Tetra Tech (TTEK)
NASDAQ:TTEK
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Tetra Tech
(NASDAQ:TTEK)
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Rating:72Outperform
Price Target:
$34.00
▲(12.62% Upside)
Action:ReiteratedDate:03/27/26
The score is primarily driven by strong financial performance and a constructive earnings outlook with raised guidance and improving margins/cash flow. This is partially offset by weak technicals (price below major moving averages and negative MACD) and only moderate valuation support (P/E ~21 and low dividend yield).
Positive Factors
Free cash flow conversion
Tetra Tech converts nearly all reported earnings into free cash flow (FCF/NI ~0.96 TTM). This durable cash generation supports dividends, buybacks, M&A and working capital needs, reducing reliance on external financing and enabling reinvestment in higher‑margin services over multiple years.
Negative Factors
Federal client dependence
Significant exposure to U.S. federal spending creates durable timing risk: shutdowns or appropriations delays materially slow order flow and revenue recognition. That dependence can compress visibility, push results toward guidance lows, and complicate resource planning for multi‑quarter periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow conversion
Tetra Tech converts nearly all reported earnings into free cash flow (FCF/NI ~0.96 TTM). This durable cash generation supports dividends, buybacks, M&A and working capital needs, reducing reliance on external financing and enabling reinvestment in higher‑margin services over multiple years.
Read all positive factors
Tetra Tech (TTEK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.87B
Dividend Yield0.74%
Average Volume (3M)2.51M
Price to Earnings (P/E)21.1
Beta (1Y)0.47
Revenue Growth4.69%
EPS Growth-24.37%
CountryUS
Employees30,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.35
Shares Outstanding260,807,560
10 Day Avg. Volume2,028,842
30 Day Avg. Volume2,514,095
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 Cap1.10
Enterprise Value/Revenue1.81
Enterprise Value/Gross Profit9.02
Enterprise Value/Ebitda12.72
Forecast
1Y Price Target
$44.67Price Target Upside47.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.52
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:Jan 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive performance: solid revenue growth (+8%), margin expansion (+140 bps), stronger cash flow and a healthier balance sheet (net debt/EBITDA ~0.86x), along with raised full-year guidance and continued shareholder returns (dividend +12%, buybacks). Key challenges — a temporary slowdown in U.S. federal orders due to a government shutdown, a flat backlog, a modest decline in U.S. commercial renewables work, and ongoing Australia market softness — are meaningful but appear manageable relative to the company’s financial strength, improved backlog quality, and growth opportunities from international water programs and defense-related M&A.Positive Updates
Solid top-line and EPS growth
Net revenue of $987M in Q1, up 8% year-over-year; operating income of $131M, up 12% YoY; reported GAAP EPS $0.40 and adjusted EPS ~ $0.34–$0.35, up ~17% YoY.
Negative Updates
US federal shutdown and order slowdowns
Longest US government shutdown during the period caused a slowdown in U.S. federal client orders and a slower restart after reopening; management noted federal activity was muted for much of the quarter and a potential future shutdown could push results toward the low end of guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid top-line and EPS growth
Net revenue of $987M in Q1, up 8% year-over-year; operating income of $131M, up 12% YoY; reported GAAP EPS $0.40 and adjusted EPS ~ $0.34–$0.35, up ~17% YoY.
Read all positive updates
Company Guidance
Management updated Q2 guidance to net revenue of $975M–$1,025M with adjusted EPS of $0.30–$0.33, and raised FY2026 guidance to net revenue of $4.15B–$4.30B with adjusted EPS of $1.46–$1.56; the full‑year midpoint implies roughly 9% revenue growth and an ~80 basis‑point expansion in EBITDA margins. Assumptions include $34M of intangible amortization, $25M of depreciation, $34M of interest expense, a 27.5% tax rate and ~263 million average diluted shares outstanding; guidance includes the Providence acquisition (expected to close toward end of Q2), excludes contributions from future acquisitions, and reflects the current disposition (net of any gain) disclosed in the reconciliations.Tetra Tech Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| 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
Negative
30.19
Price Trends
34.43
Negative
34.70
Negative
34.94
Negative
Market Momentum
-0.96
Negative
36.88
Neutral
44.84
Neutral
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 30.19 is below the 20-day moving average (MA) of 30.90, below the 50-day MA of 34.43, and below the 200-day MA of 34.94, indicating a bearish trend. The MACD of -0.96 indicates Negative momentum. The RSI at 36.88 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $8.74B | 24.39 | 17.49% | 0.25% | 21.45% | 67.31% | |
72 Outperform | $7.87B | 21.14 | 20.29% | 0.74% | 4.69% | -24.37% | |
72 Outperform | $13.37B | 32.23 | 30.17% | ― | 6.20% | 72.81% | |
69 Neutral | $4.64B | 12.59 | 28.27% | 1.65% | 9.66% | 29.01% | |
66 Neutral | $11.78B | 37.65 | 18.81% | ― | 13.19% | 33.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.07B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
TTEK
Tetra Tech
30.19
-0.01
-0.04%
DY
Dycom
393.00
240.84
158.28%
FLR
Fluor
49.21
15.60
46.41%
KBR
KBR
36.67
-13.17
-26.42%
PRIM
Primoris Services
161.14
103.46
179.39%
STRL
Sterling Infrastructure
446.36
311.13
230.07%
Tetra Tech Corporate Events
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...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Tetra Tech Delivers Strong Q1 Results, Raises 2026 Guidance
Positive
Jan 28, 2026
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. Ope...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Tetra Tech Announces CEO Succession and Leadership Transition
Positive
Jan 6, 2026
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 meetin...
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.