Tetra Tech's Record Q4 2024: Driving Growth Through Strategic Wins
Friday, Nov 15, 2024 3:26 am ET
4min read Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, reported record fiscal 2024 and fourth quarter results, marking another year of strong growth. The company's impressive performance was driven by a series of strategic contract wins and a robust backlog, positioning it well for continued success.
Fiscal Year Highlights
Tetra Tech's record annual revenue reached $5.20 billion, up 15% year-over-year (Y/Y), while net revenue increased 15% Y/Y to $4.32 billion. Operating income surged 40% Y/Y to $501 million, and earnings per share (EPS) grew 21% Y/Y to $1.23. The company's backlog also increased 12% Y/Y to an all-time high of $5.38 billion.
Fourth Quarter Highlights
Tetra Tech's fourth quarter revenue increased to $1.37 billion, with net revenue reaching $1.14 billion. Operating income grew 33% Y/Y to $143 million, and EPS increased 75% Y/Y to $0.35. The company's industry-leading days sales outstanding (DSO) remained at 55 days, indicating strong cash flow management.
Key Contract Wins
Tetra Tech's record-breaking year was fueled by several significant contract wins, including:
* A $12 billion multiple-award contract with the Defense Logistics Agency for innovative technology solutions in cybersecurity and systems modernization.
* A $5 billion multiple-award contract with the U.S. Agency for International Development (USAID) to address complex resiliency challenges in countries around the world.
* A $1 billion framework contract with Northern Ireland Water for support of sustainable water infrastructure projects.
* A $249 million multiple-award contract with the U.S. Army Corps of Engineers for environmental assessment and sustainable design services.
* A $30 million single-award contract with the Utah Army National Guard for watershed-focused restoration and resiliency services.
These strategic wins, along with others, contributed to Tetra Tech's strong financial performance and backlog growth.
Chairman and CEO Comments
Tetra Tech Chairman and CEO, Dan Batrack, commented on the company's impressive results, "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 record backlog position us well for continued growth in fiscal 2025."
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 record-breaking fiscal 2024 and fourth quarter results demonstrate the company's ability to capitalize on strategic opportunities and maintain a strong pipeline of growth. With a focus on water, environment, and sustainable infrastructure, Tetra Tech is well-positioned to continue driving value for shareholders and making a positive impact on the world.
Fiscal Year Highlights
Tetra Tech's record annual revenue reached $5.20 billion, up 15% year-over-year (Y/Y), while net revenue increased 15% Y/Y to $4.32 billion. Operating income surged 40% Y/Y to $501 million, and earnings per share (EPS) grew 21% Y/Y to $1.23. The company's backlog also increased 12% Y/Y to an all-time high of $5.38 billion.
Fourth Quarter Highlights
Tetra Tech's fourth quarter revenue increased to $1.37 billion, with net revenue reaching $1.14 billion. Operating income grew 33% Y/Y to $143 million, and EPS increased 75% Y/Y to $0.35. The company's industry-leading days sales outstanding (DSO) remained at 55 days, indicating strong cash flow management.
Key Contract Wins
Tetra Tech's record-breaking year was fueled by several significant contract wins, including:
* A $12 billion multiple-award contract with the Defense Logistics Agency for innovative technology solutions in cybersecurity and systems modernization.
* A $5 billion multiple-award contract with the U.S. Agency for International Development (USAID) to address complex resiliency challenges in countries around the world.
* A $1 billion framework contract with Northern Ireland Water for support of sustainable water infrastructure projects.
* A $249 million multiple-award contract with the U.S. Army Corps of Engineers for environmental assessment and sustainable design services.
* A $30 million single-award contract with the Utah Army National Guard for watershed-focused restoration and resiliency services.
These strategic wins, along with others, contributed to Tetra Tech's strong financial performance and backlog growth.
Chairman and CEO Comments
Tetra Tech Chairman and CEO, Dan Batrack, commented on the company's impressive results, "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 record backlog position us well for continued growth in fiscal 2025."
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 record-breaking fiscal 2024 and fourth quarter results demonstrate the company's ability to capitalize on strategic opportunities and maintain a strong pipeline of growth. With a focus on water, environment, and sustainable infrastructure, Tetra Tech is well-positioned to continue driving value for shareholders and making a positive impact on the world.
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