# TETRA TECH INC (TTEK)

Informational only - not investment advice.

CIK: 0000831641
SIC: 8711 Services-Engineering Services
SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 87](/major-group/87/) > [SIC 8711 Services-Engineering Services](/industry/8711/)
Latest 10-K filed: 2025-11-20
SEC page: https://www.sec.gov/edgar/browse/?CIK=831641
Filing source: https://www.sec.gov/Archives/edgar/data/831641/000083164125000032/ttek-20250928.htm

## At a glance

FY2025 · period end 2025-09-28 · filed 2025-11-20 · accession 0000831641-25-000032 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000831641.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 5,442,590,000 USD | 2025 | verified |
| Net income | 247,949,000 USD | 2025 | verified |
| Assets | 4,282,174,000 USD | 2025 | verified |
| Free cash flow | 439,052,000 USD | 2025 | computed |
| Net margin | 4.56% | 2025 | computed |
| Operating margin | 7.50% | 2025 | computed |
| Revenue YoY | +4.69% | 2025 | computed |
| ROE | 13.93% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | TTEK | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.6% | 4.0% | 55 | 34 |
| Operating margin | 7.5% | 6.9% | 55 | 34 |
| Revenue growth | 4.7% | 3.7% | 56 | 35 |
| FCF margin | 8.1% | 8.1% | 50 | 35 |
| ROE | 13.9% | 9.9% | 53 | 35 |
| ROA | 5.8% | 4.5% | 59 | 35 |
| Liabilities / equity | 1.41 | 1.41 | 50 | 35 |
| Current ratio | 1.18 | 1.40 | 29 | 35 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 87 SIC Major Group 87, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 5442590000 | USD | 2025 | 2025-11-20 |
| Net income | 247949000 | USD | 2025 | 2025-11-20 |
| Assets | 4282174000 | USD | 2025 | 2025-11-20 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000831641.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 2,753,360,000 | 2,964,148,000 | 3,107,348,000 | 2,994,891,000 | 3,213,513,000 | 3,504,048,000 | 4,522,550,000 | 5,198,679,000 | 5,442,590,000 |
| Net income | 83,853,000 | 117,917,000 | 136,957,000 | 158,761,000 | 173,890,000 | 232,831,000 | 263,164,000 | 273,452,000 | 333,443,000 | 247,949,000 |
| Operating income | 135,855,000 | 183,342,000 | 190,086,000 | 188,762,000 | 241,091,000 | 278,701,000 | 340,446,000 | 358,113,000 | 500,737,000 | 408,419,000 |
| Gross profit | 330,211,000 | 353,638,000 | 384,458,000 | 408,183,000 | 446,535,000 | 498,400,000 | 575,559,000 | 725,029,000 | 866,440,000 | 961,344,000 |
| Diluted EPS | 1.42 | 2.04 | 2.42 | 2.84 | 3.16 | 4.26 | 0.97 | 1.02 | 1.23 | 0.93 |
| Operating cash flow | 142,020,000 | 141,487,000 | 185,733,000 | 208,513,000 | 262,479,000 | 304,372,000 | 336,188,000 | 368,463,000 | 358,708,000 | 457,685,000 |
| Capital expenditures | 11,945,000 | 9,741,000 | 9,726,000 | 16,198,000 | 12,245,000 | 8,573,000 | 10,582,000 | 26,901,000 | 18,135,000 | 18,633,000 |
| Dividends paid | 19,735,000 | 21,672,000 | 24,477,000 | 29,674,000 | 34,743,000 | 40,041,000 | 46,099,000 | 52,113,000 | 58,828,000 | 65,039,000 |
| Share buybacks | 99,500,000 | 100,000,000 | 75,000,000 | 100,000,000 | 117,188,000 | 60,000,000 | 200,000,000 | 0.00 | 0.00 | 249,984,000 |
| Assets | 1,800,779,000 | 1,902,745,000 | 1,959,421,000 | 2,147,408,000 | 2,378,558,000 | 2,576,562,000 | 2,622,776,000 | 3,820,477,000 | 4,192,676,000 | 4,282,174,000 |
| Stockholders' equity | 869,259,000 | 928,453,000 | 966,971,000 | 989,286,000 | 1,037,319,000 | 1,234,238,000 | 1,183,087,000 | 1,403,433,000 | 1,830,322,000 | 1,779,785,000 |
| Cash and cash equivalents | 160,459,000 | 189,975,000 | 146,185,000 | 120,732,000 | 157,515,000 | 166,568,000 | 185,094,000 | 168,831,000 | 232,689,000 | 167,459,000 |
| Free cash flow | 130,075,000 | 131,746,000 | 176,007,000 | 192,315,000 | 250,234,000 | 295,799,000 | 325,606,000 | 341,562,000 | 340,573,000 | 439,052,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 4.28% | 4.62% | 5.11% | 5.81% | 7.25% | 7.51% | 6.05% | 6.41% | 4.56% |
| Operating margin |  | 6.66% | 6.41% | 6.07% | 8.05% | 8.67% | 9.72% | 7.92% | 9.63% | 7.50% |
| Return on equity | 9.65% | 12.70% | 14.16% | 16.05% | 16.76% | 18.86% | 22.24% | 19.48% | 18.22% | 13.93% |
| Return on assets | 4.66% | 6.20% | 6.99% | 7.39% | 7.31% | 9.04% | 10.03% | 7.16% | 7.95% | 5.79% |
| Liabilities / equity | 1.07 | 1.05 | 1.03 | 1.17 | 1.29 | 1.09 | 1.22 | 1.72 | 1.29 | 1.41 |
| Current ratio | 1.94 | 1.94 | 1.70 | 1.40 | 1.26 | 1.26 | 1.26 | 1.12 | 1.25 | 1.18 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/TTEK/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000831641.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2023-01-01 |  |  | 2.18 | reported discrete quarter |
| 2023-Q2 | 2023-04-02 |  |  | 0.80 | reported discrete quarter |
| 2023-Q3 | 2023-07-02 |  |  | 1.12 | reported discrete quarter |
| 2023-Q4 | 2023-10-01 | 1,260,612,000 | 53,658,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 | 1,228,267,000 | 74,980,000 | 1.40 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 1,251,616,000 | 76,459,000 | 1.42 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 1,344,323,000 | 85,824,000 | 1.59 | reported discrete quarter |
| 2024-Q4 | 2024-09-29 | 1,374,474,000 | 96,180,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-29 | 1,420,561,000 | 778,000 | 0.00 | reported discrete quarter |
| 2025-Q2 | 2025-03-30 | 1,322,113,000 | 5,412,000 | 0.02 | reported discrete quarter |
| 2025-Q3 | 2025-06-29 | 1,369,816,000 | 113,883,000 | 0.43 | reported discrete quarter |
| 2025-Q4 | 2025-09-28 | 1,330,100,000 | 127,876,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-28 | 1,210,663,000 | 105,222,000 | 0.40 | reported discrete quarter |
| 2026-Q2 | 2026-03-29 | 1,220,157,000 | 93,798,000 | 0.36 | reported discrete quarter |
| 2026-Q3 | 2026-06-28 | 1,308,555,000 | 109,801,000 | 0.42 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from TTEK's latest 10-K: [/company/TTEK/business/](/company/TTEK/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from TTEK's latest 10-K: [/company/TTEK/risk-factors/](/company/TTEK/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/831641/000083164126000017/ttek-20260628.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-28

Item 2.         Management’s Discussion and Analysis of Financial Condition and Results of Operations

 FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our future results that are subject to the safe harbor provisions created under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “estimates,” “seeks,” “continues,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict, including those identified below under “Part II, Item 1A. Risk Factors,” and elsewhere herein. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

GENERAL OVERVIEW

Tetra Tech, Inc. is a leading global provider of high-end technical and engineering services that focuses on water, environment and sustainable infrastructure. We are a global company that is Leading with Science® to provide innovative solutions for our public and private clients. We typically begin at the earliest stage of a project by identifying technical solutions and developing execution plans tailored to our clients' needs and resources.

Our reputation for high-end technical and engineering services and our ability to develop solutions for water and environmental management has supported our growth for 60 years. Our market leading climate mitigation and adaptation services are solving our clients' most complex challenges related to coastal flooding, water security, energy transition and biodiversity protection. Today, we are proud to be making a difference in people’s lives worldwide through our high-end technical and engineering service offerings. We are working on over 100,000 projects, in more than 100 countries on all seven continents, with more than 25,000 associates. We are Leading with Science® throughout our operations, with domain experts across multiple disciplines supported by our advanced analytics, artificial intelligence, machine learning and digital technology solutions. Our ability to provide innovative and first-of-kind solutions is enhanced by partnerships with our forward-thinking clients. We embrace the breadth of experience across our talented workforce worldwide with a culture of innovation and entrepreneurship. We are disciplined in our business, and focused on delivering value to customers and high performance for our shareholders. In supporting our clients, we seek to add value and provide long-term sustainable consulting, engineering and technology solutions.

We derive income from fees for professional, technical, program management and construction management services. As primarily a professional services company, we are labor-intensive rather than capital-intensive. Our revenue is driven by our ability to attract and retain qualified and productive employees, identify business opportunities, secure new and renew existing client contracts, provide outstanding services to our clients and execute projects successfully. We provide services to a diverse base of U.S. federal government, U.S. state and local government, U.S. commercial and international clients.

The following table presents the percentage of our revenue by client sector:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["June 28, 2026","","June 29, 2025","","June 28, 2026","","June 29, 2025"],["Client Sector"],["U.S. federal government (1)","25.9","%","","33.0","%","","24.7","%","","33.2","%"],["U.S. state and local government","13.3","","","13.8","","","14.0","","","14.6"],["U.S. commercial","18.0","","","16.2","","","17.8","","","16.2"],["International (2)","42.8","","","37.0","","","43.5","","","36.0"],["Total","100.0","%","","100.0","%","","100.0","%","","100.0","%"]]
[[/GREPCENT_TABLE]]

(1)    Includes revenue generated under U.S. federal government contracts performed outside the United States.

(2)    Includes revenue generated from non-U.S. clients, primarily in Australia, Canada and the United Kingdom.

We manage our operations under two reportable segments: Government Services Group reportable segment and Commercial/International Services Group reportable segment.

27

Government Services Group (“GSG”).  GSG provides high-end technical and engineering services primarily to U.S. government clients (federal, state and local). GSG supports U.S. government defense and civilian agencies with services in water, environment, sustainable infrastructure, information technology and disaster management. GSG also provides engineering design services for U.S. based federal and municipal clients, especially in water infrastructure, flood protection and solid waste.

Commercial/International Services Group (“CIG”).  CIG primarily provides high-end technical and engineering services to U.S. commercial clients, and international clients inclusive of the commercial and government sectors. CIG supports commercial clients worldwide in energy, industrial and high performance buildings markets. CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), Europe, the United Kingdom and Brazil.

The following table presents the percentage of our revenue by reportable segment:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 28, 2026","","June 29, 2025","","June 28, 2026","","June 29, 2025"],["Reportable Segment"],["GSG","45.7","%","","51.8","%","","45.0","%","","53.5","%"],["CIG","55.7","","","49.4","","","56.4","","","47.6"],["Inter-segment elimination","(1.4)","","","(1.2)","","","(1.4)","","","(1.1)"],["Total","100.0","%","","100.0","%","","100.0","%","","100.0","%"]]
[[/GREPCENT_TABLE]]

Our services are performed under three principal types of contracts with our clients: fixed-price, time-and-materials and cost-plus. The following table presents the percentage of our revenue by contract type:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 28, 2026","","June 29, 2025","","June 28, 2026","","June 29, 2025"],["Contract Type"],["Fixed-price","48.5","%","","46.2","%","","48.0","%","","40.8","%"],["Time-and-materials","42.0","","","43.5","","","43.2","","","43.8"],["Cost-plus","9.5","","","10.3","","","8.8","","","15.4"],["Total","100.0","%","","100.0","%","","100.0","%","","100.0","%"]]
[[/GREPCENT_TABLE]]

Under fixed-price contracts, clients agree to pay a specified price for our performance of the entire contract or a specified portion of the contract. Under time-and-materials contracts, we are paid for labor at negotiated hourly billing rates and paid for other expenses. Under cost-plus contracts, some of which are subject to a contract ceiling amount, we are reimbursed for allowable costs plus fees, which may be fixed or performance-based. Profitability on these contracts is driven by billable headcount and our cost control. Revenue is recognized by measuring progress over time under Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers". We estimate and measure progress on our contracts over time whereby we compare our total costs incurred on each contract as a percentage of the total expected contract costs. Changes in those estimates could result in the recognition of cumulative catch-up adjustments to the contract’s inception-to-date revenue, costs and profit in the period in which such changes are made. On a quarterly basis, we review and assess our revenue and cost estimates for each significant contract. Changes in revenue and cost estimates could also result in a projected loss that would be recorded immediately in earnings.

Other contract costs include professional compensation and related benefits, together with certain direct and indirect overhead costs such as rents, utilities and travel. Professional compensation represents a large portion of these costs. Our "Selling, general and administrative expenses" ("SG&A") are comprised primarily of marketing and bid and proposal costs, and our corporate headquarters’ costs related to the executive offices, finance, accounting, administration and information technology. Our SG&A expenses also include a portion of stock-based compensation and depreciation of property and equipment related to our corporate headquarters, and the amortization of identifiable intangible assets. Most of these costs are unrelated to specific clients or projects, and can vary as expenses are incurred to support company-wide activities and initiatives.

We experience seasonal trends in our business. Our revenue and operating income are typically lower in the first nine months of our fiscal year, primarily due to the Thanksgiving (in the U.S. and Canada), Christmas and New Year’s holidays. Many of our clients’ employees, as well as our own employees, take vacations during these holiday periods. Further, seasonal inclement weather conditions occasionally cause some of our offices to close temporarily or may hamper our project

28

field work in the northern hemisphere's temperate and arctic regions. These occurrences result in fewer billable hours worked on projects and, correspondingly, less revenue recognized.

ACQUISITIONS AND DIVESTITURES

Acquisitions.  We continuously evaluate the marketplace for acquisition opportunities to further our strategic growth plans. Due to our reputation, size, financial resources, geographic presence and range of services, we have numerous opportunities to acquire privately and publicly held companies or selected portions of such companies. We evaluate an acquisition opportunity based on its ability to strengthen our leadership in the markets we serve, the technologies and solutions they provide and the additional new geographies and clients they bring. Also, during our evaluation, we examine an acquisition's ability to drive organic growth, its accretive effect on long-term earnings and its ability to generate return on investment. Generally, we proceed with an acquisition if we believe that it will strategically expand our service offerings, improve our long-term financial performance and increase shareholder returns.

We view acquisitions as a key component in the execution of our growth strategy, and we intend to use cash, debt or equity, as we deem appropriate, to fund acquisitions. We may acquire other businesses that we believe are synergistic and will ultimately increase our revenue and net income, strengthen our ability to achieve our strategic goals, provide critical mass with existing clients and further expand our lines of service. We typically pay a purchase price that results in the recognition of goodwill, generally representing the intangible value of a successful business with an assembled workforce specialized in our areas of interest. Acquisitions are inherently risky, and no assuran

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/831641/000083164125000032/ttek-20250928.htm
Complete FY 2025 MD&A: /company/TTEK/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2025-11-20
Report date: 2025-09-28

Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

The following analysis of our financial condition and results of operations should be read in conjunction with Part I of this report, as well as our consolidated financial statements and accompanying notes in Item 8. The following analysis contains forward-looking statements about our future results of operations and expectations. Our actual results and the timing of events could differ materially from those described herein. See Part 1, Item 1A, "Risk Factors" for a discussion of the risks, assumptions and uncertainties affecting these statements.

The discussion and analysis for fiscal 2024 compared to fiscal 2023 can be found under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 29, 2024.

32

OVERVIEW OF RESULTS AND BUSINESS TRENDS

General. Our revenue growth of 4.7% in fiscal 2025 was primarily due to increased activity in the U.S. state and local and U.S. federal government client sectors. The overall growth includes $80 million from our recent acquisitions, that did not have comparable revenue for fiscal 2024. Excluding the impact of these acquisitions, our revenue increased 3.2% compared to last fiscal year.

The table below presents our revenue by client sector (amounts in thousands):

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["Client sector"],["U.S. federal government (1)","$","1,718,831","","","$","1,675,996","","","$","42,835","","","2.6%"],["U.S. state and local government","789,968","","","613,185","","","176,783","","","28.8"],["U.S. commercial","899,298","","","909,642","","","(10,344)","","","(1.1)"],["International (2)","2,034,493","","","1,999,856","","","34,637","","","1.7"],["Total","$","5,442,590","","","$","5,198,679","","","$","243,911","","","4.7%"]]
[[/GREPCENT_TABLE]]

(1) Includes revenue generated under U.S. federal government contracts performed outside the United States.

(2) Includes revenue generated from non-U.S. clients, primarily in Australia, Canada and the United Kingdom.

U.S. Federal Government

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["","($ in thousands)"],["Revenue","$","1,718,831","","","$","1,675,996","","","$","42,835","","","2.6%"]]
[[/GREPCENT_TABLE]]

Our U.S. federal government sector grew 2.6% in fiscal 2025 primarily due to increased disaster response work related to the Palisades and Eaton fires in Southern California, which occurred in early January 2025. The revenue growth also includes approximately $35 million of revenue from recent acquisitions that did not have comparable revenue in fiscal 2024.

On January 20, 2025, President Trump signed Executive Order 14169, titled "Reevaluating and Realigning United States Foreign Aid", which initiated a 90-day pause on all U.S. foreign development assistance programs to assess their alignment with U.S. foreign policy objectives with few exemptions. Following a six-week review, on February 27, 2025, U.S. Secretary of State Rubio announced the cancellation of 83% of USAID programs, totaling approximately 5,200 contracts. Subsequently, we were notified that virtually all of our contracts with USAID were terminated for convenience with immediate effect. In fiscal 2025, our U.S. federal government revenue included $576.4 million from USAID programs compared to $677.2 million last fiscal year. We currently expect no significant USAID revenue in fiscal 2026. However, we do expect our U.S. federal revenue to grow next fiscal year, excluding USAID and disaster response activities.

U.S. State and Local Government

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["","($ in thousands)"],["Revenue","$","789,968","","","$","613,185","","","$","176,783","","","28.8%"]]
[[/GREPCENT_TABLE]]

In fiscal 2025, our U.S. state and local government revenue grew 28.8% compared to fiscal 2024 partially due to increased disaster response activity related to Hurricanes Helene and Milton. Excluding the disaster response work, our U.S. state and local government revenue increased 13.3% in fiscal 2025 compared to last fiscal year. This growth was due to continued investment by our clients in water infrastructure, including digital water automation. Most of our work for the U.S. state and local governments relates to critical water and environmental programs, which we expect to continue to grow in fiscal 2026.

33

U.S. Commercial

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["","($ in thousands)"],["Revenue","$","899,298","","","$","909,642","","","$","(10,344)","","","(1.1)%"]]
[[/GREPCENT_TABLE]]

Our U.S. commercial revenue declined 1.1% in fiscal 2025 primarily due to lower activity related to renewable energy, partially offset by increased environmental services compared to fiscal 2024. We expect our U.S. commercial revenue, excluding renewable energy, to grow in fiscal 2026.

International

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["","($ in thousands)"],["Revenue","2,034,493","","","$","1,999,856","","","$","34,637","","","1.7%"]]
[[/GREPCENT_TABLE]]

For fiscal 2025, our international revenue increased 1.7% primarily due to growth on water planning and design activities in the United Kingdom, partially offset by lower infrastructure work in Australia. We expect the growth in our international work to continue in fiscal 2026.

34

RESULTS OF OPERATIONS

Fiscal 2025 Compared to Fiscal 2024

Consolidated Results of Operations

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 28, 2025","","September 29, 2024","","Change"],["","","","$","","%"],["","($ in thousands, except per share data)"],["Revenue","$","5,442,590","","","$","5,198,679","","","$","243,911","","","4.7%"],["Subcontractor costs","(825,230)","","","(876,817)","","","51,587","","","5.9"],["Revenue, net of subcontractor costs (1)","4,617,360","","","4,321,862","","","295,498","","","6.8"],["Other costs of revenue","(3,656,016)","","","(3,455,422)","","","(200,594)","","","(5.8)"],["Gross profit","961,344","","","866,440","","","94,904","","","11.0"],["Selling, general and administrative expenses","(357,737)","","","(356,024)","","","(1,713)","","","(0.5)"],["Legal contingency costs","(115,000)","","","\u2014","","","(115,000)","","","NM"],["Impairment of goodwill","(92,416)","","","\u2014","","","(92,416)","","","NM"],["Acquisition and integration expenses","\u2014","","","(7,138)","","","7,138","","","NM"],["Contingent consideration \u2013 fair value adjustments","12,228","","","(2,541)","","","14,769","","","581.2"],["Income from operations","408,419","","","500,737","","","(92,318)","","","(18.4)"],["Interest expense \u2013 net","(30,802)","","","(37,271)","","","6,469","","","17.4"],["Income before income tax expense","377,617","","","463,466","","","(85,849)","","","(18.5)"],["Income tax expense","(129,668)","","","(130,023)","","","355","","","0.3"],["Net income","247,949","","","333,443","","","(85,494)","","","(25.6)"],["Net income attributable to noncontrolling interests","(225)","","","(61)","","","(164)","","","(268.9)"],["Net income attributable to Tetra Tech","$","247,724","","","$","333,382","","","$","(85,658)","","","(25.7)"],["Diluted earnings per share","$","0.93","","","$","1.23","","","$","(0.30)","","","(24.4)%"]]
[[/GREPCENT_TABLE]]

(1) We believe that the presentation of "Revenue, net of subcontractor costs", which is a non-U.S. GAAP financial measure, enhances investors' ability to analyze our business trends and performance because it substantially measures the work performed by our employees. In the course of providing services, we routinely subcontract various services and, under certain international development programs, issue grants. Generally, these subcontractor costs and grants are passed through to our clients and, in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and industry practice, are included in our revenue when it is our contractual responsibility to procure or manage these activities. Because subcontractor services can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of our business trends. Accordingly, we segregate subcontractor costs from revenue to promote a better understanding of our business by evaluating revenue exclusive of costs associated with external service providers.

NM = not meaningful

Our revenue growth in fiscal 2025 reflects increases in both our GSG and CIG reportable segments. For fiscal 2025, our GSG segment's revenue and revenue, net of subcontractor costs, increased $190.6 million, or 7.7%, and $219.8 million, or 11.5%, respectively, compared to last year. Our CIG segment's revenue increased $57.9 million, or 2.1%, and revenue, net of subcontractor costs, increased $75.7 million, or 3.1% in fiscal 2025 compared fiscal 2024. The fiscal 2025 results for GSG and CIG segments are described below under "Government Services Group" and "Commercial/International Group", respectively.

The following table reconciles our reported results to non-U.S. GAAP adjusted results. For fiscal 2025, our adjusted results exclude a non-cash goodwill impairment charge of $92.4 million related to our GDS reporting unit, which resulted from the aforementioned cancellation of USAID programs in the second quarter of fiscal 2025. This charge is further described in Note 6, "Goodwill and Intangible Assets" of the “Notes to Consolidated Financial Statements”. Additionally, for fiscal 2025, our adjusted results exclude a non-recurring charge of $115.0 million related to legal contingencies as described in Note 18, "Commitments and Contingencies" of the “Notes to Consolidated Financial Statements”. Our adjusted results also exclude adjustments to contingent consideration liabilities in fiscal 2025. Our fiscal 2024 adjusted results exclude acquisition and integration costs and adjustments to contingent consideration liabilities. We determined that there is no tax benefit in fiscal 2025 for $31.3 million of the legal contingency charge and $58.3 million of the goodwill impairment charge. The effective tax rate applied to the remaining adjustments in fiscal 2025 to arrive at the adjusted earnings per share ("EPS") was 24.6%. The effective tax rate applied to the adjustments to EPS to arrive at adjusted EPS in fiscal 2024 was 17%, which reflects certain integration costs/losses that were not tax deductible. We applied the relevant marginal statutory tax rate based on the nature of

35

the adjustment and the tax jurisdiction in which it occurred. Both EPS and adjusted EPS were calculated using the diluted weighted-average common shares outstanding for the respective periods as reflected in our Consolidated Statements of Income.

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/TTEK/mda/fy2025/
All MD&A years: /company/TTEK/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/TTEK/mda/fy2024/): filed 2024-11-19; accession 0000831641-24-000063 (https://www.sec.gov/Archives/edgar/data/831641/000083164124000063/ttek-20240929.htm)
- [FY 2023 MD&A](/company/TTEK/mda/fy2023/): filed 2023-11-22; accession 0000831641-23-000082 (https://www.sec.gov/Archives/edgar/data/831641/000083164123000082/ttek-20231001.htm)
- [FY 2022 MD&A](/company/TTEK/mda/fy2022/): filed 2022-11-25; accession 0000831641-22-000123 (https://www.sec.gov/Archives/edgar/data/831641/000083164122000123/ttek-20221002.htm)
- [FY 2021 MD&A](/company/TTEK/mda/fy2021/): filed 2021-11-24; accession 0000831641-21-000110 (https://www.sec.gov/Archives/edgar/data/831641/000083164121000110/ttek-20211003.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 8711 Services-Engineering Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/TTEK.md · JSON record: /company/TTEK.json · verified financials: /company/TTEK/financials.json / /company/TTEK/financials.csv · machine TOC for the whole site: /llms.txt