btlines

TTEK Nasdaq Russell 1000 Earnings call

Tetra Tech (TTEK) · Q2 2026 results and valuation

Share price: $37.61 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 30 Jul 2026 and 30 Apr 2026

Net income up 17.1% on the previous quarter, guidance raised. Management sounded upbeat, though noticeably less so answering analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+17.1%

Net income vs Q1 2026

Guidance raised

Net income 109.8M vs 93.8M

Revenue +7.2%

Against the same quarter last year (Q2 2025) it is −3.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Upbeat

More upbeat than 77% of company calls

Answers to analysts: restrained, but clearly less so than the script.

Last call it was different: script and answers matched.

3 · What stood out

Key theme

Municipal water treatment was still up double despite caution, with no budget impact yet as final budgets aren't final.

Valuation

Is Tetra Tech undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-09-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 15.8% growth a year (3-year revenue growth), the model's fair value is $58.04 a share — the stock trades 35% below it. Today's price assumes 10.4% growth a year.

Current price

$37.61

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+10.4% for 10 yrs

Fair value / share

$58.04

Buy below

$43.53

Price vs fair value

Undervalued 35%

Price vs buy-below price

Undervalued 14%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Guidance ↑

    TTEK raised its fiscal 2026 guidance because its performance resulted in an increased outlook for the company.

    Source quote
    “Our performance resulted in our increasing guidance for fiscal 2026.”
  2. Guidance

    Net revenue was $1.1 billion for the quarter, exceeding the upper end of guidance because of strong demand.

  3. Fading

    Consistent with the last 20-plus years, Tetra Tech's operating cash flows have continued to exceed net income.

    Source quote
    “And consistent with the last 20-plus years, our operating cash flows have continued to exceed net income. Now regarding our working capital, cash flows generated from operations for the first half of the year were a historical record at $238 million, which represents a significant improvement over fiscal 2025. Our focus on working capital and cash flows has resulted in our DSO reflecting an industry-leading standard of 58 days, which is a 9-day improvement compared to Q2 of last year.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was upbeat)
Answers to analysts Restrained (was upbeat)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 91% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone
“I'm very pleased to share these strong year-to-date results for fiscal 2026, which has enabled us to increase shareholder value as we can pay increasing dividends, increase our stock buybacks,...”
“Net revenue was $1.1 billion for the quarter, exceeding the upper end of our guidance and supported by strong demand for high-end leading with science approach to water, environment and...”
“Revenue growth was driven by water programs in the U.K., Ireland and the Netherlands an increase in infrastructure work in Canada and growth in mining and digital automation revenues in...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-28)

Metric Q2 2026period end 2026-06-28 Q1 2026period end 2026-03-29 Change Q2 2025 YoY
Revenue 1.31B 1.22B +7.2% 1.37B −4.5%
Gross profit 243.2M 214.1M +13.6% 251.5M −3.3%
Operating income 157.9M 131.5M +20.1% 165.0M −4.3%
Net income 109.8M 93.8M +17.1% 113.9M −3.6%
EPS 0.42 0.36 +16.7% 0.43 −2.3%
P/E today 20.1 17.6 17.8 −0.2 44.5 −26.9

Topics

Most discussed now

  • It's an enabler for Tetra Tech's technical experts and it allows it to provide better solutions to evaluate more alternatives and...
  • New Tetra Tech prides itself on its ability to technically solve the most complex problems related to water using that site specific...
  • One of the things that I really especially like about some of the orders that Tetra Tech received in the quarter...
  • More often over the last year, I've been asked by Tetra Tech's shareholders and others what its margins look like on...
  • As Roger just discussed in the call, Tetra Tech's market-leading focus on the front-end technical design and engineering for water and...

Faded since Q1 2026

  • Fading Post-COVID, there was a bubble of infrastructure investment to get everyone back to work, and Tetra Tech saw a bit of...
  • Fading These projects often cross multiple jurisdictions, which create complex planning and...
  • Fading Tetra Tech's long-term outlook remains strong, with state and local spending increasing regionally in alignment with demand.
  • Fading Commercial’s increased growth rates align with the expected demand for water management for mining operations, expansion of domestic rare…

Latest announcements

Official filings, newest first.

Similar companies

Industrials · Engineering & Construction
All Industrials companies →