Backlog excluding USAID and Department of State was $4.15 billion, slightly up from Q2, with nearly $2 billion in new U.S. federal contract capacity added in the quarter.
Commercial/International Group (CIG) segment revenue was $633 million, up slightly, with a margin of 15.2%, up 130 basis points, supported by growth in U.K. and EU operations but offset by declines in U.S. commercial and Australian activities.
Government Services Group (GSG) segment revenue increased 29% to $429 million with a margin of 19.9%, up 230 basis points, driven by disaster response and reduction of lower margin USAID work.
International revenue was flat, down 1% year-over-year, with growth in U.K. and Ireland offset by declines in Australia.
Net revenue increased 11% year-over-year to $1.06 billion, excluding USAID and Department of State work.
State and local revenue grew 30% year-over-year, with ongoing water programs up 18% excluding episodic disaster response.
Tetra Tech reported record highs for operating income and earnings per share in Q3 fiscal 2025, with operating income of $159 million, up 37% year-over-year, and EPS of $0.41, up 46%.
U.S. federal work was up 46% year-over-year, representing about 25% of total business, with disaster response contributing $70 million.
Adjusted earnings increased 39% and adjusted EBITDA rose 9%, with adjusted EBITDA margin improving over 400 basis points to 30.1%.
Adjusted gross margin improved by 600 basis points, leading to a 9% increase in adjusted gross profit.
A noncash goodwill impairment charge of $184 million was recorded for the APT segment due to shifts in customer order patterns and higher discount rates.
APT segment sales dropped 10% due to weaker customer demand influenced by tariff uncertainty and competitive pressures, resulting in EBITDA of about $1 million for the quarter.
Free cash flow improved, enabling a reduction in net leverage to 3x, a full turn improvement in less than a year.
Performance Chemicals sales declined about 10% due to repositioning and wet weather impacts, but segment EBITDA more than tripled year-over-year with margins approaching 20%.
Performance Materials delivered EBITDA margins above 50%, though sales declined 2% due to regional variances and tariff-related uncertainty.
Second quarter sales were $365 million, down 7% year-over-year primarily due to repositioning actions in Industrial Specialties, wet weather impacting Road Tech paving activity, and indirect tariff impacts on APT volumes in Europe.
Corteva delivered top and bottom line growth in Q2 and first half 2025, with over 200 basis points of operating EBITDA margin expansion in Q2 and 300 basis points for the half.
Crop Protection segment achieved over 350 basis points of margin expansion for the half, driven by productivity, deflation benefits, and volume gains, notably in Brazil.
Currency headwinds, primarily from Turkish Lira and Canadian Dollar, negatively impacted EBITDA by roughly $150 million.
Operating EBITDA grew 13% in Q2 and 14% in the first half, reaching over $3.35 billion for the half.
Organic sales increased 7% in Q2 and 5% in the first half, driven by gains in both Seed and Crop Protection segments.
Seed segment showed 280 basis points of margin expansion and volume gains, especially in North America, with strong branded share gains in corn and soybeans.
SG&A expenses increased due to higher commissions, compensation, and bad debt, aligned with increased R&D investment targeting 8% of sales.
Dafinchi