Business
Tetra Tech Reports Strong First Quarter 2026 Results and Raises Fiscal Year 2026 Guidance
Revenue $1.21 billion; Net Revenue $1.04 billion Net Revenue up 8% excluding USAID/DOS and Q1-25 Hurricanes Operating Income $141 million; Adjusted EBITDA
About this update from Tetra Tech, Inc.
[{"type":"text","content":"\n\nRevenue $1.21 billion; Net Revenue $1.04 billion\n\n\n\nNet Revenue up 8% excluding USAID/DOS and Q1-25 Hurricanes\n\n\n\nOperating Income $141 million; Adjusted EBITDA $147 million\n\n\n\nEPS $0.40; Adjusted EPS $0.35\n\n\n\nRaising FY26 Net Revenue and EPS guidance\n\n\n\n PASADENA, Calif.--(BUSINESS WIRE)--\nTetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, today announced results for the first quarter ended December 28, 2025.\n\n\nRevenue and revenue, net of subcontractor costs (net revenue)1, in the first quarter totaled $1.21 billion and $1.04 billion, respectively. Operating income was $141 million and adjusted EBITDA1 was $147 million; adjusted EBITDA margin up 140 basis points year-over-year. EPS was $0.40 and adjusted EPS1 was $0.35. Backlog was $3.95 billion at the end of the first quarter. Cash from operations was $72 million in the first quarter and $517 million over the trailing 12 months.\n\n\nQ1 FY26 Highlights (Excluding USAID / DOS)\n\n\n\nAdjusted EBITDA margin improved 80 basis points year-over-year\n\n\n\nEPS up 17% year-over-year\n\n\n\nDSO improved to 51 days\n\n\n\nHalvik acquisition expands high-end data analytics and resilient infrastructure optimization\n\n\n\nProvidence acquisition further advances front-end program advisory services\n\n\n\n$151 billion ten-year multiple award contract for the U.S. Missile Defense Agency SHIELD program\n\n\n\n$500 million multiple-award contract for environmental services for USACE Baltimore District\n\n\n\nA$88 million single-award contract for coastal infrastructure planning services for Australia Defense\n\n\n\n$60 million multiple-award contract for waterway design services for USACE Portland District\n\n\n\nA$57 million single-award contract for naval facility resilience for Australia Defense\n\n\n\nExecutive Management Comments\n\n\nDan Batrack, Chairman and CEO, commented, “Tetra Tech began fiscal 2026 with a strong first quarter as net revenue was up 8% and EPS up 17%. Subsequent to the first quarter, we announced two strategic acquisitions, further expanding our front-end consulting business for our defense clients. As expected, our margin increased by 80 basis points, with our higher margin front-end advisory and technical consulting business growing a...