Tetra Tech Reports $1.37 Billion Revenue in Q3 2025, Driven by Government Services Growth

Tetra Tech, Inc. reported a revenue of $1.37 billion for the third quarter of fiscal 2025, marking a 1.9% increase from $1.34 billion in the same period last year. For the first nine months, revenue reached $4.11 billion, a 7.5% increase compared to $3.82 billion in the prior year. The company's net income for the quarter was $113.88 million, up 32.7% from $85.82 million a year earlier, while net income for the nine months was $120.07 million, down 49.4% from $237.26 million. The decline in nine-month net income was attributed to a $92.4 million goodwill impairment and a $115 million legal contingency charge.

The company experienced significant growth in its Government Services Group (GSG), which reported a 5.1% increase in revenue for the third quarter and a 15.1% increase for the first nine months. This growth was driven by increased disaster response work, particularly related to recent wildfires in California. Conversely, the Commercial/International Services Group (CIG) saw a slight decline in revenue for the third quarter, down 1.1%, although it reported a modest increase of 0.9% for the nine-month period. The overall revenue growth was bolstered by $39 million from recent acquisitions, including Carron + Walsh and SAGE Group Holdings.

Tetra Tech's operational metrics showed a rise in accounts receivable, which increased to $1.13 billion from $1.05 billion year-over-year. The company also reported a remaining unsatisfied performance obligation (RUPO) of $4.24 billion as of June 29, 2025, down from $5.33 billion at the end of the previous fiscal year. The decrease in RUPO was primarily due to the cancellation of contracts with the U.S. Agency for International Development (USAID). The company’s employee headcount remained stable at approximately 30,000 associates, supporting its extensive project portfolio across more than 100 countries.

In terms of strategic developments, Tetra Tech completed two acquisitions in fiscal 2025, which are expected to enhance its service offerings and market presence. The company also authorized a $500 million stock repurchase program, complementing a previous $400 million program, and repurchased approximately 5.93 million shares for $200 million in the first nine months of the fiscal year. Looking ahead, Tetra Tech anticipates continued growth in its U.S. federal and state government sectors, although it expects a decline in revenue from USAID contracts in the upcoming quarter due to recent program cancellations. The company remains focused on leveraging its expertise in water and environmental management to drive future growth.