Roger Argus, who has spent more than three decades with Tetra Tech, will take the helm as chief executive officer effective February 19, 2026, while current CEO Dan Batrack will transition to the role of executive chairman. The change follows a long‑term succession plan designed to preserve continuity of strategy and culture while positioning the company for its next growth phase.
Tetra Tech’s most recent fiscal year, ending December 31, 2025, delivered record results: net revenue rose to $4.62 billion, up 7.5% from $4.32 billion in 2024, driven by strong demand in its water and infrastructure consulting segments. Operating income reached $181 million, a 26% year‑over‑year increase, and adjusted earnings per share climbed to $1.56, up 24% from $1.26 in 2024. The company’s operating margin expanded to 3.9% from 3.3% in the prior year, reflecting higher‑margin digital‑automation contracts and disciplined cost management amid modest inflationary pressures.
For fiscal 2026, management has guided net revenue to $4.05 billion–$4.25 billion, a slight contraction from the previous year’s $4.62 billion, and adjusted EPS to $1.40–$1.55, down from $1.56 in 2025. The guidance reflects a cautious outlook on global infrastructure spending and a focus on maintaining margin strength while investing in the “Leading with Science” digital‑automation platform. In the first quarter of fiscal 2026, revenue is expected to be $950 million–$1.0 billion, and EPS $0.30–$0.33, consistent with the company’s historical quarterly growth trajectory.
The leadership transition comes at a time when Tetra Tech is accelerating its digital transformation. Argus has overseen the acquisition of SAGE Group in May 2025 and Convergence Controls & Engineering in October 2024, adding advanced automation and data‑analytics capabilities that have become key revenue drivers. Segment analysis shows the water and infrastructure consulting arm grew 8% YoY, while the digital‑automation segment grew 12%, underscoring the company’s shift toward higher‑margin, technology‑enabled services. The “Leading with Science” initiative has enabled the firm to capture new market share in resilient water management and smart‑city projects, reinforcing its competitive positioning.
Management emphasized the continuity and confidence behind the transition. “I am honored to serve as Tetra Tech’s next CEO,” Argus said. “Dan has built a remarkable organization grounded in scientific excellence, innovation, and a performance‑driven culture. I will continue to advance our Leading with Science® approach.” Batrack added, “Our decision reflects the Board’s rigorous succession planning and strong confidence in Roger’s ability to lead the company forward. I will remain engaged to provide strategic guidance during the transition.” Lead independent director Kirsten M. Volpi noted, “This transition positions the company well for sustainable growth and long‑term value.”
Analysts have responded positively to the announcement, raising price targets and maintaining outperformance ratings. The beat in Q4 2025 earnings—EPS of $0.44 versus the consensus $0.40—was driven by strong demand in high‑margin digital‑automation contracts and disciplined cost control. Revenue of $1.16 billion exceeded expectations of $1.06 billion, reflecting a 10% increase in the water and infrastructure segment and a 15% rise in digital services. The guidance for fiscal 2026, while modestly lower, signals management’s confidence in sustaining profitability amid a cautious macro outlook.
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