Tetra Tech Closes Fiscal 2026 With Record Earnings

The Tip Desk · November 12, 2026 · 3 min read

Fourth-quarter diluted earnings were a record $0.51 a share, and backlog reached $4.67 billion, up 13% from a year earlier.

Tetra Tech, Inc. (TTEK), a global provider of high-end technical and engineering services in water, environment and sustainable infrastructure, reported record fourth-quarter earnings and closed fiscal 2026 with a 90-basis-point expansion in adjusted EBITDA margin.

Revenue in the quarter ended September 27, 2026 was $1.34 billion. Net revenue, after subcontractor costs, was $1.15 billion, up 5% year-over-year excluding episodic disaster response. Diluted EPS was $0.51 and adjusted EPS was $0.49, up 9% from a year earlier. Operating income was $188 million and adjusted EBITDA was $194 million.

Fourth-quarter EPS of $0.51 exceeded the $0.45 to $0.48 outlook set after the third quarter, while net revenue of $1.15 billion was within the $1.12 billion to $1.17 billion range. In July it raised fiscal 2026 adjusted EPS guidance to $1.56 to $1.59 and narrowed net revenue to $4.315 billion to $4.365 billion. Actual fiscal 2026 adjusted EPS of $1.60 exceeded guidance, while net revenue of $4.35 billion was within guidance. Full-year GAAP EPS was $1.69.

For the full year, revenue was $5.08 billion. Net revenue increased 7% versus the prior year excluding USAID/DOS and episodic disaster response. Operating income was $619 million and adjusted EBITDA was $660 million. Cash flows from operations were up 14% year-over-year.

Backlog was $4.67 billion at year-end, up 13% from a year earlier. Chief Executive Officer Roger Argus said key client programs in water supply, coastal infrastructure and defense modernization drove backlog up by more than $530 million. He said the company continues to see increasing demand for Leading with Science technical services, including digital automation for associated facilities.

Recent wins included a $1.4 billion multiple-award blanket purchase agreement for enterprise logistics services for NASA, a $145 million engineering and technical consulting contract for the U.S. Navy, a $141 million water infrastructure assessment contract for the U.S. EPA, and $85 million of environmental services awards for USACE Europe District.

Sequential net revenue growth slowed. Fourth-quarter net revenue of $1.15 billion followed $1.11 billion in the third quarter and $1.05 billion in the second. Operating income rose from $158 million in the third quarter and $132 million in the second. EPS was $0.42 in the third quarter and $0.36 in the second.

Chief Financial Officer Steve Burdick said the company continued to increase profit margins in fiscal 2026 and that balance-sheet strength and cash flow generation position it to invest in organic growth and strategic acquisitions.

On November 9, the board approved a quarterly dividend of $0.072 a share, an 11% increase year-over-year and the 46th consecutive double-digit dividend increase. Tetra Tech repurchased $100 million of common stock in the fourth quarter and had $798 million remaining under its repurchase program as of September 27, 2026.

For the first quarter of fiscal 2027, Tetra Tech expects EPS of $0.36 to $0.38 and net revenue of $1.04 billion to $1.08 billion. That compares with the prior fourth-quarter outlook of net revenue $1.12 billion to $1.17 billion and EPS $0.45 to $0.48. For fiscal 2027, the company expects EPS of $1.65 to $1.80 and net revenue of $4.425 billion to $4.625 billion.