Tetra Tech, Inc. (NASDAQ:TTEK) Q1 2023 Earnings Call Transcript

And I do think GSG was a bit of an outlier because of the disaster and a few other items. And I do still think CIG will catch and surpass GSG. The only thing I can tell you is, is it going to be in one of the quarters this year. But if they miss it it’s not because CIG has underperformed it’s because GSG has outperformed. So for our investors and shareholders and analysts who track this, if CIG doesn’t catch or surpass GSG, it’s good for our performance because that means we’re going to be over the top of any of our estimates as you saw this last quarter.

Operator: Thank you. Our next questions come from the line of Tate Sullivan with Maxim Group. Please proceed with your question.

Tate Sullivan: Hello. Thank you and good morning. Again you mentioned renewable energy great growth in US commercial and used the term I haven’t heard before renewable energy services being a fast-growing business. Is that is the majority of that already the offshore wind projects that you work on before adding RPS?

Dan Batrack: That has been the fastest-growing area. I will say onshore wind has still continued to be strong. Solar has actually been strong. Of course, hydro is really the largest single component right now between both what we’re doing in Canada and the US. But I would say that as of well pre-RPS — I don’t want to say as of today. As of 10 days ago and earlier, it would have been almost exclusively what we’re doing in Canada and the US. But now with RPS joining us we think the opportunities will actually be substantially greater and add the new renewable energy work in Australia and UK, Europe, which I commented on. But the areas that have been — that helped grow and drive our commercial 22% growth year-over-year, renewable energies was a big part and permitting for offshore wind was a big aspect of that.

And one thing, I don’t want to understate what Jill said, the only two operationally productive that are actually producing energy offshore wind projects in all of the United States, all of the permitting and upfront study work and support was done by Tetra Tech and in fact most of the offshore leases that came from the New York bite, which was the big lease auctions that were completed here over the past many months, we’re supporting most of those. And right, when we feel that things are great here in the US like having the only two operational programs that we did and having most of the new offshore leases that we’re supporting, what are we told by RPS, that’s small and puny, and I hope you guys can pick it up, because we did the Hornsea 1, 2 and 3 which is the world’s largest offshore wind generation facilities and we’re beginning others that are actually larger than it.

So I think when you take Tetra Tech programs and RPS’, it really looks very favorable for us going into this year and on into future.

Tate Sullivan: And bringing what you have done in offshore wind to RPS is it similar capabilities, or is there some work that you can €“ so should this be cross-sell the RPS and offshore wind and the opportunity in the UK?