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Jan 01, 2023
Tetra Tech Q1 2023 Earnings Report
Tetra Tech achieved record high quarterly results in key financial metrics, including net revenue, operating margin, EPS and backlog.
Key Takeaways
Tetra Tech reported record first-quarter results for fiscal year 2023, with net revenue reaching $737 million and EPS at $2.18. The company's backlog increased to $3.81 billion, driven by strong performance in both government and commercial end markets. Tetra Tech also closed the acquisition of RPS Group, expanding its position in key markets and enhancing its expertise in climate change solutions.
Tetra Tech achieved record high net revenue and earnings.
Double-digit top line growth was seen across both government and commercial end markets.
New orders approached $1 billion, contributing to an all-time high backlog of $3.81 billion.
The company closed the RPS Group transaction, expanding its position in U.K. water programs and adding energy transformation expertise.
Tetra Tech
Tetra Tech
Forward Guidance
Tetra Tech expects EPS for the second quarter of fiscal 2023 to range from $1.03 to $1.08 and net revenue to range from $685 million to $735 million. For fiscal 2023, Tetra Tech is increasing EPS guidance to now range from $4.90 to $5.05 and is increasing net revenue guidance to range from $3.00 billion to $3.15 billion. RPS is expected to contribute additional net revenue of approximately $100 million in the second quarter and $400 million for fiscal 2023.
Positive Outlook
- EPS for the second quarter of fiscal 2023 is expected to range from $1.03 to $1.08.
- Net revenue for the second quarter of fiscal 2023 is expected to range from $685 million to $735 million.
- EPS guidance for fiscal 2023 is increased to range from $4.90 to $5.05.
- Net revenue guidance for fiscal 2023 is increased to range from $3.00 billion to $3.15 billion.
- RPS is expected to contribute additional net revenue of approximately $100 million in the second quarter and $400 million for fiscal 2023.
Challenges Ahead
- Excluding transaction, integration and intangible amortization expenses, is expected to be approximately $0.10 dilutive for the second quarter.
- Excluding transaction, integration and intangible amortization expenses, is expected to be approximately neutral impact for fiscal 2023.
- The 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.
- Reconciliation of adjusted EPS guidance to the most directly comparable GAAP measure is not available without unreasonable efforts.