Sabahat Khan: That’s great. I think that was enough of a teaser to get us to attend the Investor Day. So I guess, maybe just switching back to RPS for a bit. You talked about good 12 months beyond the acquisition. You talked a little bit about the synergies. If you can maybe remind us a bit on some of the revenue opportunities with the combined platform. I know we talked about the integration a bit on the last call, but just not that the business is largely rolled into your base numbers, where have you seen some wins taking the combined capabilities to customers? And maybe what are some of the opportunities that you think would show up over the next 12, 24 months, that we should be keeping an eye on that could potentially provide accelerated top line? Thank you.
Steve Burdick: Well, I like these questions because we can give specific answers because we press release them. So I’ll give you an example of where we think we have seen revenue synergies within the first year, and it was in the UK. AMP 8 programs, so in the United Kingdom, the priority for their AMP 8 or their asset management program over the next five years is CSOs or overflows or impacts to surface water, leaks, streams, bogs, coastal areas from overflows from the sewer systems. And while it’s brand new and it’s a new priority in the United Kingdom, Tetra Tech has been doing that here for the past 20, 25 years, has been regulated here. The investments that have been spent by the U.S. EPA and state and local agencies that we’ve done a bunch of this work.
Dr. Shoemaker is actually one of the people who have done some of the early work regarding chemical loading for rivers and estuaries. And she’s really the one thing will provide this in Investor Day is she is the original author, much of modeling that has set the standards for the United States. So Leslie is not just an amazing executive and a good speaker. She’s as deep of a technical expert in his work as comes in the industry anywhere. And so those expertise we’ve taken, coupled with what we had in RPS, and we won a $125 million 10-year program management for United Utilities that we announced here a month or two ago that we’re just getting started with. It’s a 10-year program. We think we can bring the technologies together with RPS to these new geographies to make a leap in the technologies and the solutions provided in the geographies that RPS with our clients and not have to go through this long learning curve.
We’ve also had enormous wins already that we press released on offshore wind and other renewable energy clients. The RPS has brought technologies such as offshore buoys and monitoring. They’ve given us a great geographic presence in Australia and the U.K., where renewable energy investments are enormous. And then if you take the expertise that Tetra Tech has, and its modeling of the effects on the environment and wildlife, the combination has added tens of millions of dollars in a short time with commercial clients and commercial energy developers. And we’ve named a global renewable energy. We don’t call them a cult leader, where we’ve knitted all of this together. And so we’re working very closely, and we’ve had tens of millions of dollars of hard awards that we’re working on now that would have not happened either for us or for RPS if we hadn’t been together.
I think we’re going to see a lot more of that with respect to the U.K. water. We’re going to see more of that on renewable energy globally. And I think that some of the work that’s being done by the defense departments globally, Ministry of Defense in the U.K., Department of Defense in the U.S. and Australia are going to benefit greatly from contract capacities that we have that these entities are sharing, and so you don’t have to win necessarily a new framework contract or a new IDIQ if they’re actually doing work in a bilateral fashion between these different government agencies. And we’re as well positioned in that front as anybody. So that’s another revenue synergy that we’re seeing just beginning to take off, and we’ve had hard wins in those areas.
So it’s kind of nice to be able to share dollar amounts for renewable energy, dollar amounts for U.K. water utilities, and dollar amounts for defense globally, that have come from the combination of RPS and Tetra Tech already.
Sabahat Khan: Great. Appreciate it. Thanks very much.
Steve Burdick: Thanks Sabahat.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Tate Sullivan: Hi. Thank you. And Leslie, did you mention earlier you mentioned 65 million number I think you said of PFAS-related work. Was that for what you’ve done in fiscal year 2024, or can you reiterate that or talk about that number please?
Leslie Shoemaker: 60-ish, we’d say is about our annual PFAS work that we’re doing mostly in the investigation and consulting space, including quite a bit of work for the U.S. Defense Department and scoping PFAS expense, and we would look to see that accelerate as we go into next year with more of the investigatory work that we talked about, and so our target – our expectation is that we’ll see it double on our run rate from that 60 approximately this year.
Tate Sullivan: Okay. And then you had some details in the press release in early April on your work in the city of Dayton with PFAS, and is the city type of work that you’re doing in Dayton is that very unique and large scale compared to what other cities might do? Or is that a good blueprint for what Tetra Tech might be able to do for other cities?
Leslie Shoemaker: I think it’s an excellent example of some of the early works. So you have a few of the municipalities that have sort of gotten ahead of the curve in terms of managing their various water sources, balancing water sources and then putting in place treatment that anticipates both PFAS regulations as well as other contaminants, and so that’s actually a really nice example of some of the types of design work that might be coming our way in the future. But we actually see these as relatively unique in the early stage of the ones that want to get ahead of it way in advance of the requirement to have treatment in place.
Tate Sullivan: Thank you. And Dan, you mentioned earlier a little bit on the U.K. work and looking forward to hearing more on May 14th. The presentation, you called out some U.K. water planning and design work, is that not related at all to future U.K. AMP8 spending, which you’ve commented before that most of that will start to be spent in fiscal year 2025, but I’m not sure if you have some design work ahead of that spending, please.
