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Tetra Tech confirms consulting, engineering growth

US consulting and engineering services firm Tetra Tech has lifted its fiscal 2019 revenue and profit guidance after reporting record results for the third quarter. The Nasdaq-listed company (TTEK) said a 17% year-on-year improvement in Q3 operating income to $65 million on 9% higher net revenue of $623 million had it on track for a year of growth capped by the recent acquisition of UK-based WYG.
Tetra Tech confirms consulting, engineering growth Tetra Tech confirms consulting, engineering growth Tetra Tech confirms consulting, engineering growth Tetra Tech confirms consulting, engineering growth Tetra Tech confirms consulting, engineering growth

Staff reporter

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.