Tetra Tech 2025 Q3 Earnings Strong Performance as Net Income Grows 32.7%

Tetra Tech (TTEK) reported its fiscal 2025 Q3 earnings on July 30th, 2025. Tetra Tech reported a solid performance, with earnings per share (EPS) of $0.43, exceeding the anticipated range of $0.35 to $0.40. The company also posted a strong net income increase of 32.7% year-over-year. Tetra Tech raised its fiscal 2025 guidance, projecting net revenue between $4.454 billion and $4.554 billion, and adjusted EPS in the range of $1.49 to $1.54, reflecting confidence in continued growth.

Revenue

Earnings/Net Income
Tetra Tech's EPS rose 34.4% to $0.43 in 2025 Q3 from $0.32 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $113.88 million in 2025 Q3, marking 32.7% growth from $85.82 million in 2024 Q3. The EPS improvement indicates strong financial performance.

Price Action
The stock price of Tetra Tech has edged down 1.07% during the latest trading day, has dropped 3.12% during the most recent full trading week, and has climbed 4.21% month-to-date.

Post Earnings Price Action Review
The strategy of buying Tetra Tech (TTEK) shares after their revenue increase quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy's compound annual growth rate (CAGR) was 12.53%, trailing the benchmark by 4.98 percentage points. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.40, the strategy indicated a low-risk profile. However, the 31.14% volatility reflected a relatively high level of market sensitivity, suggesting that while the approach had a stable risk aspect, it was still susceptible to market fluctuations.

CEO Commentary
Dan Batrack, Chairman and CEO, remarked, “Tetra Tech delivered another strong quarter with increasing revenue, record operating income, and significant operating margin expansion over the third quarter of last year. This performance is being driven by our high-end water, environmental and sustainable infrastructure services, which includes our clients’ increased funding for preparing and responding to natural disasters. Although the financial results for fiscal 2025 to date have exceeded our initial expectations, we are continuing to navigate the near-term financial impacts from the changes in U.S. federal government priorities and the related secondary impacts to our end markets.”

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, the company expects net revenue to range from $1.0 billion to $1.1 billion and EPS to range from $0.38 to $0.43.

Additional News
Tetra Tech recently announced the acquisition of SAGE Group Holdings Ltd, a leader in automation solutions, to bolster its digital systems offerings. The acquisition enhances Tetra Tech's capabilities in electrical and instrumentation design, cybersecurity, and cloud integration, aligning with its strategy to deliver advanced technology solutions. Additionally, the company secured a $990 million multiple-award contract with NAVFAC Pacific for engineering design, and a $10 million contract from the West Basin Municipal Water District to upgrade water systems in Los Angeles County. These strategic moves highlight Tetra Tech's commitment to expanding its market presence and technological expertise.