California-based Tetra Tech's $52 million acquisition of WYG and its circa-$200 million of annual revenue was a key strategic move for the company, CEO and chairman Dan Batrack said.
"While financially we had an all-time record quarter, I am even more pleased that we took a significant step forward in our strategic plan to offer services in the United Kingdom with the addition of WYG," he said.
Tetra Tech, a leading provider of consulting services to US government agencies, expanded its mining and natural resources market presence with its 2016 acquisition of ASX-listed Coffey International. Natural resources is part of Tetra Tech's CIG (commercial/international services) division that contributes about 45% of its revenues.
The company said revenue, net of subcontractor costs, would come in at $2.37-2.4 billion in FY19. Q4 guidance is for $610-650 million compared with the Q3 total of $623 million.
Tetra Tech's order backlog at the end of Q3 was a record $2.83 billion, up 16% year-on-year.
The company will pay a 15c/share dividend on August 30, 2019. It bought back $25 million of stock in Q3 and has $150 million of approved share repurchases remaining under its current program.
Tetra Tech shares are up about 58% since the start of this year, giving the company a current market value around $4.35 billion.