Tetra Tech Reports Robust Fourth Quarter and Fiscal 2025 Results, Driven by Record Revenues and Expanding Margins
Tetra Tech, Inc. (NASDAQ: TTEK), a global leader in high-end consulting and engineering services focused on water, environment, and sustainable infrastructure, today announced strong financial results for the fourth quarter and fiscal year ended September 28, 2025. The company delivered record performance across multiple metrics, reflecting strong market demand for its specialized expertise and resilient business strategy.
Fourth Quarter 2025 Highlights
(Excluding USAID and U.S. Department of State (DOS) programs)
- Revenue: $1.23 billion, up 6% year-over-year (Y/Y)
- Net Revenue: $1.07 billion, an increase of 10% Y/Y
- Adjusted Operating Income: $168 million, up 23% Y/Y
- Adjusted EPS: $0.44, representing 29% growth Y/Y
Tetra Tech closed fiscal 2025 on a high note, achieving record fourth-quarter revenue and profitability driven by broad-based growth in water management, environmental consulting, and digital water automation services. The results underscore the company’s ability to generate sustainable earnings even amid shifting government priorities and macroeconomic challenges.
Fiscal 2025 Full-Year Highlights
- Total Revenue: $4.79 billion, a 9% increase Y/Y
- Net Revenue: $4.06 billion, up 10% Y/Y
- Adjusted Operating Income: $563 million, a 24% increase Y/Y
- Adjusted EPS: $1.45, reflecting 31% growth Y/Y
For the full year, Tetra Tech reported its highest-ever net revenue and earnings, supported by disciplined project execution, operational efficiency, and strategic positioning in high-demand sectors such as water infrastructure, environmental restoration, and sustainable development.
Key Contract Wins in 2025
Tetra Tech’s strong financial performance was bolstered by major contract awards across federal, defense, and international markets, reinforcing its leadership in sustainable engineering solutions. Among its notable wins:
- A $500 million multiple-award contract for environmental services with the U.S. Army Corps of Engineers (USACE) Baltimore District
- A $249 million multiple-award contract for planning and engineering services with USACE Mobile District
- A $240 million single-award contract for environmental assessment services for the U.S. Navy
- A $240 million multiple-award contract for planning and engineering services with USACE Norfolk District
- A $38 million contract for transmission and distribution services with an Irish grid operator
- A $23 million single-award contract for water engineering services with Portsmouth Water (U.K.)
- An $18 million single-award contract for high-voltage energy design services for a U.S. commercial client
These contracts highlight Tetra Tech’s strong positioning as a trusted partner for public and private clients seeking to address complex water, energy, and infrastructure challenges globally.
Dividend and Share Repurchase Program
On November 10, 2025, the company’s Board of Directors approved its 46th consecutive quarterly dividend, increasing it by 12% year-over-year to $0.065 per share. The dividend will be payable on December 12, 2025, to stockholders of record as of December 1, 2025.
During the fourth quarter, Tetra Tech repurchased $50 million in common stock as part of its ongoing capital return strategy. As of September 28, 2025, the company maintained a robust capital position, with $598 million remaining authorized under its approved share repurchase programs.
Executive Commentary
Dan Batrack, Chairman and CEO of Tetra Tech, expressed pride in the company’s strong results:
“We finished fiscal 2025 with another outstanding quarter, achieving record net revenue, record operating income, and significant operating margin expansion. These all-time highs reflect the continued strong demand for our differentiated consulting services in resilient water management and digital water automation. Our strategic focus on essential water and environmental solutions has enabled us to deliver exceptional results, even as U.S. federal government priorities evolved during the year.”
Roger Argus, President of Tetra Tech, emphasized the company’s growth outlook and expanding technical capabilities:
“Looking ahead to fiscal 2026 and beyond, we anticipate continued growth in high-end services supporting the development of water-reliant infrastructure such as data centers and industrial manufacturing facilities. Our high-voltage engineering practice, for example, doubled its backlog in the fourth quarter. Additionally, our front-end consulting and engineering services remain critical to the expansion and protection of coastal and marine infrastructure for defense clients worldwide.”
Fiscal 2026
Building on its record 2025 performance, Tetra Tech expects sustained growth and profitability in fiscal 2026. The company provided the following guidance, based on current expectations and excluding the impact of future acquisitions or unforeseen developments:
- Net Revenue: Expected to range between $4.05 billion and $4.25 billion, representing 5% to 11% growth year-over-year (excluding USAID, DOS, and episodic disaster recovery work from fiscal 2025)
- Earnings per Share (EPS): Expected between $1.40 and $1.55
For the first quarter of fiscal 2026, Tetra Tech anticipates net revenue between $950 million and $1.0 billion and EPS in the range of $0.30 to $0.33.
The company reiterated its commitment to maintaining a strong balance sheet and disciplined capital allocation strategy while investing in innovation, sustainability, and talent to drive long-term value creation.Tetra Tech, Inc. is a leading provider of consulting and engineering services that deliver innovative solutions in water, environment, sustainable infrastructure, renewable energy, and resource management. With 27,000 employees working on projects in more than 100 countries, Tetra Tech combines science, engineering, and technology to deliver practical, data-driven results that create a positive impact for clients and communities worldwide
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