Tetra TechPasadena-based consulting and engineering services firm has seen its share price plummet this year after the Trump administration cuts its foreign aid contract.
As of Monday, the company’s shares have fallen about 26% since January to close at $29.44 per share.
The decline in stock prices comes after cuts by U.S. international development agencies, hindering humanitarian programs abroad. Tetra Tech focuses on water, environment and sustainable infrastructure, and a large portion of its revenue comes from contracts with federal, state and local government agencies.
Last year, the United States Agency for International Development (USAID) awarded the company several profitable multi-year contracts. In October, Tetra Tech announced that it won $5 billion contract Help developing countries around the world from the United States Agency for International Development (USAID).
The 10-year contract includes efforts to improve access to clean water and other critical services. The company also received other multimillion-dollar U.S. Agency for International Development contracts, including a $439 million reward to strengthen Ukraine’s electricity, gas and other energy sources and war with Russia.
Elon Musk, who supported Trump during his presidential campaign, has been leading an effort called government efficiency or threshold to cut government spending. These cuts hit several government agencies, including the United States Agency for International Development. In February, the Trump administration said it would put U.S. Agency workers on executive leave and lay off 1,600 workers in the United States. USAID website.
Last week, Secretary of State Marco Rubio said the U.S. was cutting 83% of the U.S. agency plans, eliminating 5,200 contracts.
AIA funding includes funding from the USAID funding based on a variety of projects in water sanitation, health care, education and other important services in developing countries in Africa and Asia. Highergov.
Tetra Tech did not respond to a request for comment.
When Tetra Tech announced its quarterly earnings in January, the company said in a statement that it suspended some work from the federal government, including the United States Agency for International Development.
TETRA Technology CEO Dan Batrack said in revenue that month Conference call Its USDA contract has been shelved for 90 days.
He noted that the United States Agency for International Development (USAID) accounts for about one-third of the work done by companies and the federal government, usually 10% of its revenue.
Tetra Tech is also working with the U.S. Department of Defense and its Centers for Development Work, such as the South China Sea, to keep priorities aligned with the Trump administration, Batrack said.
“I believe most of our work will be reviewed and determined to be crucial to proceed and reopen,” he said during the call.
Tetra Tech’s revenue rose 16% to $1.42 billion in the first fiscal quarter ended December 29. The company reported that about one-third of its revenue comes from U.S. federal clients, including U.S. Agency for International Development and federal IT. Net income attributable to Tetra Tech was $747,000 in the first quarter, compared with $75 million in 2023.
The decline was mainly due to the $115 million non-criminal expense charges related to federal settlement lawsuit TETRA Tech, which settled with the federal government, accused the company of a fraudulent cleanup at the former Cape Hunter Naval Shipyard in San Francisco.
Tetra Tech does not acknowledge any liability.
Founded in 1966, TETRA Tech is the water management team of Tetra Tech Inc. Its projects include the “first remote-controlled submarines for exploration and military.”
The company released in 1991 to help analyze data used to explore Alaska oil’s north slope.
