TTEK - Earnings call transcript Q2 2024

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Operator

Good morning, and thank you for joining the Tetra Tech Earnings Call.

As a reminder, Tetra Tech is also simulcasting this presentation with slides in the Investors section of its website at tetratech.com. This call is being recorded at the request of Tetra Tech and this broadcast is the copyrighted property of Tetra Tech. Any rebroadcast of this information in whole or part without the prior written permission of Tetra Tech is prohibited.

With us today from management are Dan Batrack, Chairman and Chief Executive Officer; Steve Burdick, Chief Financial Officer; and Leslie Shoemaker, Chief Sustainability Officer. brief the the call a then and provide up open for will overview results of we'll They questions. presentation. I attention would today's to your the safe like harbor statement to direct in

business Tetra with discussion described Tech's and law, differ Today's required in undertakes from in various Tetra due projected the periodic obligation as to forward-looking those statements by including risks forward-looking about and significantly financial Actual uncertainties, SEC. results no contains Except expectations. Tech its may statements to filed statements. forward-looking today's reports future the risks update

In non-GAAP website. GAAP Tech's addition, references, Investors since financial management measures appropriate Tetra will of [Operator be Instructions] the presenting the in section financial some reconciliations posted are as

to Please With Mr. Batrack. Dan ahead, that, would call Batrack. like I go now to turn over the

Dan Batrack

good much, call. conference morning, welcome very XXXX fiscal to quarter you Shamal, our year and second Thank earnings and

call. results second looking next hour providing Tetra I'm to forward our Tech's of you of over this overview an quarter all of

on traction to During exceeding consulting our consulting margins, of that services. continues a high in same recurring Tetra software past At our time, providing reshape our with offering gain and revenue the our the tandem profit end quarter. focus to our the for Tech revenue as as this an resulting quarter, high-end guidance we're stream continued in

virtually the a continuing U.S. In new and and the efforts March, over the step in of United XX, on the get in the very budget that federal XXth, at to On eliminate series represent resolutions see environment. the the months. in end PFAS-related to presence finally country's X of water week chemicals finalized in were the of after our our April next reduce following were and regulations second change quarter, States past pleased we then April completed X a

provide our across financial provide the some I'll Steve our PFAS Leslie Shoemaker, an quarter of Chief begin significance the our capital into allocation just regulations Innovation who an our the that update announced as performance of Financial report Dr. Officer, insights will of of early April. with in performance an our well Chief call released giving and overview as Officer program. will Sustainability this and our operations. our overview sustainability second and was and Burdick, recently

we plan On inaugural another to our in Tetra Investor at take note, our Day place XX, will that forward X look about presenting strategic XXXX in on for May weeks Tech total. increased year key the items I'll net our provide call. revenues of our XXXX, this in and an X% later of quarter $X.XXX agenda to billion overview fiscal In second in

Excluding in the events digits. year-on-year with into our support associated XX%, impact revenue onetime growth of well was our the double Ukraine,

million our EBITDA the directly And increase which XX% finally, with in up which from $XXX per our earnings year. the second line earnings quarter, over revenue of double Our rapidly increased our in -- and our is of was generated prior more high our margins share, growth, for quarter to an rate $X.XX, all-time to goal our than the XX% we revenue.

by GSG generated performance to response and second environmental was Government all or a total In work do we treatment the very driver key strong up up GSG's Group our higher-margin year. XX.X% the for in Services segment margin, $XXX a our the and United quarter, The to I'd million an points prior of our water Ukraine increase disaster now which to segments. advanced compared present XXX like excluding year, expansion XX% and the last was States. basis is from across margin the that

margins, XX% the an we This year-over-year margin, last basis which that The the expansion by CIG put RPS in the largely place. ahead plan and which was are delivered CIG expansion grew up Commercial/International well year. was revenue margin RPS points net margin driven XX% or segment XXX Group impressive of a by increase from in

contributed margins services in In energy the to growth quarter. higher renewable that we CIG higher-margin addition, also in saw the in

our NASA U.S. overview XX% up from for primarily was federal clients our our end by clients and Work by like the in Energy U.S. our performance quarter Growth Agency. now including U.S. the year, Department Environmental federal of provide customers. I'd increases practice, driven of in the to last Ukraine. an was same for environmental Protection excluding our Defense, of

of cities organically we the grew and XX%, work response, across by U.S. and water United be treatment state in all Our States. effects utilities for to continuing disaster excluding local the revenues the do driven advanced

weather-related were net Midwest We that take the in of the geographies particularly revenues us Tetra up with flat Tech international Australia. revenues Our and coal United international the operations, XX% our renewable larger and Kingdom joined our U.S. finally, together year-over-year. in were water growing our energy delays services, RPS, the of year-over-year. ash essentially And States. place United in some commercial in that did incur programs

now a NASA which which discuss to services I'd of the last billion, And increased restoration In new $XXX environmental a quarter, with up contract. from quarter the U.S. $X.XX further we PFAS-related second contract. award the new like Army our at million backlog, quarter we also capacity $XXX year. completed remediation -- environmental million XX% our added is contract

And building with new $XX for of million Kingdom a also single-award an the contract million coal United continues for contract augmented in decarbonization contract optimization. addition awards ash quarter. of a capacity in remediation the $XX to addition finally, system We our single-award with drive

With in of the contracts. importantly, pace already second budgets fully the significant awards our under a really federal standing now existing since in uptake contract task of orders and our of release we're more new March place, end actual 'XX seeing or the at quarter, the

Chief I'd point, details to financials. Officer, this over At presentation the like to of now present to our some Steve? turn Steve Financial Burdick,

Steven Burdick

Dan. you, Thank

flow on and through of cash our like quarter. capital, capital year I'd the an as first update provide our the now half fiscal results allocation second So working to the well as of

strong $X.X by all driven and to So contribution across geographies net just end year-to-date, RPS. billion by from a markets under revenues increased XX%

as Over our line to top revenue for our cycle front-end increased on rate income growth. environmental than earlier markets. X focus continue the EBITDA months, water carrying our are the higher margins the and projects, Dan across we And at and in same discussed call, higher end which operating a

such, also EBITDA As months our $XXX XX% for the million. income or XX% million X up in year-over-year. operating to at $XXX first came And increased

$X.XX CIG months driven operating our both to second the margins the for was our compared quarter by earnings share in increased so year. X per And the last of the And across primarily increase of improvement first the operations. GSG and year,

we for second quarter $XXX XX%. over totaled million million operations the months from from generated net income previous And look net and for were income $XXX every fiscal decades. historical X last back over our And period. exceeded up year XX-month flows results, operations noted the financial that the Cash XX% our we cash Now flow XX trailing by trailing when the our exceeded has or from

working and in capital an versus Our reflecting XX has flows DSO, industry-leading days days. at of focus our resulted the standard cash over average on XX industry

operations And we The DSO DSO priority. low sustainable year. X the from term is from continue last second as make to working the for this flows days an results quarter lower a over cash improvement clients capital broad of This longer to the historical metric of work outstanding across it our higher-quality geographies. managers all also significant highly into of all relative satisfied and that insight core lead end our our projects in of provides our business reflects markets portfolio project our and saw as

in a was million debt at capital this our net on Our leverage of second the EBITDA if an the acquisition, debt and acquire about multiple have and amounted been to LST includes not the leverage to leverage would quarter, to net closer X.Xx. This $XXX X.Xx. for used

within when a target year we acquired than lower and is our ago. over RPS much leverage Our well just

in technology is civil did and I second our as So in LST GSG those part consultant the markets on acquisition. federal LST mentioned, a agencies segment. the the focused government is of leading quarter, close we

we target we outstanding range. days cash as debt strong to flows, with net leverage a on well So results high-quality execute operating here presented our within industry-leading continue sales and today,

financial fiscal strengthening would to of balance while as And occurring, and is present now sheet allocation XXXX. this overview the position of quarter our capital like I second

significant acquisitive well-balanced mix priorities, X.XX% both to debt a we fixed at a XXXX. rate available in have have liquidity of a organic and We in and both invest in coupon, matures amount which

sitting debt X.X% we look just now This interest to mitigate these over While priorities. is helps rate risk rate our rate. key in strategic balance to variable as interest invest

leaders, third increase the is dividend annual market which program, to for announce and quarter. This technical have We $X.XX the increase consecutive have that led in our for year-over-year XXth to the Board water spaces the of regarding of portion And future capital where $XXX as million a the And last environmental is strategy. I from our acquisitions year especially dividend, pleased paid approved with towards XXXX XX of support of be in I'm which to remind want the capital in our significant advantage stock approved plan a as market paid. we've for buyback revised in shareholders financing part by Board of our the we amount available the have credit consideration back Directors the Directors a XX% pipeline is years. in our dividend our strong structure an we double-digit disciplined allocation needs, take to last quarterly our aligned to a that our quarterly services do

as to all the want and market fiscal Leslie? just these I now I'm Tetra And really start said, to results hand XXXX. strong sustainability. discuss thank our Dan Tech's share you also your to Leslie support. also in differentiated the to So and will I pleased leadership over of water call for for

Leslie Shoemaker

commuting basis per Earth project person we we use on initiative, and our highly to our year, including X X, XXXX as Scope pleased and cloud-based to just On storages internal impacts sustainability of both our Scope and operational have operations. reduced practices. by from employee XXnd, with computing UN alignment continue further Goals of worldwide. as our well our from At use days reduce XX global XX% and science-based report. initiatives that and released Development frequency emissions Tetra on efficient both metrics reductions emissions a office ago, expand Steve. as you, in commitments the Tech, targets data This by well have Thank April tracking benefited assessment collectively. Emission absolute company's the as we a space we coverage report the to Sustainable X our to our In we're Day,

gas commitment removed by from lives XXXX by goal the part more our internal of positively To the of of to we emissions admissions do, we have scope reduction has X,XXXx. impacting finally, the XXXX. equivalent X million project emissions. billion our our greenhouse since realized by XXX.X tons than work. XXXX since over operational X, in best metric through million our we which entire XXX exceeds is challenge carbon Our work And in This launched billion to and impacted global doing X progress people's beneficially X people's date, lives to we X people continue project

throughout United PFAS this can't about both analytical for regulations, So the X aligned services and United talking really Tetra in understate I'd and And work to recently sources the drinking water program. the States. is have removal EPA to do regulation now a the step Circular all announcements PFAS-related in how across we the well Tech These like work change move with created I the announced provides a the States. overall bit of and environmental what of

state-specific April X addressing lack schedule for pollutant the XX, United of drinking limits threshold and MCLs a different be PFAS existed XXXX. consistent has treatment a water XXXX, implementation across announced These announced since are variability to new and water first the compounds for provide, time, PFAS limits and States. the first that clarity remove The the

EPA later, circular announced and considered risk-based days assessed substances compounds PFAS also through will X Just hazardous the be that process.

affect these cities, industries, United clients defense including and States, our the federal Taken agencies. civilian across regulations together, municipalities,

solutions. as present? have. first the PFAS Where treatment What associated see questions also for wave This it key with requirements. questions Where research strategies support ultimately, clients work of are is our the analysis pressing and assess of us data spawn these increased analysis treatment can will We pays specifically to how migrating? for type is that mitigation define and modeling to who we additional

that a we enter and data contract providing next space. as the to a services expertise, XXXX become This the analytical expect will us, in we work implementation long-term and for for services relationships our springboard well of Now we a expect hold leverages X this see and beyond. that to advantage see we vehicles over competitive years ramp-up modeling and client analysis directly quick design the

expanding now further an to forward will looking give during on really our of. overview our are strategies Investor Dan and which We PFAS you items other upcoming associated Day, with

Dan Batrack

Leslie. you Great. much, very Well, thank

a there via very pleased for deeper May morning a Tetra I on And could is that and to host and which us XX, going us at outlook time front Day, the Time. just to opportunities Tech our long-term in inaugural all the better XX:XX are are to held a.m. right not in simulcast be discussion a Eastern provide of into be Investor XXXX, now.

there During now the are through Burdick, spanning Officer; meeting, all management key you've Dr. an and you just provide our going myself; the Financial heard with on to Chief X Steve our to Leslie from, from our be Shoemaker, members update of XXXX. strategy way

opportunities the transition, describe in establish building both place emerging growth we're the expand during recurring we're Day, targets our we'll We'll as strategies going and describe that that environment, Investor the you expansion energy this renewable goals full entire the our to margin setting and cycle for and and Investor that share our water with decarbonization. revenue the period. we've as to between And also nexus established and revenues, encompass well during at Day, strategies

guidance during I'd At like year all time to our and updated for for call, the third quarter provide guidance our XXXX. this of the fiscal

is range billion in of of net a to is XXXX, with fiscal billion $X.XX to our revenue net share for the billion $X.XX revenue quarter, net $X.XX been Our earnings guidance third estimated revenue earnings per which $X.XX. $X.XX associated an with our $X.XX per of an and between to as revenue, $X.X for associated billion And $X.XX. of represents range net of share follows: guidance raised, year has

you this of simulcast, can After following them assumptions, briefly. I'll touch see the some you on -- very morning along on the

outstanding. $XX year it broken year. if we earnings range intangible along of and down rate $X.XX an of tax XX phone will amortization share per additional per the that But million see effective this quarter. you you're does does forward or do per following we slide for XX% end presentation, year, guidance on complete the estimate that from guidance include Our we the share, And million the call shares would through this diluted have today the for of exclude any acquisitions average can

and with markets science see we services that differentiated very our working strong summary, across In the a water we're demand for in. leading environmental

operating per days over. sales set income earnings industry-leading share cash results and while new quarter second Our that maintaining records for Burdick flow outstanding revenue, and Steve went

expansion Our strategic had performance with confidence focus is as And very have for revenue we've guidance operating outlook and year pleased the to on the shared both high-end and our fiscal water we our earnings strong result, and the net raised environmental quarter consulting growing I'm share. 'XX is that a last that in driving and margin income. you our per in

operator, for that, I'd questions. with call open And now the to like

Operator

from Mulrooney Blair. comes question William first Instructions] The [Operator Tim with

Timothy Mulrooney

to events you discussed noticed for dig here. occurred a I is moment, this We'd the all about. guide like recent about know really given I'll that quarter the lot issue PFAS I Dan, others. have you into we've a leave and lot something and the that and about a the questions know to together, care an with

period think, that for So for I now the by remediation. a takes are curious designation, I'm question, a what passed. mean regs they've X-year super about you're while my to these MCLs, first got fund the grace how timing is thinking that unfold. And I And quite

to these not mind, or moving get to in new ahead you some a do So start regs? XXXX, XXXX your is story, of expect folks this quickly

Dan Batrack

of on the working and circa several assessment, and side. interested decades both on on commercial programs. in government Well, environmental the federal having working spent you're career extremely this both Recro my investigation much right. I'm

of a extremely I'm PFAS the and interested Academy Leslie years, both Engineers. goodness, engineering, a National leading many PhD on somewhat So knowledgeable modeler member decades, Shoemaker, thank have Dr. for government for federal and a the I for of and

got at need any back time. all the ever So I've if detailed Dr. I advice, more my Shoemaker

that. But a couple to with of just I'll say words timing, respect on

working With that's clients things. this years happen. really out, and really it our been a I've Well, to coming asked, the always is answered did off happen. it the table is if and been regulations for coming We've it now, with of couple out, years, going

got it dates. was, is Second We've happen? when going to the

from got from systems. delivery So your X a you years treat to the actually and And it a XX, monitor level. municipal and remove years April it day it at to to day, you water X have

American things the billion, plans. their $XX numbers that that roughly from move and to to to would aren't think going other have many to and upfront So different advocacy There's the going seen ahead agencies upgrade immediately with I get are Works Water higher. numbers plants. an from much I the I've say treatment, numbers people at upgrade Association treatment cost to groups respect practices

So that I a federal number, nobody effective way. lower think place the all of can independent entities numbers and to in put government, to some those going the is rush are it that the -- they higher until numbers other most do have than who actually had

water put And monitoring. there in is options, can on, responsible lot of we or there's done comment Dr. is and commented is Shoemaker now and it implementation you manage systems, was hotspot, move different to between is have work we been if when the I to here? supplies her to by actually the place not what it coming? What we impaired? going addressed lot it on tell it be isolate bifurcate treated actually our options a could and a of a and be or we're even which Is are, going are contacted think what regarding, can us we've that the already do, it to to are draw can from And party,

large and to I for addressed and think be that been impacted it, have pay that will the to of that being that place. With care what's which by a it be be take wave upfront there you're comes take first responsibility. rest means of respect And other best will have those going it to their implement it. analysis in of caused lot going it's responsibility, their is the will if to will modeling, And them because to parties,

to add, So anything Leslie?

Leslie Shoemaker

does I Tetra side, early No, in we And And as that understate accelerating how space. consulting you it and it work. upfront spot the sort on. Tech that of this think can't have analysis think of much

essentially as a million a do go it We doubling in into it's on So work. rate roughly we $XX run PFAS-related XXXX. year

So our client you of of sort that it may Dan like. directly look sense PFAS, what whoever in scale wheelhouse the as analysis the pointed wave gives And to do a for modeling first be. and might out

Operator

Our line with comes Markets. next from KeyBanc Sangita of the question Jain Capital

Sangita Jain

I from coal if also X So PFAS there in new ask plants, aside does remediation. discharges limits way, add any since wastewater coal on on, can you coal-ash that, with the work from your to do pollutant was rules, from plants, scope

Dan Batrack

It does. does. It

the back state modified, untwine or here to as remediation questions the so a level embedded and best. that see complicated new being can additional administration, now The And are Obviously, of election fact, deeply if to and up cleaning States that seeing federal the both interesting. is that sort rolled it's discharges, in at changes. compliance regulations. we coal a ash more which from very of -- for the be or questions administration creating In United are the regulations they're doing. work really lot there's these there's about an and large these been changed ponds really we're driver There's change at of level these effluence at of ponds and as inculcated

direct if just both it's the to effluent we going they to later reference to to going and impoundments forward. think And be when locations go work power the that not questions, that are not, resulting do inflation, we been things so these by and all I at The to this do a it's front. another they coming, standards coming, case sooner particular implemented. point, to believe it's additional coal it's almost an it's in And or than coal-fired combusted treat driver. have it's more plants That's have, it's but there's cost be when and in standards, going

and proximity and in we're regulations caused and really almost the of mainly in things, management to health So these these even prompted coal many fatalities. instances, impoundments and impacts of combusted which bodies, remediation these water that on that rivers even that some work doing with all failures impoundments human large environmental residuals, of are close enormous

continue forward. So I moving this expect to

work some of doubt additional new, are an we the leaders. actually as as -- expect tailwind opportunity utilities not pick We to of up a States, become across the one the it's We United additional of for and no I go forward. and largest this more an

Sangita Jain

And I one. up can with Great. if follow

hear You margin of of of mentioned on prepared in a subscriptions for portfolio. bigger becoming in remarks, more the quantify terms expect we weeks. revenue a software us and Will part should -- we you that your in targets? Should to couple hear that

Dan Batrack

Yes. Yes.

well of In the context, that you XX,XXX sell be. that to wrapper CD to fact, somebody. in highly more disk we'll guess, in think margins it Many software over This we what really rates days, we that little consulting I'll But where a comment with for. the one clients taking significant details different old I services as, expect are, where we're work on being in revenue do put a recurring growth a sales it we we what you'd provide a here. to the item tandem are, is have in is say, done the approach on and would just cellophane

them, savings and value United that The Fortune-XXX relationship, our putting countries to part government providing the provides, clients. They in programs in work English-speaking the trusted as consulting place clients, it largest add represent clients the the to these software States. to and cost to that the our world, value the largest of the us certainly we're Commonwealth around gives agencies a

fees, is in use We're can our make it that identify with the it only different that more domain software can a be and not our approach. Investors actually the have Day. at them when about from effective. can that of consulting as that detail the done real-time coming in in faster decisions savings consulting better expert But outcomes the value a from services. service they're But the speak We'll tandem

placed that not We're licenses is cellophane that sales a this disks you with existing already our progressing. clients have, that force and we're suitcases currently, have in we've to and of one many we instance giving have what So full we'll and we in how actually going sell? can that clients, we today X,XXX we give more see on details how and saying

our so Day I in, further and this And XXth you welcome of to and to to others on May. the dial so speak, on all call Investor

Operator

comes Markets. with Khan next the Capital line RBC Sabahat Our question of from

Sabahat Khan

a obviously, margin improvement, Great I some year seeing this growth strong guess. We're year.

you're here of Investor years. think bigger maybe to a growth So for love us that's last about just maybe growth the should of on would and the Day, you going just to perspective as some onwards, think if drivers. if head sure perhaps? have medium the some How growth could calendar help of I'm you saving a stuff medium-term into through term little couple you're of bit of bit algo, we 'XX bit not the picture get from good difficult but a comps the

Dan Batrack

May I'll approach is on give XXXX. to -- that the but it here, want on things think of our to don't look XX, just do too we on touch but I I'll give show want you we you big preview to want Well, Investor one up really I Day, or beyond is won't and what a

us amazingly not fiscal X.X which are a is for calendar. It's we far amazingly that federal away away. for months on XXXX, about government year So because

So XXXX, I XXXX. you for year year fiscal specific our complete the first details and we fiscal guidance quarter for that will once on say we'll provide

to So try that. from stay I'll away

that many add a been portion clear XX% that that a goal, clients, new our our has think we've to between -- XX% We growth. critical be and and to acquisitive leader technology. rounding But to been top geographies adding market with years for and is respect be scale, is important overall goal certain out of line we very to and in

environment of the when our a economically, organic economic low. being acquisitive events strong In we course, cycles, of growth high very things have the larger. component and seen the see do and slowdown smaller we that portion in flexibility being And we've of the the today

do a acquisitive to larger get of would our be we things slower, growth. see When the portion part

at So at and the I a think say, mix have on side. new us the continue. from organic, being services software look a than half it caused expect could advent that's a government that think see the from addition limits new the And margins of we what is digits XX% wonder of in and single would nothing we we to a work and of you higher. you that and basis, that's and I bit growth beginning has the of maybe the we there But a if I do haven't standpoint, sort substantially of be what to are upper middle, from communicated take it if past, with more longer relook sort mid- the would the upper in normal reoccurring higher. even to the standpoint, and to

The yield importantly, clients. even but value contributed being actually our to ourselves government for higher margins our value for can better clients most

each to contract going they're Tetra for with Tech. get dollar more So they that

is roughly. a we expect over years, X more what next it we on win-win. will the So details provide But

natural structures the not actually other that the should including climate targeted at and have. just the we of we'll structures for as these And and the protect natural time, which we provide physical is clean biodiversity or and think and focus and So structures without protect margin to in provide said we mitigation man-made, the it ranges today, environment, concrete on change we'll environment between resiliency think, I'll of drivers, specific steel or from actually environment that XXXX, degradation we've now the water, clean past, to are events. repeat impairment impacts exist what to unusual

of decade. in all those, have measured tailwinds measured every not in years, engaged are we are of they're in even X that not a So those one

just Canada, these frankly, long United the world. really the beginning, certainly generationally States, We're and Australia, are U.K. priorities and for

we're weeks. So a focused detail forward couple on. a Those are what our those we'll more to are tailwinds, giving lot and look of in

Sabahat Khan

That's great.

that think teaser attend to to a I the us enough get Investor was Day. of

So switching to just maybe a back RPS for I bit. guess,

good the about XX acquisition. You talked months beyond

talked little about You the bit a synergies.

maybe opportunities some of bit platform. us the revenue you combined the remind can If a on with

bit some largely we on talked a the call, to business some have combined customers? numbers, of that taking where an And on you provide should are know XX accelerated that maybe line? rolled the is opportunities that months, integration about into your up you I the eye we the the top keeping not the would be capabilities over last next could seen show potentially base XX, wins just but that think what

Steven Burdick

we questions these specific like I press them. Well, give can because answers because release we

XX, years, priority from leaks regulated or bugs, new here new it's or Tech been impacts the CSOs where AMPX United Tetra the example was And the so asset and next I'll streams, the areas and revenue has over think past you or programs, of brand the priority systems. So we that sewer overflows for seen an surface the give XX within in we for has been here. the first a while their to their coastal United it's in program is doing have X AMP years Kingdom, the it U.K. overflows water year, from synergies management in Kingdom,

rivers state work is and early some spent that have the by investments a of of U.S. the agencies Dr. actually The done of estuaries. for the standards we've this original people the thing, Shoemaker of the set who has we Day local done And have in work. the bunch one is that EPA author, one and will been she's the is and Investor United provide she regarding this chemical States. much that modeling loading really for

comes an a industry the is She's a not executive in So and technical in expert as his good of speaker. as deep Leslie anywhere. just amazing work

here these for a getting those RPS, month that taken, Utilities coupled a we or a in had XX-year technologies what in through technologies the we're the geographies RPS just the solutions to bring curve. so announced and with. in ago can $XXX X make to provided new we long and not It's expertise And XX-year that clients we've together with that leap program this a and learning management have we program. with RPS million geographies we think started We to United with go won our the

and has them Tetra the with tens Tech and press clients RPS commercial as We've time effects has, its don't leader, And call millions all of on cult short of and the the U.K., offshore us on of and combination such in buoys you of renewable great named are wildlife, added commercial this global we developers. where And enormous in take where wind the the energy a a technologies environment we've a modeling clients. given if dollars together. offshore energy. already renewable that a we've Australia knitted other released We energy has then monitoring. also renewable had energy that The brought geographic enormous. investments and presence They've and wins expertise

And on and of awards we so tens working millions been for not together. we're hadn't that hard RPS that or working now for of if had happened we're we've closely, would dollars of either very have us

to greatly Ministry a more to that with going that's we're U.K. defense some respect And We're think Defense I renewable globally. done of departments to going are the lot in between of of win energy water. the framework a the Australia different agencies. that are to of capacities contract actually to and government fashion that that work new I the so that in think don't U.K. U.S. have contract bilateral you doing more see a new of by they're the and these a or entities these being have work necessarily IDIQ in see going on Department globally, if from we sharing, Defense benefit

And positioned anybody. as well that in as front we're

we're hard seeing that's in and beginning revenue another had areas. So just take synergy off, to wins that we've those

the renewable for amounts energy, RPS be for kind Tech to dollar dollar combination defense So to water from amounts utilities, of already. U.K. Tetra nice come it's able for amounts and globally, and that have dollar of share

Operator

Our Instructions] line Sullivan Maxim comes of Tate [Operator question Group. next the from with

Tate Sullivan

said or you've that PFAS-related fiscal you that in number for mentioned what you did work. can think 'XX, Was reiterate mention I talk XX number, earlier Leslie, year you done that of million about or you please?

Leslie Shoemaker

see PFAS our this Department quite accelerate it mostly that in work XX expectation Defense -- work that of more investigation say, our scoping with we're we'd we and is space, double run on we rate that and for PFAS to about the the doing our target annual and including work look as from consulting is a that that approximately investigatory year next XX-ish, U.S. we we'll would talked our into bit go so year. the of about, expense, and see

Tate Sullivan

the type details that might that for is with scale some that had be Dayton other might large for Tetra press a is to and in PFAS, you of the then city of do you're on what good cities city April other in blueprint Or And work able in very cities? unique the doing in your is to work Dayton what Tech compared early do? and release

Leslie Shoemaker

of early some I think example an of excellent it's the works.

early get in in of way the be these the the as of have in place. some of we you see that advance have contaminants, then unique want of that of PFAS of that ones the But regulations terms example design to future. ahead that the of work treatment well and really water of ahead their and of sources, treatment So actually relatively requirement few as as municipalities various curve might types both managing in way our gotten place a to in putting the coming anticipates sources so other nice balancing sort have the a water actually it that's in of stage

Tate Sullivan

will looking a U.K. not bit out future design May if earlier work 'XX, mentioned called you've not little sure but presentation, you to at on which that start XXth. Dan, work, U.K. of you most year have you more be design that related work before some is forward water please. the AMPX And on fiscal The to commented to and hearing spending, spending, and some I'm planning U.K. spent in that all ahead that of

Steven Burdick

is materials of work are really out The summarized held existing that's we U.K. over in there. the design that other come work that and our planning contracts regarding

in Kingdom have contracts. United across a Tech offices number resources and the Tetra Ireland, we its all of of framework So and have Republic

in mentioned target. the past, we're U.K., yet tuned had the I stay think in that's #X clearly not I for our that, as

support represents to is contracts putting and and us. we until it's AMPX. But front really do it one not existing AMPX utilities doesn't the technically, notable that most the of I'd across unique they're place, doesn't in say frameworks through Kingdom, of water through since this, contracts start the in United the that start, but just

work would Kingdom. I place that other in contracts existing under say this we So United across doing represents have that the we're

Operator

session. And the conclude to Dan over the Q&A back this to turn conference will now Batrack conclude. I'll

Dan Batrack

business here we next details you Thank you for XXth really go the May We Thank half to you you and X very driving outlook much, and Shamal. that your for of on Tetra forward our interest of year over our spending your to questions. Tech. more than years. And through. of our quarter other of presenting the detailed all results consider first in second thank We're just the through looking went time with really what's our

say to that, we're you during So long of attending, all appreciate next you I so a until say the weeks. And couple and our presentation you I'll won't to Day with quarterly I in until I'll talk call. Investor speak goodbye soon. able with

Operator

conference All this day. And now. all and Thank may a for concludes you have ladies and parties today. nice our disconnect for gentlemen, participating,

Tetra Tech (TTEK) 2 May 242024 Q2 Earnings call transcript