Start here if you're new
what it is
Tetra Tech helps governments and companies build, clean, permit, and manage water, environmental, infrastructure, and energy projects.
how it gets paid
Last year Tetra Tech made $5.4B in revenue. International was the main engine at $2.02B, or 37% of sales.
why it's growing
Revenue grew 309.2% last year. Meanwhile, the commercial and international group posted a solid 10% increase, supported by strong activity in water utilities and digital water initiatives in the u.k.
what just happened
Latest quarter revenue fell 15% to $1.2B, even as adjusted EPS came in at $0.35 versus a $0.39 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
24.1x trailing p/e — priced about right
0.7% dividend yield — cash in your pocket every quarter
14.0% return on capital — nothing to write home about
xvary composite: 71/100 — average
What they do
Tetra Tech helps governments and companies build, clean, permit, and manage water, environmental, infrastructure, and energy projects.
Tetra Tech is what you hire when a water or environmental project is too regulated to wing it. It has about 25,000 employees and serves federal, state, local, commercial, and international clients, so you are not betting on one project or one country. The sticky part is compliance work: once your project, permits, and data are inside one advisor, switching burns time and raises execution risk.
How they make money
$5.4B
annual revenue · their business grew +309.2% last year
International
$2.02B
Federal government
$1.69B
U.S. commercial
$0.90B
State and local government
$0.79B
The products that matter
engineering and consulting services
Consulting & Engineering
$5.4B revenue
this is the whole $5.4B business in the current snapshot. the catch: one top-line number hides very different trends, with government services down 33% while commercial and international grew 10% in the recent quarter.
core business
Key numbers
15.5%
operating margin
Operating margin → what is left after running the business → so what: this is strong for an engineering services firm.
14.0%
return on capital
Return on capital → profit from the money already invested → so what: Tetra Tech earns better than average returns without a stretched balance sheet.
$834M
long-term debt
Long-term debt → money owed over many years → so what: debt is just 8% of capital, which keeps the balance sheet from becoming the story.
100
earnings predictability
Earnings predictability → how steady profits have been → so what: you are buying consistency, not a science experiment.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $834M (8% of capital)
- net profit margin 9.4% — keeps 9 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TTEK 3 years ago → it's now worth $12,200.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue fell 15% to $1.2B, even as adjusted EPS came in at $0.35 versus a $0.39 estimate.
Management said the quarter reflected a contract-mix transition. Excluding the planned USAID wind-down, net revenue grew 8%, which is the quiet part behind the ugly headline number.
$1.2B
revenue
$0.35
eps
18.2%
gross margin
the number that mattered
The 33% drop in government services net revenue mattered most because federal work is 32% of the business.
-
tetra tech’s fiscal 2026 first quarter reflected a transition in its contract mix. (fiscal year ends september 27, 2026.) net revenue, defined as total revenue less subcontract costs, declined 13%, vs. prior year, to $1.04 billion.
-
however, excluding the planned wind down of the u.s.
-
agency for international development (usaid), net revenue grew 8%.
-
looking at net revenue by segment, the government services group fell 33% from that of the comparable period, due to the usaid contract exits, excluding these, the unit grew 5%.
-
meanwhile, the commercial and international group posted a solid 10% increase, supported by strong activity in water utilities and digital water initiatives in the u.k. and ireland.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is integration risk after acquisition-fueled growth.
med
post-acquisition execution
revenue jumped 283.1% to $5.4B. when growth comes that fast, the next question is not whether the deal closed. it is whether the acquired business holds margins, talent, and client relationships.
at 24.1x trailing earnings, you are paying for a clean integration story. if that story slips, the multiple usually goes first.
med
government contract roll-off
a planned u.s. agency contract wind-down already showed what concentration looks like. government services revenue fell 33% in the recent quarter.
if more federal work rolls off before commercial demand fills the gap, reported growth gets a lot less flattering.
med
margin slippage
annual net margin is 10.0%. last quarter it was 9.4%. that is not a collapse, but it is a reminder that this is still a services business, not software.
small margin moves matter when your moat is execution and utilization instead of 70% gross margins.
med
less balance-sheet room than the headline suggests
$834M of long-term debt and a B++ balance sheet are manageable. they also mean the company has less room for a messy digesting period than a pristine balance sheet would give it.
debt is not the thesis breaker here. it just narrows the margin for error if growth slows at the same time.
one contract wind-down already pushed government services down 33%. with quarterly net margin at 9.4% and the stock at 24.1x earnings, you need steady integration and cleaner segment mix to justify the price.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
adjusted net revenue growth
8% growth excluding the planned contract wind-down is the cleaner read on demand. if that number fades, the acquisition halo fades with it.
risk
government services rebound
that unit fell 33% in the recent quarter. you want to see whether this was a one-off contract issue or the start of a weaker government book.
metric
net margin discipline
annual net margin is 10.0%. the quarter came in at 9.4%. that gap is small, but in a consulting business small gaps stack up fast.
calendar
next earnings report
the next print needs to show that the guidance raise holds and that the contract-mix reset is becoming easier to lap.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts expect better-than-average price performance over the next 12 months.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not a chaos stock either.
chart momentum
average
technical score 3 — the chart is acting normal. no obvious breakout, no panic either.
earnings predictability
100 / 100
management has been unusually reliable on earnings. if you own services firms, you know that is not automatic.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 290 buyers vs. 264 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$23
$46
$38
current price
$35
target midpoint · 7% from current · 3-5yr high: $55 (+45% · 10% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive