Tetra Tech Reports Record-Breaking Quarter, Seals Largest Acquisition Deal in Company History

It’s just mid-February, and Pasadena-based engineering and infrastructure tech firm, Tetra Tech Inc., is experiencing a banner year — with record-breaking sales, earnings and acquisitions.

The company’s recent first quarter results showed an all-time high in net revenue, operating margin, EPS, and backlog. The $737 million in net revenue and adjusted EPS of $1.34, which was up 13% from the previous year, was just the start of the company’s success this year.

 “On a year-over-year basis, we saw double-digit top-line growth across both our government and commercial end markets. We also had new orders approaching $1 billion in the quarter contributing to an all-time high backlog of $3.81 billion which further improves our outlook for fiscal 2023 and beyond,” Tetra Tech CEO Dan Batrack said in a  recent earnings teleconference call with analysts.

On top of that, the company announced recently closed the largest-ever acquisition in its 57-year history with the $691 million purchase of British environmental consulting firm RPS Group. Tetra Tech was able to outbid Canadian engineering and consulting giant WSP Global for the prize.

“We had an excellent first quarter and just a fantastic start to fiscal year 2023,” Batrack told analysts recently.

Batrack went on to explain that the acquisition of RPS Group was highly aligned with Tetra Tech’s approach to projects and high-end consulting services in regions targeted for future growth.

The acquisition of RPS Group doubles Tetra Tech’s staff in the United Kingdom and Australia, and extends the company’s operations by adding 1,200 employees in Europe across Norway, the Netherlands, and the Republic of Ireland. The acquisition has given Tetra Tech a much larger international presence, with over 27,000 employees worldwide.

Tetra Tech also acquired Reston, Virginia-based technology and cybersecurity firm, Amyx Inc., for an undisclosed sum.

The acquisition of RPS Group and Amyx Inc. has allowed Tetra Tech to offer even more comprehensive services to its clients, with an annual revenue of around $4.5 billion and the ability to deliver over 100,000 projects a year. The company’s continued growth and success was reflected in its quarterly dividend, with the board of directors approving a 15% increase year-over-year to a $0.23 per share dividend payable on February 24, 2023.