Tetra Tech, Inc. (TTEK) Surpasses Q4 Expectations with Strong Revenue Growth
Monday, Nov 18, 2024 4:05 pm ET
4min read Tetra Tech, Inc. (TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, recently reported 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, managing water resources, and resilient infrastructure.
Tetra Tech's fiscal year 2024 results included record annual revenue of $5.20 billion, up 15% year-over-year (YoY), and record annual net revenue of $4.32 billion, also up 15% YoY. The company's operating income increased 40% YoY to $501 million, while earnings per share (EPS) and adjusted EPS both increased 21% YoY. Additionally, Tetra Tech's backlog grew 12% YoY to a record $5.38 billion, providing strong visibility into future growth.
The company's fourth quarter highlights included revenue of $1.37 billion, net revenue of $1.14 billion, operating income of $143 million, and EPS of $0.35, with adjusted EPS of $0.38. Tetra Tech's industry-leading days sales outstanding (DSO) of 55 days further demonstrates the company's strong financial performance.
Tetra Tech's strategic growth initiatives, such as investments in AI and software solutions, have significantly contributed to its record-breaking performance. The company's Government Services Group segment saw a 12% revenue increase and a strong margin expansion to 16.1%. These initiatives have enhanced Tetra Tech's competitive advantage in high-growth areas like water modernization and renewable energy, driving its all-time high backlog.
Tetra Tech's recent key wins, including a $12 billion multiple-award contract with the Defense Logistics Agency, a $5 billion multiple-award contract with USAID, and a $1 billion framework contract with Northern Ireland Water, further demonstrate the company's strong market position and growth potential.
Tetra Tech's Chairman and CEO, Dan Batrack, commented on the company's performance, "We completed the fourth quarter and fiscal year 2024 with another record year with 15% annual revenue growth and 21% annual EPS growth. Our all-time high fourth quarter and annual results were driven by increasing demand for our differentiated high-end consulting services for managing water resources and resilient infrastructure."
Tetra Tech's strong performance in fiscal year 2024 and the fourth quarter sets the stage for continued growth in 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 strategic focus on high-growth areas, coupled with its investments in AI and software solutions, positions the company well to capitalize on emerging opportunities in the water and environmental markets.
In conclusion, Tetra Tech, Inc. (TTEK) has surpassed Q4 expectations with strong revenue growth, driven by increasing demand for its differentiated high-end consulting services and strategic investments in AI and software solutions. The company's record-breaking performance, coupled with its strong backlog and key wins, sets the stage for continued growth and success in the future. Investors should closely monitor Tetra Tech's progress as it continues to expand its presence in high-growth areas and capitalize on emerging opportunities in the water and environmental markets.
Tetra Tech's fiscal year 2024 results included record annual revenue of $5.20 billion, up 15% year-over-year (YoY), and record annual net revenue of $4.32 billion, also up 15% YoY. The company's operating income increased 40% YoY to $501 million, while earnings per share (EPS) and adjusted EPS both increased 21% YoY. Additionally, Tetra Tech's backlog grew 12% YoY to a record $5.38 billion, providing strong visibility into future growth.
The company's fourth quarter highlights included revenue of $1.37 billion, net revenue of $1.14 billion, operating income of $143 million, and EPS of $0.35, with adjusted EPS of $0.38. Tetra Tech's industry-leading days sales outstanding (DSO) of 55 days further demonstrates the company's strong financial performance.
Tetra Tech's strategic growth initiatives, such as investments in AI and software solutions, have significantly contributed to its record-breaking performance. The company's Government Services Group segment saw a 12% revenue increase and a strong margin expansion to 16.1%. These initiatives have enhanced Tetra Tech's competitive advantage in high-growth areas like water modernization and renewable energy, driving its all-time high backlog.
Tetra Tech's recent key wins, including a $12 billion multiple-award contract with the Defense Logistics Agency, a $5 billion multiple-award contract with USAID, and a $1 billion framework contract with Northern Ireland Water, further demonstrate the company's strong market position and growth potential.
Tetra Tech's Chairman and CEO, Dan Batrack, commented on the company's performance, "We completed the fourth quarter and fiscal year 2024 with another record year with 15% annual revenue growth and 21% annual EPS growth. Our all-time high fourth quarter and annual results were driven by increasing demand for our differentiated high-end consulting services for managing water resources and resilient infrastructure."
Tetra Tech's strong performance in fiscal year 2024 and the fourth quarter sets the stage for continued growth in 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 strategic focus on high-growth areas, coupled with its investments in AI and software solutions, positions the company well to capitalize on emerging opportunities in the water and environmental markets.
In conclusion, Tetra Tech, Inc. (TTEK) has surpassed Q4 expectations with strong revenue growth, driven by increasing demand for its differentiated high-end consulting services and strategic investments in AI and software solutions. The company's record-breaking performance, coupled with its strong backlog and key wins, sets the stage for continued growth and success in the future. Investors should closely monitor Tetra Tech's progress as it continues to expand its presence in high-growth areas and capitalize on emerging opportunities in the water and environmental markets.
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