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• Revenue: $3.5 billion, reflecting 1% growth.

• Adjusted EBITDA: $268 million, with a 3% year-over-year growth and adjusted EBITDA margins of 7.7%.

• Free Cash Flow: $53 million.

• Net Bookings: $2.8 billion, with a quarterly book-to-bill ratio of 0.9 times.

• Total Backlog: $45 billion, representing 3.2 times annual revenue.

• Adjusted Diluted Earnings Per Share: $0.53, up 4% from a year ago.

• Digital Solutions Revenue: $1.3 billion, representing 3% growth.

• Global Engineering Solutions Revenue: $2.2 billion, a year-over-year decrease of 1%.

• Cash on Hand: $546 million.

• Net Leverage: 4 times, reduced from 4.1 times at the end of fiscal year 2024.

• Fiscal Year 2025 Revenue Outlook: $13.85 billion to $14.15 billion.

• Fiscal Year 2025 Adjusted EBITDA Outlook: $1.065 billion to $1.095 billion.

• Fiscal Year 2025 Free Cash Flow Outlook: $475 million to $525 million.

• Warning! GuruFocus has detected 3 Warning Sign with AMTM.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amentum Holdings Inc (NYSE:AMTM) reported strong financial performance with a revenue of $3.5 billion and adjusted EBITDA of $268 million, reflecting a 3% year-over-year growth.

• The company achieved a quarterly book-to-bill ratio of 0.9 times, with a year-to-date imputed book-to-bill ratio of 1.2 times, indicating strong demand for its services.

• Amentum Holdings Inc (NYSE:AMTM) secured multiple intelligence contracts totaling over $1 billion, enhancing its position in national security and cybersecurity solutions.

• The company was selected as the program manager and lead design engineer for the Sizewell C nuclear power station in the UK, showcasing its expertise in advanced engineering and nuclear energy solutions.

• Amentum Holdings Inc (NYSE:AMTM) announced the divestiture of its Rapid Solutions product business, aligning with its capital-light strategy and strengthening its balance sheet.

Negative Points

• The company experienced some impacts on the timing of awards due to federal workforce disruptions and changes in administration priorities.

• Amentum Holdings Inc (NYSE:AMTM) reported a slight decrease in Global Engineering Solutions revenue by 1% due to the expected ramp-down of certain historical programs.

• The transition of joint ventures to unconsolidated status will impact revenue reporting, although it will not affect EBITDA or free cash flow.

• The divestiture of the Rapid Solutions product business, while strategically beneficial, represents a reduction in revenue and adjusted EBITDA by approximately 1%.

• The company faces challenges in navigating the evolving geopolitical dynamics and budgetary constraints, which could impact future growth opportunities.