Tetra Tech adds $500 million to its share-repurchase capacity

Tetra Tech’s ($TTEK) board approved an additional $500 million share-repurchase authorization, increasing available capacity to $898 million. The expansion more than doubles the amount remaining at the end of its fiscal third quarter. The company linked the decision to cash generation and its ability to balance shareholder returns with investment in the business.

Over the preceding 12-month period, Tetra Tech generated $567 million in operating cash flow and returned $322 million through buybacks and dividends. It also completed acquisitions and continued reducing leverage, ending the quarter with a net-debt leverage ratio of 0.88 times. The announcement increases management’s flexibility to buy shares; it is not evidence that $500 million has already been spent or that every dollar of the expanded authorization will be used.

Sources:

• Tetra Tech — share-repurchase announcement, SEC exhibit (reprint)