US engineering services company Tetra Tech has finished its fiscal 2021 with a record US$3.48 billion backlog and raised net revenue expectations in 2022 to $2.6-2.8 billion after generating $2.55 billion in FY21.
NASDAQ-listed Tetra Tech reported new company full-year highs for total revenue ($3.21 billion), operating income ($275 million) and its backlog. CEO Dan Batrack said fourth quarter operating income of $79m generated an earnings per share of $1.05, up 15% from last year and “the highest quarterly EPS in the company’s history”.
“Our backlog, our best forward-looking indicator, was also the highest in the history of the company growing to $3.48 billion, up 7% both year-on-year and sequentially.”
Tetra Tech paid out $100 million in dividends to shareholders in FY21, when it continued to add to its pile of strategic acquisitions and repay debt.
“In 2021 we further advanced our leading with science growth strategy with the acquisition of industry-leading consulting and technology firms that enhance our global technical capabilities,” Batrack said.
The company made a series of acquisitions in the mining and natural resources consulting field in the 10 years up to 2016, culminating in the US$77m purchase of Australia-based Coffey International. However, its activities in mining are virtually invisible today and the company’s future in that market is unclear.
Tetra Tech finished FY21 with net debt of $46m.
Its share price is up nearly 65% year-to-date, capitalising the company at about $10.16 billion.