Slide 1: Q2 Earnings Call
Q2 Earnings 25 Call May 8, 2025 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO Leslie Shoemaker, Executive VP Joseph Fong, High Performance Buildings Lead
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: Q2-25 Results
Q2-25 Results Net Revenue Operating Income* EPS* $1.10B $130M $0.33 $1.05B $118M $0.28 +5% +18% +11% Q2-24 Q2-25 Q2-24 Q2-25 Q2-24 Q2-25 *Refer to appendix for reconciliation summary. Double-digit Growth in Profitability 3
Slide 4: Q2-25 Performance by Segment
Q2-25 Performance by Segment Segment Net Revenue ($M) OI Margin (%) Comments $521 GSG $466 • Disaster Response up 13.8% • Digital Water up +12% • USAID + DoS down Q2-24 Q2-25 $586 $597* • U.S. Environmental up CIG 13.2% CIG +2%* • U.K. Water up • Australia Infrastructure down Q2-24 Q2-25 *Based on c
Slide 5: Q2-25 Net Revenue by Customer
Q2-25 Net Revenue by Customer Total w/o USAID + DoS % of Net Rev. % of Net Rev. Customer Comments Net Rev. Y/Y Net Rev. Y/Y • Defense / US Army Corps of Engineers up U.S. U.S. StateFederal and Local 30% +1% 20% +16% • USAID + DoS down • Disaster Response up U.S. State & Local 15% +44%* 17% +44%* • D
Slide 6: Q2-25 Backlog
Q2-25 Backlog Book-to-Bill of 1.1x* Recent Key Contract Wins • $416 million five-year multiple award contracts for environmental Total Backlog: $4.31B engineering services for USACE Honolulu • $249 million five-year multiple award contract for environmental $220M engineering services for USACE Mobil
Slide 7: Financial Overview (1H-25)
Financial Overview (1H-25) Net Revenue ($ in millions) EBITDA* ($ in millions) $2,301 $297 $2,068 $266 +11% Y/Y +12% Y/Y 1H-24 1H-25 1H-24 1H-25 Operating Income* ($ in millions) EPS* $267 $0.68 $0.56 $229 +17% Y/Y +21% Y/Y 1H-24 1H-25 1H-24 1H-25 *Refer to appendix for reconciliation summary. Earni
Slide 8: Q2-25 Financial Overview
Q2-25 Financial Overview Cash Flow from Ops – TTM ($ in millions) Days Sales Outstanding Net Debt Leverage $368 $311 1.38x 55.3 57.5* 1.36x >100% *Including Target Cash Flow to USAID + DoS: 1.0X-2.0X Net Income 67 days Q2-24 Q2-25 Q2-24 Q2-25 Q2-24 Q2-25 Strong Cash Flow from Operations and Lower De
Slide 9: Capital Allocation Debt & Liquidity
Capital Allocation • Credit Facility increased to $1.5B through 2030 Debt Facilities • Reduced interest rate by 50 bps Y/Y • Convertible Debt of $575M at fixed rate at 2.25% Debt & Organic Liquidity Growth • Technical innovation and further AI applications • Water & Environment focus in key geograph
Slide 10: U.S. Defense and Civil Works Worldwide
U.S. Defense and Civil Works Worldwide Tetra Tech FY25 Wins add >$5 Billion in New Defense Contract Capacity • $2.5 billion U.S. Air Force/DLA • FY26 Defense budget request $1 Trillion up 13% • $1.5 billion U.S. Air Force/CEC • US Army Corps of Engineers districts serve dual mission of Defense • $41
Slide 11: U.S. S&L / Municipal Water Programs Worldwide
U.S. S&L / Municipal Water Programs Worldwide Funded by State Bonds and User Rates U.S. Municipal Water Water Utilities ENR #1 Water Treatment U.K./Ireland High-end Water Treatment Wins: Recent Wins: • Cape Coral – Brackish Water Treatment Plant • £42 million for stormwater management for a U.K. wat
Slide 12: Water & Energy Differentiator for Data Centers
Water & Energy Differentiator for Data Centers Water Sourcing and Treatment Energy “All Sources Needed” Essential Secure Water Supply Essential Power & Transmission Data Center Innovation in AI-Computing & Race to Liquid Cooling Design Water Picture Transmission Picture $500B spend by 2027 12
Slide 13: SAGE Group to Join Tetra Tech Advances Digital Strategy
SAGE Group to Join Tetra Tech Advances Digital Strategy Tetra Tech Digital Systems • A leader in automation and digital transformation • Adds 800 digital automation experts • Expands offerings to new clients in water, defense and manufacturing markets • Enhances Tetra Tech’s automation expertise and
Slide 14: Digital Systems Growth Strategy
Digital Systems Growth Strategy Expanding digital transformation leadership: 2030 achieved through organic growth and TARGET: strategic acquisitions. $500M 2025 Estimate $250M 2023 $175M 2021 • Further geographic expansion in 2019 $110M customized software and platform $60M applications • Expanded a
Slide 15: Guidance
Guidance Net Revenue Adjusted EPS FY 2025 Growth* Net Revenue Adjusted EPS Q3-25 $1.10B - $1.20B $0.35 - $0.40 +6% +17% +15% FY-25 $4.400B - $4.765B $1.42 - $1.52 Assumptions FY-25 FY24 FY25 FY24 FY25 • Intangible amortization of $35M or $0.09 per share *Midpoint of the range o Q3-25: $8M, Q4-25: $8
Slide 16: Summary
Summary • Record second quarter and first-half performance • Strong demand from municipal and commercial clients for our differentiated water services • SAGE Group expands our global digital systems and automation practice • New $1.5 billion credit facility supports capital allocation strategy 16
Slide 17: Questions & Answers
[Te] TETRA TECH Questions & Answers
Slide 18: Appendix
Appendix 18
Slide 19: FY25 GAAP Reconciliation Summary
FY25 GAAP Reconciliation Summary ($ in millions, except EPS) Q2-25 Operating Income EBITDA Cash Flow EPS GAAP $40 $54 ($6) $0.02 Legal contingency - - 57 - Goodwill impairment 92 92 - 0.31 Contingent consideration (2) (2) - - Adjusted $130 $144 $51 $0.33 1H-25 Operating Income EBITDA Cash Flow EPS G
Slide 20: Historical Summary Without USAID and DoS
Historical Summary Without USAID and DoS ($ in millions) FY22 FY23 FY24 Revenue $3,047 $3,877 $4,406 Net Revenue $2,497 $3,240 $3,677 EBITDA, % of Net Revenue 13.2% 13.5% 14.3% Backlog $3,180 $3,882 $4,266 20