Cooke & Bieler Adds Tetra Tech, Citing Long-Term Growth Drivers

Cooke & Bieler added Tetra Tech to its Mid Cap Value Equity Strategy portfolio in the second quarter of 2026. The firm said it sees long-term growth potential in the consulting and engineering company, which focuses on water, environmental science and sustainable infrastructure.

In its investor letter, Cooke & Bieler said more than 85% of Tetra Tech’s business is tied to water-related markets. These include water supply, wastewater, flood protection, coastal resilience and PFAS remediation, as well as infrastructure for data centers, mining and power generation.

The firm said the wind-down of USAID work creates a near-term revenue headwind. It pointed to organic growth opportunities, smaller acquisitions, share repurchases and gradual margin expansion as potential drivers.

Cooke & Bieler also cited Tetra Tech’s technical expertise, customer relationships, asset-light model and capital allocation as support for its long-term outlook. The firm’s strategy returned 8.05% in Q2, compared with 13.4% for the Russell Midcap Value Index. It said an underweight in Information Technology drove nearly all of the strategy’s shortfall.

Tetra Tech closed at $33.89 on Sept. 28, according to the article. As of 16:56 UTC on Sept. 29, shares traded at $33.62, down 0.8% since the previous close.