TETRA TECH INCTTEK
TETRA TECH INC Segments Disclosure
Reportable Segments
We manage our operations under two reportable segments, GSG and CIG.
GSG provides high-end consulting and engineering services primarily to U.S. government clients (federal, state and local) and international development agencies worldwide. GSG supports U.S. government civilian and defense agencies with services in water, environment, sustainable infrastructure, information technology and disaster management. GSG provides engineering design services for U.S. based federal and municipal clients, especially in water infrastructure, flood protection and solid waste.
CIG provides high-end consulting and engineering services to U.S. commercial clients, and international clients, inclusive of the commercial and government sectors. CIG supports commercial clients worldwide in energy, industrial, high-
performance buildings and aerospace markets. CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), Europe, the United Kingdom and South America (primarily Brazil).
Our Chief Executive Officer serves as the chief operating decision maker (“CODM”) and is responsible for evaluating segment performance and allocating resources to our segments. The CODM assesses segment revenue and segment operating income on a monthly basis by comparing actual results against the annual plan. This evaluation supports strategic decisions related to segment profitability, resource allocation, pricing strategies, and cost optimization. The segment operating income is presented before amortization expense associated with acquisitions and other unallocated corporate costs. It is calculated as revenue less subcontractor costs, and other segment items including other costs of revenue and segment selling, general, and administrative expenses.
Certain expenses are not allocated to GSG and CIG segments for purposes of making operating decisions or evaluating financial performance and are reported under corporate expenses. These expenses include amortization of intangibles, goodwill impairment charges, contingent consideration gains and losses, acquisition and integration expenses, certain legal contingency costs, as well as other costs and benefits that our CODM deems to be enterprise in nature. Corporate expenses also include stock-based compensation expense related to corporate employees.
We account for inter-segment revenue and transfers as if they were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation.
Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment. The accounting policies for segment reporting are the same as for our consolidated financial statements. The tables below present financial information of our reportable segments (in thousands):
| Fiscal Year Ended September 28, 2025 | |||||||||||||||||
| GSG | CIG | Total | |||||||||||||||
| Revenue from external customers | $ | 2,637,426 | $ | 2,805,164 | $ | 5,442,590 | |||||||||||
| Inter-segment revenue | 36,483 | 39,483 | 75,966 | ||||||||||||||
| Segment revenue | 2,673,909 | 2,844,647 | 5,518,556 | ||||||||||||||
| Elimination of inter-segment revenue | (75,966) | ||||||||||||||||
| Total consolidated revenue | 5,442,590 | ||||||||||||||||
| Subcontractor costs - external | (504,644) | (320,586) | (825,230) | ||||||||||||||
| Subcontractor costs - inter-segment | (39,483) | (36,483) | (75,966) | ||||||||||||||
| Segment subcontractor costs | (544,127) | (357,069) | (901,196) | ||||||||||||||
| Elimination of inter-segment subcontractor costs | 75,966 | ||||||||||||||||
| Total consolidated subcontractor costs | (825,230) | ||||||||||||||||
Other segment items (1) | (1,789,231) | (2,130,713) | (3,919,944) | ||||||||||||||
| Segment operating income | 340,551 | 356,865 | 697,416 | ||||||||||||||
| Reconciliation of profit (segment operating income): | |||||||||||||||||
| Legal contingency costs | (115,000) | ||||||||||||||||
| Impairment of goodwill | (92,416) | ||||||||||||||||
| Contingent consideration – fair value adjustments | 12,228 | ||||||||||||||||
| Interest income | 9,837 | ||||||||||||||||
| Interest expense | (40,639) | ||||||||||||||||
Other corporate expenses (3) | (93,809) | ||||||||||||||||
| Income before income tax expense | $ | 377,617 | |||||||||||||||
| Fiscal Year Ended September 29, 2024 | |||||||||||||||||
| GSG | CIG | Total | |||||||||||||||
| Revenue from external customers | $ | 2,445,746 | $ | 2,752,933 | $ | 5,198,679 | |||||||||||
| Inter-segment revenue | 37,609 | 33,798 | 71,407 | ||||||||||||||
| Segment revenue | 2,483,355 | 2,786,731 | 5,270,086 | ||||||||||||||
| Elimination of inter-segment revenue | (71,407) | ||||||||||||||||
| Total consolidated revenue | 5,198,679 | ||||||||||||||||
| Subcontractor costs - external | (539,579) | (337,238) | (876,817) | ||||||||||||||
| Subcontractor costs - inter-segment | (33,798) | (37,609) | (71,407) | ||||||||||||||
| Segment subcontractor costs | (573,377) | (374,847) | (948,224) | ||||||||||||||
| Elimination of inter-segment subcontractor costs | 71,407 | ||||||||||||||||
| Total consolidated subcontractor costs | (876,817) | ||||||||||||||||
Other segment items (1) | (1,628,952) | (2,083,374) | (3,712,326) | ||||||||||||||
| Segment operating income | 281,026 | 328,510 | 609,536 | ||||||||||||||
| Reconciliation of profit (segment operating income): | |||||||||||||||||
| Acquisition and integration expenses | (7,138) | ||||||||||||||||
| Contingent consideration – fair value adjustments | (2,541) | ||||||||||||||||
| Interest income | 7,288 | ||||||||||||||||
| Interest expense | (44,559) | ||||||||||||||||
Other corporate expenses (3) | (99,120) | ||||||||||||||||
| Income before income tax expense | $ | 463,466 | |||||||||||||||
| Fiscal Year Ended October 1, 2023 | |||||||||||||||||
| GSG | CIG | Total | |||||||||||||||
| Revenue from external customers | $ | 2,128,330 | $ | 2,394,220 | $ | 4,522,550 | |||||||||||
| Inter-segment revenue | 30,559 | 30,429 | 60,988 | ||||||||||||||
| Segment revenue | 2,158,889 | 2,424,649 | 4,583,538 | ||||||||||||||
| Elimination of inter-segment revenue | (60,988) | ||||||||||||||||
| Total consolidated revenue | 4,522,550 | ||||||||||||||||
| Subcontractor costs - external | (493,020) | (278,441) | (771,461) | ||||||||||||||
| Subcontractor costs - inter-segment | (30,429) | (30,559) | (60,988) | ||||||||||||||
| Segment subcontractor costs | (523,449) | (309,000) | (832,449) | ||||||||||||||
| Elimination of inter-segment subcontractor costs | 60,988 | ||||||||||||||||
| Total consolidated subcontractor costs | (771,461) | ||||||||||||||||
Other segment items (1)(2) | (1,403,678) | (1,871,899) | (3,275,577) | ||||||||||||||
| Segment operating income | 231,762 | 243,750 | 475,512 | ||||||||||||||
| Reconciliation of profit (segment operating income): | |||||||||||||||||
| Acquisition and integration expenses | (28,105) | ||||||||||||||||
| Right-of-use operating lease asset impairment | (1,158) | ||||||||||||||||
| Contingent consideration – fair value adjustments | (12,255) | ||||||||||||||||
| Interest income | 5,898 | ||||||||||||||||
| Interest expense | (52,435) | ||||||||||||||||
| Other non-operating income | 89,402 | ||||||||||||||||
Other corporate expenses (3) | (75,881) | ||||||||||||||||
| Income before income tax expense | $ | 400,978 | |||||||||||||||
(1) These amounts include $3.0 million, $3.3 million and $3.3 million of GSG depreciation expense for fiscal 2025, 2024 and 2023, respectively, and $17.8 million, $20.1 million and $16.3 million of CIG depreciation expense for fiscal 2025, 2024 and 2023, respectively. Additionally, our GSG other segment items include the equity in the net income of investees accounted for by the equity method of $1.1 million, $1.6 million and $2.8 million for fiscal 2025, 2024 and 2023, respectively. Our CIG other segment items also reflect the equity in the net income of investees accounted for by the equity method of $2.5 million, $3.3 million and $3.2 million for fiscal 2025, 2024 and 2023, respectively.
(2) The fiscal 2023 amounts include lease impairment of $15.1 million ($6.8 million in GSG and $8.3 million in CIG) as well as acquisition and integration expenses of $5.1 million in CIG.
(3) Other corporate expenses include the amortization expense of intangible assets of $37.1 million, $50.0 million and $41.2 million for fiscal 2025, 2024 and 2023, respectively. These amounts also include $19.3 million, $18.5 million and $16.4 million of stock-based compensation expense for fiscal 2025, 2024 and 2023, respectively.
The table below presents revenue by geographic area (in thousands):
| Fiscal Year Ended | |||||||||||||||||
| Revenue: | September 28, 2025 | September 29, 2024 | October 1, 2023 | ||||||||||||||
| United States | $ | 3,445,844 | $ | 3,198,823 | $ | 2,863,635 | |||||||||||
| United Kingdom | 771,723 | 711,617 | 601,157 | ||||||||||||||
| Australia | 489,102 | 529,114 | 449,507 | ||||||||||||||
| Canada | 512,295 | 498,575 | 436,222 | ||||||||||||||
| Others | 223,626 | 260,550 | 172,029 | ||||||||||||||
| Total | $ | 5,442,590 | $ | 5,198,679 | $ | 4,522,550 | |||||||||||
Long-lived assets consist of property and equipment and exclude other assets, operating lease assets, goodwill, intangible assets and deferred tax assets. The following table presents long-lived assets by geographic area (in thousands):
| Fiscal Year Ended | ||||||||||||||
| Long-lived assets: | September 28, 2025 | September 29, 2024 | ||||||||||||
| United States | $ | 15,675 | $ | 17,612 | ||||||||||
| United Kingdom | 20,756 | 19,503 | ||||||||||||
| Australia | 10,793 | 11,990 | ||||||||||||
| Netherlands | 8,932 | 12,371 | ||||||||||||
| Canada | 7,181 | 8,177 | ||||||||||||
| Others | 2,811 | 3,412 | ||||||||||||
| Total | $ | 66,148 | $ | 73,065 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Nov 19, 2024 | |
| 2023 | Nov 22, 2023 | |
| 2022 | Nov 25, 2022 | |
| 2021 | Nov 24, 2021 | |
| 2020 | Nov 23, 2020 | |
| 2019 | Nov 29, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2017 | Nov 20, 2017 | |
| 2016 | Nov 22, 2016 | |
| 2015 | Nov 20, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.