Tetra Tech Reports Strong Q1 Results with Increased Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Yahoo Finance
- Revenue Growth: Tetra Tech reported first-quarter revenue of $1.21 billion and net revenue of $1.04 billion, with net revenue up 8% year-over-year excluding USAID/DOS and hurricane impacts, indicating strong demand in the water and environmental consulting sectors.
- Profitability Improvement: Operating income reached $141 million, with adjusted EBITDA at $147 million, reflecting a 140 basis point year-over-year increase in adjusted EBITDA margin, showcasing the company's sustained profitability in high-end consulting services.
- Strategic Acquisitions: The acquisitions of Halvik and Providence further expand Tetra Tech's front-end consulting business for defense clients, expected to drive future revenue growth and enhance market competitiveness.
- Shareholder Returns: The board approved a quarterly dividend of $0.065 per share, a 12% increase year-over-year, while repurchasing $50 million in stock during the first quarter, demonstrating the company's ongoing commitment to shareholders and financial health.
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Analyst Views on TTEK
Wall Street analysts forecast TTEK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTEK is 48.00 USD with a low forecast of 48.00 USD and a high forecast of 48.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 37.100
Low
48.00
Averages
48.00
High
48.00
Current: 37.100
Low
48.00
Averages
48.00
High
48.00
About TTEK
Tetra Tech, Inc. is a global provider of consulting and engineering services that is focused on water, environment and sustainable infrastructure. It provides solutions to complex problems by Leading with Science to address the entire water cycle, protect and restore the environment, design sustainable and resilient infrastructure, and support the clean energy transition. It operates through two segments: Government Services Group (GSG) and Commercial/International Services Group (CIG). Its GSG segment provides consulting and engineering services primarily to United States (U.S.) government clients and international development agencies worldwide. CIG segment primarily provides consulting and engineering services to U.S. commercial clients and international clients that include both commercial and government sectors. Its CIG segment also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tetra Tech Reports 8% Revenue Growth in Q1
- Revenue Growth: Tetra Tech reported a net revenue of $987 million for Q1, reflecting an 8% year-over-year increase, demonstrating strong market performance driven particularly by international business growth.
- Profitability Improvement: Operating income rose by 12% to $131 million, with adjusted EPS at $0.34, up 17% from the previous year, indicating successful cost control and efficiency enhancements within the company.
- Strong Financial Position: The company maintains a net debt of approximately $565 million with a leverage ratio of 0.86, a 20% decrease from the previous year, providing a solid financial foundation for future strategic investments and acquisitions.
- Guidance Outlook: Tetra Tech's guidance for Q2 2026 revenue is set between $975 million and $1.025 billion, with full-year revenue expectations of $4.15 billion to $4.3 billion, reflecting management's confidence in future growth despite potential risks from government shutdowns.

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