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Jun 29
Tetra Tech Q3 2025 Earnings Report
Tetra Tech reported strong third quarter 2025 results with increased revenue, record operating income, and significant operating margin expansion.
Key Takeaways
Tetra Tech delivered a strong third quarter, exceeding expectations with revenue of $1.37 billion and net revenue of $1.15 billion. Operating income surged by 28% year-over-year to $165 million, and EPS increased by 34% to $0.43. The company also reported robust operating cash flow and a healthy backlog.
Revenue reached $1.37 billion, with net revenue at $1.15 billion.
Operating income increased by 28% year-over-year to $165 million.
EPS grew by 34% year-over-year to $0.43.
Operating cash flow was $350 million, a 148% increase year-over-year.
Tetra Tech
Tetra Tech
Forward Guidance
For fiscal 2025, Tetra Tech expects net revenue to range from $4.454 billion to $4.554 billion and adjusted EPS guidance to range from $1.49 to $1.54. For the fourth quarter of fiscal 2025, net revenue is expected to range from $1.0 billion to $1.1 billion and EPS from $0.38 to $0.43.
Positive Outlook
- Strong financial results for fiscal 2025 to date have exceeded initial expectations.
- Continued demand for high-end water, environmental, and sustainable infrastructure services.
- Increased client funding for preparing and responding to natural disasters.
- Board approved 45th consecutive quarterly dividend, a 12% increase year-over-year.
- Significant remaining share repurchase authorization of $648 million.
Challenges Ahead
- Near-term financial impacts from changes in U.S. federal government priorities.
- Related secondary impacts to end markets from U.S. federal government priority changes.
- Potential impact of transactions that may be completed or developments that become evident after the release date are not included in guidance.
- Guidance does not include reconciliation of net revenue to GAAP due to prediction difficulties.
- Adjustments in EPS guidance exclude legal contingency and goodwill impairment.