Tetra Tech (TTEK) Provides Q3 and FY20 Guidance

Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services, today announced guidance for the third quarter and fiscal year 2020, which reflects improved visibility as stay-at-home restrictions in response to the COVID-19 pandemic are lifted.

Tetra Tech expects adjusted diluted EPS1 for the third quarter of fiscal 2020 to range from $0.72 to $0.75. Revenue, net of subcontractor costs (net revenue)1 for the third quarter is expected to range from $540 million to $560 million. For fiscal 2020, Tetra Tech expects adjusted diluted EPS to range from $3.05 to $3.13 and net revenue to range from $2.3 billion to $2.4 billion.

The Company had $774 million of available liquidity2 and a net debt leverage ratio2 of 0.8x at the end of the second quarter of fiscal 2020. This strong liquidity is further enhanced with more than $50 million in cash generated from operations through the first two months of the third quarter. The continued strength in cash flow has reduced the Company’s net debt leverage ratio and days sales outstanding from its second quarter results.

(*Consensus sees Q3 EPS of $0.68 on revenue of $567.3 million and FY EPS of $3.03 on revenue of $2.36 billion.)

Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “Our Leading with Science® approach and leadership positions in critical water and environmental markets have allowed us to continue providing Tetra Tech’s essential services to our clients. While uncertainty remains as a result of the global pandemic, we see a greater recognition of the value and benefit derived from our differentiated high-end consulting services augmented by technology and advanced data analytics. Our near record level of funded and authorized backlog, strong balance sheet, and technical innovation have positioned us well to navigate the current disruption and future recovery.”

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