FORWARD-LOOKING STATEMENTS



This Quarterly Report on Form 10-Q, including the "Management's Discussion and
Analysis of Financial Condition and Results of Operations," contains
forward-looking statements regarding future events and our future results that
are subject to the safe harbor provisions created under the Securities Act of
1933 and the Securities Exchange Act of 1934. All statements other than
statements of historical facts are statements that could be deemed
forward-looking statements. These statements are based on current expectations,
estimates, forecasts and projections about the industries in which we operate
and the beliefs and assumptions of our management. Words such as "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans," "believes,"
"estimates," "seeks," "continues," "may," variations of such words, and similar
expressions are intended to identify such forward-looking statements. In
addition, statements that refer to projections of our future financial
performance, our anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances are forward-looking
statements. Readers are cautioned that these forward-looking statements are only
predictions and are subject to risks, uncertainties and assumptions that are
difficult to predict, including those identified below under "Part II, Item 1A.
Risk Factors," and elsewhere herein. Therefore, actual results may differ
materially and adversely from those expressed in any forward-looking
statements. We undertake no obligation to revise or update publicly any
forward-looking statements for any reason.

GENERAL OVERVIEW

Tetra Tech, Inc. is a leading global provider of consulting and engineering services that focuses on water, environment, sustainable infrastructure, resource management, energy, and international development. We are a global company that is Leading with Science® to provide innovative solutions for our public and private clients. We typically begin at the earliest stage of a project by identifying technical solutions and developing execution plans tailored to our clients' needs and resources.



Our reputation for high-end consulting and engineering services and our ability
to develop solutions for water and environmental management has supported our
growth for more than 55 years. Today, we are proud to be making a difference in
people's lives worldwide through broad consulting, engineering, and technology
service offerings. In fiscal 2020, we worked on over 65,000 projects, in more
than 100 countries on seven continents, with a talent force of 20,000
associates. We are Leading with Science® throughout our operations, with domain
experts across multiple disciplines supported by our advanced analytics,
artificial intelligence, machine learning, and digital technology solutions. Our
ability to provide innovation and first-of-kind solutions is enhanced by
partnerships with our forward-thinking clients. We are diverse and inclusive,
embracing the breadth of experience across our talented workforce worldwide with
a culture of innovation and entrepreneurship. We are disciplined in our business
delivering value to customers and high performance to our shareholders. In
supporting our clients, we seek to add value and provide long-term sustainable
consulting, engineering, and technology solutions.

By combining ingenuity and practical experience, we have helped to advance sustainable solutions for managing water, protecting the environment, providing energy, and engineering the infrastructure for our cities and communities.



We derive income from fees for professional, technical, program management, and
construction management services. As primarily a professional services company,
we are labor-intensive rather than capital-intensive. Our revenue is driven by
our ability to attract and retain qualified and productive employees, identify
business opportunities, secure new and renew existing client contracts, provide
outstanding services to our clients and execute projects successfully. We
provide services to a diverse base of U.S. state and local government, U.S.
federal government, U.S. commercial, and international clients.

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The following table presents the percentage of our revenue by client sector:

                                                           Three Months Ended                                       Six Months Ended
                                                   March 28,                March 29,                      March 28,                March 29,
                                                     2021                     2020                           2021                     2020
Client Sector
U.S. state and local government                          17.2  %                   14.1  %                       16.8  %                   14.9  %
U.S. federal government (1)                              35.5                      33.1                          35.1                      31.9
U.S. commercial                                          19.0                      21.9                          19.8                      22.3
International (2)                                        28.3                      30.9                          28.3                      30.9
Total                                                   100.0  %                  100.0  %                      100.0  %                  100.0  %



(1)   Includes revenue generated under U.S. federal government contracts
performed outside the United States.
(2)   Includes revenue generated from foreign operations, primarily in Canada,
Australia, the United Kingdom, and revenue generated from non-U.S. clients.

We manage our operations under two reportable segments. Our Government Services
Group ("GSG") reportable segment primarily includes activities with U.S.
government clients (federal, state and local) and all activities with
development agencies worldwide. Our Commercial/International Services Group
("CIG") reportable segment primarily includes activities with U.S. commercial
clients and international clients other than development agencies. Additionally,
we continue to report the results of the wind-down of our non-core construction
activities in the Remediation and Construction Management ("RCM") reportable
segment. Substantially, there has been no remaining backlog for RCM since fiscal
2018 as the projects were complete.

Government Services Group ("GSG").  GSG provides consulting and engineering
services primarily to U.S. government clients (federal, state and local) and
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 also
provides engineering design services for U.S. municipal and commercial clients,
especially in water infrastructure, solid waste, and high-end sustainable
infrastructure designs. GSG also leads our support for development agencies
worldwide, especially in the United States, United Kingdom, and Australia.

Commercial/International Services Group ("CIG").  CIG primarily provides
consulting and engineering services to U.S. commercial clients, and
international clients that include both commercial and government sectors. CIG
supports commercial clients across the Fortune 500, energy utilities,
industrial, manufacturing, aerospace, and resource management markets. CIG also
provides 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), the United Kingdom, as well
as Brazil and Chile.

The following table presents the percentage of our revenue by reportable
segment:

                                    Three Months Ended                    Six Months Ended
                                 March 28,          March 29,         March 28,         March 29,
                                   2021               2020              2021              2020
Reportable Segment
GSG                                     62.8  %        59.5  %              62.0  %        58.4  %
CIG                                     38.8           42.0                 39.8           43.1

Inter-segment elimination               (1.6)          (1.5)                (1.8)          (1.5)
Total                                  100.0  %       100.0  %             100.0  %       100.0  %



Our services are performed under three principal types of contracts with our
clients: fixed-price, time-and-materials, and cost-plus. The following table
presents the percentage of our revenue by contract type:
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                             Three Months Ended                    Six Months Ended
                          March 28,          March 29,         March 28,         March 29,
                            2021               2020              2021              2020
Contract Type
Fixed-price                      36.1  %        34.8  %              36.0  %        34.4  %
Time-and-materials               46.0           47.8                 46.2           48.2
Cost-plus                        17.9           17.4                 17.8           17.4
Total                           100.0  %       100.0  %             100.0  %       100.0  %



Under fixed-price contracts, clients agree to pay a specified price for our
performance of the entire contract or a specified portion of the contract. Under
time-and-materials contracts, we are paid for labor at negotiated hourly billing
rates and paid for other expenses. Under cost-plus contracts, some of which are
subject to a contract ceiling amount, we are reimbursed for allowable costs and
fees, which may be fixed or performance-based. Profitability on these contracts
is driven by billable headcount and our cost control. We recognize revenue from
contracts using the cost-to-cost measure of progress method to estimate the
progress towards completion to determine the amount of revenue and profit to
recognize. Changes in those estimates could result in the recognition of
cumulative catch-up adjustments to the contract's inception-to-date revenue,
costs and profit in the period in which such changes are made. On a quarterly
basis, we review and assess our revenue and cost estimates for each significant
contract. Changes in revenue and cost estimates could also result in a projected
loss that would be recorded immediately in earnings.

Other contract costs include professional compensation and related benefits,
together with certain direct and indirect overhead costs such as rents,
utilities, and travel. Professional compensation represents a large portion of
these costs. Our "Selling, general and administrative expenses" ("SG&A") are
comprised primarily of marketing and bid and proposal costs, and our corporate
headquarters' costs related to the executive offices, finance, accounting,
administration, and information technology. Our SG&A expenses also include a
portion of stock-based compensation and depreciation of property and equipment
related to our corporate headquarters, and the amortization of identifiable
intangible assets. Most of these costs are unrelated to specific clients or
projects, and can vary as expenses are incurred to support company-wide
activities and initiatives.

We experience seasonal trends in our business.  Our revenue and operating income
are typically lower in the first half of our fiscal year, primarily due to the
Thanksgiving (in the U.S.), Christmas, and New Year's holidays. Many of our
clients' employees, as well as our own employees, take vacations during these
holiday periods. Further, seasonal inclement weather conditions occasionally
cause some of our offices to close temporarily or may hamper our project field
work in the northern hemisphere's temperate and arctic regions. These
occurrences result in fewer billable hours worked on projects and,
correspondingly, less revenue recognized.

ACQUISITIONS AND DIVESTITURES



Acquisitions.  We continuously evaluate the marketplace for acquisition
opportunities to further our strategic growth plans. Due to our reputation,
size, financial resources, geographic presence and range of services, we have
numerous opportunities to acquire privately and publicly held companies or
selected portions of such companies. We evaluate an acquisition opportunity
based on its ability to strengthen our leadership in the markets we serve, the
technologies and solutions they provide, and the additional new geographies and
clients they bring. Also, during our evaluation, we examine an acquisition's
ability to drive organic growth, its accretive effect on long-term earnings, and
its ability to generate return on investment. Generally, we proceed with an
acquisition if we believe that it will strategically expand our service
offerings, improve our long-term financial performance, and increase shareholder
returns.

We view acquisitions as a key component in the execution of our growth strategy,
and we intend to use cash, debt or equity, as we deem appropriate, to fund
acquisitions. We may acquire other businesses that we believe are synergistic
and will ultimately increase our revenue and net income, strengthen our ability
to achieve our strategic goals, provide critical mass with existing clients, and
further expand our lines of service. We typically pay a purchase price that
results in the recognition of goodwill, generally representing the intangible
value of a successful business with an assembled workforce specialized in our
areas of interest. Acquisitions are inherently risky, and no assurance can be
given that our previous or future acquisitions will be successful or will not
have a material adverse effect on our financial position, results of operations,
or cash flows. All acquisitions require the approval of our Board of Directors.
For detailed information regarding acquisitions, see Note 4, "Acquisitions" of
the "Notes to Consolidated Financial Statements".

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 Divestitures.  We regularly review and evaluate our existing operations to
determine whether our business model should change through the divestiture of
certain businesses. Accordingly, from time to time, we may divest or wind-down
certain non-core businesses and reallocate our resources to businesses that
better align with our long-term strategic direction.

OVERVIEW OF RESULTS AND BUSINESS TRENDS



General. As the coronavirus disease 2019 ("COVID-19") spread globally, we
responded quickly to ensure the health and safety of our employees, clients and
the communities we support. Our high-end consulting focus and the technologies
we deployed have allowed our staff to support clients and projects remotely
without interruption. We remain focused on providing clients with the highest
level of service and our 450 global offices are operational, supporting our
programs and projects. By Leading with Science®, we are responding to the
challenges of COVID-19, with the commitment of our 20,000 staff supported by
technological innovation. Our government business, which represents
approximately 60% of our revenue, has been stable, while our commercial business
experienced relatively more impact. Much of our commercial business has
continued due to regulatory drivers, but we have seen project delays in the
industrial sectors. Our diversified end-markets have allowed us to redeploy
staff to areas of uninterrupted or increased demand, and we have made decisions
to align our cost structures with our clients' projects. The actions we have
taken to navigate through this worldwide pandemic, the strength of our balance
sheet, and our technical leadership position us well to address the global
challenges of providing clean water, environmental restoration, and the impacts
of climate change.

In the first half of fiscal 2021, revenue declined 0.8% compared to the
prior-year period. Our revenue includes contributions from acquisitions that did
not contribute to our revenue in the first half of fiscal 2020. Our
year-over-year revenue comparisons were also impacted by the decision to dispose
of our Canadian turn-key pipeline activities in the fourth quarter of fiscal
2019 and the subsequent wind-down of those activities in fiscal 2020, which
included the disposal of related equipment.

U.S. State and Local Government.  Our U.S. state and local government revenue
increased 12.0% in the first half of fiscal 2021 compared to the same period
last year. The increase reflects continued broad-based growth in our U.S. state
and local government project-related infrastructure business, particularly with
increased revenue from municipal water infrastructure work in the metropolitan
areas of California, Texas, and Florida. Our episodic disaster response
activities also increased compared to the first half of last year. Most of our
work for U.S. state and local governments relates to critical water and
environmental programs, which we expect to continue to grow at a rate similar to
the first half of this fiscal year. The risk of further budgetary constraints to
our clients is mitigated with the passage of the American Rescue Plan Act of
2021, signed into law on March 11, 2021, which provides financial support for
state and local governments.

U.S. Federal Government.  Our U.S. federal government revenue increased 9.2% in
the first half of fiscal 2021 compared to the prior-year period. This increase
includes the contributions from acquisitions, which did not have comparable
revenue in the first half of fiscal 2020. These contributions were partially
offset by reduced international development activities as COVID-19 travel
restrictions have caused some project delays. During periods of economic
volatility, our U.S. federal government business has historically been the most
stable and predictable. We expect our U.S. federal government revenue to grow
modestly in fiscal 2021 due to continued increased federal advanced analytics
activity. However, U.S. federal spending amounts and priorities could change
significantly from our current expectations, which could have a significant
positive or negative impact on our fiscal 2021 revenue.

U.S. Commercial.  Our U.S. commercial revenue decreased 11.9% in the first half
of fiscal 2021 compared to the same period last year. The decline was primarily
due to reduced industrial activity as a result of the COVID-19 pandemic. We
currently expect our U.S. commercial revenue to grow in the second half of the
fiscal year with higher revenue from renewable energy and environmental
programs, and more favorable year-over-year comparisons than first half of the
fiscal year; however, if adverse conditions due to the COVID-19 pandemic are
prolonged, it could have a negative impact on our revenue for the second half of
the fiscal year.

International.  Our international revenue decreased 9.2% in the first half of
fiscal 2021 compared to the prior-year period. Excluding the impact of the
aforementioned prior-year disposal of our Canadian turn-key pipeline activities,
our international revenue decreased 7.5% in the first half of fiscal 2021
compared to the same period last year. The revenue decline primarily reflects
the adverse impact of the COVID-19 pandemic, partially offset by increased
renewable energy activity in Canada. We currently expect our overall
international government work to grow in the second half of this fiscal year
with improving economic conditions and more favorable year-over-year
comparisons; however, our international commercial activities could have a
significant adverse impact if the current economic conditions due to COVID-19
are prolonged.

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