Amentum Reports Second Quarter Fiscal Year 2025 Results

Revenues of $3.5 billion, 1% growth on a pro forma basis

Net Income of $4 million; Adjusted EBITDA of $268 million

Diluted Earnings Per Share of $0.02; Adjusted Diluted Earnings Per Share of $0.53

Operating Cash Flow of $57 million; Free Cash Flow of $53 million

Backlog of $45 billion; 1.0x YTD Book-to-Bill

CHANTILLY, Va.--(BUSINESS WIRE)--May 06, 2025-- 

Amentum Holdings, Inc. ("Amentum" or the "Company") (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the second quarter ended March 28, 2025 and updated its outlook for fiscal year 2025, reaffirming the mid-points of prior guidance.

"Amentum delivered solid results this quarter, underscoring the strength of our mission-focused portfolio and the consistency of demand across our markets," said Amentum Chief Executive Officer John Heller. "Our performance, combined with our recently announced divestiture of Rapid Solutions, highlights the strength of our business as a premier pure-play advanced engineering and technology solutions company and enhances our financial flexibility. We remain focused on delivering differentiated value to our customers and driving long-term growth through disciplined execution."

 
Summary Operating Results 
-------------------------------------------------------------------------- 
                                             Three Months Ended 
                                  ---------------------------------------- 
(in millions, except per share 
data)                             March 28, 2025  March 29, 2024  % Change 
                                  --------------  --------------  -------- 
GAAP Measures: 
Revenues                              $3,491          $2,051        70% 
Operating income                       $110            $89          24% 
Net income (loss)                       $4            $(41)         110% 
Diluted earnings (loss) per 
 share                                $0.02          $(0.46)        104% 
 
Pro Forma and Non-GAAP 
Measures(1,2) : 
Revenues                              $3,491          $3,465         1% 
Adjusted EBITDA(2)                     $268            $260          3% 
Adjusted EBITDA Margin(2)              7.7%            7.5%       + 20 bps 
Adjusted Diluted Earnings Per 
 Share (EPS)(2)                       $0.53           $0.51          4% 
Free Cash Flow(2)                      $53             N/A          N/A 
 
 
1 -- March 29, 2024 Revenues and Non-GAAP financial measures are presented on 
a pro forma basis to include the results of Jacob's Critical Mission Solutions 
and Cyber & Intelligence $(CMS)$ businesses prepared in accordance with the 
requirements of Article 11 of Regulation S-X. 
2 -- Non-GAAP financial measures should be considered in addition to, but not 
as a substitute for, the information provided in accordance with GAAP. 
Management believes that these non-GAAP measures provide another measure of 
Amentum's results of operations and financial condition, including its ability 
to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial 
Measures at the end of this press release for more information and a 
reconciliation of our selected reported results to these non-GAAP measures. 
 

GAAP Results

GAAP revenues increased 70% year-over-year primarily as a result of revenues from the combination with Jacobs' Critical Mission Solutions and Cyber & Intelligence (CMS) businesses. GAAP operating income increased as a result of the contribution from CMS, partially offset by increased intangible amortization expense. GAAP net income and diluted earnings per share improved year-over-year due to the higher operating income and lower interest expense.

Pro Forma and Non-GAAP Results

Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 1% year-over-year driven by growth in Digital Solutions. Pro Forma Adjusted EBITDA increased 3% year-over-year primarily due to the higher revenues and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to higher operating profit partially offset by increases in interest and tax expenses.

Pro Forma and Non-GAAP Segment Results

 
                     Three Months Ended          Six Months Ended 
                  -------------------------  ------------------------- 
                  March    March             March    March 
                   28,      29,               28,      29, 
(in millions)      2025   2024(1)  % Change   2025   2024(1)  % Change 
                  ------  -------  --------  ------  -------  -------- 
Revenues 
    Digital 
     Solutions    $1,340  $1,299      3%     $2,626  $2,578      2% 
    Global 
     Engineering 
     Solutions    2,151    2,166     (1)%    4,281    4,225      1% 
                  ------  -------            ------  ------- 
Total Revenues    $3,491  $3,465      1%     $6,907  $6,803      2% 
                  ======  =======            ======  ======= 
 
Adjusted 
EBITDA(2) 
    Digital 
     Solutions     $107    $100       7%      $207    $199       4% 
    Global 
     Engineering 
     Solutions     161      160       1%      323      316       2% 
                  ------  -------            ------  ------- 
Total Adjusted 
 EBITDA            $268    $260       3%      $530    $515       3% 
                  ======  =======            ======  ======= 
 
 
1 -- March 29, 2024 Revenues and Non-GAAP financial measures are presented on 
a pro forma basis. 
2 -- Non-GAAP financial measures should be considered in addition to, but not 
as a substitute for, the information provided in accordance with GAAP. 
Management believes that these non-GAAP measures provide another measure of 
Amentum's results of operations and financial condition, including its ability 
to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial 
Measures at the end of this press release for more information and a 
reconciliation of our selected reported results to these non-GAAP measures. 
 

Digital Solutions revenues for the second quarter increased 3% year-over-year driven by higher volume from new commercial contract awards, partially offset by the expected ramp-down of other historical programs. Adjusted EBITDA increased 7% year-over-year due to the higher revenues and improved operating performance.

Global Engineering Solutions revenues for the second quarter decreased 1% year-over-year as a result of the expected ramp-down on certain historical programs, partially offset by new contract awards and growth on existing programs. Adjusted EBITDA increased 1% year-over-year as a result of improved operating performance.

Cash Flow Summary

During the three months ended March 28, 2025, Amentum generated $57 million of net cash provided by operating activities and used $31 million and $12 million in investing and financing activities, respectively. Net cash provided by operating activities was driven by strong cash earnings and disciplined working capital management partially offset by the timing of tax and interest payments. Investing activities included $4 million in capital expenditures, which resulted in quarterly free cash flow of $53 million, as well as contributions of $27 million to equity method investments. Financing activities consisted primarily of $9 million in distributions to non-controlling interests. As of March 28, 2025, Amentum had $546 million in cash and cash equivalents and $4.7 billion of debt.

Backlog and Contract Awards

As of March 28, 2025, the Company had total backlog of $44.8 billion, compared with $27.2 billion as of March 29, 2024, an increase of $17.6 billion primarily due to the acquisition of CMS. Funded backlog as of March 28, 2025 was $5.8 billion.

Notable Q2 Fiscal Year 2025 Awards

   -- Multiple Intelligence Awards - Amentum was awarded over $1 billion in 
      intelligence contracts, delivering a variety of mission-focused solutions 
      including critical infrastructure management, cyber security and 
      intelligence analysis. These awards illustrate the strong demand for 
      Amentum's expertise and innovative intelligence solutions. 
 
   -- Sizewell C: New U.K. Nuclear Power Station - Amentum was selected as the 
      program manager and lead design engineer for Sizewell C, delivering 
      critical engineering and technical services, and modernized 
      infrastructure solutions. The station will have two 1.6 gigawatt reactors 
      capable of supplying electricity to six million homes each year. 
 
   -- Multiple IDIQ Task Order Awards - Amentum was awarded over $500 million 
      on IDIQ task orders, including a program with the Naval Surface Warfare, 
      leveraging our proven track-record in electromagnetic environmental 
      effects, communication and execution systems, and Amentum's 
      highly-skilled digital engineers. 

Announced Divestiture

On April 23, 2025, Amentum announced it has entered into a definitive agreement to sell its hardware and products business, Rapid Solutions, for $360 million in cash. The business accounts for approximately 1% of Amentum's annual Revenues and Adjusted EBITDA. The transaction is expected to close in the second half of 2025 and generate approximately $325 million in after-tax proceeds.

Fiscal Year 2025 Guidance

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