Tetra Tech, Inc. reported a revenue of $1.21 billion for the first quarter of fiscal 2026, a decline of 14.8% compared to $1.42 billion in the same period last year. The decrease was primarily attributed to reduced international development projects within the U.S. federal government sector and lower disaster response activities in the U.S. state and local government sector. Despite the overall revenue drop, the company noted that approximately $40 million of the current quarter's revenue stemmed from recent acquisitions, which did not contribute to the prior year's figures.
The company's net income for the quarter was $105.2 million, significantly higher than the $0.8 million reported in the previous year. This increase was largely due to a $7.7 million gain from the divestiture of its Norwegian operations and the absence of a $115 million legal contingency charge that impacted the prior year's results. Earnings per share for the quarter were reported at $0.40, compared to no earnings per share in the same quarter last year.
Operationally, Tetra Tech's Government Services Group (GSG) segment experienced a revenue decline of 33.6%, primarily due to the cancellation of contracts with the U.S. Agency for International Development (USAID). In contrast, the Commercial/International Services Group (CIG) segment saw a revenue increase of 9.2%, driven by heightened activity in water utilities and digital water projects, particularly in the United Kingdom. The company’s remaining unsatisfied performance obligations (RUPO) stood at $3.92 billion as of December 28, 2025, indicating a solid pipeline of future work.
In terms of strategic developments, Tetra Tech completed the acquisition of Halvik Corp in January 2026, which will enhance its capabilities in advanced data analytics and cybersecurity for U.S. federal agencies. The company also divested its operations in Norway, generating $41.6 million in proceeds. As of the end of the quarter, Tetra Tech had $269.4 million in cash and cash equivalents, with access to an additional $929.3 million under its credit facilities, providing a strong liquidity position to support ongoing operations and future growth initiatives.
Looking ahead, Tetra Tech anticipates that its U.S. federal revenue will grow in the remainder of fiscal 2026, excluding USAID-related activities. The company remains focused on leveraging its expertise in water and environmental management to drive growth, particularly in international markets, while continuing to evaluate acquisition opportunities that align with its strategic objectives.
About TETRA TECH INC
Tetra Tech, Inc. is a global provider of consulting, engineering, and technology services focused on water, environment, and sustainable infrastructure. It offers solutions in water management, environmental remediation, renewable energy, and disaster response for government and commercial clients worldwide. Leveraging advanced analytics, AI, and digital tools, the company delivers innovative, sustainable, and resilient projects across diverse markets and regions.
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