore wind programs from the prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management guided Q3 net revenue of $1.05–$1.10 billion with adjusted EPS of $0.38–$0.41, and raised FY2026 guidance to net revenue of $4.25–$4.40 billion and adjusted EPS of $1.50–$1.58 (≈9% revenue growth year‑over‑year at the midpoint with ~70 bps margin expansion at the midpoint). They highlighted sequential backlog growth of 8% to $4.28 billion, increased second‑half growth targets for U.S. federal and U.S. commercial to 8–12% (together ~40% of revenues), international growth of 5–10%, and state/local growth of 5–10% (state/local ≈15% of business). FY26 modeling assumptions include $33 million of intangible amortization, $24 million of depreciation, $33 million of interest expense, a 27.5% effective tax rate, and the guidance excludes contributions from future acquisitions.Tetra Tech Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.91B | 5.44B | 5.20B | 4.52B | 2.84B | 3.21B |
| Gross Profit | 960.15M | 961.34M | 866.44M | 725.03M | 575.56M | 498.40M |
| EBITDA | 673.40M | 664.38M | 581.70M | 514.62M | 367.81M | 303.42M |
| Net Income | 440.43M | 247.72M | 333.38M | 273.42M | 263.13M | 232.81M |
Balance Sheet | ||||||
| Total Assets | 4.36B | 4.28B | 4.19B | 3.82B | 2.62B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 223.61M | 167.46M | 232.69M | 168.83M | 185.09M | 166.57M |
| Total Debt | 1.11B | 987.16M | 1.02B | 1.09B | 462.90M | 454.24M |
| Total Liabilities | 2.50B | 2.50B | 2.36B | 2.42B | 1.44B | 1.34B |
| Stockholders Equity | 1.86B | 1.78B | 1.83B | 1.40B | 1.18B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 668.65M | 439.05M | 340.57M | 341.56M | 325.61M | 295.80M |
| Operating Cash Flow | 688.06M | 457.69M | 358.71M | 368.46M | 336.19M | 304.37M |
| Investing Cash Flow | -238.87M | -106.75M | -111.04M | -771.20M | -55.74M | -92.99M |
| Financing Cash Flow | -412.32M | -410.24M | -191.38M | 382.38M | -249.61M | -210.10M |
Tetra Tech Technical Analysis
Neutral
31.61
Price Trends
33.72
Negative
34.50
Negative
34.83
Negative
Market Momentum
-0.49
Negative
48.58
Neutral
73.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEK, the sentiment is Neutral. The current price of 31.61 is above the 20-day moving average (MA) of 30.91, below the 50-day MA of 33.72, and below the 200-day MA of 34.83, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTEK.
Tetra Tech Risk Analysis
Tetra Tech disclosed 52 risk factors in its most recent earnings report. Tetra Tech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tetra Tech Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.26B | 20.67 | 32.10% | 0.74% | -6.06% | 139.35% | |
74 Outperform | $9.78B | 24.39 | 17.49% | 0.25% | 18.98% | 51.14% | |
72 Outperform | $16.34B | 26.83 | 30.17% | ― | 17.69% | 13.56% | |
69 Neutral | $4.75B | 12.59 | 28.27% | 1.65% | 1.05% | 20.32% | |
66 Neutral | $13.02B | 37.65 | 18.81% | ― | 17.95% | 21.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $7.61B | -1.07 | -1.14% | ― | -4.97% | -109.20% |
* Industrials Sector Average
TTEK
Tetra Tech
31.67
1.31
4.31%
DY
Dycom
433.60
250.64
136.99%
FLR
Fluor
53.00
18.58
53.98%
KBR
KBR
37.45
-13.37
-26.30%
PRIM
Primoris Services
180.35
113.47
169.66%
STRL
Sterling Infrastructure
532.67
366.01
219.61%
Tetra Tech Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Tetra Tech Lifts 2026 Outlook After Strong Q2 Results
Positive
Apr 29, 2026
On April 29, 2026, Tetra Tech reported strong results for its second quarter ended March 29, 2026, with revenue of $1.22 billion, net revenue of $1.05 billion, operating income of $132 million, EBITDA of $146 million, EPS of $0.36, and an 8% seque...
Business Operations and StrategyExecutive/Board Changes
Tetra Tech Adds Veteran Water Utility Leader to Board
Positive
Mar 26, 2026
On March 26, 2026, Tetra Tech announced that it had appointed Eric W. Thornburg, the recently retired Chief Executive Officer of water utility operator H20 America, to its Board of Directors, effective March 30, 2026. Thornburg will serve on the C...
Executive/Board ChangesShareholder Meetings
Tetra Tech Stockholders Approve Governance Proposals at Annual Meeting
Positive
Feb 20, 2026
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 officer...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.