Tetra Tech, Inc. · NASDAQ:TTEK
Tetra Tech — Q1 2026 Earnings Presentation
18 slides from Tetra Tech's earnings presentation, Jan 29, 2026
Slide 1: Q1 Earnings Call
Q1 Earnings 26 Call January 29, 2026 Dan Batrack, Chairman & CEO Roger Argus, President & CEO-Designate Steve Burdick, Executive VP & CFO
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: Q1-26 Results (Excl. USAID and DOS)
Q1-26 Results (Excl. USAID and DOS) Net Revenue Operating Income EPS $987M $131M $0.34 $915M* $117M $0.29 +8% +12% +17% Q1-25 Q1-26 Q1-25 Q1-26 Q1-25 Q1-26 Refer to appendix for reconciliation summary. * Excludes $44 million of net revenue from Q1-25 hurricanes. 3
Slide 4: Q1-26 Performance by Segment
Q1-26 Performance by Segment (Excl. USAID and DOS) Segment Net Revenue ($M) OI Margin (%) Comments $382 18.0% $365* 17.6% GSG • Water Infrastructure up +40 +5% bps • Defense up Q1-25 Q1-26 Q1-25 Q1-26 $605 13.0% $550 12.6% • U.K. Water up CIG CIG +40 +10% • Digital Automation up bps Q1-25 Q1-26 Q1-2
Slide 5: Q1-26 Net Revenue by Customer
Q1-26 Net Revenue by Customer (Excl. USAID and DOS) % of Net Rev. Customer Comments Net Rev. Y/Y U.S. Federal 18% +7% • Defense / U.S. Army Corps of Engineers up • Municipal Water Infrastructure up U.S. State & Local 14% +10%* • Digital Water Automation up • Power Transmission up U.S. Commercial 20%
Slide 6: Q1-26 Backlog
Q1-26 Backlog 6-week Recent Key Contract Wins $5.44B USAID & DOS U.S. Government Shutdown w/o USAID & DOS • $151 billion ten-year multiple award contract for the $4.31B $4.28B $4.14B U.S. Missile Defense Agency SHIELD program $3.95B $4.15B $4.03B $4.09B • $500 million multiple-award contract for env
Slide 7: Q1-26 Financial Overview (As Reported)
Q1-26 Financial Overview (As Reported) Net Revenue ($ in millions) EBITDA ($ in millions) $1,197 $1,037 $155 Adjusted Q1-26 EBITDA: Guidance: Q1-25 = 12.8% $950M-$1B $39 Q1-26 = 14.2% Q1-25 Q1-26 Q1-25 Q1-26 Operating Income ($ in millions) EPS $141 $0.40 Q1-26 adjusted EPS = $0.35 Q1-25 GAAP: non-r
Slide 8: Q1-26 Cash Flow and Leverage Overview
Q1-26 Cash Flow and Leverage Overview Cash Flow from Ops ($ in millions) Days Sales Outstanding Net Debt Leverage $72 1.06x Operating 60 cash flow 56 TTM cash flows 51 days excl. 0.86x exceeding exceeded net $13 income FY05- USAID/DOS capital FY25 allocated Q1-25 Q1-26 Q1-25 Q1-26 Q1-25 Q1-26 Strong
Slide 9: Net Leverage & Borrowing Capacity
Net Leverage & Borrowing Capacity 4.0x 2.11x $2B+ 1.73x Capacity 1.48x 1.47x 1.38x 1.36x 1.14x 0.99x 1.06x 0.96x 0.90x 0.86x 0.22x Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Net Debt to Adjusted EBITDA Total Debt to Adjusted EBITDA Incl. Acquisitions Deploy capital
Slide 10: Capital Allocation
Capital Allocation • Water, Environment & Resilient Infrastructure Growth • Technical innovation and digital automation Initiatives • Announced Halvik and Providence acquisitions Cash Flow • $67 million in dividends and buyback (Q1-26) $517M Return to Shareholders • $548 million total authorized buy
Slide 11: Global Priority Water Programs
Global Priority Water Programs U.S. Municipal Water Water Utilities ENR #1 Water Treatment U.K./EU ✓ Providing front-end advisory for $22B in capex ✓ Ireland doubles water program capital for priority water treatment programs investment to €11.8B ✓ Using high-end treatment to create new water ✓ Adde
Slide 12: Resilient Infrastructure for Global Defense
Resilient Infrastructure for Global Defense Coastal Infrastructure and Facility Modernization U.S. Defense U.K. / Australia Defense ✓ U.K. investing £4B in Modernization of Port ✓ $48M Gulf Coast Protection Contract Infrastructure ✓ $500M Army Corps of Engineers Environmental ✓ Awarded Australia Cri
Slide 13: Fiscal 2026 Outlook
Fiscal 2026 Outlook International 5% to 10% U.S. Commercial 5% to 10% ▪ U.K. Water Utilities ▪ Marine Infrastructure Spending 45% 20% ▪ Water Used in Advanced Manufacturing ▪ Power Transmission Leading with Science® U.S. Federal 5% to 10% U.S. State & Local 10% to 15% ▪ Defense Coastal Facility Mode
Slide 14: Guidance
Guidance Net Revenue Adjusted EPS FY-26 Growth and Margin Expansion Net Revenue* EBITDA Margin Q2-26 $975M - $1.025B $0.30 - $0.33 FY-26 $4.15B - $4.30B $1.46 - $1.56 Up 9% +15% +80bps FY-26 Assumptions FY-25 FY-26 FY-25 FY-26 • Intangible amortization of $34M Note: Year-on-year comparison using mid
Slide 15: Summary
Summary • Strong start to fiscal year 2026 • Significant demand for differentiated Leading with Science® water and environmental services • Increasing FY26 guidance for net revenue and EPS • Well positioned to achieve 2030 goals 15
Slide 16: Questions & Answers
[Te] TETRA TECH Questions & Answers
Slide 17: Appendix
Appendix 17
Slide 18: GAAP Reconciliation Summary
GAAP Reconciliation Summary ($ in millions, except EPS) Q1-26 Net Revenue Operating Income EBITDA EPS As Reported $1,037 $141 $155 $0.40 Contingent consideration - (7) (7) (0.02) Gain on business disposition - - - (0.03) Adjusted $1,037 $134 $148 $0.35 Less: USAID / DOS (50) (3) (3) (0.01) Adj. excl