Tetra Tech (TTEK) AI Stock Analysis

• Market Cap: $9.26B
• Dividend Yield: 0.74%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 39.2
• 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): 0.45
• Shares Outstanding: 260,828,250
• 10 Day Avg. Volume: 1,387,391
• 30 Day Avg. Volume: 1,750,234
• 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: 14.32
• 1Y Price Target: $48.00
• Price Target Upside: 35.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $4.17B

• Rating: 69 Neutral
• Price Target: $38.00 ▲(7.04% Upside)

The score is driven primarily by solid underlying profitability/ROE but constrained by weak recent cash-flow growth and slowing revenue growth. The latest earnings call adds support via strong backlog and constructive FY2026 guidance, while valuation (high P/E and low yield) remains the biggest offset; technicals are mildly supportive but not strong.

Positive Factors

Backlog & Contract Wins

A $4.14B backlog plus $1.2B of new awards provides multi-quarter revenue visibility, de-risks near-term revenue, and supports steady utilization and cash generation. For an engineering/services firm, large backlog smooths revenue volatility and aids long-term planning.

Strong Profitability & ROE

High net margin and a 28.5% ROE indicate efficient operations and strong capital deployment, enabling reinvestment in talent and strategic acquisitions. Durable profitability supports pricing power on complex projects and provides a cushion through industry cycles.

Diversified Govt & International Revenue

With about 45% of revenue from international markets and robust government services growth, the company benefits from geographic and client diversification. This mix reduces single-market exposure, increases programmatic contract stability, and supports steady long-term demand.

Negative Factors

Sharp Free Cash Flow Decline

A 71.8% drop in free cash flow growth and weak operating cash conversion (OCF/Net income ~0.33) raise concerns about liquidity and funding flexibility. This constrains capital allocation, may limit sustainable buybacks/dividends, and increases vulnerability to downturns.

Slowing Revenue Growth

A decline in revenue growth reduces the leverage from fixed-cost investments and raises reliance on margin expansion or acquisitions to drive earnings. Prolonged softness could make long-term EPS targets harder to achieve and increase execution risk for growth initiatives.

Digital / SaaS Headwinds

Federal moratorium and transition challenges in digital initiatives limit expansion into higher-margin recurring SaaS revenue, reducing diversification and future margin uplift. Continued execution issues could delay scalable digital revenue streams and weaken long-term growth optionality.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.78B	5.44B	5.20B	4.52B	2.84B	3.21B
Gross Profit	961.34M	961.34M	866.44M	725.03M	575.56M	498.40M
EBITDA	672.12M	466.69M	581.70M	514.62M	367.81M	303.42M
Net Income	247.72M	247.72M	333.38M	273.42M	263.13M	232.81M
Balance Sheet
Total Assets	4.28B	4.28B	4.19B	3.82B	2.62B	2.58B
Cash, Cash Equivalents and Short-Term Investments	167.46M	167.46M	232.69M	168.83M	185.09M	166.57M
Total Debt	987.16M	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	1.78B	1.78B	1.83B	1.40B	1.18B	1.23B
Cash Flow
Free Cash Flow	439.05M	439.05M	340.57M	341.56M	325.61M	295.80M
Operating Cash Flow	457.69M	457.69M	358.71M	368.46M	336.19M	304.37M
Investing Cash Flow	-106.75M	-106.75M	-111.04M	-771.20M	-55.74M	-92.99M
Financing Cash Flow	-410.24M	-410.24M	-191.38M	382.38M	-249.61M	-210.10M

Tetra Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.50
• 50DMA: Positive
• 100DMA: Positive
• 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 35.5 is above the 20-day moving average (MA) of 34.33, above the 50-day MA of 33.93, and above the 200-day MA of 34.27, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.92 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
DY	78 Outperform	$9.84B	33.45	21.90%	―	13.19%	33.58%
PRIM	75 Outperform	$6.75B	25.68	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.55B	14.42	27.77%	1.65%	9.66%	29.01%
STRL	71 Outperform	$9.14B	29.18	35.73%	―	6.20%	72.81%
TTEK	69 Neutral	$9.26B	39.17	13.72%	0.74%	4.69%	-24.37%
FLR	64 Neutral	$7.00B	2.21	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tetra Tech Corporate Events

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.

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.