Tetra Tech, Inc.TTEK
NasdaqGS•Industrials•Engineering & Construction
Tetra Tech, Inc. provides consulting and engineering services focusing on water, environment, and sustainable infrastructure in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers consulting and engineering services, including water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and civil infrastructure master planning and resilient engineering design for facilities, as well as transportation and local development projects primarily to government clients, including federal, state, and local, as well as international development agencies. It also offers sustainable solutions, such as energy management consulting, and greenhouse gas inventory assessment, certification, reduction, and management services. The CIG segment provides consulting and engineering services, including natural resources, energy, and utilities, as well as sustainable infrastructure master planning and engineering design for facilities; and transportation and local development projects to commercial and international clients, including the commercial and government sectors. The company offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; climate change consulting; greenhouse gas inventory assessment, certification, reduction, and management services; environmental remediation and reconstruction services, industrial water treatment and reuse services; and engineering services, such as data centers, advanced manufacturing, security systems, training and audiovisual facilities, clean rooms, laboratories, medical facilities, and disaster preparedness facilities. The company was founded in 1966 and is headquartered in Pasadena, California.
Tetra Tech, Inc. (TTEK) reported trailing twelve months revenue of $5.13B as of March 2026, a 6.1% decline year-over-year. Quarterly revenue reached $1.22B, reflecting a contraction in sales.
Tetra Tech, Inc. generated $440.78M in TTM net income, with quarterly EBITDA of $145.86M. The operating margin expanded from 3.0% to 10.8%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (10.8%) and net margin (7.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 0.4% a year ago, signaling stronger bottom-line efficiency.
TTEK trades at a P/E of 17.6x (in line with broad market averages) and a P/S of 1.5x. The price-to-book ratio of 4.2x reflects a moderate premium to book value.
The company generated $159.35M in free cash flow over the trailing twelve months, a 1454.8% increase year-over-year, indicating cash generation ability. The balance sheet shows $4.36B in total assets with $880.16M in long-term debt against $1.86B in stockholders equity for a debt-to-equity ratio of 0.5, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~9.1% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE averages 16.5% but has fluctuated — the competitive advantage may be cyclical or emerging.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~12.0% — no sign of cost or pricing stress.
FCF covers net income by 2.4x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 2.8% — net buybacks are reducing shares outstanding and boosting per-share value.