Tetra Tech (TTEK) AI Stock Analysis

• Market Cap: $9.44B
• Dividend Yield: 0.68%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 44.6
• Beta (1Y): 0.49
• Revenue Growth: 7.91%
• EPS Growth: -25.17%
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 0.43
• Shares Outstanding: 262,773,400
• 10 Day Avg. Volume: 1,914,702
• 30 Day Avg. Volume: 1,840,782
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: 27.19
• 1Y Price Target: $44.00
• Price Target Upside: 23.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $39.00 ▲(9.37% Upside)

Tetra Tech's strong financial performance and positive earnings call are the most significant factors driving the score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The company's strategic wins and dividend announcement provide additional support to the stock's outlook.

Positive Factors

Contract Awards

Strong contract awards continue with nearly $2 billion in new contract capacity awarded.

Earnings

F3Q25 results exceeded expectations due to greater contributions from a recent acquisition and disaster response work related to the California wildfires.

Revenue Growth

Core state and local growth was particularly strong with an impressive 18% increase.

Negative Factors

Backlog Decline

The backlog decreased by 18.2% year-over-year due to the termination of U.S. Agency of International Development contracts.

Backlog Reduction

Backlog was reduced due to the termination of USAID contracts and a non-cash goodwill impairment charge was recorded.

Commercial Business Challenges

The commercial business is expected to face continued headwinds from the renewable energy practice for the next several quarters.

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 primarily through its consulting and engineering services, which are billed on a project basis or through long-term contracts with government and commercial clients. Key revenue streams include environmental services, water management solutions, and energy-related consulting. The company also benefits from significant partnerships with various government agencies, private firms, and international organizations, enabling it to secure large-scale contracts and projects. Additionally, Tetra Tech capitalizes on emerging trends in sustainability and climate change adaptation, positioning itself to leverage increased demand for its expertise in these areas.

Tetra Tech Financial Statement Overview

Summary

Tetra Tech exhibits strong financial health with impressive revenue growth and efficient cash management. The company has maintained profitability, though increasing leverage could pose potential risks. The balance sheet remains solid, supporting its growth trajectory.

Income Statement

Tetra Tech has demonstrated strong revenue growth with an increase from $3.21 billion in 2021 to $5.49 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin has improved over the years, reflecting efficient cost management. However, the net profit margin has shown some decline, indicating challenges in controlling net expenses relative to revenue growth. The EBIT and EBITDA margins indicate solid operational performance despite the decline in EBIT over the period.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which may pose a risk in financial flexibility. However, Tetra Tech maintains a healthy equity ratio, showing a strong asset base relative to liabilities. The return on equity has been positive, reflecting effective use of shareholders' funds to generate profits. Overall, the balance sheet is stable but with increased leverage risk.

Cash Flow

Tetra Tech shows robust free cash flow generation with consistent growth, highlighted by substantial free cash flow in TTM 2025. The operating cash flow to net income ratio is strong, suggesting effective conversion of profits into cash. The free cash flow to net income ratio indicates efficient cash management. Despite strong cash flow generation, the increasing capital expenditures warrant monitoring for potential impacts on future cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.49B	5.20B	4.52B	3.50B	3.21B	2.99B
Gross Profit	932.47M	866.44M	725.03M	575.56M	498.40M	446.54M
EBITDA	377.60M	584.09M	481.23M	368.01M	299.23M	263.04M
Net Income	216.17M	333.38M	273.42M	263.13M	232.81M	173.86M
Balance Sheet
Total Assets	4.35B	4.19B	3.82B	2.62B	2.58B	2.38B
Cash, Cash Equivalents and Short-Term Investments	242.83M	232.69M	168.83M	185.09M	166.57M	157.51M
Total Debt	1.07B	1.02B	1.09B	462.90M	454.24M	553.26M
Total Liabilities	2.61B	2.36B	2.42B	1.44B	1.34B	1.34B
Stockholders Equity	1.74B	1.83B	1.40B	1.18B	1.23B	1.04B
Cash Flow
Free Cash Flow	442.23M	340.57M	341.56M	325.61M	295.80M	250.23M
Operating Cash Flow	462.44M	358.71M	368.46M	336.19M	304.37M	262.48M
Investing Cash Flow	-115.01M	-111.04M	-771.20M	-55.74M	-92.99M	-63.02M
Financing Cash Flow	-318.91M	-191.38M	382.38M	-249.61M	-210.10M	-163.05M

Tetra Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.66 is below the 20-day moving average (MA) of 36.76, below the 50-day MA of 36.53, and below the 200-day MA of 35.90, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 21.39 is Neutral, 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
ACM	79 Outperform	$15.93B	24.46	28.17%	0.83%	1.50%	164.17%
J	73 Outperform	$17.55B	36.68	9.29%	0.80%	-30.12%	-21.04%
KBR	72 Outperform	$6.41B	16.99	27.41%	1.26%	12.59%	98.20%
TTEK	70 Outperform	$9.44B	44.55	12.68%	0.68%	7.91%	-25.17%
Sector *	66 Neutral	CHF4.08B	23.67	14.54%	2.46%	-2.46%	-58.90%
FLR	65 Neutral	$6.81B	1.70	102.24%	―	3.62%	943.43%

Tetra Tech Corporate Events

Tetra Tech Announces Quarterly Dividend Amid Strong Q3 Results

On July 30, 2025, Tetra Tech announced a quarterly cash dividend of $0.065 per share, payable on August 29, 2025. The company reported strong financial results for the third quarter of 2025, with revenue reaching $1.37 billion and net revenue at $1.15 billion. Operating income increased by 28% year-over-year to $165 million, while earnings per share rose by 34% to $0.43. Tetra Tech’s operating cash flow saw a significant increase of 148% year-over-year, reaching $350 million. The company also secured several key contracts, including a $990 million contract with NAVFAC Pacific and a $249 million contract for energy resilience with USACE Huntsville District. Tetra Tech’s performance is driven by its high-end services in water, environment, and sustainable infrastructure, with a focus on preparing for and responding to natural disasters. Despite exceeding financial expectations for fiscal 2025, the company is navigating changes in U.S. federal government priorities.