Tetra Tech(DE:TT6)
€35.57+0.23 (+0.65%)
DE:TT6
Tetra Tech earnings date
€35.57
At close:+0.23 (+0.65%)
Tetra Tech (TT6) Q4 2026 Earnings Report
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DE:TT6 Q4 2026 EPS Results
- Actual EPS
- EUR 0.44
- Consensus EPS
- EUR 0.42
- Beat/Miss
- Beat by +EUR 0.02
- One Year Ago EPS
- EUR 0.41
DE:TT6 Q4 2026 Revenue Results
- Actual Revenue
- EUR 1.21B
- Expected Revenue
- EUR 1.04B
- Beat/Miss
- Beat by +EUR 168.76M
- YoY Revenue Growth
- +0.55%
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 11/11/2026
- Time
- After Close
- Conference Call
- Wednesday, November 11, 2026
DE:TT6 Upcoming Earnings
Tetra Tech's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
DE:TT6 Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Tetra Tech reported record operating income and EPS, solid fourth-quarter growth, expanding margins, strong cash flow, a 13% increase in funded backlog, broad-based contract wins and favorable demand across water, infrastructure, automation and defense markets. The main challenges were lower fiscal-year revenue related to USAID and episodic disaster response, a Ukraine-related federal headwind, flat expected U.S. state and local revenue due to weaker disaster funding, federal transition uncertainty and muted renewables growth. The highlights significantly outweighed the lowlights.
Company Guidance
For the first quarter of fiscal 2027, net revenue guidance is from $1.04 billion to $1.08 billion and earnings per share guidance is from $0.36 to $0.38; for fiscal year 2027, net revenue guidance is from $4.425 billion to $4.625 billion and earnings per share guidance is from $1.65 to $1.80. By end market, Tetra Tech expects approximately 10% growth in U.S. commercial, 5% growth in U.S. federal work, approximately 5% growth in international revenues and U.S. state and local revenue to be relatively flat; U.S. federal guidance is all-in and includes less Ukraine work, which is a bit of a headwind, so underlying business in federal is growing at a greater rate than the 5%. FY ’27 assumptions include intangible amortization of $24 million, depreciation of $25 million, interest expense of $30 million to $35 million and an effective tax rate of 27.5%, and the guidance does not include contributions from future acquisitions.
- Record Operating Income and EPSTetra Tech finished fiscal 2026 with record operating income and earnings per share. Fourth-quarter EPS was $0.49, up 9% from last year, and the company came in above its previous guidance range for both the fourth quarter and fiscal year.
- Fourth-Quarter Revenue and EBITDA GrowthFourth-quarter net revenue was $1.15 billion, up 5% from a year ago. EBITDA reached $194 million, with the margin expanding 90 basis points year-over-year; margins have expanded 240 basis points over the last 3 years.
- Strong Funded Backlog and New OrdersFunded backlog ended the quarter at $4.67 billion, up 13% from last year and representing the third consecutive quarter with a greater than 1.1x book-to-bill rate. The company received over $1.6 billion in new orders during the quarter, including $600 million in commercial orders globally.
- Government Services Group PerformanceGovernment Services Group revenue increased to $513 million from $475 million, up 8% year-over-year, and delivered an 18.8% margin. Growth was driven by municipal water programs and federal infrastructure programs performed for the U.S. Army Corps of Engineers and U.S. Navy.
- Commercial and International Group Margin ExpansionCommercial/International Group revenue was $640 million, up 3% from a year ago, while its margin increased 140 basis points to 16.2%. Growth was primarily driven by U.K. and Irish water programs, digital automation and defense work in Australia, and broad-based infrastructure programs in Canada.
- Broad-Based End-Market GrowthU.S. Federal work represented 26% of quarterly revenue and grew 9%, U.S. state and local work grew 6%, and U.S. commercial work grew 6%. International work represented 43% of revenue and grew 3%, or approximately 5% to 6% excluding the divestiture of the Norway operation.
- Expanded Federal Contract CapacityThe company was awarded a new $1.4 billion NASA enterprise-wide technical support contract, $145 million in new U.S. Navy contract capacity, $85 million of additional U.S. Army Corps of Engineers capacity in Europe, a $49 million NOAA contract, and over $220 million in additional U.S. EPA contract capacity.
- Improved EBITDA Margin and Operating LeverageFiscal 2026 adjusted EBITDA margin on net revenue increased 90 basis points to 15.2%, supporting the long-term goal of improving EBITDA margins by an average of 50 basis points annually. Management stated that EBITDA margin would be approximately 250 basis points higher on a net service revenue basis.
- Strong Operating Cash Flow and Working CapitalCash flows generated from operations were $523 million for fiscal 2026, a 14% improvement over fiscal 2025. Operating cash flow exceeded net income for the 21st consecutive year, while DSO was 60 days, described as an industry-leading standard.
- Healthy Returns and Balance SheetReturn on capital employed stood at over 20%. The company reported a strong balance sheet, with net debt to EBITDA at 1x at year-end versus approximately 0.9x one year ago and within its stated 1 to 2x net debt target.
- Shareholder Returns and Capital AllocationThe Board approved an 11% year-over-year increase in the quarterly cash dividend, the 46th consecutive quarterly dividend with annual double-digit increases. Tetra Tech repurchased $300 million of stock during fiscal 2026, increased fourth-quarter buybacks to $100 million, and had approximately $798 million remaining under its approved buyback authorization.
- Acquisitions in Defense and TechnologyThe company closed acquisitions of technical leaders focused on defense, including Halvik in the U.S. and Providence in Australia. Management stated that its balance sheet and cash flows provide capital to invest in organic and acquisitive growth priorities, including technology and automation.
- Fiscal 2027 Commercial and International Growth OutlookManagement expects approximately 10% growth in U.S. commercial work, driven by advanced water and digital automation solutions for water-intensive advanced manufacturing, data centers and mining. International revenue is expected to grow approximately 5%, supported by U.K. water programs and broad-based growth in Canada.
- Municipal Water and Digital Automation MomentumThe municipal water practice continues to grow at double-digit rates. The company also cited continued growth in digital automation across federal, municipal and commercial clients, addressing system optimization, efficiency, energy and water use, and cybersecurity.
- International Infrastructure OpportunitiesThe U.K. water market includes the AMP8 commitment of GBP 105 billion, while Ireland's water and wastewater program is EUR 13.6 billion through 2029. Canadian infrastructure funding is projected to rise from CAD 37 billion in FY 2026 to CAD 73.7 billion in FY 2028, a 97% increase, creating opportunities in coastal engineering, permafrost, water supplies and infrastructure.
- Growth Opportunities in Mining, Power and Industrial AutomationManagement cited opportunities from U.S. rare earths and critical minerals investment, including $7.5 billion of incentives, continued U.S. power transmission growth, and modernization of industrial digital systems for AI-enabled automation and operational efficiency. Tetra Tech has supported more than 15,000 miles of power transmission representing more than 15 gigawatts of capacity.
- Fiscal 2027 GuidanceFirst-quarter fiscal 2027 net revenue guidance is $1.04 billion to $1.08 billion, with EPS guidance of $0.36 to $0.38. Full-year fiscal 2027 net revenue guidance is $4.425 billion to $4.625 billion, with EPS guidance of $1.65 to $1.80. Assumptions include $24 million of intangible amortization, $25 million of depreciation, $30 million to $35 million of interest expense and a 27.5% effective tax rate.
- Long-Term Demand for Water and Resilient InfrastructureManagement stated that demand for reliable water, a cleaner environment and resilient infrastructure continues to expand. The company's technical depth, client relationships and existing contract vehicles were cited as allowing it to respond as priorities change.
DE:TT6 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2027 (Q1) | 0.33- | 0.32 | ― | ― |
| Nov 11, 2026 | 2026 (Q4) | 0.420.44 | 0.41 | 8.89% (+0.04) | |
| Jul 29, 2026 | 2026 (Q3) | 0.360.38 | 0.39 | -2.33% (-0.01) | |
| Apr 29, 2026 | 2026 (Q2) | 0.290.31 | 0.3 | 3.03% (+0.01) | |
| Jan 28, 2026 | 2026 (Q1) | 0.280.32 | 0.32 | 0.00% (+0.00) | |
| Nov 12, 2025 | 2025 (Q4) | 0.360.41 | 0.34 | 18.42% (+0.06) | |
| Jul 30, 2025 | 2025 (Q3) | 0.350.39 | 0.29 | 35.22% (+0.10) | |
| May 07, 2025 | 2025 (Q2) | 0.270.30 | 0.26 | 16.20% (+0.04) | |
| Jan 29, 2025 | 2025 (Q1) | 0.300.32 | 0.25 | 25.00% (+0.06) | |
| Nov 13, 2024 | 2024 (Q4) | 0.330.34 | 0.32 | 6.74% (+0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
