TTEK · Tetra Tech, Inc.

Tetra Tech delivered strong second quarter fiscal 2026 results, with net revenue of $1.05 billion increasing 8% year-over-year excluding USAID/DOS and disaster-related work. Growth was driven by demand across water, environment, and sustainable infrastructure end markets, particularly in U.S. federal defense contracts for facility modernization and data center support, as well as international front-end consulting. Operating income rose to $132 million from $40 million in the prior year, reflecting improved profitability and a 90 basis point expansion in EBITDA margin. Backlog grew 8% sequentially to $4.28 billion, underpinned by key wins including a $400 million USACE contract and multiple awards from defense agencies. Cash generation remained robust with $165 million from operations in the quarter and $688 million over the trailing twelve months, enabling $50 million in share repurchases and an 11% increase in the quarterly dividend to $0.072 per share. Management raised full-year fiscal 2026 guidance, now expecting net revenue of $4.25-$4.40 billion and adjusted EPS of $1.50-$1.58, reflecting confidence in continued momentum. The company's strong cash flow and backlog provide visibility for sustained growth and shareholder returns.