Tetra Tech reported net revenue of $1.15 billion for the fourth quarter, representing 5% growth year over year when excluding episodic disaster response, and adjusted earnings per share of $0.49, up 9% from a year earlier. The company ended the fiscal year with funded backlog of $4.67 billion, growing 13% year over year, and recorded a book-to-bill ratio above 1.1x for the third consecutive quarter. Full-year adjusted EBITDA margin reached 15.2%, an expansion of 90 basis points, while operating cash flow totaled $523 million for fiscal 2026, a 14% improvement.

Segment results showed the Government Services Group generating $512.6 million in revenue, an 8% increase driven by municipal water programs and federal infrastructure work for the U.S. Army Corps of Engineers and the U.S. Navy. The Commercial/International Group produced $640.3 million, growing 3% with a segment margin of 16.2%. U.S. federal revenue made up 26% of quarterly revenue and grew 9% on flood control and coastal resilience projects, while international revenue accounted for 43% of the total, with 5% to 6% underlying growth excluding the divestiture of Norway operations. New orders reached $1.6 billion in the quarter, including $614 million in commercial task orders.S1

Looking ahead, the company guided to fiscal 2027 net revenue of $4.425 billion to $4.625 billion and EPS of $1.65 to $1.80, excluding potential contributions from future acquisitions. For the first quarter of 2027, it expects net revenue of $1.04 billion to $1.08 billion and EPS of $0.36 to $0.38. Management cautioned that lower revenue is expected from certain international programs tied to Department of State work, and that state and local disaster planning work is projected to decline. Interest expense is forecast at $30 million to $35 million for fiscal 2027.S1

On capital returns, the board declared a quarterly dividend of $0.072 per share, an 11% year-over-year increase and the 46th consecutive quarterly payment. The company repurchased $302 million of shares over the fiscal year and has $798 million remaining under its current authorization. Days sales outstanding stood at 60 days at year-end, and capital expenditures were $20.5 million for fiscal 2026. During the fourth quarter, Tetra Tech was awarded a $1.4 billion enterprise-wide technical support contract with NASA and added $220 million in new capacity under U.S. EPA contracts, including a $141 million water infrastructure assessment contract.S1