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Tetra Tech, a Pasadena-based consulting and engineering services company, has seen its share price drop sharply this year after the Trump administration cut its foreign aid contracts significantly.
As of Monday, the company’s shares had plummeted about 26% since January, closing at $29.44 per share.
The decline in stock prices has hampered foreign humanitarian projects, following cuts from US institutions for international development. Tetra Tech focuses on water, the environment and sustainable infrastructure, with a significant portion of its revenue coming from contracts with federal, state and local government agencies.
Last year, USAID awarded the company several favorable multi-year contracts. In October, Tetra Tech announced it had won a $5 billion contract from USAID to support developing countries around the world.
The 10-year contract included efforts such as improving access to clean water and other important services. The company has also secured a multi-million-dollar USAID contract, including a $439 million award to enhance Ukrainian electricity, natural gas and other energy sources that are in the midst of a war with Russia.
Elon Musk, who supported Trump during his presidential campaign, has led efforts called government efficiency, or dumb, to reduce government spending. These cuts have collided with several government agencies, including USAID. According to the USAID website, in February, the Trump administration said it would take administrative leave to USAID workers and fire 1,600 workers with the U.S. mission office.
Last week, Secretary of State Marco Rubio said the US has cut 83% of its USAID program and is eliminating 5,200 contracts.
According to Hatergov, some of the federal contracts that Doge ended included USAID funding for various projects to improve water sanitation, healthcare, education and other critical services.
Tetra Tech did not respond to requests for comment.
When Tetra Tech announced its quarterly revenue in January, the company said in a statement it had suspended some of its work with the federal government, including USAID.
That month, Tetra Institute of Technology CEO Dan Batrak said in a revenue conference call that the USAID contract was on hold for 90 days.
He said USAID accounts for about a third of the work the company does with the federal government, and typically accounts for 10% of its revenue.
Tetra Tech is also working with priorities that are consistent with the Trump administration, a place like the South China Sea, which is important for national security, Batrak said.
“I think a large part of our work will be reviewed and decided to be critical and then go back to normal,” he said over the phone.
TETRA Tech revenue for the first quarter, ending December 29th, rose 16% to $1.42 billion year-on-year. Approximately a third of its revenue comes from federal US customers, including USAID and federal IT, the company reported. Net income attributable to Tetra Tech was $747,000 in the first quarter, compared to $75 million in 2023.
The decline came from a $115 million unrepeated claim for litigation costs related to a lawsuit with the federal government that accused the company at the former Hunter Point Navy Shipyard in San Francisco, according to a regulatory application.
Tetra Tech did not accept responsibility.
Tetra Tech was founded in 1966 as the water management group of Tetra Tech Inc. The project included research on “exploration and military’s first remote-controlled submarine.”
Released in 1991, the company helped analyze the data used to explore the northern slopes of Alaska.
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