TTEK - Tetra Tech Inc. (TTEK) Q2 2024 Earnings Call Transcript

2024-05-02 16:03:10 ET

Tetra Tech, Inc. (TTEK)

Q2 2024 Earnings Conference Call

May 02, 2024 11:00 AM ET

Company Participants

Dan Batrack – Chairman and Chief Executive Officer

Steve Burdick – Chief Financial Officer

Leslie Shoemaker – Chief Sustainability Officer

Conference Call Participants

Tim Mulrooney – William Blair

Sangita Jain – KeyBanc Capital Markets

Sabahat Khan – RBC Capital Markets

Tate Sullivan – Maxim Group

Presentation

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. They will provide a brief overview of the results and we’ll then open up the call for questions.

I would like to direct your attention to the safe harbor statement in today’s presentation. Today’s discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today’s forward-looking statements due to various risks and uncertainties, including the risks described in Tetra Tech’s periodic reports filed with the SEC. Except as required by law, Tetra Tech undertakes no obligation to update its forward-looking statements. In addition, since management will be presenting some non-GAAP financial measures as references, the appropriate GAAP financial reconciliations are posted in the Investors section of Tetra Tech’s website. At this time I would like to inform you that all participants are in a listen-only mode. At the request of the company, we will open up the conference for questions and answers after this presentation.

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

Dan Batrack

Thank you very much, Shamili, and good morning, and welcome to our second quarter fiscal year 2024 earnings conference call. I’m looking forward to providing all of you an overview of Tetra Tech’s second quarter results over this next hour of our call. During the quarter, our focus on high-end consulting continued to reshape our revenue and our profit margins, resulting in Tetra Tech exceeding the high end of our guidance for this past quarter. At the same time, software as a recurring revenue stream continues to gain traction as an offering that we’re providing in tandem with our consulting services.

In March, at the end of our second quarter, we were very pleased to see the U.S. federal budget finally get completed after a series of continuing resolutions over the past six months. On April 10th, and then following the next week on April 19th, two new regulations were finalized in the United States that represent a step change in the country’s efforts to reduce and virtually eliminate the presence of PFAS-related chemicals in our water and in the environment....

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