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Tetra Tech secures $249 million USACE contract

Published 10/03/2024, 09:06 PM
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PASADENA, Calif. - Tetra Tech , Inc. (NASDAQ:TTEK), a company specializing in consulting and engineering services, has been awarded a $249 million contract by the U.S. Army Corps of Engineers (USACE), Omaha District. This contract, spanning seven years, mandates Tetra Tech to provide environmental assessment and design services across various facilities and sites in the United States.

The services under the contract will encompass the development of water resource management plans, ecosystem assessment and protection, and the design of sustainable building elements to enhance water and energy efficiency. Tetra Tech's team of scientists, engineers, and technical specialists will leverage their expertise to support the USACE's objectives.

Dan Batrack, Tetra Tech Chairman and CEO, remarked on the company's longstanding relationship with the USACE, which spans over four decades. He emphasized Tetra Tech's consistent ranking as the top firm in Environmental Management by Engineering News-Record for the past 15 years and expressed enthusiasm for applying their "Leading with Science®" approach to tackle the USACE's complex environmental challenges.

Tetra Tech is recognized as a leader in water, environment, and sustainable infrastructure services. With a workforce of 28,000, the company tackles a variety of projects globally, aiming to provide clear solutions to complex problems. Their work encompasses the entire water cycle, environmental protection and restoration, sustainable and resilient infrastructure design, and support for the clean energy transition.

This press release includes forward-looking statements based on management's current expectations, but actual results may vary due to various risks and uncertainties. For a detailed discussion of potential risks that could affect outcomes, interested parties can refer to the "Risk Factors" section in Tetra Tech's SEC filings.

The information in this article is based on a press release statement from Tetra Tech, Inc.

In other recent news, Tetra Tech has reported a series of positive developments. The company posted a record revenue for the third quarter of fiscal year 2024, leading to an upward revision of its full-year guidance for the same year. The Government Services Group segment reported a 25% increase in revenue, while the Commercial International Group's net revenue grew by 4%.

Tetra Tech was also awarded a significant $39.3 million contract by the U.S. Agency for International Development (USAID) aimed at enhancing gender equality and women's economic empowerment globally. This contract builds on Tetra Tech's previous involvement with the USAID Engendering Industries program.

Moreover, KeyBanc has maintained its Overweight rating on Tetra Tech following investor meetings with the company's CFO and Head of Investor Relations. The discussions focused on various aspects of Tetra Tech's business, including organic revenue growth, margin expansion plans, and the growth trajectory of software sales.

The company also announced a five-for-one forward stock split, a strategic move to make stock ownership more accessible by lowering the price per share. Lastly, Tetra Tech revealed plans to invest in technology innovations and a robust acquisition pipeline focusing on the UK and Australia markets. These are among the recent developments for Tetra Tech.

InvestingPro Insights

Tetra Tech's recent $249 million contract with the U.S. Army Corps of Engineers aligns well with the company's strong financial performance and market position. According to InvestingPro data, Tetra Tech boasts a market capitalization of $12.55 billion and has demonstrated impressive revenue growth of 23.47% over the last twelve months as of Q3 2024. This growth trajectory is further supported by the company's robust EBITDA growth of 31.65% during the same period.

InvestingPro Tips highlight Tetra Tech's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 11 consecutive years and has raised its dividend for 10 consecutive years, showcasing its commitment to returning value to shareholders. This is particularly noteworthy given the company's moderate level of debt, indicating prudent financial management.

The market seems to recognize Tetra Tech's strong performance, with the stock trading near its 52-week high and showing a remarkable 55.23% price total return over the past year. However, investors should note that the stock is trading at a high earnings multiple, with a P/E ratio of 43.26, suggesting high growth expectations.

For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Tetra Tech, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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