Tetra Tech, Inc. (TTEK) AI Stock Analysis

Tetra Tech, Inc. provides consulting and engineering services worldwide through two main segments: Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection, environmental analysis, engineering design, project management, and operations maintenance, alongside climate change mitigation and energy management consulting for government clients. The CIG segment delivers feasibility studies, research, and engineering design for natural resources, energy, utilities, and sustainable infrastructure. Founded in 1966 and based in Pasadena, California, the company specializes in water resources analysis, environmental monitoring, and civil infrastructure planning to address challenges like climate change and resource scarcity.

Tetra Tech generated a 5-year revenue CAGR of 18.3% from FY2020 to FY2025. Annual revenue expanded from $3.21B in FY2021 to $5.44B in FY2025, despite an 11.8% drop in FY2022. Net income stood at $247.7M in FY2025, down from $333.4M in FY2024, resulting in a net margin of 4.6% and operating margin of 11.1%. For the trailing twelve months, revenue was $4.36B with an operating margin of 14.2% and EPS of $1.66. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.9% year-over-year while quarterly earnings decreased 2.3%.

As of June 30, 2026, Tetra Tech held $230.8M in cash and short-term investments against total debt of $1.02B, resulting in net debt of $792.7M. The company maintains a current ratio of 1.18 and a debt-to-equity ratio of 0.55 on shareholders' equity of $1.85B. In FY2025, operating cash flow reached $457.7M and free cash flow was $439.1M after capital expenditures of $18.6M. Capital allocation in FY2025 included $250.0M for share buybacks and $65.0M in dividends paid.

At a share price of $34.72, Tetra Tech trades at a trailing P/E of 20.9x, which sits below the 24.8x median of its US-listed Industrials peers. Its forward P/E of 19.9x is higher than the peer median of 17.2x, while its price-to-sales multiple of 2.0x compares to the peer median of 1.5x. Over the past year, the stock gained 6.7%, lagging the S&P 500 (SPY) return of 16.8%. Over a 5-year span, the stock returned 10.7% versus 83.0% for the S&P 500.

Tetra Tech pays a quarterly dividend with an annualized forward payout of $0.29 per share, translating to a dividend yield of 0.83%. The company holds a low payout ratio of 17.6% and has paid dividends for 13 consecutive years. Over the past five years, its dividend grew at an annualized rate of 13.9%.

Wall Street coverage consists of 3 Strong Buy, 2 Buy, and 3 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $40.17 implies 15.7% upside relative to the last closing price of $34.72. Tetra Tech has surpassed earnings expectations in each of the last 4 quarters. For the fiscal year ending September 30, 2026, analysts estimate EPS of $1.58 on revenue of $4.35B. The next earnings date is scheduled for November 11, 2026.

This page is an AI-written research summary of Tetra Tech, Inc. (TTEK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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