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Dec 28, 2025
Tetra Tech Q1 2026 Earnings Report
Tetra Tech reported strong first quarter 2026 results with increased revenue and adjusted EBITDA, and raised its fiscal year 2026 guidance.
Key Takeaways
Tetra Tech delivered a strong first quarter in fiscal year 2026, with total revenue reaching $1.21 billion and net revenue of $1.04 billion. The company reported an operating income of $141 million and adjusted EBITDA of $147 million, with adjusted EBITDA margin up 140 basis points year-over-year. EPS was $0.40 and adjusted EPS was $0.35. The company also announced two strategic acquisitions and raised its full-year fiscal 2026 guidance for net revenue and adjusted EPS.
Revenue reached $1.21 billion, with net revenue at $1.04 billion, reflecting an 8% increase excluding USAID/DOS and Q1-25 Hurricanes.
Operating income was $141 million and adjusted EBITDA was $147 million, with the adjusted EBITDA margin improving by 140 basis points year-over-year.
EPS was $0.40 and adjusted EPS was $0.35, with adjusted EPS up 17% year-over-year (excluding USAID/DOS).
The company completed two strategic acquisitions (Halvik and Providence) and secured significant contracts, including a $151 billion ten-year multiple award contract for the U.S. Missile Defense Agency SHIELD program.
Revenue by Segment
Forward Guidance
Tetra Tech is increasing its full-year fiscal 2026 guidance for net revenue to a range of $4.15 billion to $4.30 billion and adjusted EPS to a range of $1.46 to $1.56. For the second quarter of fiscal 2026, net revenue is expected to range from $975 million to $1.025 billion and EPS from $0.30 to $0.33.
Positive Outlook
- Increased full-year fiscal 2026 net revenue guidance to $4.15 billion - $4.30 billion.
- Increased full-year fiscal 2026 adjusted EPS guidance to $1.46 - $1.56.
- Continued strong demand for differentiated services in water, environment, and sustainable infrastructure.
- Growth in government business with municipal water and defense clients.
- Increase in power and transmission projects on the commercial side to support energy demand.
Challenges Ahead
- The guidance for net revenue and EPS is based on current expectations and is subject to material differences.
- Potential impact of future transactions or developments not included in the current outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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