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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

January 28, 2026

 

TETRA TECH, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   0-19655   95-4148514
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
 

(IRS Employer

Identification Number)

 

3475 East Foothill Boulevard, Pasadena, California 91107

(Address of principal executive office, including zip code)

 

(626) 351-4664

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
Common Stock, $0.01 par value   TTEK   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging Growth Company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 


  

Item 2.02. Results of Operations and Financial Condition.

 

On January 28, 2026, Tetra Tech, Inc. (“Tetra Tech”) reported its financial results for the first fiscal quarter ended December 28, 2025. A copy of the press release is attached to this report as Exhibit 99.1.

 

Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 8.01. Other Events.

 

On January 28, 2026, Tetra Tech announced that its Board of Directors has declared a $0.065 per share quarterly cash dividend. The dividend is payable on February 27, 2026 to stockholders of record as of the close of business on February 12, 2026.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1 Press Release, dated January 28, 2026, reporting the financial results for Tetra Tech’s first fiscal quarter ended December 28, 2025, and the declaration of a quarterly cash dividend.
   
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, Tetra Tech has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  TETRA TECH, INC.
   
Date: January 28, 2026 By: /s/ DAN L. BATRACK
    Dan L. Batrack
    Chairman and Chief Executive Officer

 

3

EX-99.1 2 tm264341d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

NEWS RELEASE
January 28, 2026

 

Tetra Tech Reports Strong First Quarter 2026 Results and

Raises Fiscal Year 2026 Guidance

 

· Revenue $1.21 billion; Net Revenue $1.04 billion
· Net Revenue up 8% excluding USAID/DOS and Q1-25 Hurricanes
· Operating Income $141 million; Adjusted EBITDA $147 million
· EPS $0.40; Adjusted EPS $0.35
· Raising FY26 Net Revenue and EPS guidance

 

Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, today announced results for the first quarter ended December 28, 2025.

 

Revenue and revenue, net of subcontractor costs (net revenue)1, in the first quarter totaled $1.21 billion and $1.04 billion, respectively. Operating income was $141 million and adjusted EBITDA1 was $147 million; adjusted EBITDA margin up 140 basis points year-over-year. EPS was $0.40 and adjusted EPS1 was $0.35. Backlog was $3.95 billion at the end of the first quarter. Cash from operations was $72 million in the first quarter and $517 million over the trailing 12 months.

 

Q1 FY26 Highlights (Excluding USAID / DOS)

 

· Adjusted EBITDA margin improved 80 basis points year-over-year

 

· EPS up 17% year-over-year

 

· DSO improved to 51 days

 

· Halvik acquisition expands high-end data analytics and resilient infrastructure optimization

 

· Providence acquisition further advances front-end program advisory services

 

· $151 billion ten-year multiple award contract for the U.S. Missile Defense Agency SHIELD program

 

· $500 million multiple-award contract for environmental services for USACE Baltimore District

 

· A$88 million single-award contract for coastal infrastructure planning services for Australia Defense

 

· $60 million multiple-award contract for waterway design services for USACE Portland District

 

· A$57 million single-award contract for naval facility resilience for Australia Defense

 

 

1 Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables at the end of the release and Regulation G Information for reconciliations to the comparable GAAP metrics.

 


 

Executive Management Comments

 

Dan Batrack, Chairman and CEO, commented, “Tetra Tech began fiscal 2026 with a strong first quarter as net revenue was up 8% and EPS up 17%. Subsequent to the first quarter, we announced two strategic acquisitions, further expanding our front-end consulting business for our defense clients. As expected, our margin increased by 80 basis points, with our higher margin front-end advisory and technical consulting business growing at a double-digit rate. With the promotion of Roger Argus to CEO effective after our annual shareholders meeting, I see continued progress toward achieving our 2030 vision and direction and the associated financial targets.”

 

Roger Argus, President and CEO-designate, stated, “We continued to see significant demand for our differentiated services in water, environment, and sustainable infrastructure across our global operations. During the quarter, we grew our government business with municipal water and defense clients, and on the commercial side, we saw an increase in power and transmission projects to support energy demand. As a result, we are increasing our guidance for 2026 and are well positioned to achieve our 2030 goals.”

 

Quarterly Dividend and Share Repurchase Program

 

On January 26, 2026, Tetra Tech’s Board of Directors approved the Company’s 47th consecutive quarterly dividend at an amount of $0.065 per share, a 12% increase year-over-year, payable on February 27, 2026, to stockholders of record as of February 12, 2026. In the first quarter, Tetra Tech repurchased $50 million of common stock. Additionally, as of December 28, 2025, the Company had $548 million remaining under its share repurchase programs.

 

Business Outlook

 

The following statements are based on current expectations. These statements are forward-looking, and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

 

For fiscal 2026, Tetra Tech is increasing the full year guidance for net revenue2 to range from $4.15 billion to $4.30 billion and adjusted EPS3 to range from $1.46 to $1.56. For the second quarter of fiscal 2026, Tetra Tech expects net revenue to range from $975 million to $1.025 billion and EPS to range from $0.30 to $0.33.

 

Webcast

 

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the first quarter of fiscal 2026 results through a link posted on the Company’s website at tetratech.com on January 29, 2026, at 8:00 a.m. (PT).

 

 

2 Reconciliation of the net revenue guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict the magnitude and timing of all the components, including subcontractor costs, required to provide such reconciliation with sufficient precision.
3 The only adjustments in our guidance for EPS are to exclude the gain on business disposition and contingent consideration in the first quarter of fiscal 2026.

 


 

Reconciliation of GAAP and Non-GAAP Items

 

In thousands (except EPS data)

 

    Three Months Ended  
    December 28,
2025
   

December 29,

2024

 
Revenue   $ 1,210,663     $ 1,420,561  
USAID/DOS     (56,374 )     (283,905 )
Revenue excl. USAID/DOS   $ 1,154,289     $ 1,136,656  
                 
Revenue   $ 1,210,663     $ 1,420,561  
Subcontractor costs     (173,487 )     (223,231 )
Net revenue   $ 1,037,176     $ 1,197,330  
USAID/DOS     (50,606 )     (238,517 )
Net revenue excl. USAID/DOS   $ 986,570     $ 958,813  
                 
Operating Income   $ 140,994     $ 22,526  
Contingent consideration     (7,447 )     (366 )
Legal contingency     -       115,000  
Adjusted Operating Income   $ 133,547     $ 137,160  
USAID/DOS     (2,746 )     (19,987 )
Adjusted OI excl. USAID/DOS   $ 130,801     $ 117,173  
                 
EPS   $ 0.40     $ 0.00  
Contingent consideration     (0.02 )     -  
Gain on business disposition     (0.03 )     -  
Legal contingency     -       0.35  
Adjusted EPS   $ 0.35     $ 0.35  
USAID/DOS     (0.01 )     (0.06 )
Adjusted EPS excl. USAID/DOS   $ 0.34     $ 0.29  

 

About Tetra Tech

 

Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With more than 25,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science® to address the entire water cycle, protect and restore the environment, and design sustainable and resilient infrastructure. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.

 

CONTACTS:
Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

 


 

Forward-Looking Statements

 

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on current expectations and beliefs of Tetra Tech’s management and currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscal policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; the impact of global pandemics; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in bank and capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended September 28, 2025. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.

 

Non-GAAP Financial Measures

 

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth above in this release.

 


 

Tetra Tech, Inc.

Balance Sheet - Unaudited

(unaudited - in thousands, except par value)

 

 

    December 28,     September 28,  
    2025     2025  
Assets                
Current assets:                
 Cash and cash equivalents     269,448       167,459  
 Accounts receivable, net     1,082,417       1,158,928  
 Contract assets     140,429       138,232  
 Prepaid expenses and other current assets     112,145       98,768  
 Assets held-for-sale     -       57,502  
 Total current assets     1,604,439       1,620,889  
                 
Property and equipment, net     65,395       66,148  
Right-of-use assets, operating leases     199,552       197,618  
Goodwill     2,065,914       2,049,874  
Intangible assets, net     113,567       121,160  
Deferred tax assets     92,638       106,238  
Other non-current assets     123,222       120,247  
 Total assets     4,264,727       4,282,174  
                 
Liabilities and Equity                
Current liabilities:                
 Accounts payable     196,730       204,725  
 Accrued compensation     221,817       346,912  
 Contract liabilities     435,373       420,254  
 Short-term lease liabilities, operating leases     69,681       69,099  
 Current contingent earn-out liabilities     18,093       24,826  
 Liabilities held-for-sale     -       25,115  
 Other current liabilities     279,100       288,113  
 Total current liabilities     1,220,794       1,379,044  
                 
Deferred tax liabilities     20,171       21,333  
Long-term debt     834,256       763,363  
Long-term lease liabilities, operating leases     154,444       154,695  
Non-current contingent earn-out liabilities     33,299       32,135  
Other non-current liabilities     155,125       151,440  
 Total liabilities     2,418,089       2,502,010  
                 
Equity:                
Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at December 28, 2025 and September 28, 2025     -       -  
Common stock - authorized, 750,000 shares of $0.01 par value; issued and outstanding, 260,811 and 261,418 shares at December 28, 2025 and  September 28, 2025, respectively     2,608       2,614  
Accumulated other comprehensive loss     (76,356 )     (95,777 )
Retained earnings     1,919,840       1,872,948  
 Tetra Tech stockholders' equity     1,846,092       1,779,785  
 Noncontrolling interests     546       379  
 Total stockholders' equity     1,846,638       1,780,164  
 Total liabilities and stockholders' equity     4,264,727       4,282,174  

 


 

Tetra Tech, Inc.

Consolidated Statements of Income

(unaudited - in thousands, except per share data)

 

    Three Months Ended  
    December 28,     December 29,  
    2025     2024  
Revenue   $ 1,210,663     $ 1,420,561  
Subcontractor costs     (173,487 )     (223,231 )
Other costs of revenue     (816,805 )     (975,853 )
Gross profit     220,371       221,477  
Selling, general and administrative expenses     (86,824 )     (84,317 )
Legal contingency costs     -       (115,000 )
Contingent consideration - fair value adjustments     7,447       366  
Income from operations     140,994       22,526  
Interest expense, net     (7,128 )     (7,218 )
Other non-operating income     7,710       -  
Income before income tax expense     141,576       15,308  
Income tax expense     (36,354 )     (14,530 )
Net income     105,222       778  
Net income attributable to noncontrolling interests     (194 )     (31 )
Net income attributable to Tetra Tech   $ 105,028     $ 747  
                 
Earnings per share attributable to Tetra Tech:                
Basic   $ 0.40     $ -  
Diluted   $ 0.40     $ -  
                 
Weighted-average common shares outstanding:                
Basic     260,809       267,854  
Diluted     262,731       271,886  

 


 

Tetra Tech, Inc.

Consolidated Statements of Cash Flows

(unaudited - in thousands)

 

    Three Months Ended  
    December 28,     December 29,  
    2025     2024  
Cash flows from operating activities:                
Net income   $ 105,222     $ 778  
                 
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     13,996       16,063  
Amortization of stock-based awards     8,182       8,142  
Deferred income taxes     13,085       767  
Provision for losses on accounts receivables     960       -  
Gain on sale of divested business     (7,710 )     -  
Fair value adjustments to contingent consideration     (7,447 )     (366 )
Other non-cash items     861       1,141  
Changes in operating assets and liabilities, net of effects of divestiture:                
Accounts receivable and contract assets     79,945       (91,725 )
Prepaid expenses and other assets     (17,927 )     (26,186 )
Accounts payable     (8,824 )     44,194  
Accrued compensation     (126,658 )     (101,641 )
Contract liabilities     13,213       27,527  
Income taxes receivable/payable     2,450       (1,538 )
Cash settled contingent earn-out liability     -       (2,720 )
Other liabilities     2,919       138,627  
Net cash provided by operating activities     72,267       13,063  
                 
Cash flows from investing activities:                
Capital expenditures     (4,152 )     (3,433 )
Proceeds from divested business, net     41,612       -  
        Net cash provided by (used in) investing activities     37,460       (3,433 )
                 
Cash flows from financing activities:                
Proceeds from borrowings     70,000       90,000  
Repayments on long-term debt     -       (15,000 )
Repurchases of common stock     (50,000 )     (25,000 )
Shares repurchased for tax withholdings on share-based awards     (11,864 )     (13,307 )
Payments of contingent earn-out liabilities     -       (145 )
Stock options exercised     10       114  
Dividends paid     (16,937 )     (15,549 )
Principal payments on finance leases     (2,083 )     (1,719 )
        Net cash provided by (used in) financing activities     (10,874 )     19,394  
                 
Effect of exchange rate changes on cash and cash equivalents     2,223       (13,609 )
                 
Net increase in cash and cash equivalents     101,076       15,415  
Cash and cash equivalents at beginning of period     168,372       232,689  
Cash and cash equivalents at end of period   $ 269,448     $ 248,104  

 


 

Tetra Tech, Inc.

Regulation G Information

December 28, 2025

 

Reconciliation of Revenue to Revenue, Net of Subcontractor Costs ("Net Revenue")

(in millions)

 

                2025     2026  
    2023     2024     1st Qtr     2nd Qtr     6 Mos     3rd Qtr     9 Mos     4th Qtr     Full Year     1st Qtr  
Consolidated                                                            
Revenue   4,522.6     5,198.7     1,420.6     1,322.1     2,742.7     1,369.8     4,112.5     1,330.1     5,442.6     1,210.7  
Subcontractor Costs   (771.5 )   (876.8 )   (223.3 )   (218.4 )   (441.7 )   (216.8 )   (658.5 )   (166.8 )   (825.3 )   (173.5 )
Net Revenue   3,751.1     4,321.9     1,197.3     1,103.7     2,301.0     1,153.0     3,454.0     1,163.3     4,617.3     1,037.2  
                                                             
GSG Segment                                                            
Revenue   2,300.7     2,624.2     791.4     698.9     1,490.2     709.4     2,199.6     628.9     2,828.6     525.5  
Subcontractor Costs   (484.3 )   (540.5 )   (144.0 )   (134.6 )   (278.5 )   (136.8 )   (415.3 )   (88.4 )   (503.7 )   (93.4 )
Net Revenue   1,816.4     2,083.7     647.4     564.3     1,211.7     572.6     1,784.3     540.5     2,324.9     432.1  
                                                             
CIG Segment                                                            
Revenue   2,292.7     2,634.4     644.9     637.8     1,282.6     676.6     1,959.1     721.2     2,680.2     704.2  
Subcontractor Costs   (358.0 )   (396.2 )   (94.9 )   (98.3 )   (193.2 )   (96.1 )   (289.4 )   (98.3 )   (387.7 )   (99.1 )
Net Revenue   1,934.7     2,238.2     550.0     539.5     1,089.4     580.5     1,669.7     622.9     2,292.5     605.1  

 

Reconciliation of Net Income Attributable to Tetra Tech to Adjusted EBITDA

(in thousands)

 

                2025     2026  
    2023     2024     1st Qtr     2nd Qtr     6 Mos     3rd Qtr     9 Mos     4th Qtr     Full Year     1st Qtr  
                                                             
Net Income Attributable to Tetra Tech   273,420     333,382     747     5,388     6,135     113,844     119,979     127,745     247,724     105,028  
Income Tax Expense   127,526     130,023     14,530     25,700     40,230     42,815     83,045     46,624     129,668     36,354  
Interest Expense1   46,537     37,271     7,218     8,491     15,709     8,287     23,996     6,806     30,802     7,128  
Depreciation   19,980     23,722     5,402     5,248     10,650     5,410     16,059     5,115     21,175     5,608  
Amortization   41,226     49,955     10,660     8,629     19,289     8,287     27,577     9,524     37,101     8,387  
FX Hedge Gain   (89,402 )   -     -     -     -     -     -     -     -     -  
Gain on sale of divested business   -     -     -     -     -     -     -     -     -     (7,710 )
EBITDA   419,287     574,353     38,557     53,456     92,013     178,643     270,656     195,814     466,470     154,795  
                                                             
Contingent Consideration   12,255     2,541     (366 )   (1,931 )   (2,297 )   (58 )   (2,355 )   (9,873 )   (12,228 )   (7,447 )
Goodwill Impairment   -     -     -     92,416     92,416     -     92,416     -     92,416     -  
Acquisition & Integration Expenses2   49,554     7,138     -     -     -     -     -     -     -     -  
Legal Contingency Costs   -     -     115,000     -     115,000     -     115,000     -     115,000     -  
Adjusted EBITDA   481,096     584,032     153,191     143,941     297,132     178,585     475,717     185,941     661,658     147,348  

 

 

1 Includes write-off of deferred debt origination fees of $3.8M in fiscal 2023

2 Includes lease impairment charge of $16.4M in fiscal 2023