Tetra Tech, Inc. · NASDAQ:TTEK
Tetra Tech — Q1 2025 Earnings Presentation
15 slides from Tetra Tech's earnings presentation, Jan 30, 2025
Slide 1: Q1 Earnings Call
Q1 Earnings 25 Call January 30, 2025 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO Leslie Shoemaker, Chief Innovation Officer
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future opera
Slide 3: Q1-25 Results
Q1-25 Results Net Revenue Operating Income* EPS* Backlog $1.20B $138M $0.35 $5.44B $1.02B $4.74B $111M $0.28 +18% +24% +25% +15% Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 *Refer to appendix for reconciliation summary. All-time High Revenue and Backlog 3
Slide 4: Performance by Segment (Q1-25)
Performance by Segment (Q1-25) Segment Net Revenue ($M) OI Margin (%) Comments $601 GSG $443 • Disaster Response up 13.9% • USAID / Ukraine up +36% • Federal IT up Q1-24 Q1-25 $596 $572 • UK Water Consulting up CIG 13.0% CIG +4% • High Performance Buildings up • Australia Infrastructure down Q1-24 Q
Slide 5: Q1-25 Net Revenue by Customer
Q1-25 Net Revenue by Customer % of Net Rev. Customer Comments Net Rev. Y/Y • USAID / Ukraine up U.S.U.S. Federal State and Local 34% +32%* • Federal IT Up • Disaster Response up U.S. State & Local 14% +47%** • Water Infrastructure up • Environmental Services up U.S. Commercial International 17% +7%
Slide 6: Q1-25 Backlog
Q1-25 Backlog Recent Key Contract Wins • $498 million five-year multiple award contracts to deliver $5.44B architect-engineering services and civil works support for USACE in Los Angeles and Japan Districts + 15% $4.74B Y/Y • $249 million five-year multiple award contract for environmental engineeri
Slide 7: Q1-25 Financial Overview
Q1-25 Financial Overview Cash Flow from Ops – TTM ($ in millions) Days Sales Outstanding Net Debt Leverage $363 1.51x Target $353 55.3 55.9 >100% Industry 1.0X-2.0X 1.33x Cash Flow to leading DSO Net Income Adj. Leverage 1.05x Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 Strong Cash Flow from Operations and
Slide 8: Capital Allocation
Capital Allocation • $725M existing liquidity available • Balanced debt: fixed (2/3) & variable (1/3) Debt Facilities • Q1-25 Interest rate of 3.44%, lower by 57 bps Y/Y • Invest in organic & acquisitive strategic priorities Cash Flow • Strong strategically aligned pipeline $363M Acquisitions • Tech
Slide 9: Tetra Tech Water Markets
Tetra Tech Water Markets Tetra Tech Differentiators Atmosphere Technology & • 60 years of expertise and Innovation thought-leadership Land Precipitation • First-of-their-kind drinking water programs Ocean • Largest USACE surge barrier Precipitation Watersheds project • Wastewater optimization softwa
Slide 10: Disaster Response and Recovery
Disaster Response and Recovery MARKET SIZE PER EVENT $10M – $100M $100M – $200M $1B – $10B Damage Assessment Resilient Engineering Monitoring & Design and Build-out Environmental Response & Consulting 2 – 10 years 1 – 2 years 1 month – 1 year 2024: Helene / Milton 2022/21: Ian / Ida 2017: Harvey / M
Slide 11: Guidance
Guidance Net Revenue Adjusted EPS FY 2025 Growth* Net Revenue EPS Q2-25 $1.0B - $1.1B $0.30-$0.33 +6% +14% +15% FY-25 $4.365B - $4.765B $1.37-$1.52 Assumptions FY-25 FY24 FY25 FY24 FY25 • Intangible amortization of $35M or $0.09 per share *Midpoint of the range; FY25 is adjusted guidance o Q2-25: $9
Slide 12: Summary
Summary • All-time high quarterly performance • Our high-end water and environmental services are in demand • Expanding digital automation & technology solutions • Record backlog $5.44 billion 12
Slide 13: Questions & Answers
[Te] TETRA TECH Questions & Answers
Slide 14: Appendix
Appendix 14
Slide 15: Q1-25 GAAP Reconciliation Summary
Q1-25 GAAP Reconciliation Summary ($ in millions, except EPS) Q1-25 Operating Income EBITDA EPS GAAP $23 $39 $0.00 Legal contingency 115 115 0.35 Adjusted $138 $154 $0.35 Q1-24 Operating Income EBITDA EPS GAAP $111 $131 $0.28 No Adjustments Note: Totals may not add due to rounding. 15