Tetra Tech puts technical know-how to work. The environmental management, consulting, and technical services group focuses on resource management and infrastructure development. Services include environmental engineering, restoration, groundwater cleanup, watershed management, information technology, and operations and maintenance support. Tetra Tech provides architectural, engineering, and construction services for public and private facilities and designs and builds water supply systems and other infrastructure systems. US federal contracts account for more than 40% of its annual revenues. Commercial customers include companies in the chemical, energy, mining, and pharmaceutical industries.
Revenues from government contracts help position the company among the top environmental firms worldwide. Tetra Tech's strategy has been to establish its consulting practice in a new business area and then offer additional technical services. With government contracts dwindling, Tetra Tech looks increasingly to its commercial and international clients to make up the difference. Acquisitions are also pivotal to the company's growth as it pursues strategic opportunities to expand its services and geographic presence. It continues, however, to focus on organic growth as well.
Contributions from recent acquisitions and the strength of its mining and energy clients worldwide helped drive revenues up 17% in 2011 (to $2.6 billion) over the previous year. The gains were offset by continued weakness in the US federal construction management and state and local government contracts. Its federal government business declined 2% in 2011, compared to 2010, and its US state and local government business declined 13% from the previous year. However, in 2011 Tetra Tech's commercial business grew 10% and its international business jumped 185% over the previous year's performance.
Acquisitions in Canada contributed to most of the increase in international sales, although acquisitions in Australia and Chile drove sales to a lesser extent. Strong demand for the company's expertise in water, environmental, and infrastructure design services came from mining and energy markets. The company now generates about 30% of its net revenue from outside the US. Net income also jumped 17% in 2011, to $90 million from $77 million in 2010, primarily on the strength of the company's Canadian acquisitions.
Among those 2011 acquisitions was Fransen Engineering, which specializes in water treatment and tailings management for oil sands producers. Tetra Tech sees the British Columbia-based company as a gateway into the oil sands remediation market in Canada. Fransen became part of Tetra Tech's Engineering and Consulting Services business.
That same year, Tetra Tech acquired Australian mining engineering firm Proteus EPCM Engineers for $30 million. The firm is expected to help Tetra Tech implement its growth and expansion plans in Western Australia, as well as its longer term ambitions in Africa and Asia.
Tetra Tech entered the Latin American market with its purchase of Chilean engineering firm Metalica Consultores in 2011. The firm provides consulting services to mining and natural resources businesses.
In late 2011 Tetra Tech acquired federal contractor PRO-telligent, which provides services to US national security agencies, for an undisclosed amount. One of the fastest growing federal government contractors in the US and staffed with several security-cleared experts, PRO-telligent enhances Tetra Tech's US Department of State technical support and consulting business.
In 2012 the company made its first acquisition in Brazil by buying mining engineering firm CRA Engenharia, which generates about $20 million per year, for an undisclosed price. CRA Engenharia focuses on providing services to iron ore and precious metals clients.
That year it also expanded its services to the shale oil market by acquiring Colorado-based Rooney Engineering for an undisclosed price. Rooney Engineering has worked on projects across the US, but most of its clients are now in the Bakken and Niobrara shale oil regions.
In 2013 Tetra Tech acquired solid waste management specialist American Environmental Group, Ltd. of Richfield, Ohio.
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