Here's Why Investors Should Hold on to Tetra Tech Stock Now

Core Insights - Tetra Tech, Inc. (TTEK) is experiencing strong order growth across various sectors, particularly benefiting from its Government Services Group segment, which saw a 12% year-over-year increase in net sales in Q4 of fiscal 2024 [1] - The company anticipates revenues between $1.09 billion and$1.15 billion for Q1 of fiscal 2025, reflecting a 10% year-over-year increase at the midpoint [2] - Tetra Tech is actively pursuing acquisitions to expand its customer base and service offerings, including the recent acquisition of Convergence Controls & Engineering [3][4] - The company is committed to returning value to shareholders, having increased its dividend payouts by 12.9% year-over-year in fiscal 2024 [5] Financial Performance - The Government Services Group segment's net sales increased by 12% year-over-year in Q4 of fiscal 2024 [1] - The Commercial/International Services Group segment's revenues rose by 5% year-over-year in the same quarter [2] - Tetra Tech paid out $58.8 million in dividends in fiscal 2024, up from$52.1 million in fiscal 2023 [5] Acquisitions and Growth Strategy - The acquisition of Convergence Controls & Engineering enhances Tetra Tech's capabilities in integrated automation solutions for water and energy sectors [3] - The acquisition of LS Technologies in February 2024 expanded the federal IT practice within the Government Services Group [4] - The RPS Group buyout in January 2023 strengthened Tetra Tech's position in the UK water practice and renewable energy sectors [4] Cost and Expense Challenges - Total cost of sales increased by 13.2% in Q4 of fiscal 2024 due to rising input costs [8] - Selling, general, and administrative expenses rose by 20% year-over-year in the same quarter, primarily due to increased marketing costs [8] Market Performance - Tetra Tech's shares have gained 29% over the past year, outperforming the industry growth of 27.7% [7]