Tetra Tech, Inc. (NASDAQ:TTEK) Q3 2023 Earnings Conference Call August 10, 2023 11:00 AM ET

Company Participants

Dan Batrack - Chairman & CEO

Steven Burdick - CFO, EVP & Treasurer

Jill Hudkins - President

Conference Call Participants

Sean Eastman - KeyBanc Capital Markets

Andrew Wittmann - Robert W. Baird & Co.

Michael Dudas - Vertical Research Partners

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 Jill Hudkins, President. They will provide a brief overview of the results, and then we'll 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 the presentation. With that, I would like to turn the call over to Dan Batrack. Please go ahead, Mr. Batrack.

Dan Batrack

Well, thank you very much, Donna, and good morning, and welcome to our fiscal year 2023 Third Quarter Earnings Conference Call. We had an excellent third quarter. We're advancing our growth strategy while rapidly integrating the RPS Group, who just joined us at the end of January of this year. [Technical Difficulty] performance have all exceeded our very high expectations here. Together, we now have 27,000 staff working worldwide on over 100,000 projects or 22,000 different clients. With about $5 billion a year in annual revenue, which is up over 30% year-over-year, were recognized as leaders in water and environment with #1 rankings by the entering news record for well over a decade. We see 3 major catalysts that will drive our growth in the future. First, we're just beginning to realize revenue synergies with the RPS Group. Today, we're bidding on hundreds of millions of dollars in new programs that are leveraging the benefits of our collective client base and the high-end capabilities of our workforce. Second, in the United States, we see the pace of funding from the IIJA and the IRA stimulus programs just beginning to increase as major contract vehicles are being put into place by our government clients. And third, we see spending commitments increasing for climate change-related programs in water supply, watershed management and renewable energy, especially in the geographies of the United States, the United Kingdom and Australia.