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Tetra Tech (MX:TTEK)
:TTEK
Mexico Market
EarningsQ3 2026 Earnings Report

Tetra Tech (TTEK) Q3 2026 Earnings Report

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MX:TTEK Q3 2026 EPS Results

Actual EPS$7.68
Consensus EPS$7.26
Beat/MissBeat by +$0.42
One Year Ago EPS$7.87

MX:TTEK Q3 2026 Revenue Results

Actual Revenue$23.94B
Expected Revenue$19.78B
Beat/MissBeat by +$4.16B
YoY Revenue Growth-4.47%

Earnings Announcement Details

QuarterQ3 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:TTEK Upcoming Earnings
Tetra Tech's next earnings date is estimated for November 18, 2026, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:TTEK Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented a broadly positive operational and financial picture: strong Q3 revenue and EPS beats, record-to-date operating cash flow, sequential backlog growth, double-digit growth in several geographies, margin expansion, reduced leverage and active capital returns (dividends and buybacks). Challenges remain around constrained U.S. federal procurement, renewables cancellations (offshore wind), uncertainty in some international aid-related work, and localized funding shortfalls (flood protection). On balance, the strengths — including raised FY26 guidance, improving margins and robust cash generation — materially outweigh the headwinds.
Company Guidance
Management raised guidance, calling for Q4 net revenue of $1.12–$1.17 billion and adjusted EPS of $0.45–$0.48, and lifting full‑year FY2026 net revenue to $4.315–$4.365 billion with adjusted EPS of $1.56–$1.59 (midpoint implies ~8% revenue growth year‑over‑year and ~70 bps margin expansion); guidance assumptions include $34M of intangible amortization, $23M of depreciation, $30M of interest expense, a 27.3% effective tax rate, and excludes contributions from future acquisitions. This raise followed Q3 outperformance (Q3 revenue $1.1B, EPS $0.42, operating cash flow $229M; YTD operating cash flow $467M), backlog up ~$208M sequentially to just under $4.5B, and strong operating metrics cited as underpinning the outlook (DSO 56 days, net leverage ~0.88x, ROCE >20%), alongside continued capital returns (Q3 buybacks $100M; YTD buybacks $200M; dividend +11% YoY).
Quarterly Revenue and EPS Beat
Net revenue of $1.1 billion in Q3, exceeding the upper end of guidance; adjusted EPS of $0.42 also exceeded the upper end of guidance.
Record Operational Cash Flow
Generated $229 million in cash from operations in Q3 and $467 million year-to-date (a record for the first three quarters), a 31% improvement year-over-year.
Backlog Growth and Higher Visibility
Backlog increased sequentially by 5% (up $208 million) to just under $4.5 billion, driven by new orders including commercial data center and sediment restoration work and ~ $300 million in contract capacity from Army Corps districts.
Segment Revenue and Margin Strength
Government Services Group grew 7% year-over-year in Q3 with a strong margin of 17.5%; Commercial/International Group revenue up 9% year-over-year with a margin of 15.1%.
Geographic Revenue Growth
International revenue rose 12% year-over-year and represented 47% of the business; U.S. federal revenue was up 12% and represented 20% of the business; U.S. state & local grew 5%.
Margin Expansion and EBITDA Improvement
Adjusted EBITDA on net revenue increased roughly 80 basis points year-to-date versus prior year; company reiterated a multi-year target of ~50 bps annual margin improvement and noted EBITDA margin would be ~240 bps higher on a net service revenue basis.
Strengthened Balance Sheet and Capital Returns
Net leverage improved to 0.88x net debt/EBITDA (vs. 0.96x a year ago); return on capital employed >20%; Board approved an 11% year-over-year dividend increase and Q3 buyback of $100 million (YTD buybacks $200 million; $398 million remaining authorization).
Raised FY26 Guidance
Raised guidance: FY26 net revenue $4.315B–$4.365B (midpoint ~8% YoY growth) and adjusted EPS $1.56–$1.59; Q4 net revenue guided to $1.12B–$1.17B and Q4 adjusted EPS $0.45–$0.48. Midpoint showed ~70 bps margin expansion year-over-year.
Strategic Wins, Diversification and M&A
Key awards include lead designer role for largest dedicated municipal PFOS treatment system in Dayton, Ohio, FAA airspace modernization ($27M), expanded commercial orders (data centers, digital automation, sediment restoration), and acquisitions of Habit (U.S., defense) and Providence (Australia).
Operational KPIs and Efficiency
Days Sales Outstanding (DSO) at an industry-leading 56 days (similar to last year, improved from Q2); trailing 12-month operating cash flow ~ $567 million noted, supporting investment and shareholder returns.

MX:TTEK Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 18, 2026
2026 (Q4)
8.56 / -
8.233―
2026 (Q3)
7.26 / 7.68
7.867-2.33% (-0.18)
2026 (Q2)
5.85 / 6.22
6.0373.03% (+0.18)
2026 (Q1)
5.74 / 6.40
6.4030.00% (0.00)
2025 (Q4)
7.37 / 8.23
6.95218.42% (+1.28)
2025 (Q3)
7.17 / 7.87
5.81835.22% (+2.05)
2025 (Q2)
5.52 / 6.04
5.19616.20% (+0.84)
2025 (Q1)
6.00 / 6.40
5.12225.00% (+1.28)
2024 (Q4)
6.77 / 6.95
6.5136.74% (+0.44)
2024 (Q3)
5.67 / 5.82
4.7223.26% (+1.10)
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