Tetra Tech Q4 Earnings & Revenues Top Estimates, Increase Y/Y

Tetra Tech, Inc. TTEK reported fourth-quarter fiscal 2025 (ended September 2025) adjusted earnings of 45 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. The company’s adjusted earnings per share outperformed the management’s guided range of 38-43 cents. The bottom line surged 18.4% year over year, driven by the strong momentum in each of its segments.TTEK’s Revenue & Segmental PerformanceTetra Tech generated revenues of $1.33 billion, reflecting a year-over-year decrease of 3.2%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1.16 billion, up 16.2% year over year. The quarterly top line surpassed the management’s guided range of $1.04-$1.1 billion.Tetra Tech’s adjusted net revenues also exceeded the Zacks Consensus Estimate of $1.06 billion.The backlog at the end of the fiscal fourth quarter was $4.14 billion, down 23% year over year.Segmental RevenuesRevenues from U.S. Federal customers (accounting for 21% of the quarter’s revenues) were up 22% year over year, supported by a solid pipeline of projects from the Defense and U.S. Army Corps of Engineers. U.S. Commercial sales (20% of the quarter’s revenues) decreased 2% year over year, due to decreased renewable energy sales.U.S. State and Local sales (14% of the quarter’s revenues) increased 19% year over year, driven by strength in municipal water infrastructure and digital water automation. International sales (45% of the quarter’s revenues) were up 9% year over year, driven by strength in UK’s water and Canada’s clean energy programs.Tetra Tech reports revenues under the segments discussed below:Net sales of the Government Services Group segment were $396 million, up 17% year over year. Revenues from the Commercial/International Services Group segment totaled $676 million, representing a year-over-year increase of 7%.Tetra Tech, Inc. Price, Consensus and EPS Surprise Tetra Tech, Inc. price-consensus-eps-surprise-chart | Tetra Tech, Inc. QuoteTTEK's Margin ProfileIn the fiscal fourth quarter, Tetra Tech’s subcontractor costs totaled $166.8 million, reflecting a decrease of 27.5% from the year-ago quarter. Other costs of revenues (adjusted) were $889.2 million, down 1.1% from the fourth quarter of fiscal 2024. Selling, general and administrative expenses (adjusted) were $102.7 million, down 10.8% from the year-ago fiscal quarter.Adjusted operating income increased 12.4% year over year to $171.4 million while the adjusted margin increased 180 basis points to 12.9%.Tetra Tech’s Balance Sheet and Cash FlowWhile exiting the fiscal fourth quarter, Tetra Tech had cash and cash equivalents of $167.5 million compared with $232.7 million recorded at the end of the fourth quarter of fiscal 2024. Long-term debt was $763.4 million compared with $812.6 million recorded at the end of fourth-quarter fiscal 2024.In fiscal 2025, Tetra Tech generated net cash of $457.7 million from operating activities compared with $358.7 million in the prior fiscal year period. Capital expenditure was $18.6 million, up 2.7% year over year. In fiscal 2025, TTEK’s proceeds from borrowings amounted to $715 million while repayments on long-term debt totaled $771 million.Shareholder-Friendly PoliciesTetra Tech distributed dividends totaling $65 million in fiscal 2025. This compares favorably with dividends of $58.8 million distributed in the previous fiscal year period. It repurchased shares worth $250 million in the same period.TTEK’s Fiscal 2026 OutlookFor fiscal 2026 (ending September 2026), Tetra Tech anticipates net revenues to be in the range of $4.05- $4.25 billion. The projection is unfavorably comparable with net revenues of $4.62 billion reported in fiscal 2025. Adjusted earnings are predicted to be $1.40-$1.55 per share. It reported earnings of $1.56 per share in fiscal 2025.For the fiscal first quarter, management estimates net revenues to be in the range of $950 million-$1.0 billion. Adjusted earnings are projected to be in the band of 30-33 cents per share.TTEK’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesDover Corporation DOV reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(TTEK): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Ardagh Metal Packaging S.A. (AMBP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks