Tetra Tech Launched Its 2030 Vision at Its Inaugural Investor Day
May 14 2024 - 6:27PM
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240514397225/en/
Jim Wu, Investor Relations Charlie MacPherson, Media &
Public Relations (626) 470-2844
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