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Apr 02, 2023

Tetra Tech Q2 2023 Earnings Report

Tetra Tech achieved record quarterly results driven by strong double-digit top line growth across government and commercial end markets.

Key Takeaways

Tetra Tech reported record second-quarter results with revenue reaching $1.16 billion and net revenue at $970 million, up 36% and 39% year-over-year, respectively. Adjusted EPS increased by 19% to $1.17, and backlog hit a record high of $4.27 billion, up 18% year-over-year. The company is increasing its net revenue and adjusted EPS guidance for fiscal year 2023.

Revenue totaled $1.16 billion, a 36% increase year-over-year.

Net revenue was $970 million, up 39% year-over-year.

Adjusted EPS was $1.17, a 19% increase over the second quarter of fiscal 2022.

Backlog increased to a record high of $4.27 billion, up 18% year-over-year.

Total Revenue
$970M
Previous year: $700M
+38.6%
EPS
$0.23
Previous year: $0.2
+15.0%
Gross Profit
$171M
Previous year: $135M
+26.4%
Cash and Equivalents
$231M
0
Free Cash Flow
$82.6M
0
Total Assets
$3.99B
Previous year: $2.65B
+50.6%

Tetra Tech

Tetra Tech

Forward Guidance

Tetra Tech is increasing adjusted EPS guidance to range from $5.07 to $5.17 and is increasing net revenue guidance to range from $3.10 billion to $3.20 billion for fiscal 2023. Tetra Tech expects adjusted EPS for the third quarter of fiscal 2023 to range from $1.15 to $1.20 and net revenue to range from $750 million to $800 million.

Positive Outlook

  • Adjusted EPS guidance increased to $5.07 - $5.17 for fiscal 2023.
  • Net revenue guidance increased to $3.10B - $3.20B for fiscal 2023.
  • Adjusted EPS for Q3 2023 expected to be $1.15 - $1.20.
  • Net revenue for Q3 2023 expected to be $750M - $800M.
  • RPS is expected to contribute additional net revenue of approximately $150 million to $175 million in the third quarter and $450 million to $500 million for fiscal 2023.