Tetra Tech (TTEK) 1 Aug 242024 Q3 Earnings call transcript

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

As a reminder, Tetra Tech is also simulcasting the 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 copyright 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; Leslie Shoemaker, Chief Innovation Officer; and Joseph Fong, High Performance Buildings Global Lead. brief the the call a will and provide open then for will overview results of we They questions.

the filed forward-looking presentation. I attention would results report risks today's Tech's discussion may today's projected from expectations. the various forward-looking to your Tetra SEC. future including contains Today's the periodic in the safe differ and and like harbor risks statement Actual to financial in statements with about direct statements described those to business significantly in uncertainties, due

Except update by law, obligation as Tetra required Tech its no undertakes to forward-looking statements.

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

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

good New just little which over Great. XXXX, set to I'd sustainable goals year X fiscal call. Welcome attended our environment months ago that and Thank earnings high-end third for Investor our thanking who to water, and York City. our consulting like XXXX year vision out quarter everyone a and and Day that morning. place you, on our our we fiscal focuses conference start with off our infrastructure. event, At in took

EBITDA XXX on points continued advisory expand this to year. quarter a report time for $X third revenue to with company's first our and over margin, all-time Tetra quarter pleased basis an XXXX, consulting well that strong and our in both the the our billion quarterly up record we I'm backlog of Tech work, year last Through performance through continued delivering this fiscal XX.X% front-end from the history. margins, high focus delivering of

that year just performance slide Due of for say I'm provide guidance our raise few and fiscal full our that moments. updated we've a to the here to XXXX, details year in been on I'll guidance able to and our pleased strong visibility,

this that. our Steve cover Leslie we will update really begin an market, provide fab, Chief I'm stock allocation. and third for And water Financial capital he of pleased insight which say going call some our year. high-performance the our with outlook pleased And details Joseph that the who's an I'm our associated include provide to will systems. remainder quarter Dr. and of overview today Fong Lead, have financial have to call, Shoemaker, Burdick, our with scheduled to discuss building Officer, and Chief will in Innovation centers us, our split an will to into performance, markets. with our Performance fiscal some today's During the that cooling approaches the on of Buildings going of our newest overview the of chip High I'm provide of global data

quarter, a quarter we For third had very strong the this year. third

net Our a quarter, the the in revenue revenue. company's billion for setting in increased any for new history $X.XX quarter XX% to record

generated the environmental the compared the to treatment basis the triple XX.X% up increase our strong rapidly was work. amount to and XX% XX% of was from In third the rate and growth, directly GSG water goal increase margin, key an prior year. expansion XX a up line with $X.XX, net segment to present prior in $XXX points quarter, for our growth. in GST's year. I'd generated Group to up a performance higher-margin driver quarter, The from revenue by margin increased revenue in share margins advanced our or like $XXX the the per segment an almost quarter, year our And total to finally, earnings for last EBITDA Government Services of we million, in is reporting quarter segments. which Our of third our XX% high the million more our now the all-time than

The Commercial up basis delivered margin, impressive by revenue a International points year-over-year XXX and net Group, CIG XX.X% grew an X% segment from our or last year.

margins we this now quarter Now margin RPS reached the half our the basis driven that an an last quarter margins by CIG third that margin that have points for our of they operations. and XX% XXX third from year's which XXXX. basis increase XXX year RPS increase in the in fiscal of work X% of up is increase, year, international points in perform that about from activities The had

other CIG's performance energy of locations. in revenues clients consulting overview by have work federal in renewable U.S. margin like year, our up front-end customer. quarter, civilian associated that same of projects all an the do underlying to and our provide the our federal defense that performance by our by operations, year-over-year from and XX% that of was environmental driven quarter we XX% our Work international Ukraine our Without of half increases grew now strong expansion environmental in an with end I'd last in performed for The for driven international we rate. was especially our USAID, the work including extraordinary we at work our programs.

by States. local, you work, do in our treatment an the water work for utilities all exclude For disaster at if grew and our X% rate, United to response the revenues continuing local be advanced that across and state state and cities driven we

by U.S. energy those XX% X% and year-over-year Our at about of the the and represents rate finally, a revenue renewable were international services. revenues now driven revenues grew during net up company, environmental quarter. And commercial X% our programs remediation

in that reducing select no margins ago. years the As we've X.X here commoditized represent and very us or margin low call, RPS. presented about just been focused we've on on operations We've before programs this become that have on within joined been focusing RPS expansions

flat in international this has of So relatively portfolio the year-over-year. changing been resulted revenues remaining RPS'

like increased up all-time XX% rate you the of a and of at that seen discuss We RPS' we objective to of an a if X.X, now to like doing actually $X.XX orders purpose also than exclude quarter Tech. book-to-bill backlog, nearly operations, which one $X funded that time the grew the backlog billion that billion, year-over-year. I'd over sequentially. to So Tetra revenues, I'd which year-over-year remainder here which our some more by the during at alone, Tetra in of and highest high XX% reshaping in and note received contracted, are orders are international to our international grew reports proceed Tech XX% on for the rates represented we've only third work. authorized us to

than any So industry. the orders, completely a reported see not which more this does in different include much and is conservative you'll anywhere unfunded method

released week, large-scale water worldwide. programs to recently PFAS, last which mitigation for press adaptation treatment and here just and major This quarter's advanced orders included first-of-a-kind initiatives projects in climate we address

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

So Steve?

Thank you, Dan.

flow So performance I'd capital, year-to-date as our like cash results to for as now provide update capital through on well quarter. the working an third allocation and the

revenues the increased net So by billion geographies. by driven end XX% across $X over all year-to-date strong markets to

and operating growth. than top rate income EBITDA higher at a increased Our our line revenue

discussed such, the work year-over-year. of or water million Dan higher $XXX continue which in for margins our to are and across EBITDA consulting on the XX% up front-end And basis end focus As points all we environment, as carrying and year-over-year markets. in margins EBITDA earlier came improved call, at the XXX

XXX primarily increased operating to margin margins improved $XXX our were These by both year-over-year. increases basis across CIG improvements to million and driven in GSG markets. points XX% income and Our operations

compared projects portfolio And we acquisition of last included last the to to then from CIG, discussed, EPS our RPS' if increased RPS year results Dan as $X.XX. of And hedge optimizing overall. gain about the our mix you an successful and FX seeing are Year-to-date, efforts of $X.XX year. related of recall, better

year-over-year. would update hedge like on and to So at grew for working the our XX% third excluding cash this our now an I EPS onetime quarter. flow capital FX gain, provide

exceeded the generated over was trailing third So $XXX income by were quarter XX trailing net and months the cash period. in flows XX% $XXX million, XX-month previous totaled million for The which XX%. from up operations

over XXX% the X historical net last flows noted results, we decades. the Now flow last the XX income year than for our -- every net over cash that by when exceeded has financial operations months, look fiscal and more from last back income cash exceeded we

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

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

net $XXX at was year leverage debt about million And EBITDA ago, on a our amounts debt below our the Furthermore, net X.XXx, half at to was is current X.XXx. leverage a well and as the which fiscal to like our RPS of now acquired allocation present time X.Xx leverage would third we January multiple the as of was I it the quarter of XXXX. at about capital XXXX. in overview of

between organic significant in This risk strategic and a as interest invest to helps invest to and balance variable have amount we liquidity priorities. key areas. fixed We mitigate debt look available acquisitive rate to in of rate rate

than less of weighted This Fed current the resulted current at borrowing in mix lower a of debt than which cost exposure X%, XX% has average is interest rates. borrowing

strong have where We in innovations, and led which align technology environmental markets. water acquisitions we spaces for have pipeline a towards especially the

a these year-over-year. Regarding XXst increased This our want dividend, and initiated XX% program, our a quarterly every that payments. dividend, digits is of quarterly double announce we to have dividend dividends our is Directors which approved our since year by increase Board consecutive I $X.XX

capital by credit a our support last disciplined price markets portion our last buyback to increased structure as plan to available the we've As the of have year we want Directors continued financing from the do we results, the our $XXX of capital financial record I our of the take needs, million generate remind revised significantly shareholders that Board advantage our of in strategy. approved allocation as years. significant to to over stock has And XX part stock

decision stock primary on I Tetra increase to for the we liquidity that is Tech's X-for-X based was this lower want benefit and much The Board both The our received approved shareholders our impetus split investors. and very want from that retail we input X, split to on details -- was and in announce our year for our trading the of this from analysts Directors. stock will you on our opens employees market for September thus, X-for-X will close of and the trading X, stock this split. investors when press at costs additional benefit September begin release. find The will effective the be institutional and can adjusted trading by after

the financial share count information related all analysts in and Finally, historical investors will disclosures to next we will recast provide Form to our where we the XX-K.

So thank I'm strong I to I these And XXXX. quarter business. to to share leading Leslie your call for the very results our all you water pleased through support. really over Joseph discuss now to will the and hand third global of want

management States. areas Investor and water the government, Steve. water Kingdom flood of Thank Kingdom, in expanded and management that opportunities our have labor quality water-related a protection. United United supply Most the water actually Two newly where during in reemphasized United has for PFAS the which you, discussed in recently the significantly of we importance Day, the treatment our elected in the their rivers, services we for requirements new

set associated the cycle, solutions platform, CSOC, technically and map directly been and water advanced new Fusion with software our spill system. risk real-time for aligned our our These using aggressive and flood such control, using differentiated is goals beginning, which industry-leading the management leak that have using solutions management just net detection expertise priorities AMPX as

in similarly, the indication into and the expansion PFAS long-range more to begin treatment recently which across quality include concerns clients. we their water are the municipal integration water PFAS and do. than branding seeing with clients protection water need Today, XXX is national reinforces directly of of what and treatment good survey updates we our of a treatment municipal facilities, line In U.S., regarding our advanced increased released again,

advanced just to more the California, of $XX and new quality, have over buildings. that, Joseph? to water-related And opportunities discuss water And they to high-performance treatment I'd in Joseph with programs. would water expertise commit funding with [indiscernible] like directly [indiscernible] our Fong billion presentation bond measure a in turn water aligned that our in

water growth advanced advantage centers. Thank key you, become Leslie. of has in Tetra and high-tech market-leading a X Tech's our treatment markets, manufacturing buildings high-performance fabrication [indiscernible] expertise advanced and competitive data fastest

incentivized May, boost to billion in manufacturers chip U.S. our for Day the production manufacturing As Investor we investment shared fabrication to commit during over $XXX facilities.

fabrication ultrapure production requiring ultrathin the require also that these the addition to with we processing essential create of high-performing wafers In for use water silicon computer is to buildings, facilities chips. energy-efficient

jurisdiction. demand advanced water manufacturers We attract servers processing into with high-tech supplies for for than are water more clients advanced predecessors. require generate in working immersion augmenting treatment as water new such increasing cooling our Today's and our solution, facilities their capacity facilities implement their expanding cooling. the upgraded AI much seeing power and is cooling and invest data fab chip liquid solutions ultra-advanced to pretreatment as Tech heat and and more to computing initiate Tetra center direct-to-chip liquid municipalities

including billion over hydraulics can to water is systems capture chemistry of future total up investment production in $XXX the capacity of expertise to to infrastructure, which of expect Tech's and XX% high-efficiency cooling design growth Tetra cooling essential significant a we liquid be in designing [indiscernible] a increase the XXXX, us. new computing data forecasted by XX% current solutions for market center global of in

I'll back presentation turn to Dan now to like Batrack. the and Steve

for Thank of very guidance our fiscal the like year I'd updated and guidance much, all you Joseph. fourth for to present quarter our XXXX. now

is guidance follows. as Our

quarter, range range the our at billion, For of billion net $X.XX. earnings revenue of the share for to range $X.XX guidance an our $X.XX of is diluted a the per fourth with -- to associated range $X.XX

a For billion. fiscal billion is guidance the $X.XX our of range increased $X.XX entire of year XXXX, for to revenue

we net fiscal a The XXXX. realized year from or range represent our midpoint in of in represent increase what would revenue that actually does XX%

updated Our per from a $X.XX we earnings upper The what guidance to XXXX. end our per assumptions. of in total $X.XX realized an $X.XX represents a that of range. range earnings for increase is A of few in share fiscal or share midpoint range year $X.XX

along is a approximately our these following shares you represents $X.XX on split based numbers, per It XX share. which intangible on pre-stock you're see million does include can outstanding. webcast, If the which are [indiscernible],

quarter, we differentiated complete morning, markets and we of of services In that in. any summary, from we exclude be past does fiscal this between see end year. our XX% But a do acquisitions the that in as the demand tax and science approximately assume fourth environmental that the would will this may income have rate. now all leading strong work And water the across for we in or presentations, realized contributions we revenue

as set new revenue, EBITDA sales income, Our quarter net operating revenue, indicated, outstanding third records and Steve cash quarter And our per or record day results and results for third share. backlog. generation, all-time our for earnings we set

Investor and Our we goals in margin here May. strategic line in high-end much our focus driving on expansions, very is in our that with water Day presented back longer-term environmental consulting

earnings XXXX our pleased result a were and in share. per guidance performance to I'm our revenue implementing we looking raise split. to able As of confidence strong fiscal our We're our and year for stock outlook, both that forward net for

ago, stock moments like XXXX all X broader call And the for even in with for I access to Tech's to provide our aftermarket to few that, closed indicated a investors. Steve Tetra open effective questions. would September of As on up

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

I your how is of annual into as on visibility healthy growth about XX% that into fourth And year-over-year. for -- of It's of mean you eye backlog this organic the how X% really next to target terms think investors curious head now your just the and interpret should in hitting year? quarter caught XX% investors that you I'm my first your right release. thing

on our the have year-over-year. -- quarter to Well, up would I with some I that's that commentary I think, say timing have details orders was that that, great I any I of some in we're question. in increase, that net that's XX% the know will respect good a a really second quarter. of If anticipated come

will I there's of included. catch-up bit So say little a

directly is translate I our revenue thing one going So net to is to not backlog caution growth the that would interpret into growth. our investors

do ranges our You between the X% XX% level XX%. triple double the of to X% the to see

is I [indiscernible] we we the some had high did have much one that above We did extraordinary end or we've at would question numbers area, represented contributions the backlog say that would internally there expect. USAID. very X/X Ukraine But I from of that of Ukraine. of extraordinary through what one to have the orders into majority don't about misunderstanding the contribution went was that be want It increase.

in of So X% of the about about the quarter. XX%, have been million extraordinary would or that $XXX

is time. above we organic over at So double-digit anticipate targeting our well which year-over-year, growth we this we've are rates what been still

really of into the but great way So the quarter, visibility it us should XXXX. course, all coming give fourth into

Okay. That's lately you regulatory on investors it questions I to comment conversation gears environmental regulation that susceptible now that helpful regulations color. We this. Chevron of are a that more from result deference a has ruling? because Are getting preponderance quickly there was as you susceptible switch a represents in been to to I changes think hoping certain could heard want or really there we've are exposed to business your gone. that this that of and of may areas be being overturned

That's we Chevron Chevron of ways. has it actually What in it Supreme It the our And since was And really deeply couple sense or business? a analysis a actually come evaluation. good Court's past out. months of over deference to dove heightened on question. mean X try quite does into -- the the to the Doctrine we this certainly ruling different and simplify

actually for level. at and work most all, environmental is the do the of state local that we First of compliance regulated activities

So regulation by it's and regulations, by counties cities, federal in local not actually it's and regulated interpretation. state driven

the very do. small respect actually intersection or work a to has we only So it with nexus

government. are U.S. the all, programs have federal we for the of largest Second that

Defense for of do work we do, Department we the Army that So it work the of be would Engineers. what like the Corps

And the to and of it's determinations it government take the practice to U.S. regulatory not federal contest court.

doesn't and this. over court sue So the to go federal U.S. government themselves

items just the or straight regulators implemented. be Environmental So federal of that Protection are the with are actually these or some the Agency determined at the level, it agreed to might others

little we that your is the uncertainty regulatory sounds impact Chevron So And and is interpretation is the Doctrine essentially not cause underlying, presumption see saw, it. really or for guess, this into that we is applicable a the bad last what item as if some it I doesn't to business. going and contrary

I if contest you're to interpretation the go go clear. you going don't to better know you're a regulators' be the and -- on if going side, commercial to court,

compelling. just be Yes, better support You can your who need argue the the basis to take want with you arguments, positions be science. Yes, it based And you It's may it you an analytics. has some attorneys. actually, have of you but it if all of data. need and lead be data It opinion. boil on to has data, on and its to it, people to down not essence, to argue actually based

to You bring a technical, basis. actually in well scientific have positioned

a tagline a there that is with there firm "lead has science". out And

it Tech Tetra your to very bode bode with the respect interpretations -- bring well us for And in you very so well to support for actually may to want to courts. who

have to see exist to that didn't I us something for before. actually thing this that of may new opportunities where commercial be the So with by it clients, could large it any contested some actually there begin presenting respect likes does

be it's business. ways, in actually our for good some indirectly So maybe

Markets. The next Jain KeyBanc question comes with from Sangita Capital

the that out? to also of slice that centers one and the much revenue you high-performance compared that faster rest growing And be currently is getting ask your the can how you've may data broken on segment? I if So if buildings CIG from

presented really a on. meetings Joseph earlier details we've actually we good had had. question, it's in those Yes, and He

Joseph? So

that for question. you Thank Yes.

breakdown our those share building Day the of high-performance numbers and we during and of our shared data May, of advanced part total As kind in did in manufacturing terms our revenue. fabrication revenue our our centers revenue Investor of how

target are CAGR for a those X sectors, XX% We $XXX tracking for million towards revenue this we are that and have shared we that year, market. expecting

we million again those trending markets. X towards right now, So are between $XXX

I And helpful. on That's one Got it. M&A. ask can if

trending shifting you of is in rising As towards that of range. revenue target low the we you you consider base the pointed end of make overseas about out, more And look your as just your talked policy at outcomes M&A? U.S. your uncertainty leverage Would

would aside in world's the in I what I And compliance States. water, environmental question. dollars even of say that measured regulations, say, with multiples here good stewardship, set is a for new things largest other That's PFAS United exist the no. locations. The would like they for clean in economy right are

we're think to join priorities for his comments Now technology had focused Steve our in or for I area that looking do with on. one the very mentioned respect us. people is to acquisitions

clients, in U.S. transfer that thing And operations gives us of say or a us the the of all our competitive the the company. would the across through it across Canada, all if it in provides than us and it to allows acquired Australia our is it's advantage Kingdom, transferable -- all we our of or came XXX platforms one United of differentiation or let's move and to what our offices actually or more technical we here

best markets largest we're we're We're is focused position U.S. these on only thing still the protection, water, and distancing even focused first change, a a each because place. or in is going environmental, that the precedent of in in market the to biasing areas. anywhere find [indiscernible] going the more changes far the best outside protection. that in as potential in and the This elections of we're ourselves new in in it's on, world, technology. But could the climate that elsewhere. not as taking moving systems, We're innovations us is legal be exist It potential U.S. find And the top we to or those world. whether have So the flood

comes next The Khan Sabahat RBC. from question with

obviously fiscal numbers of up your would 'XX out few kind there. backdrop. for just how overall pieces a guidance guidance, of have I this your in you've guess, guess, I moving year, broadly, the Great. the characterize within context you taken you the XXXX

line how elevated margins? we X the larger least the X trends next the flow on should funding on some of of to kind cadence trying at of X think years, seen the next years this some bills Over just we've over the evolve through? top U.S. these numbers and about from Or the expect year to X,

longer organic Yes. growth We're had to and rates between questions, detail, look Day, look X% and continue it's it's and going the X and X XX%. Sabahat. glad you'd to about the of And clear, -- rate. Good cornerstone the be what's it X pretty talked organic trend. Steve next don't and going or presented And ask to next a XXXX. I'm between Investor and Day or Steve in I'll over of great I growth indicated you but X% the the sort what's like so years, want it underpinning say years overly Investor what say is to reference an XX% like over

happens That so. But to quarter. over I not that be say slightly drastically would quarter, third we were this

been some X% you're going talked that's to you're that be that top or But range then having about And us. on several to end, And say think this I for we if about over of right. nice have wide people year come next join acquisitions period, we XX%. outside the it's time. So which range to a with we respect would

X%. used think X% I we've purposes, for or modeling

-- achievable. within we've I with seems quite It been well that. And think

talking very to to, years up contribution, course, without So X think be growth think within a without And at if just these about talk hard years, longer trend, X a look let's revenue would to here. it's and to talk income we X we'll I append talked I about. because it's sunshine you like day rates ranges margin I of about our without

use about We've think on past do of and into if the continue several overall years, points number basis that that year. for that we just a expanding at We've you XX the to EBITDA guide, expect we been been a about that rate future. wanted general So our to margins.

call, our provide of don't provide just 'XX XXXX fiscal for or should little performance year. those the you So I days investor we'll next fiscal want to over pretty year if broader the as we'll year representative. only really at tale next details. ranges provide want to final and it 'XX look XX But a one be provided, for our We're

you focused to M&A I discipline just areas talk then whether in And next regions, whether you guess where specific of some the you complement bit expertise, metrics. the I Can just it's more side, that want over water some think on provided a around Great. few on interest markets might might be obviously, the it's parameters the years? about maybe within

cornerstone utilities I'd that the on, Kingdom, United well, management water do United we the really think, program the couple programs. large AMPX we presence I focused in there's with programs, Yes. doing a but say a supporting to very are can is We've for all we're better across respect asset the which Kingdom. got some

more. can I get think we

additional capability say can and So contract would add capacity. if I we

in look the be Australia. that true Same in for we'd U.K. would So

repeat and on would much technology. on clients how clients. so deliver through can And focused municipal from not to our exactly better we're technically moments we're point on or ourselves peers it's have focused market. want price look lower around in before, faster can how few utilities. it competitors, really we water contributed said that outcomes higher So water and that, call I'll more delivery, that We then be ever focusing differentiate in think or U.K., just the all a water, additional ago, you'd I what so acquisitions be mostly and even And for can that the better largely than value response, we deliver we to our technology.

so. the programs And and that even automation they're over water of remote And and to on do that, going believe to in systems remote water through States not in next want automation. digital we our go inning we're so and of first different monitoring which we eventually, that. the be United utilities, water not it's or treatment to the all forefront XXX,XXX we think the is leader monitoring the whether There in water or decade plants, or

it have but how we internal, So come those can can in. For we that identifying sure, and do that? acquisitions

And I'm since had quarter, we glad last this call, investor say join last Convergence our that us. just to

a technologies just are it's While quite really handful and intellectual the the significant. of that property they brought individuals,

for add to us those next to beyond. So look continue year over the and

The from comes next with Baird. Wittmann Andy question

did I out to in about Ukraine. can to start on backlog I just wanted put guess about do Dan, for to I contract then quarter? your bit not you was $XXX to talk Maybe that, -- little the context, if see would book Ukraine the you And you in I that million. you great what that this visibility just have a just wanted just mean recognizing right? contribution didn't asking

trying to $XX million my quarter. somewhere million Like you see there? did visibility much by this just I'm $XX do and calculations, like how you So have between

does mean work that? X.X you've of million? how think we like that Or $XXX quarters with that should So got about

the for this you've find to Well, Yes. you. got right. numbers about I hope

was the last So in good we third quarter, million spoke interesting a that about we second did of quarter. the I It worth half expected revenue. fiscal $XX we think call 'XX. in, of and on an quarter's It's year coming

this we XXX [ about do year, So ].

for top be. were quarter million So million. of interestingly And for we revenue $XX where enough, our we above range I net over by think we're the guidance about we would the about $XX thought

us took range own So up everything pushed even higher. high our then very end to it It very strong. was the Ukraine of and

Well, XXX. question we burned good It's a a -- XXX burned mean we that portion? So in, XX. we you have we great did but does on put about do

the a at look million a backlog Ukraine. net would work $XXX new But our release, for first if So presented our in take really slide we that. at and press on you take addition look on line you

a that referred to only And There's actually small obligated work contract USAID. us into capacity. as or that a went was Spark It our program allows to we a of the QX. continue portion have. contract new in very with that backlog That's

more So got contract capacity. we've

order say, Ukraine for more of course, respect stand the political to have would with by with with finished to, a We U.S. And behind We will. orders. Ukraine. actually I does give the government higher visibility reaffirmation the book us and

there's I know lot of questions. a

turned get one in we there conflict off? hope change may comment And is my all is true. if that, administration, have if call, that Some the is becomes asked a maybe could everybody phone me that over, with

may allow never that USA before. think through work it actually we've I restoration additional seen

do conflict you're a actually not when you while someone's overhead, more can firing You in work zone. can, then

several contract in only of the that hundreds slide [ ] contract have that's release, first XXX of measured capacity in the listed there. have presentation we isn't dollars millions in backlog our press So we and our

much broader. We're

of Australia clients, what lined help once like we're our started. move there it's And And disruption up places to you U.S. some supporters. restoration whether that with coalition to asked, well, a the have lot some U.K. I one a behind actually it's in regarding want whether contracts to the place? it's these is forward there's will countries development tell if international European where are Aid, includes the or Union largest whether of commitments

So this is singular not question. a

even question significant the may the upside resolved. actually in is fact, the have conflict And singular actually in event

into going the have $XX numbers half. with I capacity, we fourth million. for second by $XXX will for the million still the contract to we're So quarter respect our standing the say those are

million specifics take you $XX QX, would million the next $XX on to the $XXX call that how we'll we'll I And in easy out. pretty do minus QX. turn but actually in around give more think it's So million

ask I question really That's on my helpful context. follow-up wanted to RPS.

been part That work. margin running of the off the of always that the you've comment lower was You some plan. made

it. off. something that You X.X How one that of here, of still said just acquired -- is that needs kind wondering, I that that you've that growth backlog would double for tail? you that owned how talked when But I'm the in more you digits can some you show it gone contracted think guess before we the years for be international running it you about through year, that much there there underlying to have be long or segment?

a No, question. good Yes. that's really

right right, now, been they just about little a us. over it's You're a joined so since year X quarters

to completely We Tetra in to mix high-end the with put rest higher Tech. want As in to be similar their we've front business always the indicated, shape everything, we of less collaboration competition, company. technically differentiated of margin, of to want

that just carries us. the we've or I the no-margin on But too. but this or quarters one risk one before going with of think think call funny like to left get commoditized the, X I'd I've this I to quarters. we've I'm work. always got it together And X it dollar agree found some lower or we've ironic seems not lower typically got the what if got we go amount, no-margin work, the another also shouldn't you enough. say and it highest to shouldn't go go it

culling RPS in the come quarters, the see close really that international work one probably by to contribution then portfolio year, on you along the with with see think I of will you'll small pretty sort belong our of or and So I all the be think, us finished, of the should the operations. international rest calendar doesn't last of end our X

that So timing is I hope helpful.

The next Northcoast Research. Ryan question with comes Connors from

generally split. I in would off, lead. stock know vogue, congrats First those but companies more the on wish follow I aren't your

to work. of different come a it's on the slice. margin year what of mentioned out you plan the very is basis we kind kind look game kind you outlook is Wanted points the the Dan, composition mention there. USAID think of the laid the you I the X/X positive. it backlog, issue a XX of of of in But backlog from and XXXX did at

the said know you lower in you've that, that toward of I the side what tends past do. margin

with what relatively that USAID? near particular us kind term? on in any jobs fact, backlog about of So with -- share trajectory would tell And you particular in the that, kind the those is can color next the of the margin case composition

it's very and question, Ryan. great insightful, a That's Yes.

about almost one margin right. basis the do financial if is lower all make low development you me generally if for margin XX specifically we USAID you're absolutely work increase, That's points a you're margin. I comment taking a the plus get risk, QX. low our for and If It's -- that we international -- work. Let cost prenegotiated

we about but carries Ukraine work, USAID and that not I just if Ukraine would did So say any have work, not a X% margin.

our If been upper XXX GSG And our portfolio, into government for points. would you we up have took the would been the quarter. services group, XX% over that well have from basis

to the but do you weigh, like a lower word it when use calculation. don't is I margin So

of item. X/X our it, one not clarify The contribution backlog. of X/X incremental of the me backlog Let it about overall was represents

simply that. was referring So was the how or to that in $XXX let we clarify quarter me million sequentially. just the much contributed I had the increase in

So whether higher included basis it's is our or U.K. U.S., with and I international business. rest do business the XX in of think is growing the expansion, margin development, Australia points at the a

not that. are We deemphasizing

We big-time jurisdictions. our supporters margin of expansion. included in it all are is clients X in And the

see. $X.X overall, close Now was margin pretty that embedded we XX billion? to expansion points basis how in the the to representing we It's that the the backlog have expect

win through So new we're performing. the we're funded that state in some in big business not backlog. the that C work change being our comprise awarded expecting a that embedded orders we're It's or the and actually

Got it.

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what really understand have Another business good you has parse I'd actually to question. This the call to that.

courts going are go Dr. on the hired and we respect we the the try and you people out the technical fate sometimes as the, the of want to that it, at technical most that. Jones, guns the actually are we because is talk going support or being interpretation. we you generally that data on try surface stay be the in What be look presence, court Dr. when referred and it arbiter the they're So stand somebody livings make to With means as to their litigators. with if soon call I'll the final to analysis the supporting use use conclusion Smith, even -- what about conclusion experts litigation, the the do recommendations for like not respect word would to final in testimony are level were technical, about would the litigating? word litigation, to to They this. court to -- it expert support as become the may to collection, talk movement, when you But is, are

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work used what whether change other But see having do or that the support that data some that used, the both the I local, actually and government, I to and our be company federal, that we not for of company. a it's can people we're person's or objective have currently under-fabric we So as we're that work. work work that's to our doing, support think don't the commercial, doing within can because state,

of assume near I then queue. the And it. Got the end we're

one So if just more in. I could sneak

I other. the you've same Tetra to versus as Tech? potential relate You Administration they're look things kind Harris with there -- at nuanced current the -- change priorities, that got most is page a that the differences be of change mentioned versus any Or is to a potential it administration? you of learned We've Biden pretty there's is that since approach there, or much on we've the going daylight any new call guess a there candidate. way one last what administration. of the administration Is conference the

similar what changes. platform. Yes, voice, is same a in we've I've And not any the seen hallways heard here new and/or platform

prioritizing up see these -- might we there and quicker you put done justice for for environmental EPA that others. on bit I country, so us, of might can to underprivileged have work as would more speeding areas done already, be more that which a be see that lower on and do think of that actually could been actually many orphan see I certainly locations the across reprioritization superfund are that's get because would could queue, a that some is good -- sites emphasis by in the think work little and in And you are that. seeing we locations end to they activity some that actually it work plus, site --

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Tate from comes question Group. next Maxim The with Sullivan

revenue RPS the on growth. follow-up a Just and

to you margin revenue, Can think lower that, review projects. was off about please? was international some said something that? specifically excluding the in -- You running RPS Was what you year-over-year. I addition said said XX% you comment that

Well, what RPS component number, saying is the flat has our international growth. revenues relatively that of been or we're same no

say number I'm I And a go use with is a a it leading RPS are I major happening is. is they Tech. as Tech because as different got of to mean adding even what's individuals the a who They've part are new job. company or the else doing to I double of next it RPS great down -- tried that year, work. this for flat, zero. growth as anybody Tetra component of think forward guess work not when We'll be much try the on So rate And Tetra divisions don't try as would we because we year. and going quite that on I are I I to bit

leaders, technical leaders. corporation. we They're are They financial best in entire that the among the have they're just

of the X wanted revenues transition. us, was since the that that business. lower they've did in quarters have we However, a been out still or we some they risk carrying of to or and are indicate commoditized take margin joined It's more higher been

So first saw actually at down. several revenues we the actually the quarters, for RPS went in beginning,

and know people investors were and we and had investor that analysts relationships, subtraction. grow going come I talk through in, others our So to Wu to I had Jim

And so go to it. work going do margins up, are profits up, for and we're going are going to actually less go to

amount the last X%, shrinking of Now is the out work. quarter, where roughly we've not got margin going higher of down amount taking but we've added business still the we're X% amount it's to point anymore, the this that equal to the by in amount we're putting but is that

you on taking And part revenue see? but just you on away. do see only basis you'll revenues, flat as points see it margin of I internationally. expansion, X you contribution phenomenon that had, as what out one quarters also out much XXX So the contributing margins or You not on then up by taking but And see is RPS year-over-year. think this

So dynamic I'm to. hope clearer. little helps really that And a that referring with I is it the making that

with Michael from comes Vertical Partners. question next The Research Dudas

Can you me? hear

Yes, Michael.

your to billion you've flow California. history what the that of $XX of types with, success Okay. proposed prepared start consultant when about or that been a quickly involved [indiscernible] advisory initiatives What's the levels the in something on water remarks mentioned business like those bond Leslie in new in state? historical And work? how can into

they successful. question. the Good have basically past, seen are in relatively We

record to to to quality of have in track had an So going want were I what's but programs actually other approved. that predict had We related great election, measures happen wouldn't storm passed funding. in to years being the and water a water management and their water period, previous roughly integrated that then X-year agencies X- and we implementation and into they local a integrated various get plan over and were water

the and actual seeing So bidding we in organization first year planning that run then pretty second would in it much will expect in and the and actually proposals same cycle year. one this along of

will session. Q&A Mr. back to Dan turn conclude. conclude over Batrack the to I will the conference now This

we that, had want thinking again see to thank today, those communicative We quarterly speaking and that call, other And of really, off for presentations. strong course, our to our And all in is through of and which, week. much the transparent much, fiscal we today. most where after fourth be of and our do you. investor of call importantly, a avenues can with and and have year very to really very relations probably a the you guidance our appreciate all I actually I you we we're where Thank rest XXXX. the rest we'll hope and incorporate outlook quarters present attending that fiscal as with really the start. sharing Thank I all great of a of next XXXX, you forward questions X quarter that great in you possible. into results Thursday, look you year as for to

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