Tetra Tech, Inc. has reported strong first-quarter results for the period ending December 29, 2024, with several significant metrics showing remarkable year-over-year growth.
The company achieved record revenue of $1.42 billion, marking a substantial 16% increase from the previous year. Net revenue also experienced robust growth, reaching $1.20 billion, up 18% year-over-year.
Operating income saw a notable increase as well, with adjusted operating income jumping by 24% year-over-year to $138 million, despite the reported operating income of $23 million.
Additionally, Tetra Tech's backlog reached a record high of $5.44 billion, reflecting a 15% increase compared to the same period in the previous year.
In terms of earnings, the company reported that its adjusted earnings per share (EPS) surged by 25% year-over-year to $0.35, while the GAAP EPS was reported at $0.00.
Tetra Tech also highlighted its industry-leading days sales outstanding (DSO) of 55.9 days, signifying strong efficiency in collecting revenue from its clients.
The company's recent key wins included securing multiple award contracts totaling hundreds of millions of dollars to deliver various services, such as architect-engineering, civil works support, planning and engineering, and disaster and emergency response services.
Furthermore, Tetra Tech's board of directors approved a 12% increase year-over-year in the company's quarterly dividend, amounting to $0.058 per share, payable on February 26, 2025.
In terms of capital allocation, Tetra Tech repurchased $25 million of common stock in the first quarter, with $323 million remaining under its $400 million share repurchase program as of December 29, 2024.
As a result of these announcements, the company's shares have moved -16.3% on the market, and are now trading at a price of $31.54. For the full picture, make sure to review Tetra Tech's 8-K report.
