Tetra TechFRA:TT6 -2.00%85 Operating Margin % is 10.77% as of Mar. 2026, which is 29% above its 10-year median of 8.33. GuruFocus rates FRA:TT6 with a GF Score™ of 85/100 and a GF Value™ of €29.20. The stock has 1 warning sign investors should review. Among 1,767 Construction companies, Tetra Tech ranks better than 76.29% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Tetra Tech's Operating Income for the
three
months ended in Mar. 2026 was €114 Mil. Tetra Tech's Revenue for the
three
months ended in Mar. 2026 was €1,055 Mil. Therefore, Tetra Tech's Operating Margin % for the quarter that ended in Mar. 2026 was 10.77%.
Good Sign:
Tetra Tech Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Tetra Tech's Operating Margin % or its related term are showing as below:
FRA:TT6'
s Operating Margin % Range Over the Past 10 Years
Min: 6.12 Med: 8.33 Max: 11.72
Current: 11.72
FRA:TT6's Operating Margin % is ranked better than 76.29% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs FRA:TT6: 11.72
Tetra Tech's 5-Year Average Operating Margin % Growth Rate was 5.70% per year.
Tetra Tech's Operating Income for the
three
months ended in Mar. 2026 was €114 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €517 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tetra Tech Operating Margin % Related Terms
Tetra Tech Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tetra Tech's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:TT6 vs MYRG, PRIM, ECG: Operating Margin % Comparison
For the Engineering & Construction subindustry, Tetra Tech's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tetra Tech Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Tetra Tech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tetra Tech's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Tetra Tech's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tetra Tech (FRA:TT6) has a Operating Margin % of 10.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tetra Tech and its competitors. This is 29% above median its historical median of 8.33. Over the past decade, Tetra Tech's Operating Margin % has ranged from 6.12 to 11.72. According to the industry distribution chart, Tetra Tech ranks #419 out of 1767 companies in the Construction industry, placing it in the top 23.7%.
Is Tetra Tech's Operating Margin % too high?
Tetra Tech's current Operating Margin % of 10.77% is 29% above median its 10-year median of 8.33. Over the past 10 years, this metric has ranged from a low of 6.12 to a high of 11.72. The Construction industry median Operating Margin % is 5.89. Tetra Tech's value of 10.77% is 82.9% above this industry median. Based on the distribution chart, Tetra Tech ranks #419 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Tetra Tech has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Tetra Tech's Operating Margin % compare to MYRG and PRIM?
According to the Construction industry distribution chart, Tetra Tech ranks #419 out of 1767 companies for Operating Margin %. This places Tetra Tech in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Tetra Tech's value of 10.77% is 82.9% above this benchmark. Historically, Tetra Tech's own Operating Margin % has ranged from 6.12 to 11.72 over the past decade. While the company's 10-year median is 8.33 vs. the industry median of 5.89, Tetra Tech has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tetra Tech's current Operating Margin % of 10.77% is 82.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tetra Tech and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tetra Tech's current Operating Margin % is 10.77%, which is 29% above median its own 10-year median of 8.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tetra Tech stock overvalued right now?
Tetra Tech (FRA:TT6) has a current Operating Margin % of 10.77%. The stock's GF Value™ is €29.20, compared to a current price of €23.08 — trading 21% below its estimated fair value. The current Operating Margin % is 10.77%, which is 29% above median its 10-year median of 8.33 and 82.9% above the Construction industry median of 5.89. Tetra Tech's overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tetra Tech (FRA:TT6), the current Operating Margin % is 10.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tetra Tech (FRA:TT6) Overvalued in 2026?
Based on GuruFocus' analysis, Tetra Tech stock appears to be undervalued.
The current stock price of €23.08 is trading 21% below its estimated GF Value™ of €29.20.
Key valuation signals for FRA:TT6:
Operating Margin %: 10.77% (29% above median its 10-year median of 8.33)
GF Value™: €29.20 vs. price of €23.08 (21% below fair value)
Industry Position: 82.9% above the Construction median (#419 of 1767)
No single metric tells the full story. See the FRA:TT6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. it has two reportable segments. Its Government Services Group (GSG) segment includes activities with U.S. government clients (federal, state and local) and activities with development agencies world-wide. Commercial/International Services Group (CIG) segment, which derives maximum revenue, includes activities with U.S. commercial clients and international clients other than development agencies.
85GF Score
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