PASADENA, Calif. - Tetra Tech , Inc. (NASDAQ:TTEK), a global provider of high-end consulting and engineering services, has been selected for a $12 billion contract by the Defense Logistics Agency (DLA) to provide a range of technology services under the J6 Enterprise Technology Services (JETS) 2.0 multiple-award contract.
The company will offer support in areas critical to the DLA, including cybersecurity, operational technology, and supply chain optimization. Tetra Tech's role will extend to modernizing enterprise resource planning and developing applications to foster an adaptive and resilient global infrastructure.
Dan Batrack, Tetra Tech's Chairman and CEO, emphasized the company's longstanding relationship with the DLA, which spans over 25 years, through its Amyx operations. Batrack expressed confidence in continuing the tradition of excellence by delivering innovative Infrastructure Technology solutions that align with the DLA's mission.
Tetra Tech, recognized for its expertise in water, environment, and sustainable infrastructure, employs 28,000 people globally. The company prides itself on addressing complex problems with clear solutions, especially in areas concerning the entire water cycle, environmental protection and restoration, sustainable and resilient infrastructure design, and supporting the transition to clean energy.
The company's forward-looking statements concerning the contract and future operations are subject to various risks, uncertainties, and assumptions, as detailed in the "Risk Factors" section of Tetra Tech's filings with the Securities and Exchange Commission.
This news is based on a press release statement from Tetra Tech, Inc.
In other recent news, Tetra Tech, Inc. has secured several significant contracts. The company has been awarded a $5 billion contract by USAID to support global democracy initiatives, a $37.5 million contract for water and sanitation improvements in Southern Africa, and a $249 million contract with the U.S. Army Corps of Engineers for environmental assessment and design services. In addition, a $39.3 million contract has been assigned to Tetra Tech by USAID to enhance global gender equality and women's economic empowerment.
These recent developments coincide with Tetra Tech's strong financial performance, as the company reported record revenue for the third quarter of fiscal year 2024. Notably, the Government Services Group segment saw a 25% revenue increase, while the Commercial International Group's net revenue grew by 4%.
KeyBanc has maintained its Overweight rating on Tetra Tech following investor meetings, which focused on the firm's business aspects including organic revenue growth and margin expansion plans. Tetra Tech also announced a five-for-one forward stock split to make stock ownership more accessible by lowering the price per share. The company has strategic plans to invest in technology innovations and a robust acquisition pipeline focusing on the UK and Australia markets.
InvestingPro Insights
Tetra Tech's recent $12 billion contract win with the Defense Logistics Agency aligns well with the company's strong financial performance and market position. According to InvestingPro data, Tetra Tech boasts a market capitalization of $13.18 billion, reflecting its significant presence in the consulting and engineering services sector.
The company's revenue growth of 23.47% over the last twelve months as of Q3 2024 demonstrates its ability to secure and execute large-scale contracts like the JETS 2.0. This growth is complemented by a robust EBITDA growth of 31.65% over the same period, indicating improved operational efficiency.
InvestingPro Tips highlight Tetra Tech's financial stability and shareholder-friendly policies. The company has raised its dividend for 10 consecutive years and maintained dividend payments for 11 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 0.47%, underscores Tetra Tech's commitment to returning value to shareholders.
Moreover, Tetra Tech's stock has shown impressive performance, with a one-year price total return of 61.57%. The stock is currently trading near its 52-week high, with its price at 97.12% of the 52-week high value. This strong market performance reflects investor confidence in Tetra Tech's business model and growth prospects.
It's worth noting that Tetra Tech is trading at a high earnings multiple, with a P/E ratio of 45.1. While this may indicate investor optimism about future growth, it also suggests that the stock is priced at a premium compared to some peers.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 12 more tips available for Tetra Tech on the platform.
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