US engineering consulting group Tetra Tech says rising industry and government water security, energy transition and biodiversity protection spending is expected to continue to drive growth in its revenues and earnings after it posted record quarter-four and full-year financial results.
The California-based company reported a 40% year-on-year surge in Q4 revenue to US$1.26 billion, and 29% yoy jump in FY23 revenue to $4.52 billion, while Q4 adjusted EBITDA came in 51% higher yoy at $153 million and full-year adjusted EBITDA was up 33% at $481m.
Tetra Tech’s end-of-FY23 order backlog increased to “an all-time high” $4.79 billion, up 28% yoy.
“In addition to our all-time high results in revenue, earnings and backlog, we accomplished significant strategic milestones this year, including closing the largest transaction in our history [$691m acquisition of RPS Group], enhancing our capital structure, and expanding our Tetra Tech Delta technologies to include a subscription software practice,” chairman and CEO Dan Batrack said.
“Our clients are continuing to increase funding for water and environmental programs, including climate change mitigation and adaptation to address water security, coastal flooding, energy transition and biodiversity protection.
“With our market leadership in these key areas, we booked nearly $2 billion in new orders in the fourth quarter and increased our backlog by more than $1 billion over last year.
“Building on this momentum, we expect double-digit revenue growth in fiscal 2024 and further margin expansion.”
Nasdaq-listed Tetra Tech has a current market value around $8.7b.