Tetra Tech Launched Its 2030 Vision at Its Inaugural Investor Day

Tetra Tech (NASDAQ: TTEK) hosted its inaugural Investor Day on May 14, 2024, at Nasdaq’s Global Headquarters, where it launched its 2030 vision for growth and financial targets.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

PASADENA, Calif.--(BUSINESS WIRE)-- Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, hosted its inaugural Investor Day at Nasdaq’s Global Headquarters in New York City on Tuesday, May 14, 2024.

Tetra Tech presented its 2030 vision for long-term growth drivers and financial targets.

Key Growth Drivers

• Leveraging its technical leadership in water and environment to address new regulatory requirements for emerging contaminants, including PFAS
• Increasing funding in research and development and new technologies to address greater complexity in watershed management, coastal protection and decarbonization
• Further use of proprietary data analytic tools and artificial intelligence augmented consulting services to increase productivity and enhance margin
• Higher recurring revenue from software subscriptions provides potential upside opportunities

2030 Financial Targets

• Total compounded annual revenue growth in the range of 10% to 15%
  • Organic revenue growth in the range of 6% to 10%
  • Acquisitive revenue growth in the range of 4% to 5%
• EBITDA¹ margin expansion of more than 50bps per year
• Annual cash flow from operations greater than net income

Executive Management Comments

Dan Batrack, Chairman and CEO, commented, “As we look to 2030, Tetra Tech’s services are better aligned today than ever before to address global priorities in the water, environment and sustainable infrastructure markets. We expect regulatory requirements, economic drivers, and government priorities to drive our future performance to an even higher level from our current record results. Our strategy builds on more than five decades of Leading with Science^® in high-end consulting, augmented by the benefits of adding recurring revenue from our proprietary suite of software applications.”

Steve Burdick, Chief Financial Officer, said, “The strategic plan presented at our inaugural Investor Day represents a doubling of our revenue by 2030 along with a consistent expansion in EBITDA margin that will compound to generate cash flow at an even higher level to support our capital allocation programs and shareholder returns.”

The replay of the webcast is available on the Company’s website at tetratech.com/investors.

______________________

1Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results.

About Tetra Tech

Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With 28,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science^® to address the entire water cycle, protect and restore the environment, design sustainable and resilient infrastructure, and support the clean energy transition. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscal policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; the impact of global pandemics like COVID-19; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in bank and capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.

Non-GAAP Financial Measures

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514397225/en/

Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

Source: Tetra Tech, Inc.