Tetra Tech stock gains support from backlog and fiscal outlook

Tetra Tech reported strong fiscal fourth-quarter and full-year results on November 11, according to the company filing published through Tetra Tech's earnings release. The water, environment and sustainable infrastructure specialist posted record quarterly earnings per share and ended the year with a larger funded backlog.

Tetra Tech stock traded at 35.83 euros on Lang & Schwarz at 11:00 p.m. CET on Thursday, November 12. The quote provides the latest available market indication for the shares in euros.

Backlog Strengthens Visibility

Fourth-quarter revenue reached 1.34 billion US dollars, while net revenue totaled 1.15 billion US dollars. Net revenue increased 5 percent year over year when episodic disaster-response work was excluded. Operating income was 188 million US dollars and adjusted EBITDA reached 194 million US dollars, with the adjusted EBITDA margin expanding by 90 basis points.

Adjusted earnings per share rose to 0.49 US dollars from 0.45 US dollars a year earlier. GAAP diluted earnings per share came to 0.51 US dollars. Funded backlog stood at 4.67 billion US dollars at the end of the quarter, an increase of 13 percent from the prior year.

Fiscal 2027 Guidance

Management expects first-quarter fiscal 2027 net revenue of 1.04 billion to 1.08 billion US dollars and earnings per share of 0.36 to 0.38 US dollars. Full-year fiscal 2027 guidance calls for net revenue of 4.425 billion to 4.625 billion US dollars and earnings per share of 1.65 to 1.80 US dollars.

The company also approved a quarterly dividend of 0.072 US dollars per share, payable on December 11 to shareholders of record on December 2. Tetra Tech repurchased 100 million US dollars of common stock during the quarter and had 798 million US dollars remaining under its buyback authorization at September 27.

Business Model And Market Position

Tetra Tech provides specialized consulting and engineering services in water, environmental programs and sustainable infrastructure worldwide. Its Government Services Group serves federal, state and local agencies, while its Commercial and International Services Group works with natural resources, energy and utilities customers. The company is headquartered in Pasadena, California, and employs more than 25,000 people.

Developments in the S&P 500 provide the broader market setting for US-listed engineering shares.

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