Tetra Tech Inc (TTEK) 2023 Q2 法說會逐字稿

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 Investors 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 all or part, without the prior written permission of Tetra Tech is prohibited.

早上好，感謝您加入 Tetra Tech 財報電話會議。提醒一下，Tetra Tech 還在其網站 tetratech.com 的“投資者”部分中用幻燈片同步播放此演示文稿。此通話是應 Tetra Tech 的要求錄製的，此廣播是 Tetra Tech 的版權財產。未經 Tetra Tech 事先書面許可，禁止全部或部分轉播此信息。

With us today from management are Dan Batrack, Chairman and Chief Executive Officer; Steve Burdick, Chief Financial Officer; Jill Hudkins, President; and Leslie Shoemaker, Chief Sustainability Officer. They will provide a brief overview of the results, and we'll then open up the call for your questions.

今天與我們一起來自管理層的是董事長兼首席執行官 Dan Batrack； Steve Burdick，首席財務官；吉爾·哈德金斯，總裁；和首席可持續發展官 Leslie Shoemaker。他們將提供結果的簡要概述，然後我們將打開您的問題電話。

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.

我想提請大家注意今天演講中的安全港聲明。今天的討論包含有關未來業務和財務預期的前瞻性陳述。由於各種風險和不確定性，包括 Tetra Tech 向美國證券交易委員會提交的定期報告中描述的風險，實際結果可能與今天的前瞻性陳述中預測的結果大不相同。

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 Investors section of Tetra Tech's website.

除法律要求外，利樂科技不承擔更新其前瞻性陳述的義務。此外，由於管理層將提供一些非 GAAP 財務指標作為參考，適當的 GAAP 財務對賬將發佈在 Tetra Tech 網站的投資者部分。

(Operator Instructions)

（操作員說明）

With that, I would now like to turn the call over to Dan Batrack. Please go ahead, Mr. Batrack.

有了這個，我現在想把電話轉給 Dan Batrack。請繼續，Batrack 先生。

Great. Thank you very much, Camilla. And good morning, and welcome to our fiscal year 2023 Second Quarter Earnings Conference Call. We had an excellent second quarter. Our revenue for the quarter exceeded a $1 billion for the first time.

偉大的。非常感謝你，卡米拉。早上好，歡迎來到我們的 2023 財年第二季度收益電話會議。我們有一個出色的第二季度。我們本季度的收入首次超過 10 億美元。

As a result of our exceptional performance across Tetra Tech's operations, augmented by the addition of the RPS Group that joined us at the end of January of this year. Tetra Tech's leading with science services are at the center of our clients' priorities to address climate change, resiliency and adaptation worldwide. Given the strength of our performance and outlook, we're increasing our guidance for both net revenue and earnings per share for fiscal year 2023, which I'll give you more details on that later in the conference call.

由於我們在 Tetra Tech 的運營中表現出色，加上今年 1 月底加入我們的 RPS 集團，這進一步加強了我們的表現。 Tetra Tech 領先的科學服務是我們客戶應對全球氣候變化、恢復力和適應的優先事項的核心。鑑於我們的業績和前景強勁，我們將提高對 2023 財年淨收入和每股收益的指導，我將在稍後的電話會議中為您提供更多詳細信息。

I'll begin with an overview of our performance and our customers, followed by Steve Burdick, our Chief Financial Officer, who will provide more detailed review of our financials and our capital allocation program. Dr. Leslie Shoemaker, who's joined us today, who is our Chief Sustainability Officer, will provide an update on our recently published annual ESG report; and Jill Hudkins, our President, will provide further insight into our growth markets. I'll then address our earnings guidance for the third quarter and our increased guidance for all of fiscal year 2023.

我將首先概述我們的業績和客戶，然後是我們的首席財務官 Steve Burdick，他將對我們的財務狀況和資本配置計劃進行更詳細的審查。今天加入我們的 Leslie Shoemaker 博士是我們的首席可持續發展官，他將提供我們最近發布的年度 ESG 報告的最新情況；我們的總裁吉爾哈德金斯 (Jill Hudkins) 將進一步深入了解我們的增長市場。然後，我將討論我們對第三季度的收益指引以及我們對 2023 財年全年的更高指引。

In the quarter, our net revenue increased 39% year-over-year from $700 million a year ago to $970 million this year, which is the highest net revenue for any quarter in the company's history. Our EBITDA income increased 30% from last year, reaching a second quarter record of $105 million. And finally, we delivered $1.17 in earnings per share, which is up 19% from last year. I'd now like to show you what the underlying performance of Tetra Tech was without the contribution of RPS in the second quarter, really to give you some good insight into how the legacy business is operating at this time.

本季度，我們的淨收入同比增長 39%，從一年前的 7 億美元增至今年的 9.7 億美元，這是公司歷史上任何一個季度的最高淨收入。我們的 EBITDA 收入比去年增長了 30%，第二季度達到 1.05 億美元的歷史新高。最後，我們實現了 1.17 美元的每股收益，比去年增長了 19%。我現在想向您展示 Tetra Tech 在第二季度沒有 RPS 貢獻的情況下的基本表現，真正讓您對遺留業務此時的運作方式有一些很好的了解。

Tetra Tech hit new all-time second quarter highs and double-digit growth rates across the board for revenue, net revenue, operating income, EBITDA and earnings per share. Revenue without the contribution of RPS was $989 million, almost $1 billion, up 16% year-over-year, a record revenue for any quarter in the company's history without the contributions of RPS. Our net revenue increased by 18% year-over-year. Our operating income and EBITDA were both up 19%, and we generated an earnings per share of Tetra Tech without RPS of $1.20 per share or up 22% from last year.

Tetra Tech 在第二季度的收入、淨收入、營業收入、EBITDA 和每股收益方面均創下歷史新高和兩位數的增長率。沒有 RPS 貢獻的收入為 9.89 億美元，接近 10 億美元，同比增長 16%，創下公司歷史上沒有 RPS 貢獻的任何季度的收入記錄。我們的淨收入同比增長 18%。我們的營業收入和 EBITDA 均增長了 19%，我們在沒有 RPS 的情況下產生的 Tetra Tech 每股收益為每股 1.20 美元，比去年增長了 22%。

I would now like to provide an overview of our performance by our end customer. Work for our U.S. federal clients was up 59% from last year, driven by broad-based growth in water and environmental programs and during the quarter, the rapid initiation of support for Ukraine under our U.S. State Department and USA contracts. Excluding contributions from our extraordinary disaster response related programs, our state and local revenues were up 12% from last year, driven by our digital water and our municipal infrastructure work.

我現在想概述一下我們的最終客戶對我們的表現。受水和環境項目廣泛增長的推動，以及在本季度，我們根據美國國務院和美國合同迅速啟動對烏克蘭的支持，為我們的美國聯邦客戶所做的工作比去年增加了 59%。不包括我們非凡的救災相關計劃的貢獻，在我們的數字水務和市政基礎設施工作的推動下，我們的州和地方收入比去年增長了 12%。

International work or international revenues, where a majority of the RPS operations are included, increased by 55% year-on-year. Excluding RPS, our international revenues grew on their own though. They were up 11% from the prior year, driven by strong performance in our global high-performance buildings work in Canada, Australia and the United Kingdom.

包括大部分 RPS 業務在內的國際工作或國際收入同比增長 55%。不過，不包括 RPS，我們的國際收入自行增長。由於我們在加拿大、澳大利亞和英國的全球高性能建築工作的強勁表現，它們比上一年增長了 11%。

Our United States commercial net revenues were up 25% from last year. Excluding the RPS acquisition, our underlying commercial revenues were up 13% year-on-year driven by our services and sustainability, including work specifically in environmental permitting, also high-performance buildings and clean energy and renewable energy programs.

我們在美國的商業淨收入比去年增長了 25%。不包括 RPS 收購，我們的基礎商業收入同比增長 13%，這得益於我們的服務和可持續性，包括專門在環境許可、高性能建築以及清潔能源和可再生能源項目方面的工作。

I'd like to provide and present a detail of our performance by our 2 segments that we report on. The first segment, the Government Services Group or the GSG segment grew by 29% from last year with a significant increase in our international development work, especially for Ukraine energy programs. The extraordinary contribution for Ukraine just in the quarter provided $70 million in revenue.

我想通過我們報告的 2 個部分提供並展示我們的績效細節。第一部分，政府服務部門或 GSG 部門比去年增長了 29%，我們的國際開發工作顯著增加，尤其是烏克蘭能源項目。僅在本季度為烏克蘭做出的非凡貢獻就帶來了 7000 萬美元的收入。

Disaster response was down relative to the second quarter last year. For comparison purposes, excluding the unusual impacts of Ukraine and disaster response in the quarter, our Government Services Group had a strong double-digit growth rate of 16% year-on-year.

與去年第二季度相比，災難響應有所下降。出於比較目的，排除本季度烏克蘭和災難響應的異常影響，我們的政府服務集團實現了 16% 的強勁兩位數同比增長率。

Our Commercial International Group or CIG segment, grew by 47% year-on-year. Even excluding RPS, which was a material contribution to the segment, the CIG segment was up 13% driven by growth in renewable energy programs, environmental work all across the United States and high-performance buildings work worldwide. One of the highlights for the quarter, in addition to the actual performance of revenue and profit and extraordinary work was our backlog, our backlog was up 18% year-on-year on strong broad-based orders, resulting in an all-time high backlog of $4.275 billion of contracted, funded and authorized work.

我們的商業國際集團或 CIG 部門同比增長 47%。即使不包括對該部門做出重大貢獻的 RPS，CIG 部門也增長了 13%，這得益於可再生能源計劃、美國各地的環境工作和全球高性能建築工作的增長。本季度的亮點之一，除了收入和利潤的實際表現以及我們的積壓工作外，我們的積壓訂單同比增長 18%，原因是廣泛的訂單強勁，創歷史新高合同、資助和授權工作積壓 42.75 億美元。

In the second quarter, we won new programs and task orders for commercial clients, especially for renewable energy and environmental restoration services. For U.S. federal agencies, we were awarded major water-focused contract vehicles, such as the $105 million U.S. Watershed Assessment contract with the U.S. Environmental Protection Agency. Our disaster planning and recovery practice also won a $54 million contract with Puerto Rico addressing the continued long-term resiliency planning needs for this hurricane-prone region. Now while those were an overview of our financials for the quarter and some of the growth areas, I'd now like to turn the presentation over to Steve Burdick, our Chief Financial Officer, to go over some of the details of our financials in the quarter. Steve?

第二季度，我們為商業客戶贏得了新的項目和任務訂單，特別是在可再生能源和環境修復服務方面。對於美國聯邦機構，我們獲得了以水為重點的主要合同工具，例如與美國環境保護署簽訂的價值 1.05 億美元的美國流域評估合同。我們的災難規劃和恢復實踐還贏得了與波多黎各簽訂的價值 5400 萬美元的合同，以滿足這個颶風多發地區持續的長期恢復規劃需求。現在，雖然這些是我們本季度財務狀況和一些增長領域的概述，但我現在想將演示文稿轉交給我們的首席財務官 Steve Burdick，以回顧我們財務狀況的一些細節四分之一。史蒂夫？

Thanks, Dan. So as you just heard from Dan, we had an excellent quarter with results coming in better than anticipated. Those improvements also extend to our cash flows and our capital allocation related matters. So cash flows generated from operations for the second quarter totaled $108 million, up 13% over last year.

謝謝，丹。所以正如你剛剛從 Dan 那裡聽到的那樣，我們有一個出色的季度，結果好於預期。這些改善還延伸到我們的現金流和我們的資本配置相關事宜。因此，第二季度運營產生的現金流量總計 1.08 億美元，比去年同期增長 13%。

Our focus on working capital and cash flows has also resulted in our DSO maintaining a leading industry standard of 59 days. This is a sustainable improvement from prior years and the slower DSO trend continues to reflect the outstanding work that our project managers lead relative to higher-quality projects and highly satisfied clients in our broad portfolio across all of our end markets and geographies.

我們對營運資金和現金流的關注也使我們的 DSO 保持了 59 天的領先行業標準。與往年相比，這是一個可持續的改進，DSO 趨勢放緩繼續反映出我們的項目經理在我們所有終端市場和地區的廣泛產品組合中領導的高質量項目和高度滿意的客戶所做的出色工作。

Regarding our dividend program, we paid out $0.23 per share in dividends in the second quarter, which is a 15% increase over last year. And I want to announce that our Board of Directors approved an increase in our quarterly dividend again to $0.26 per share to be paid in June. This is our 36th consecutive quarterly dividend and our ninth consecutive year of double-digit year-over-year increases in dividends paid. As Dan mentioned earlier, we did have this acquisition of RPS and the recent closing of the RPS acquisition, which was just over 100 days ago, has been going quite well in regards to integrating Tetra Tech and RPS together.

關於我們的股息計劃，我們在第二季度支付了每股 0.23 美元的股息，比去年增加了 15%。我想宣布，我們的董事會批准再次將季度股息增加至每股 0.26 美元，將於 6 月支付。這是我們連續第 36 個季度派發股息，也是我們連續第 9 年派息實現兩位數同比增長。正如 Dan 之前提到的，我們確實完成了對 RPS 的收購，最近剛剛結束了 100 多天前的 RPS 收購，在將 Tetra Tech 和 RPS 整合在一起方面進展順利。

We've been making excellent progress towards improving profit margins, and I would like to update you on our financial plan and current status for the integration of RPS, which is a significant opportunity for Tetra Tech. So when looking out over the next several quarters, our goal is to align the RPS margins to be at or above the Tetra Tech profit margins. And this will be accomplished in a similar manner as to what we had accomplished with our two previous public company acquisitions. And that is by focusing on high-end differentiated services and revenues while integrating the business onto our ERP platform and corporate systems for greater cost synergies.

我們在提高利潤率方面取得了長足的進步，我想向您介紹我們的財務計劃和 RPS 整合的最新狀態，這對 Tetra Tech 來說是一個重要的機會。因此，在展望未來幾個季度時，我們的目標是使 RPS 利潤率達到或高於 Tetra Tech 的利潤率。這將以與我們之前兩次上市公司收購所取得的成就類似的方式實現。那就是通過專注於高端差異化服務和收入，同時將業務整合到我們的 ERP 平台和企業系統中，以實現更大的成本協同效應。

As such, we expect to increase the EBITDA margin for RPS from under 5% in their fiscal 2022 by almost 3x to a run rate of over 13% at the end of fiscal 2024. Now while our operations are working together to focus on delivering high-end solutions in water and environment for our clients, we're also supporting those activities, and we expect to realize additional cost synergies through both transition of the RPS business onto our ERP system as well as potential office consolidations. These actions may result in additional onetime integration costs primarily in the fourth quarter of fiscal 2023, but will provide increased long-term operating and financial benefits to the ongoing business.

因此，我們預計將 RPS 的 EBITDA 利潤率從其 2022 財年的不到 5% 提高近 3 倍，到 2024 財年末的運行率超過 13%。現在，雖然我們的業務正在共同努力，專注於提供高- 為我們的客戶提供水和環境方面的最終解決方案，我們也支持這些活動，我們希望通過將 RPS 業務過渡到我們的 ERP 系統以及潛在的辦公室整合來實現額外的成本協同效應。這些行動可能主要在 2023 財年第四季度導致額外的一次性整合成本，但將為正在進行的業務提供更多的長期運營和財務收益。

And so far to date, compared to our original projections, we are seeing improved margin opportunities based on our joint integration efforts with the RPS leadership team. And so through improved RPS profit margins and cash flows, along with Tetra Tech's strong positive cash flows from operations, we expect to continue to delever our balance sheet. We ended the second quarter with a net debt leverage ratio of about 1.9x EBITDA, which is within our targeted range.

到目前為止，與我們最初的預測相比，基於我們與 RPS 領導團隊的聯合整合努力，我們看到了提高利潤率的機會。因此，通過提高 RPS 利潤率和現金流，以及 Tetra Tech 強勁的正現金流，我們預計將繼續去槓桿化我們的資產負債表。我們在第二季度結束時的淨債務槓桿率約為 1.9 倍 EBITDA，這在我們的目標範圍內。

We expect to further delever the balance sheet to a factor of about 1.5x by the end of this fiscal year. And so by increasing the EBITDA margins, while decreasing the interest expense on a lower debt, we would expect to be cash accretive after fiscal 2023, adding approximately $0.50 of EPS in fiscal 2024 and approximately $0.85 of EPS in fiscal 2025.

我們預計到本財年末，資產負債表的槓桿率將進一步下降至 1.5 倍左右。因此，通過提高 EBITDA 利潤率，同時減少較低債務的利息支出，我們預計在 2023 財年之後將增加現金，在 2024 財年增加約 0.50 美元的每股收益，在 2025 財年增加約 0.85 美元的每股收益。

And this will result in a double-digit EPS accretion in -- probably in about the mid- to upper teens by fiscal 2025, which we had previously anticipated at the time of the acquisition. I'm pleased to share these quarterly financial results for the first half of our fiscal '23. I want to thank you for your support, and I will now hand the call over to Leslie, who will discuss our ESG sustainability program.

這將導致兩位數的每股收益增長——到 2025 財年可能會達到十幾歲左右，這是我們之前在收購時預計的。我很高興分享我們 23 財年上半年的這些季度財務業績。我要感謝您的支持，我現在將電話轉交給 Leslie，他將討論我們的 ESG 可持續發展計劃。

Thank you, Steve. I would now like to provide you with an overview of our environmental, social and governance program and recently released annual sustainability metrics. At Tetra Tech, we have set ambitious goals to reduce carbon emissions, both through our operations and through the projects that we perform worldwide. We measure the global impact of our 27,000 staff and the projects they performed to our 1 billion people challenge. Our goal is to benefit the lives of over 1 billion people by 2030.

謝謝你，史蒂夫。我現在想向您概述我們的環境、社會和治理計劃以及最近發布的年度可持續發展指標。在 Tetra Tech，我們制定了雄心勃勃的目標，通過我們的運營和我們在全球範圍內執行的項目來減少碳排放。我們衡量了我們 27,000 名員工的全球影響以及他們為應對 10 億人口挑戰而執行的項目。我們的目標是到 2030 年使超過 10 億人的生活受益。

Since the beginning of our impact evaluation in 2021, we have reached 545 million people and reduced greenhouse gas emissions by 101.2 million metric tons of carbon equivalent annually. For our global operations, we've also set goals to reduce greenhouse gas emissions as well as setting diversity, engagement and community metrics. This year, we reduced emissions by 25% per employee through innovation and flexible work policies, application of virtual technology and cloud-based data management.

自 2021 年開始進行影響評估以來，我們每年已惠及 5.45 億人並減少了 1.012 億公噸碳當量的溫室氣體排放。對於我們的全球運營，我們還設定了減少溫室氣體排放的目標，以及設定多樣性、參與度和社區指標。今年，我們通過創新和靈活的工作政策、虛擬技術的應用和基於雲的數據管理，將每位員工的排放量減少了 25%。

Our commitment to an engaged and diverse workforce has helped us to scale the highly technical work that we do across Tetra Tech across our entire global operations. Tetra Tech is providing sustainability at scale by developing technologies that can be brought to clients worldwide, such as our greenhouse gas calculator that is used by our high-performance buildings practice, to help cities, college campuses and companies decarbonize their fixed assets. We're also performing large-scale water management optimization for systems such as the Upper Egypt utility that provides over 1 billion gallons per day of essential water supply to the region. We also manage terabytes of coastal data in our cloud-based oceans map platform that facilitates the permitting and management of offshore wind facilities in the U.S., United Kingdom, Europe and Australia.

我們對敬業和多元化員工隊伍的承諾幫助我們在整個全球運營中擴展了我們在 Tetra Tech 所做的高技術工作。 Tetra Tech 通過開發可帶給全球客戶的技術（例如我們的高性能建築實踐使用的溫室氣體計算器）來大規模提供可持續性，以幫助城市、大學校園和公司實現固定資產脫碳。我們還對 Upper Egypt 公用事業等系統進行大規模水資源管理優化，該公用事業每天為該地區提供超過 10 億加侖的基本供水。我們還在基於雲的海洋地圖平台中管理數 TB 的沿海數據，該平台有助於美國、英國、歐洲和澳大利亞海上風電設施的許可和管理。

And through our work supporting the U.S. Agency for International Development, we are protecting the biodiversity of forest and aquatic ecosystems by creating supply chain tracking systems that create sustainable fisheries, forestry and agricultural production. By leading with science, Tetra Tech leverages our expertise and technology to address our clients' needs at a global scale.

通過我們支持美國國際開發署的工作，我們通過創建供應鏈跟踪系統來保護森林和水生生態系統的生物多樣性，從而創造可持續的漁業、林業和農業生產。通過以科學為先導，利樂科技利用我們的專業知識和技術在全球範圍內滿足客戶的需求。

And now I'd like to turn the presentation over to Jill.

現在我想把演示文稿交給吉爾。

Thank you, Leslie. The highly scalable solutions that we deliver through more than 100,000 projects for our clients each year result in annual revenues that demonstrate our market-leading position in water and environment. I am very excited to announce today that Tetra Tech has been ranked #1 in water by Engineering News-Record for the 20th year in a row, Tetra Tech is the leader in One Water strategies, providing intelligent planning, innovative design and automation to develop, integrate and manage reliable water supply sources for some of the largest U.S. water agencies.

謝謝你，萊斯利。我們每年通過 100,000 多個項目為客戶提供高度可擴展的解決方案，所產生的年收入證明了我們在水和環境領域的市場領先地位。我今天非常高興地宣布，Tetra Tech 連續 20 年被《工程新聞記錄》評為水行業第一名，Tetra Tech 是 One Water 戰略的領導者，提供智能規劃、創新設計和自動化開發，為美國一些最大的水務機構整合和管理可靠的供水資源。

Tetra Tech is also ranked #1 in water treatment and desalination by Engineering News-Record. Tetra Tech designs innovative, high-recovery desalination facilities primarily in water-stressed regions of Florida, Texas and California. These states represent 30% of the entire population of the United States. These facilities diversify water supply portfolios and future-proof water infrastructure for many years to come. Tetra Tech also has decades of market leadership in providing environmental solutions that are innovative for our clients and sustainable for our future.

Tetra Tech 在 Engineering News-Record 的水處理和海水淡化領域也排名第一。 Tetra Tech 主要在佛羅里達州、得克薩斯州和加利福尼亞州的缺水地區設計創新的高回收率海水淡化設施。這些州占美國總人口的 30%。這些設施使供水組合和麵向未來多年的供水基礎設施多樣化。利樂科技在為我們的客戶提供創新的、對我們的未來可持續的環境解決方案方面也擁有數十年的市場領導地位。

Tetra Tech has been ranked #1 in environmental management by ENR for 14 years in a row. Tetra Tech is also ranked #1 in green government offices in our first year of reporting in this ENR category. Tetra Tech designed sustainable and healthy buildings, utilizing proprietary energy and greenhouse gas modeling software. Some great examples of the work we do in government buildings include Tetra Tech is developing the City of Los Angeles, building decarbonization plan to support a carbon-neutral future across the city's 1,200 municipal buildings.

Tetra Tech 已連續 14 年在 ENR 的環境管理排名中排名第一。在我們報告這一 ENR 類別的第一年，利樂科技在綠色政府辦公室中也排名第一。 Tetra Tech 利用專有的能源和溫室氣體建模軟件設計了可持續和健康的建築。我們在政府建築中所做工作的一些很好的例子包括 Tetra Tech 正在開發洛杉磯市，制定脫碳計劃以支持該市 1,200 座市政建築實現碳中和的未來。

Tetra Tech is also developing a system-wide decarbonization framework to reduce greenhouse gas emissions across all 23 campuses of the California State University system, the largest university system in the United States. Outside of the U.S., Tetra Tech is delivering the largest closed-loop underground geothermal heating and cooling system in Australia. And in the United Kingdom, Tetra Tech is advancing an innovative decarbonization plan to support zero carbon Oxford for the Oxford City Council. The U.S. government has set ambitious net zero building emissions goals for 2050.

Tetra Tech 還在開發一個系統範圍的脫碳框架，以減少美國最大的大學系統加利福尼亞州立大學系統所有 23 個校區的溫室氣體排放。在美國以外，Tetra Tech 正在澳大利亞提供最大的閉環地下地熱供暖和製冷系統。在英國，利樂科技正在推進一項創新的脫碳計劃，為牛津市議會支持零碳牛津。美國政府制定了雄心勃勃的 2050 年建築淨零排放目標。

U.S. government building decarbonization efforts have been further accelerated by incentives in the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These funding priorities are directly aligned with what we do at Tetra Tech in sustainable government buildings today. The U.S. government owns more than 300,000 civilian and defense buildings. One of the largest opportunities for Tetra Tech is the U.S. Army's commitment to spend $7 billion over the next 4 years on decarbonization.

《基礎設施投資和就業法案》和《降低通貨膨脹法案》中的激勵措施進一步加快了美國政府建築脫碳工作的步伐。這些資金優先事項與我們在 Tetra Tech 今天在可持續政府建築中所做的工作直接一致。美國政府擁有超過 300,000 座民用和國防建築。對 Tetra Tech 來說，最大的機會之一是美國陸軍承諾在未來 4 年內花費 70 億美元用於脫碳。

The Army is the largest federal building owner with more than 138,000 buildings across 130 installations. Tetra Tech is leveraging proprietary greenhouse gas digital tools and U.S. Army contract capacity to capture decarbonization programs that support the Army's climate plan. Also, more than 20 states have set clean energy and net zero emissions goals for 2050. The Inflation Reduction Act provides $32 billion of grant funding to support state and local building decarbonization efforts. Tetra Tech is leveraging its standing contracts with more than 500 municipalities to advance their decarbonization efforts.

陸軍是最大的聯邦建築所有者，在 130 個設施中擁有超過 138,000 座建築。 Tetra Tech 正在利用專有的溫室氣體數字工具和美國陸軍合同能力來獲取支持陸軍氣候計劃的脫碳計劃。此外，20 多個州制定了 2050 年的清潔能源和淨零排放目標。《降低通貨膨脹法案》提供了 320 億美元的贈款資金，以支持州和地方的建築脫碳工作。 Tetra Tech 正在利用其與 500 多個城市簽訂的長期合同來推進他們的脫碳工作。

And now I'll turn the presentation back to Dan.

現在我將把演示文稿轉回給 Dan。

Thank you, Jill. I'd now like to present our guidance for third quarter and for all of fiscal year 2023. The guidance for the third quarter and for the year for Tetra Tech, excluding RPS, and I'll provide those numbers in just a moment. But for the Tetra Tech, excluding RPS for the third quarter, Tetra Tech's guidance range is from $750 million to $800 million of net revenue with an associated earnings per share of $1.15 to $1.20. For all of fiscal year 2023, Tetra Tech, excluding RPS, has increased its net revenue estimates or guidance to $3.1 billion to $3.2 billion, with an also increased earnings per share guidance range of $5.07 to $5.17.

謝謝你，吉爾。我現在想介紹我們對第三季度和整個 2023 財年的指導。Tetra Tech 第三季度和全年的指導，不包括 RPS，我稍後會提供這些數字。但對於 Tetra Tech，不包括第三季度的 RPS，Tetra Tech 的指導範圍是 7.5 億美元至 8 億美元的淨收入，相關的每股收益為 1.15 美元至 1.20 美元。對於整個 2023 財年，利樂科技（不包括 RPS）已將其淨收入預期或指引上調至 31 億美元至 32 億美元，並將每股收益指引範圍上調至 5.07 美元至 5.17 美元。

Now for this Tetra Tech portion of our guidance range, the following assumptions are included. It does include intangible amortization of $15 million, which equates to $0.21 per share. We do estimate a 26% effective tax rate. We assume 54 million diluted shares outstanding and does exclude any future acquisitions that we would do in the second half of this year. Now for RPS, and these numbers are in addition to the Tetra Tech numbers I just provided or are listed in the presentation above.

現在，對於我們指導範圍的 Tetra Tech 部分，包括以下假設。它確實包括 1500 萬美元的無形攤銷，相當於每股 0.21 美元。我們確實估計了 26% 的有效稅率。我們假設有 5400 萬股稀釋後流通股，並且不包括我們將在今年下半年進行的任何未來收購。現在對於 RPS，這些數字是我剛剛提供的或在上面的演示文稿中列出的 Tetra Tech 數字的補充。

The numbers for RPS for the third quarter, we do estimate a range of net revenue contribution of $150 million to $175 million, and we expect that the earnings per share will be neutral or there would be neither a contribution nor an attraction or a loss from RPS in the third quarter. And for the year, for fiscal year 2023 in total, we anticipate RPS will add in addition to the Tetra Tech numbers listed above a range of $450 million to $500 million for fiscal year 2023 and also neutral.

第三季度 RPS 的數字，我們估計淨收入貢獻範圍為 1.5 億至 1.75 億美元，我們預計每股收益將是中性的，或者既沒有貢獻也沒有吸引力或損失第三季度的 RPS。對於這一年，對於 2023 財年，我們預計 RPS 除了上面列出的 Tetra Tech 數字之外，還會在 2023 財年增加 4.5 億至 5 億美元的範圍，並且也是中性的。

And these numbers are consistent with the numbers presented by Steve Burdick in the earlier slide for 2023. In summary, I'd like to share with you that we see strong demand for our differentiated leading with sciences approach in water, environment and sustainable infrastructure. In the second quarter, we set new records for revenue, net revenue, operating income, EBITDA and earnings per share and ended the quarter with an all-time high best-ever visibility due to our backlog.

這些數字與 Steve Burdick 在上一張幻燈片中提供的 2023 年數字一致。總而言之，我想與大家分享的是，我們看到了對我們在水、環境和可持續基礎設施方面採用科學方法的差異化領先的強烈需求。在第二季度，我們在收入、淨收入、營業收入、EBITDA 和每股收益方面創下了新紀錄，並且由於我們的積壓訂單，本季度末的知名度創歷史新高。

The integration of RPS is exceeding our expectations and it's adding new opportunities and clients to our business that we just never saw before. It's going exceptionally well and actually seeing it actually even looking better as we go forward. As a result of our strong year-to-date performance and our record high backlog, I'm really pleased to provide you the increased guidance for both net revenue and for the earnings per share that I just shared with you.

RPS 的整合超出了我們的預期，它為我們的業務增加了前所未有的新機會和客戶。它進展得非常順利，實際上隨著我們的前進，它看起來甚至看起來更好。由於我們年初至今的強勁表現和創紀錄的積壓，我很高興為您提供我剛剛與您分享的淨收入和每股收益的增加指導。

And with that, Camilla, I'd like to open up the call for questions.

說到這裡，卡米拉，我想開始提問。

(Operator Instructions) And our first question comes from Sean Eastman with KeyBanc.

（操作員說明）我們的第一個問題來自 KeyBanc 的 Sean Eastman。

I really appreciate the RPS accretion targets for fiscal '24 and fiscal '25. And I thought that this would be a good time to perhaps supplement that view with your updated thoughts on kind of the underlying Tetra Tech's growth trajectory underneath that RPS accretion perhaps while addressing this trend where we're seeing kind of outperformance on growth relative to the end market targets seemingly in advance of the bigger funding tailwinds that haven't really hit the model yet.

我非常感謝 24 財年和 25 財年的 RPS 增長目標。我認為這是一個很好的時機，也許可以用你對 RPS 增長下潛在 Tetra Tech 增長軌蹟的最新想法來補充這一觀點，也許同時解決這一趨勢，即我們看到相對於最終市場目標似乎在尚未真正影響模型的更大融資順風之前。

Well, it's a good question, and I was really pleased to be able to present the underlying Tetra Tech actual performance in the second quarter. And as you can see from the presentation materials, all of our key metrics from top line growth, which were in the middle to upper teens, 16% and 18% for net revenue, respectively. Actually, I would say those numbers are understated because if you actually look at our net revenue growth adjusted for foreign exchange impact, FX, the net revenue growth for Tetra Tech is actually 21%, it's in the 20s.

好吧，這是一個很好的問題，我很高興能夠在第二季度展示潛在的 Tetra Tech 實際表現。正如您從演示材料中看到的那樣，我們所有來自頂線增長的關鍵指標，淨收入分別處於中高位，分別為 16% 和 18%。實際上，我想說這些數字被低估了，因為如果你真的看一下我們根據外匯影響調整後的淨收入增長，FX，Tetra Tech 的淨收入增長實際上是 21%，在 20 多歲。

Every one of our end markets of the underlying Tetra Tech have exceeded our targets. We've had 5% to 10% target growth rates before our commercial and our international. We've had 10% to 15% for our state and local which as well in there. And of course, we thought we'd be around 10% growth for our U.S. federal. And so we bracketed it with the 7.5% to 12.5% to give us 1% or 2% up or down, and we've actually been in the 20s so we've doubled what we anticipated.

我們的基礎 Tetra Tech 的每個終端市場都超出了我們的目標。在我們的商業和國際之前，我們有 5% 到 10% 的目標增長率。我們的州和地方也有 10% 到 15%。當然，我們認為美國聯邦的增長率約為 10%。所以我們將它與 7.5% 到 12.5% 放在一起，給我們 1% 或 2% 的漲幅或跌幅，我們實際上已經進入 20 年代，所以我們的預期翻了一番。

And the one thing I'd like to note, this is without any material -- I'll say, material because there has been a little bit. But without any material kicking in or contribution of these major individual funding items that we see coming forward, which is the Infrastructure Investment Jobs Act, IIJA, it excludes the Inflation Reduction Act, which is the big renewable energy support programs and of course, the CHIPS Act, which will help infrastructure. So I think that things are looking quite well. It has been very fortunate that every one of our end markets are growing at levels higher than what we anticipated, and that's without some of these very large macro trends of fundings that have been passed that we see still in our future.

我想指出的一件事是，這沒有任何材料——我會說，材料是因為有一點。但是，我們看到即將到來的這些主要的個人融資項目沒有任何實質性的投入或貢獻，即基礎設施投資就業法案 IIJA，它不包括通貨膨脹減少法案，這是大型可再生能源支持計劃，當然還有CHIPS 法案，這將有助於基礎設施建設。所以我認為事情看起來很好。非常幸運的是，我們每個終端市場的增長水平都高於我們的預期，而且沒有我們在未來看到的已經通過的一些非常大的宏觀資金趨勢。

Now our backlog, I would like to parse out the backlog because what we did this last quarter is great. But it's, of course, what are you going to do for me next? Or what have you done for me lately? And of course, the best indicator of that is on your backlog on the underlying Tetra Tech. And we saw book-to-bill in our backlog of 1.1%, and we saw an increase in our backlog of Tetra Tech itself without the contribution of RPS of a 10% increase year-over-year. So I'm still saying we can do better than even those numbers.

現在我們的積壓工作，我想分析一下積壓工作，因為我們上個季度所做的很棒。但是，當然，接下來你要為我做什麼？或者你最近為我做了什麼？當然，最好的指標是你對基礎 Tetra Tech 的積壓。我們在積壓訂單中看到了 1.1% 的訂單出貨比，我們看到 Tetra Tech 本身的積壓訂單有所增加，而 RPS 的貢獻卻沒有同比增長 10%。所以我仍然說我們甚至可以比這些數字做得更好。

We're not hitting on all cylinders. There's still things that can go better, such as the influx of funding and other programs from the federal government on these large $1 trillion earmarked programs. But I'm feeling pretty good about the underlying business. And the great thing about RPS is they align very much synergically with Tetra Tech in that we still are focused with RPS on sustainable infrastructure, renewable energy, large water programs in the United Kingdom.

我們並沒有全力以赴。還有一些事情可以做得更好，例如聯邦政府為這些 1 萬億美元的大型專項計劃提供大量資金和其他計劃。但我對基礎業務感覺很好。 RPS 的偉大之處在於它們與 Tetra Tech 非常協同，因為我們仍然專注於 RPS 在英國的可持續基礎設施、可再生能源和大型水項目。

And of course, huge renewable energy infrastructure programs in Australia. So all of the things that are going to -- in our currently propelling Tetra Tech forward, are actually the same things that are going to drive RPS forward with us as we go forward. So I don't know, we're feeling pretty good here, and of course, it's reflected in our increased guidance and the performance we had this last quarter, Sean.

當然，還有澳大利亞龐大的可再生能源基礎設施項目。因此，在我們目前推動 Tetra Tech 前進的過程中，所有將要發生的事情實際上與我們前進時將推動 RPS 一起前進的事情是一樣的。所以我不知道，我們在這裡感覺很好，當然，這反映在我們增加的指導和我們上個季度的表現上，肖恩。

Okay. That's very helpful relative to how we can think about the top line momentum, but maybe to press you a little bit more rounding it out with underlying margin expectations on the go-forward and perhaps, Steve could chime in on how the cash conversion trend should compare to this kind of well in excess of net income type of ratio we've seen over the last several years?

好的。相對於我們如何考慮頂線勢頭，這非常有幫助，但也許會向您施加更多壓力，以進一步完善潛在的利潤率預期，也許史蒂夫可以插話現金轉換趨勢應該如何發展與過去幾年我們看到的這種超過淨收入的比率相比？

I'll touch very briefly and I'll -- on the margin, I'll let Steve then speak to the cash conversion. But we had forecasted coming into the year that we would have for the Commercial International Group margin range between 12.5% and 13.5%. That represents about a 50 basis point expansion in our margins in that group from last year, and we do expect to achieve that or beat that. Our Government Services was actually a full 100 basis points or percentage higher.

我會非常簡短地談一談，然後我會——在邊際上，我會讓史蒂夫談談現金轉換。但我們曾預測，今年 Commercial International Group 的利潤率將在 12.5% 至 13.5% 之間。這代表我們在該組的利潤率比去年增加了約 50 個基點，我們確實希望實現或超過這一目標。我們的政府服務實際上高出整整 100 個基點或百分比。

We thought it would be between 13.5 and 14.5, which is also a 50 basis points increase over the prior year. We expect to achieve that for the year. And we actually see that trend continuing as we move into 2024 and beyond. So you see not only the top line revenue growth, but if you look for roughly in those 2 segments, about 50 basis points increase, and that does not include the numbers that Steve had presented regarding margin expansion within the RPS portion of the company.

我們認為它會在 13.5 和 14.5 之間，這也比上一年增加了 50 個基點。我們希望在今年實現這一目標。隨著我們進入 2024 年及以後，我們實際上看到這種趨勢仍在繼續。所以你不僅看到收入增長，而且如果你粗略地在這兩個部分尋找，大約會增加 50 個基點，這不包括史蒂夫提出的關於公司 RPS 部分利潤率擴張的數字。

So obviously, when you have revenue growth and margin expansion, it becomes a multiplicative addition to our earnings and earnings per share. But let me have Steve speak to the cash conversion and our outlook on that front.

所以很明顯，當你有收入增長和利潤率擴張時，它就會成為我們收益和每股收益的乘法加法。但是讓我讓史蒂夫談談現金轉換和我們在這方面的前景。

Yes. Thanks, Dan. I think our cash conversion, we continue to expect our cash from operations to exceed net income going forward. And just to make that number a little bit more clear. Our free cash flow be fairly close to our cash flow from operations as our CapEx continues to be and will continue to be less than 0.5% of our revenue. So we'll continue to be a relatively CapEx-light and generating cash flows that exceed our net income over the near future.

是的。謝謝，丹。我認為我們的現金轉換，我們繼續預計我們的運營現金將超過未來的淨收入。只是為了讓這個數字更清楚一點。我們的自由現金流量與我們的運營現金流量非常接近，因為我們的資本支出一直並將繼續低於我們收入的 0.5%。因此，我們將繼續保持相對輕資本支出，並在不久的將來產生超過我們淨收入的現金流。

Our next question comes from Tate Sullivan with Maxim Group.

我們的下一個問題來自 Maxim Group 的 Tate Sullivan。

Yes, a couple on RPS to start on Slide 9, indicating the targeted RPS EBITDA margin, it looks like between 13% and 14% in fiscal year '25. Is that turning RPS up to where Tetra Tech will be? Or should we look at Tetra Tech's combined EBITDA margin is higher than RPS' EBITDA margin? How should we look at that number, please?

是的，一對 RPS 從幻燈片 9 開始，表明目標 RPS EBITDA 利潤率，在 25 財年看起來介於 13% 和 14% 之間。這是否會將 RPS 提高到 Tetra Tech 的水平？或者我們應該看看 Tetra Tech 的綜合 EBITDA 利潤率高於 RPS 的 EBITDA 利潤率嗎？請問這個數字應該怎麼看？

Tate, that puts the number very close to that at Tetra Tech. We believe by 2025, which, in some respects, I say 2025 sounds like a long way in the future. However, Tetra Tech fiscal year, we're less than 6 months out from going into 2024. That will start on October 1. So we're only about 6 quarters out from being in fiscal year 2025. And our goal is that RPS will have closed the gap completely and be performing at a level at same as the rest of Tetra Tech. So I believe the Tetra Tech and if you look at the chart, it's just under 14% EBITDA margin. That would be the number that would be similar to the organization.

Tate，這使得這個數字非常接近 Tetra Tech 的數字。我們相信到 2025 年，在某些方面，我說 2025 年聽起來像是一個遙遠的未來。然而，利樂科技財政年度，我們距離 2024 年還有不到 6 個月的時間。那將從 10 月 1 日開始。所以我們距離 2025 財政年度只有大約 6 個季度。我們的目標是 RPS 將已經完全縮小了差距，並與 Tetra Tech 的其他公司處於同一水平。所以我相信 Tetra Tech，如果你看圖表，它的 EBITDA 利潤率略低於 14%。那將是與組織相似的數字。

Okay. All right. In Ukraine, I mean, it was, you mentioned $70 million of worth within the quarter. Is that the largest -- I imagine the large intra-quarter work growth you've ever done for USAID and can you talk about what that was? And so layering on questions. Is that -- is additional work in Ukraine not included in guidance, please?

好的。好的。在烏克蘭，我的意思是，你在本季度提到了 7000 萬美元的價值。這是最大的 - 我想像你為美國國際開發署做過的季度內工作增長，你能談談那是什麼嗎？所以分層問題。請問在烏克蘭的額外工作是否未包含在指南中？

That's a good question. It certainly was the largest single short duration amount of work that we've done for USAID ever. So I guess I'd say in within the intra-quarter. So we've had certainly other programs that have lasted longer and been larger over a longer period of time. But as far as just within 1 quarter as far as single amount of funding that has gone through to the company that is the largest. It particularly wasn't even just within the quarter. It actually provided to us after our investor call last time, which is why it wasn't included in our guidance. And so it really happened in only 2 of the 3 months of the quarter. So it was really that much more accentuated. Now the type of work it was, it was really a humanitarian support with respect to the energy sector.

這是個好問題。這無疑是我們為美國國際開發署做過的最大的一次短期工作。所以我想我會在季度內說。所以我們肯定有其他項目持續時間更長，規模更大。但就最大的公司獲得的單筆資金而言，僅在一個季度內。它甚至不僅僅是在本季度內。它實際上是在我們上次投資者電話會議後提供給我們的，這就是為什麼它沒有包含在我們的指導中。所以它真的只發生在本季度的 3 個月中的 2 個月。所以它真的更加突出。現在的工作類型，它確實是對能源部門的人道主義支持。

They've been through the winter months, have been extreme hardships on a number of different areas regarding infrastructure and utilities, are the area that we've been working in Ukraine for a number of years, well before the actual current conflict was resiliency of the grid, upgrading the grid, reliable energy surprise supplies, including transitioning to renewable and because of some of the damage that has been taken place, we were asked to come in and provide emergency power supplies for the citizens in certain areas of the country.

他們已經度過了冬季，在基礎設施和公用事業的許多不同領域都遇到了極端困難，這是我們在烏克蘭工作多年的領域，遠在當前實際衝突成為彈性之前電網，升級電網，可靠的能源意外供應，包括過渡到可再生能源，並且由於已經發生的一些破壞，我們被要求進來為該國某些地區的公民提供應急電源。

And so that's why it was short-lived and move now, get the power back up and bring in temporary power supplies and support the country and the humanitarian relief, and that's what took place. Now could there and would there be more? It's possible. But as of this phone call, we don't have any specific order or tasks that are been directed to move forward on.

所以這就是為什麼它是短暫的，現在就搬家，恢復供電，引入臨時電源，支持國家和人道主義救援，這就是發生的事情。現在會不會有更多？這是可能的。但截至此次電話會議，我們沒有任何具體的命令或任務指示繼續推進。

So we've not included any extraordinary additional activities in Ukraine or any other location or nothing that would be speculative on our part. So we're ready. We support our clients. We're completely behind them on any of the activities they'd like us to initiate.

因此，我們沒有包括在烏克蘭或任何其他地點的任何特別的額外活動，也沒有包括任何對我們而言具有投機性的活動。所以我們準備好了。我們支持我們的客戶。我們完全支持他們希望我們發起的任何活動。

It had gone extremely well and was actually highly needed by the residents and systems of Ukraine. So if there's other activities, we'll be there in an instant, but it's not included in our guidance for our third quarter or the rest of the fiscal year.

它進行得非常順利，實際上烏克蘭的居民和系統非常需要它。因此，如果還有其他活動，我們會立即進行，但它不包括在我們對第三季度或本財年剩餘時間的指導中。

Great example. Rapidly deploying your contract capacity, I imagine, too.

很好的例子。快速部署你的合同容量，我想也是。

Great. Thanks very much, Tate.

偉大的。非常感謝，泰特。

Our next question comes from Andy Wittmann with Baird.

我們的下一個問題來自 Baird 的 Andy Wittmann。

Great. I guess, it sounds abundantly clear, Dan, that you feel confident about how the business is performing. I thought I want -- would take the opportunity to zoom a little bit on some of the pieces of your business that are a little bit more interest rate sensitive or maybe macro sensitive. I guess, so much of your business is publicly funded, but you've got this commercial business as well.

偉大的。我想，這聽起來非常清楚，丹，你對公司的表現很有信心。我想我想 - 會藉此機會稍微放大一些對利率敏感或對宏觀敏感的業務部分。我想，您的大部分業務都是由公共資金資助的，但您也擁有這項商業業務。

Can you talk about how that commercial business splits up into pieces that might be interest rate or macro sensitive certainly, the high-performance buildings practice comes to mind, but maybe there are others. Maybe if you could just talk about that in a little bit more detail because I think that's a topical question that seems to be coming across our desk quite often.

您能否談談商業業務如何拆分成可能對利率或宏觀敏感的部分，當然，高性能建築實踐會浮現在腦海中，但也許還有其他。也許你可以更詳細地談談這個問題，因為我認為這是一個似乎經常出現在我們桌面上的熱門問題。

Yes. I think that's a great question. It's something that we look at with the magnifying glass, but we're watching it very closely. Obviously, interest rates caused huge disruption in some of the banking and other areas that are -- have been disrupted by it.

是的。我認為這是一個很好的問題。這是我們用放大鏡看的東西，但我們正在非常仔細地觀察它。顯然，利率在一些銀行業和其他領域造成了巨大的破壞——已經被它破壞了。

So first of all, let's talk about the United States here in the U.S., it's about 20 -- 20% of our total revenue. So we sort of parse it sort of commercial work or U.S. commercial 20%. What's a little bit unusual about our commercial work, and we've talked about this in the past, but I'll remind our shareholders and other stakeholders on the call this, about half of the commercial work that we do are for commercial clients responding to and supporting regulatory directives they have for environmental programs.

所以首先，讓我們談談美國這裡的美國，它大約占我們總收入的 20-20%。所以我們將其解析為商業作品或美國商業作品 20%。我們的商業工作有什麼不尋常之處，我們過去曾討論過這個問題，但我會在電話會議上提醒我們的股東和其他利益相關者，我們所做的商業工作中大約有一半是針對商業客戶的回應並支持他們對環境計劃的監管指令。

These are areas where there's a record of decision regarding cleaning up legacy solution or environmental impacted areas. This is actually performing remediation or long-term monitoring or innovative treatment. And so these areas are essentially -- I don't want to say completely immune, but pretty much removed from any cyclicality of interest rates, recessions or anything else.

這些區域有關於清理遺留解決方案或環境影響區域的決策記錄。這實際上是在進行修復或長期監測或創新治療。因此，這些領域基本上——我不想說完全免疫，但幾乎不受任何利率、衰退或其他任何週期性的影響。

These are moving forward. Now somebody has asked, is there any possible way that they couldn't? Well, there is, you could go back and contest a regulatory directive. But what we've seen in some instances is once you have an agreed upon a regulatory order and a prescribed workflow and schedule.

這些正在向前發展。現在有人問，有什麼方法可以做到嗎？好吧，你可以回去對監管指令提出異議。但我們在某些​​情況下看到的是，一旦您就監管命令以及規定的工作流程和時間表達成一致。

If you revisit it, you may get to do more work than you were planning on doing before. So quite often, the plan is, I'm going forward with this. So that leaves the other half of the commercial work. About almost half of that then or a good portion of that is actually not regulatory-driven, but a regulatory priority, which is renewable energy portfolio. This is for renewable energy, offshore wind, onshore wind, solar, other items, which is to meet renewable energy portfolio goals of the states here in the U.S. And of course, it's also become prevalent in the U.K. and Australia. So this type of commercial work while it's not a regulatory driven or mandated, it certainly has a priority.

如果你重新審視它，你可能會做比你之前計劃做的更多的工作。所以很多時候，計劃是，我要繼續這個。這樣就剩下了另一半的商業工作。當時大約有一半或很大一部分實際上不是監管驅動的，而是監管優先事項，即可再生能源組合。這是針對可再生能源、海上風能、陸上風能、太陽能和其他項目，這是為了滿足美國各州的可再生能源組合目標。當然，它在英國和澳大利亞也變得普遍。因此，這種類型的商業工作雖然不受監管驅動或強制要求，但它當然具有優先權。

Now that leaves what's discretionary, that's mostly our high-performance buildings were. I agree with that. It's certainly sub-10%. So it's sort of between 5% and 10%. That work I've been expecting every quarter for the last year is going to be impacted because of incremental increased interest rates. It's continued to be strong. And where we've been pivoting is to 2 areas for our buildings, it hasn't been necessary that we've made traction yet, although we are getting traction but one is the onshoring of high-end manufacturing, particularly chip fabrication plants.

現在剩下的是自由裁量權，那主要是我們的高性能建築。我同意這一點。這肯定低於 10%。所以它大約在 5% 到 10% 之間。去年每個季度我一直期待的那項工作會因為利率的增加而受到影響。它繼續保持強勁。我們一直在為我們的建築轉向兩個領域，我們還沒有必要取得牽引力，儘管我們正在獲得牽引力，但其中一個是高端製造業，特別是芯片製造廠的外包。

These are where there's very large dollars being committed to. There's huge grants and tax incentives here in the U.S. So we think that will be an offset to any softening in commercial buildings. And the other area is what Jill Hudkins' presented on today's call, which is actually federal government buildings work where we can take our high-performance buildings experts that are doing decarbonization and move them to state and local and U.S. federal government programs that are really isolated from interest rate impact.

這些是投入大量資金的地方。美國這裡有巨額贈款和稅收優惠，因此我們認為這將抵消商業建築的任何疲軟。另一個領域是 Jill Hudkins 在今天的電話會議上提出的，實際上是聯邦政府的建築工作，我們可以讓我們的高性能建築專家進行脫碳，並將他們轉移到州和地方以及美國聯邦政府的項目中，這些項目確實是不受利率影響。

So, we do have some. I'm not going to say we have nothing that would be interest rate sensitive. But it's pretty limited in the areas that we do see some vulnerability. We have very clear plan that we're implementing right now to diversify that and move to areas that are not impacted or susceptible to pullbacks due to interest rates.

所以，我們確實有一些。我不會說我們沒有任何對利率敏感的東西。但它在我們確實看到一些漏洞的領域非常有限。我們有非常明確的計劃，我們現在正在實施，以使其多樣化，並轉移到不受利率影響或容易受到回調影響的領域。

That's a really helpful fulsome answer. So I appreciate that. I guess for my follow-up question, I wanted to ask a little bit more on based on some of your numbers that you gave before, it sounds like RPS added about $375-ish million backlog, if you do the math on the 1.1x organic book-to-bill that you stated.

這是一個非常有用的答案。所以我很感激。我想對於我的後續問題，我想根據你之前給出的一些數字多問一點，聽起來 RPS 增加了大約 3.75 億美元的積壓，如果你在 1.1x 上計算的話您所說的有機訂單到賬單。

So I guess I wanted to check that. But maybe more importantly, I also want to ask on you guys were guiding for $100 million of net revenue contribution to the quarter that you just reported, and you came in at 144. So that's a big discrepancy. I thought it would be useful for you to talk about kind of the budget was and what the 144 number that you posted in the quarter means for what its pro forma organic growth would have been?

所以我想我想檢查一下。但也許更重要的是，我還想問問你們對你們剛剛報告的季度的 1 億美元淨收入貢獻的指導，你們排在 144。所以這是一個很大的差異。我認為您談論預算的種類以及您在本季度發布的 144 個數字對它的備考有機增長意味著什麼會很有用？

And if that pro forma organic growth at RPS is a sustainable way of thinking about what they're up to and what their backlog supports as we had not only into the back end of this year, but even what can their organic growth be on kind of a normalized basis or looking into '24.

如果 RPS 的備考有機增長是一種可持續的方式來思考他們的工作以及他們的積壓支持，因為我們不僅在今年年底，而且甚至他們的有機增長可以是什麼標準化基礎或調查'24。

Great question, kind of multi-dimension there, but it's all along a common theme is how are they performing from a how you saw them before they joined you? How are they performing now that they've joined you and what you anticipated and what's it sort of like going forward?

很好的問題，那裡有點多維，但它一直是一個共同的主題，即他們的表現如何，從他們加入你之前你是如何看待他們的？現在他們加入了你，他們的表現如何？你的預期是什麼？未來的發展情況如何？

So they came in, if you took a straight year-over-year estimate when they joined Tetra Tech in the second quarter, if you took it with just straight no growth, it probably would have been around 115 -- somewhere between 115 and 120. Look, we -- I really thought and our team made a subject to decision here that coming and joining another firm, there is some disruption. When you move to a new house, you're a little bit slower getting around the kitchen.

所以他們進來了，如果你在第二季度加入 Tetra Tech 時直接進行同比估計，如果你直接沒有增長，它可能會在 115 左右 - 介於 115 和 120 之間. 看，我們 - 我真的認為我們的團隊在這裡做出了一個決定，即加入另一家公司，會有一些中斷。當你搬到新房子時，你在廚房裡走動的速度會慢一些。

You're a little bit slower getting around to other areas. Just when you're joining Tetra Tech, I expected that there would be some amount of disruption, and we estimated that at give or take 10%. So we actually, with $100 million, it was below, we did expect that we would have seen some disruption of -- part of joining us, and we just thought that, that's just natural and what we have seen in the past. The reality is we actually saw them go the other direction, roughly 10% up.

你去其他地方的速度有點慢。就在您加入 Tetra Tech 時，我預計會有一定程度的中斷，我們估計有 10% 的影響。所以我們實際上，有 1 億美元，它低於，我們確實期望我們會看到一些中斷 - 加入我們的一部分，我們只是認為，這很自然，我們過去也看到過。事實上，我們實際上看到它們朝另一個方向發展，大約上漲了 10%。

So they didn't burn their backlog, your backlog number is pretty close to what they brought. So I'll reaffirm that number for you, which is one of the questions. So yes, that's about the right number. They did not deplete the backlog during the second quarter.

所以他們沒有燒掉他們的積壓，你的積壓數量與他們帶來的數量非常接近。所以我會為你重申這個數字，這是問題之一。所以是的，這是正確的數字。他們在第二季度沒有用完積壓的訂單。

In fact, they won enough work to keep the backlog in place and remain static. They do have a much lower backlog as a comparison of their annual revenue because their projects are typically a little bit smaller, a little bit more book and burn than Tetra Tech's, and that's primarily associated with Tetra Tech having much more big federal contracts that have larger amounts, longer durations.

事實上，他們贏得了足夠的工作來保持積壓並保持不變。與他們的年收入相比，他們的積壓確實要少得多，因為他們的項目通常比 Tetra Tech 的項目小一點，賬面和燒錢多一點，這主要與 Tetra Tech 擁有更多的大型聯邦合同有關量大，持續時間長。

I actually, we've -- where we're modeling them internally is just because they had a 10% plus growth in the first quarter, we didn't actually plug that number and say we expect that or better going forward. We actually think the number will be somewhere around 5%, maybe between 5% and 7% of growth. And I don't -- we're a little cautious here. We don't think 2 months make a trend, but it certainly is a great indication.

實際上，我們已經——我們在內部對它們進行建模的地方只是因為它們在第一季度增長了 10% 以上，我們實際上並沒有插入這個數字並說我們期望這一點或更好地向前發展。我們實際上認為這個數字將在 5% 左右，可能在增長的 5% 到 7% 之間。我不——我們在這裡有點謹慎。我們認為 2 個月不會形成趨勢，但這肯定是一個很好的跡象。

And you did see that we increased not only flowing through the $44 million beat for the year, but we put another $50 million on top of that on what we had for the year from what we provided last quarter. So we do see it is continuing to be contributing and growing as they go forward.

你確實看到我們不僅增加了今年 4400 萬美元的流動性，而且我們在上一季度提供的資金基礎上又增加了 5000 萬美元。所以我們確實看到它在他們前進的過程中繼續做出貢獻和成長。

And I'll just say for any of the RPS folks at either listening to this now or will listen to it in the future. they've just been a great addition. I'll tell you the Tetra Tech technical people and back office people could not hold them in high regard. There are equals. In some areas are bringing new capabilities and expertise that we've never had before. And I'll tell you, they are a great addition to the company and I think they're going to make the entire organization substantially better technically with access to clients and I'll tell you on Steve's books, both on cash return on invested capital and our margins are going to be beneficial to the entire company as we go forward.

我只想對 RPS 的任何人說，無論是現在收聽還是將來收聽。他們只是一個很好的補充。我會告訴你，Tetra Tech 的技術人員和後台人員無法對他們給予高度評價。有平等的。在某些領域正在帶來我們以前從未有過的新能力和專業知識。我會告訴你，他們對公司來說是一個很好的補充，我認為他們將使整個組織在技術上更好地接觸客戶，我會在史蒂夫的賬簿上告訴你，無論是投資的現金回報隨著我們的發展，資本和我們的利潤將對整個公司有利。

Our next question is from Michael Dudas with Vertical Research.

我們的下一個問題來自 Vertical Research 的 Michael Dudas。

So Dan, certainly appreciate and support the optimism looking at the business over the next several quarters. As you look at your book-to-bill opportunities, I assume, given what you're seeing that you can maintain a plus 1 level over the next few quarters? And as you look towards the government versus the CIG business, is there areas that might be growing a little bit faster, a little bit more activity over the next 2 to 3 quarters, 1 versus the other, which might act as you're thinking about margins and how may have an exit rate going towards 2024?

所以丹，當然欣賞並支持對未來幾個季度業務的樂觀態度。當您查看訂單出貨機會時，我假設，鑑於您所看到的情況，您可以在接下來的幾個季度內保持正 1 水平？當您比較政府與 CIG 業務時，在接下來的 2 到 3 個季度中，是否有一些領域可能會增長得更快一些，活動會更多一些，一個與另一個相比，這可能會像您所想的那樣關於利潤率以及到 2024 年的退出率如何？

Yes. Good question, Michael. I do see 2 different components of that. One I see is the top line growth. And the second is the bottom line margin. Let me do it backwards. And I do see that the margins for CIG are going to continue to increase. GSG has been great, so they're 13.5% to 14.5%. I think the CIG is going to continue to see those margins increase. It's because we continue to shape our portfolio and go for higher demand services with our commercial clients.

是的。好問題，邁克爾。我確實看到了其中的兩個不同組成部分。我看到的一個是收入增長。第二個是底線保證金。讓我倒著做。而且我確實看到 CIG 的利潤率將繼續增加。 GSG 一直很棒，所以他們是 13.5% 到 14.5%。我認為 CIG 將繼續看到這些利潤率增加。這是因為我們繼續塑造我們的產品組合，並與我們的商業客戶一起尋求更高需求的服務。

I do know that, that group is typically quite sensitive to recession. So I'll put I guess, to the footnote to that, that with recession duly noted, I do think our CIG margins are going to come up because of business mix and because of the type of priority projects that we're performing for our clients that are time sensitive and actually will create a greater return for our clients like building chip plants that need to get online on time, I don't want to say it's worth more than money, but time is a premium and the amount of people available to do that type of work is quite limited.

我確實知道，該群體通常對經濟衰退非常敏感。所以我想，在腳註中，隨著經濟衰退的正式出現，我確實認為我們的 CIG 利潤率會上升，因為業務組合以及我們正在為我們執行的優先項目類型客戶對時間很敏感，實際上會為我們的客戶創造更大的回報，例如建設需要按時上線的芯片工廠，我不想說它比金錢更有價值，但是時間是一種溢價，而且人多能夠從事這類工作的人非常有限。

A lot of the reoccurring revenue on a subscription basis. A lot of it is on the commercial side that has very high value to our clients, and actually creates huge value for them. And that then means that the margins coming out of it for us are better. So is it better for us? Yes, but it's even better for our clients. So I do see on a margin basis, I expect our CIG to outpace in the growth of that or expansion of our margins to see a little bit more coming out of CIG.

訂閱的基礎上有很多經常性收入。其中很多是在商業方面對我們的客戶具有非常高的價值，並且實際上為他們創造了巨大的價值。這意味著從中獲得的利潤對我們來說更好。那麼它對我們更好嗎？是的，但這對我們的客戶來說更好。所以我確實看到在保證金的基礎上，我希望我們的 CIG 能夠在增長或擴大我們的利潤率方面超過 CIG，從而看到更多來自 CIG 的信息。

Now I'm not going to say GSG, I don't expect to come down. It's going to continue to expand, as I indicated, about 50 basis points. Now quickly transitioning to top line growth. Well, it's hard to -- it's -- they both have good drivers, but it's hard to match $1 trillion funding impending contributions from the U.S. federal government on many different fronts. No doubt, there has been a lot of dysfunction in Washington, D.C. and the government, which has caused a slowdown but a slowdown to a certain extent is like raising the level of a dam, the water or funding behind it just gets bigger.

現在我不打算說 GSG，我不指望下來。正如我所指出的，它將繼續擴大約 50 個基點。現在迅速過渡到收入增長。好吧，很難——確實——他們都有很好的驅動力，但很難與美國聯邦政府在許多不同方面即將提供的 1 萬億美元資金相提並論。毫無疑問，華盛頓特區和政府出現了很多功能失調，這導致了經濟放緩，但某種程度上的放緩就像提高水壩的水位，其背後的水或資金只會越來越大。

So when it comes -- it's not going away, it's still coming out. It's just a matter of time. We -- I've seen nothing that actually says it's going to be reduced or eliminated. And in fact, the areas that we're working on, which is decarbonization and clean water, clean environment do seem to be a very high bipartisan priority for both sides of the house here in the U.S. So I do think that it is possible and especially with or term extraordinary contributions and that would be for floods, disasters, hurricanes, fires after big rain events really wet winners on the West Coast, those drive big revenue numbers for us. And you've seen we've not included those in our guidance nor did it contribute here this last quarter. So could that actually come through and be a big up from what we're currently forecasting? Yes.

所以當它來的時候——它不會消失，它仍然會出現。這只是時間問題。我們——我沒有看到任何實際表明它將被減少或消除的內容。事實上，我們正​​在努力的領域，即脫碳和清潔水，清潔環境似乎確實是美國兩黨的一個非常重要的優先事項。所以我認為這是可能的，而且特別是對於洪水、災難、颶風、大雨事件後的火災，特別是在西海岸的贏家，這些貢獻為我們帶來了巨大的收入。你已經看到我們沒有將這些包含在我們的指導中，也沒有在上個季度在這裡做出貢獻。那麼，這真的能實現並比我們目前的預測大嗎？是的。

Could the timing of some of these federal programs move forward? Yes. And commercial is going to do well with renewable energy, environmental mandated programs. But the side some of these on the government side, both state and local and federal are quite impressive. So I would say from our vantage point today, Michael, I think federal has the potential just in sheer dollar size to represent top line larger contributions.

其中一些聯邦計劃的時間能否提前？是的。商業將在可再生能源、環境強制計劃方面做得很好。但其中一些在政府方面，無論是州、地方還是聯邦，都令人印象深刻。所以我想說，從我們今天的有利角度來看，邁克爾，我認為聯邦政府有可能僅憑美元規模來代表頂線更大的貢獻。

Not a bad outlook for a dysfunctional unit appreciate it.

對於功能失調的單位來說，前景不錯。

Absolutely, Michael.

當然，邁克爾。

This will conclude the Q&A session. I will now turn the conference back over to Dan Batrack to conclude.

這將結束問答環節。我現在將把會議轉回給 Dan Batrack 來結束。

Thank you very much, Camilla, and thank you all for attending and being on the call today. I'm really pleased on behalf of the entire Tetra Tech organization to have the opportunity to present along with Steve and Leslie and Jill both the results financially, the huge progress we're making on ESG across the company and these great growth opportunities we have. I'm very excited to come back to you next quarter and share with you the progress that we've made with RPS and supporting these other programs that I've outlined today. So I hope you have a great rest of the Thursday and a great rest of the week, and I'll talk to you on our next investors conference call. Thank you very much. Goodbye.

非常感謝你，卡米拉，感謝大家出席今天的電話會議。我很高興代表整個 Tetra Tech 組織有機會與史蒂夫、萊斯利和吉爾一起展示財務結果、我們在整個公司的 ESG 方面取得的巨大進步以及我們擁有的這些巨大的增長機會.我很高興能在下個季度回到您身邊，並與您分享我們在 RPS 方面取得的進展，並支持我今天概述的這些其他計劃。所以我希望你在周四和本週都好好休息，我會在下一次投資者電話會議上與你交談。非常感謝。再見。

Ladies and gentlemen, this concludes your conference for today. Thank you all for participating, and have a nice day. All parties may disconnect now.

女士們，先生們，今天的會議到此結束。感謝大家的參與，祝你有美好的一天。各方現在可以斷開連接。