Tetra Tech, Inc.

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 investor 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 investor 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.

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. RPS has been an excellent addition in their strategic fit. Client focus and financial performance have all exceeded our very high expectations here. Together, we now have 27,000 staff working worldwide on over 100,000 projects for 22,000 different clients. With about $5 billion a year in annual revenue, which is up over 30% year over year, we're recognized as leaders in water and environment with number one rankings by the engineering news record for well over a decade. We see three 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. Our growth catalysts and the margin expansion will continue to be underpinned by leveraging our Tetra Tech Delta technologies that we're utilizing all across our enterprise. Using tools such as generative AI-enabled fusion map platforms that we have here at Tetra Tech, we're providing risk mitigation for thousands of miles of rail systems. We're rapidly assessing tens of thousands of buildings and infrastructure, and we're evaluating large-scale climate-related impacts to lakes, estuaries, and coastal regions all across North America, Europe, and Australia. Deployment of our Tetra Tech Delta technologies continue to support significantly higher profit margins on increased revenues without having to add the traditional associated increases in headcount. Given the strength of our performance and our outlook, We're increasing our guidance for both net revenue and earnings per share for fiscal year 2023. Of course, I look forward to giving you specifics on that increased guidance and outlook as we move into fiscal year 2024. But I'll give our 2024 outlook and guidance on the next call that we have. But I'll begin with an overview of our performance and our customers, followed by Steve Burdick, our chief financial officer, who will provide a more detailed review of our financials and our capital allocation. Jill Hutkins, our president, who's joining me today, will then provide further insight into key emerging growth markets. I'll then address and provide an update on our earnings guidance for both the fourth quarter and increased guidance for all of fiscal year 2023.

The collective Tetra Tech operations, including the first full quarter