Tetra Tech: Fiscal Q4 Earnings Snapshot
Wednesday, Nov 13, 2024 5:14 pm ET
4min read Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, recently announced record results for both the fiscal year and fourth quarter ended September 29, 2024. The company's strong performance was driven by increasing demand for its differentiated high-end consulting services, strategic initiatives, and significant contract wins.
Fiscal Year Highlights
Tetra Tech's fiscal year 2024 was marked by impressive growth across key financial metrics. Revenue increased by 15% year-over-year (YoY) to $5.20 billion, while net revenue grew by 15% YoY to $4.32 billion. Operating income surged by 40% YoY to $501 million, and earnings per share (EPS) increased by 21% YoY to $1.23. The company's backlog also grew by 12% YoY to an all-time high of $5.38 billion.
Fourth Quarter Highlights
The fourth quarter of fiscal 2024 saw continued momentum for Tetra Tech. Revenue increased to $1.37 billion, and net revenue reached $1.14 billion. Operating income grew by 33% YoY to $143 million, while EPS increased by 75% YoY to $0.35. The company's industry-leading days sales outstanding (DSO) remained at 55 days.
Recent Key Wins
Tetra Tech's strong performance was bolstered by significant contract wins across various sectors. Some of the key wins include:
- A $12 billion multiple-award contract to deliver innovative technology solutions for the Defense Logistics Agency's most critical requirements in cybersecurity and systems modernization.
- A $5 billion multiple award contract to address complex resiliency challenges in countries around the world for the U.S. Agency for International Development (USAID).
- A $1 billion framework contract with Northern Ireland Water for support of sustainable water infrastructure projects.
- Multiple award contracts totaling $249 million and $225 million to provide environmental assessment and remediation services for the U.S. Army Corps of Engineers.
- $150 million in single award contracts to increase access for reliable water, sanitation, electricity, and sustainable infrastructure in Africa for USAID.
- A $30 million single award contract to provide watershed-focused restoration and resiliency services for the Utah Army National Guard.
Chairman and CEO Comments
Tetra Tech Chairman and CEO, Dan Batrack, commented on the company's record-breaking performance, "We completed the fourth quarter and fiscal year 2024 with another record year, driven by increasing demand for our differentiated high-end consulting services for managing water resources and resilient infrastructure. Our strong momentum in contract wins and a record backlog have led to forecasted EPS growth of 15% for fiscal 2025."
Quarterly Dividend and Share Repurchase Program
Tetra Tech's Board of Directors approved the Company's 42nd consecutive quarterly dividend at an amount of $0.058 per share, a 12% increase year-over-year. The dividend is payable on December 13, 2024, to stockholders of record as of November 27, 2024. The company has $348 million remaining under its $400 million share repurchase program.
Business Outlook
For the first quarter in fiscal 2025, Tetra Tech expects net revenue to range from $1.090 billion to $1.150 billion, and EPS to range from $0.32 to $0.34. For fiscal 2025, the company expects net revenue to range from $4.565 billion to $4.765 billion and EPS to range from $1.40 to $1.50.
Tetra Tech's impressive fiscal Q4 earnings snapshot highlights the company's strong performance and growth potential. The company's strategic initiatives, significant contract wins, and increasing demand for its services have contributed to its record-breaking financial results. With a positive outlook for fiscal 2025, Tetra Tech is well-positioned to continue its momentum and capitalize on emerging opportunities in the market.
Fiscal Year Highlights
Tetra Tech's fiscal year 2024 was marked by impressive growth across key financial metrics. Revenue increased by 15% year-over-year (YoY) to $5.20 billion, while net revenue grew by 15% YoY to $4.32 billion. Operating income surged by 40% YoY to $501 million, and earnings per share (EPS) increased by 21% YoY to $1.23. The company's backlog also grew by 12% YoY to an all-time high of $5.38 billion.
Fourth Quarter Highlights
The fourth quarter of fiscal 2024 saw continued momentum for Tetra Tech. Revenue increased to $1.37 billion, and net revenue reached $1.14 billion. Operating income grew by 33% YoY to $143 million, while EPS increased by 75% YoY to $0.35. The company's industry-leading days sales outstanding (DSO) remained at 55 days.
Recent Key Wins
Tetra Tech's strong performance was bolstered by significant contract wins across various sectors. Some of the key wins include:
- A $12 billion multiple-award contract to deliver innovative technology solutions for the Defense Logistics Agency's most critical requirements in cybersecurity and systems modernization.
- A $5 billion multiple award contract to address complex resiliency challenges in countries around the world for the U.S. Agency for International Development (USAID).
- A $1 billion framework contract with Northern Ireland Water for support of sustainable water infrastructure projects.
- Multiple award contracts totaling $249 million and $225 million to provide environmental assessment and remediation services for the U.S. Army Corps of Engineers.
- $150 million in single award contracts to increase access for reliable water, sanitation, electricity, and sustainable infrastructure in Africa for USAID.
- A $30 million single award contract to provide watershed-focused restoration and resiliency services for the Utah Army National Guard.
Chairman and CEO Comments
Tetra Tech Chairman and CEO, Dan Batrack, commented on the company's record-breaking performance, "We completed the fourth quarter and fiscal year 2024 with another record year, driven by increasing demand for our differentiated high-end consulting services for managing water resources and resilient infrastructure. Our strong momentum in contract wins and a record backlog have led to forecasted EPS growth of 15% for fiscal 2025."
Quarterly Dividend and Share Repurchase Program
Tetra Tech's Board of Directors approved the Company's 42nd consecutive quarterly dividend at an amount of $0.058 per share, a 12% increase year-over-year. The dividend is payable on December 13, 2024, to stockholders of record as of November 27, 2024. The company has $348 million remaining under its $400 million share repurchase program.
Business Outlook
For the first quarter in fiscal 2025, Tetra Tech expects net revenue to range from $1.090 billion to $1.150 billion, and EPS to range from $0.32 to $0.34. For fiscal 2025, the company expects net revenue to range from $4.565 billion to $4.765 billion and EPS to range from $1.40 to $1.50.
Tetra Tech's impressive fiscal Q4 earnings snapshot highlights the company's strong performance and growth potential. The company's strategic initiatives, significant contract wins, and increasing demand for its services have contributed to its record-breaking financial results. With a positive outlook for fiscal 2025, Tetra Tech is well-positioned to continue its momentum and capitalize on emerging opportunities in the market.
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