Earnings per Share ("EPS")

6 Months Ended

Mar. 30, 2025

Earnings per Share (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of stock-based awards and shares underlying our Convertible Senior Notes (the "Convertible Notes").

For the first half of fiscal 2025, our Convertible Notes, described in Note 15, "Long-Term Debt", had a dilution impact on the dilutive potential common shares, which was calculated using the if-converted method. The dilution impact was due to the price of our common stock exceeding the conversion price. For the second quarter and first half of fiscal 2024, and the second quarter of fiscal 2025, the Convertible Notes had no impact on the calculation of dilutive potential common shares, as the price of our common stock did not exceed the conversion price. The related capped call transactions (the "Capped Call Transactions") for all of these periods were excluded from the calculation of dilutive potential common shares as their effect is anti-dilutive. For the second quarters and first halves of fiscal 2025 and 2024, no options were excluded from the calculation of dilutive potential common shares.

The following table presents the number of weighted-average shares used to compute basic and diluted EPS (in thousands, except per share data):


	Three Months Ended				Six Months Ended
	March 30, 2025		March 31, 2024		March 30, 2025		March 31, 2024

Net income attributable to Tetra Tech	$	5,388	$	76,446	$	6,135	$	151,418

Weighted-average common shares outstanding – basic	265,728		267,420		266,819		267,095
Effect of dilutive stock options and unvested restricted stock	1,711		1,955		1,936		2,030
Shares issuable assuming conversion of convertible notes	—		—		936		$	—
Weighted-average common shares outstanding – diluted	267,439		269,375		269,691		269,125

Earnings per share attributable to Tetra Tech:
Basic	$	0.02	$	0.29	$	0.02	$	0.57
Diluted	$	0.02	$	0.28	$	0.02	$	0.56