Tetra Tech Backlog Jumps 13% to Record $4.67 Billion
Key Facts
Tetra Tech’s backlog reached a record $4.67 billion at the end of the fourth quarter of fiscal 2026, up 13% year over year, according to results published by the company on November 11. The company said quarterly net revenue was $1.15 billion, while adjusted earnings per share came in at $0.49, up 9% from the year-earlier period. The figures point to growth in both contracted work and reported financial performance. During the quarter, the company received more than $1.6 billion in new orders, the CEO said on the earnings call. The orders included more than $600 million in commercial work globally, reflecting broad-based demand across the company’s government and commercial businesses.
Total revenue was $1.34 billion for the quarter, compared with net revenue of $1.15 billion after excluding subcontractor costs, according to Tetra Tech’s statement. The company reported basic earnings per share of $0.51, alongside adjusted earnings per share of $0.49. Net revenue rose 5% year over year excluding nonrecurring disaster response work, a measure that separates the effect of that work from growth in the company’s regular business. Adjusted EBITDA margin also increased 90 basis points year over year in the quarter. For fiscal 2026, cash flow from operations rose 14%, the company said.
The CEO said the strong quarter was underpinned by the performance of the company’s commercial and government businesses globally, citing rising demand for water and environmental services, including digital automation, and resilient infrastructure design. Large government contracts featured among the key work the company announced with its results. They included a $1.4 billion multiple-award purchase agreement for enterprise logistics services for NASA. The company also announced a $145 million multiple-award contract for engineering and consulting services for the U.S. Navy, and a $141 million contract to assess water infrastructure for the U.S. Environmental Protection Agency. The company said its strong backlog provides a foundation for the coming fiscal year, and that it expects revenue growth and margin expansion to continue.
For the fiscal year ended, revenue was $5.08 billion and net revenue was $4.35 billion. Annual net revenue increased 7% excluding work for the U.S. Agency for International Development and the U.S. Department of State, as well as nonrecurring disaster response work, according to the company’s statement. That places adjusted quarterly growth within a broader annual trajectory, with the comparison still tied to the exclusions specified by the company. Meanwhile, quarterly adjusted earnings per share exceeded analysts’ estimate of $0.47, while net revenue was in line with the estimate of $1.15 billion, according to Investing.com. The site reported that the stock rose 11.27% after the results were announced on November 11.
Tetra Tech expects first-quarter fiscal 2027 earnings per share of between $0.36 and $0.38 and net revenue of between $1.04 billion and $1.08 billion. For fiscal 2027, the company set a range of $1.65 to $1.80 for earnings per share and $4.425 billion to $4.625 billion for net revenue. The midpoint of the first-quarter earnings-per-share guidance is $0.37, below analysts’ consensus, according to Investing.com. The CEO said on the earnings call that the U.S. midterm elections open a period of transition, and that the company’s experience and breadth of contracts position it to respond to new federal and local priorities and programs. In a separate development dated November 12, Baird analyst Andrew Wittmann raised his price target on the stock from $37 to $40, while maintaining a Neutral rating.
The company’s board approved a quarterly dividend of $0.072 per share on November 9, an 11% increase year over year. The dividend is scheduled to be paid on December 11, 2026, to shareholders of record on December 2. The specified payment adds to the company’s operating outlook for the new fiscal year, while backlog and new orders remain indicators of the volume of work added to its books during the quarter. The fiscal 2027 guidance range sets a benchmark for tracking revenue and earnings-per-share performance in the coming periods. Management also ties its confidence in continued growth and margin expansion to backlog momentum and its ability to adapt to changing government priorities.