UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42176 Amentum Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 99-0622272 (State or other jurisdic ...

Amentum Holdings (AMTM) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Company ParticipantsNathan Rutledge - SVP - Head of IRJohn Heller - CEO & DirectorTravis Johnson - CFOColin Canfield - DirectorSteve Arnette - COOMariana Pérez Mora - DirectorKen Herbert - Managing DirectorConference Call ParticipantsNone - AnalystNoah Poponak - Research AnalystOperatorLadies and gentlemen, thank you for standing by. Good morning, and welcome to Lumentum's Third Quarter Fiscal Year twenty twenty five Earnings Conferen ...

Amentum Holdings (AMTM) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Ladies and gentlemen, thank you for standing by. Good morning, and welcome to Lumentum's Third Quarter Fiscal Year twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session and instructions will be provided at that time.I would now like to turn the call over to Nathan Rutledge ...

Earnings Conference Call Presentation Q3 FY25 August 6, 2025 Pro Forma and Non-GAAP Measures This presentation includes the presentation and discussion of pro forma financial information that incorporates the results of Jacobs' Critical Mission Solutions and Cyber & Intelligence businesses ("CMS") prepared in accordance with the requirements of Article 11 of Regulation S-X. This presentation also includes the presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjust ...

Exhibit 99.1 Amentum Reports Third Quarter Fiscal Year 2025 Results and Raises Full Year Organic Guidance Revenues of $3.6 billion, 2% growth on a pro forma basis Net Income of $10 million; Adjusted EBITDA of $274 million Diluted Earnings Per Share of $0.04; Adjusted Diluted Earnings Per Share of $0.56 Operating Cash Flow of $106 million; Free Cash Flow of $100 million Backlog of $44.6 billion; 1.0x YTD Book-to-Bill Reduced Net Debt to $3.8 billion and Net Leverage to 3.5x CHANTILLY, VA., August 5, 2025 — A ...

Group 1 - Amentum (NYSE: AMTM) has outperformed the S&P 500 since the Buy recommendation in February and Strong Buy recommendation in April [1] - The investment strategy focuses on identifying companies with high potential for substantial revenue and earnings growth over a 5-10 year horizon [1] - The investor prefers less cyclical and higher growth sectors, with a geographical bias towards the United States [1] Group 2 - The investor emphasizes the importance of writing to clarify thoughts and maintain rigor in the research process [1] - Seeking Alpha is recognized as a valuable resource with a thriving community, contributing to the investor's engagement [1]

Core Viewpoint - Amentum Holdings (AMTM) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a solid history of exceeding expectations [1]. Company Performance - Amentum has a strong track record of surpassing earnings estimates, particularly in the last two quarters, with an average surprise of 11.88% [2]. - In the most recent quarter, Amentum reported earnings of $0.48 per share against an expectation of $0.53, resulting in a surprise of 10.42%. In the previous quarter, it reported $0.51 per share against a consensus estimate of $0.45, achieving a surprise of 13.33% [3]. Earnings Estimates - Recent changes in earnings estimates for Amentum have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - The current Earnings ESP for Amentum is +7.91%, reflecting increased analyst optimism regarding its near-term earnings potential [9]. Zacks Rank and Predictive Power - Amentum holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of another earnings beat, with historical data indicating that nearly 70% of stocks with this combination exceed consensus estimates [7][9]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [8].

Group 1 - The article expresses a beneficial long position in the shares of AMTM, indicating a positive outlook on the company's stock performance [1] - The author emphasizes that the opinions presented are personal and not influenced by any business relationships with companies mentioned [1] - The content is intended for informational purposes only, and no guarantees are made regarding the accuracy or completeness of the information [2] Group 2 - The article clarifies that past performance does not guarantee future results, highlighting the inherent risks in investment decisions [3] - It notes that no specific recommendations or advice are provided regarding the suitability of investments for individual investors [3] - The authors of the analysis may include both professional and individual investors, which could affect the perspectives presented [3]

Amentum Holdings (AMTM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of ...

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements reflect the company's financial position, operations, and cash flows, with comparability significantly impacted by the CMS merger, a new two-segment reporting structure, and a subsequent divestiture agreement - On September 27, 2024, Amentum merged with Jacobs' Critical Mission Solutions (CMS) business, meaning **financial results prior to this date are not comparable** to current and future results[24](index=24&type=chunk)[25](index=25&type=chunk) - In the first quarter of fiscal 2025, the company realigned its structure into two reportable segments: **Digital Solutions (DS) and Global Engineering Solutions (GES)**, with prior year data recast to reflect this change[23](index=23&type=chunk) - On April 23, 2025, the company entered into a definitive agreement to sell its **Rapid Solutions business to Lockheed Martin for $360 million in cash**[82](index=82&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $12.004 billion as of March 28, 2025, driven by higher cash and receivables, while total liabilities remained stable Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 28, 2025 | September 27, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $546 | $452 | | Goodwill | $5,658 | $5,556 | | Intangible assets, net | $2,353 | $2,623 | | **Total Assets** | **$12,004** | **$11,974** | | **Liabilities & Equity** | | | | Total current liabilities | $2,097 | $1,965 | | Long-term debt, net | $4,636 | $4,643 | | **Total Liabilities** | **$7,425** | **$7,422** | | **Total Shareholders' Equity** | **$4,579** | **$4,552** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues surged to $6.907 billion for the six months ended March 28, 2025, leading to a net income of $16 million, a significant turnaround from the prior year's loss Consolidated Statement of Operations Highlights (in millions, except per share data) | Metric | Six Months Ended Mar 28, 2025 | Six Months Ended Mar 29, 2024 | | :--- | :--- | :--- | | Revenues | $6,907 | $4,034 | | Operating income | $242 | $175 | | Net income (loss) attributable to common shareholders | $16 | $(82) | | Diluted earnings (loss) per share | $0.07 | $(0.91) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $167 million for the six months ended March 28, 2025, a significant improvement driven by higher net income and favorable working capital changes Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Six Months Ended Mar 28, 2025 | Six Months Ended Mar 29, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $167 | $(78) | | Net cash used in investing activities | $(39) | $(6) | | Net cash used in financing activities | $(28) | $(28) | | **Net change in cash and cash equivalents** | **$94** | **$(108)** | | **Cash and cash equivalents, end of period** | **$546** | **$197** | [Note 3 — Acquisition](index=11&type=section&id=Note%203%20%E2%80%94%20Acquisition) The merger with Jacobs' CMS business was completed on September 27, 2024, for approximately $4.032 billion, resulting in significant goodwill and intangible assets - The merger with CMS was completed on September 27, 2024, with a **total consideration of $4.032 billion**[30](index=30&type=chunk)[31](index=31&type=chunk) - The transaction resulted in the preliminary recognition of **$2.767 billion in goodwill**, attributed to expected synergies, future contracts, and the acquired workforce[32](index=32&type=chunk)[35](index=35&type=chunk) - The purchase price allocation is **preliminary and subject to adjustments** as the company finalizes the fair values of acquired assets and liabilities[34](index=34&type=chunk) [Note 4 — Revenues](index=12&type=section&id=Note%204%20%E2%80%94%20Revenues) Total revenues reached $6.907 billion for the six-month period, with the Department of Defense and U.S. Intelligence Community as the largest customer group Revenues by Customer Type (Six Months Ended Mar 28, 2025, in millions) | Customer Type | DS | GES | Total | | :--- | :--- | :--- | :--- | | Department of Defense and U.S. Intelligence Community | $1,460 | $2,116 | $3,576 | | Other U.S. Government Agencies | $821 | $1,185 | $2,006 | | Commercial and International | $345 | $980 | $1,325 | - As of March 28, 2025, remaining performance obligations (backlog) totaled **$10.7 billion**, with approximately 72% expected to be recognized as revenue over the next 12 months[42](index=42&type=chunk) [Note 9 — Debt](index=16&type=section&id=Note%209%20%E2%80%94%20Debt) Total debt stood at $4.762 billion as of March 28, 2025, with the company in compliance with all covenants and utilizing interest rate swaps to manage risk Debt Composition (in millions) | Component | March 28, 2025 | | :--- | :--- | | Term Loan | $3,750 | | Senior notes | $1,000 | | Other | $12 | | **Total debt** | **$4,762** | | Total long-term debt, net of current portion | $4,636 | - The company has an **$850 million revolving credit facility with $775 million available** as of March 28, 2025[56](index=56&type=chunk)[58](index=58&type=chunk) - The company utilizes **interest rate swaps with an aggregate notional value of $1.9 billion** to hedge against interest rate risk on its variable-rate debt[61](index=61&type=chunk) [Note 12 — Segment Information](index=19&type=section&id=Note%2012%20%E2%80%94%20Segment%20Information) The company operates under two new segments, with Global Engineering Solutions (GES) being the larger contributor to both revenue and Adjusted EBITDA Segment Performance (Six Months Ended March 28, 2025, in millions) | Segment | Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | Digital Solutions (DS) | $2,626 | $207 | | Global Engineering Solutions (GES) | $4,281 | $323 | | **Total** | **$6,907** | **$530** | - The Chief Executive Officer, as the chief operating decision maker (CODM), evaluates segment performance based on **revenues and Adjusted EBITDA**[70](index=70&type=chunk) [Note 15 — Subsequent Event](index=21&type=section&id=Note%2015%20%E2%80%94%20Subsequent%20Event) Subsequent to the reporting period, the company entered a definitive agreement to sell its Rapid Solutions business to Lockheed Martin for $360 million - A definitive agreement was signed on April 23, 2025, to sell the **Rapid Solutions business to Lockheed Martin for $360 million in cash**[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant growth in revenue and profitability to the CMS merger, with a strong backlog and liquidity position supporting future performance - The company's **total backlog was $44.8 billion** as of March 28, 2025, a significant increase from $27.2 billion a year prior, primarily due to the CMS merger[119](index=119&type=chunk) - Management identifies key market trends supporting growth, including increased demand for **outsourced federal services, clean energy, government modernization, and advanced technologies**[98](index=98&type=chunk) - Liquidity is primarily sourced from cash, operations, a receivables sales program, and an $850 million revolving credit facility, with proceeds from the planned **$360 million sale of Rapid Solutions** to be used for debt reduction[122](index=122&type=chunk)[129](index=129&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For the six months ended March 28, 2025, revenues grew 71.2% to $6.907 billion and operating income grew 38.3% to $242 million, driven by the CMS merger Results of Operations Comparison (Six Months Ended, in millions) | Metric | March 28, 2025 | March 29, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6,907 | $4,034 | $2,873 | 71.2% | | Operating income | $242 | $175 | $67 | 38.3% | | Net income (loss) attributable to common shareholders | $16 | $(82) | $98 | (119.5)% | - The primary driver for the increases in revenues, cost of revenues, SG&A, and amortization of intangibles for both the three and six-month periods was the **merger with CMS**[97](index=97&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [Segment Results](index=25&type=section&id=Segment%20Results) Both the Digital Solutions and Global Engineering Solutions segments reported substantial revenue and Adjusted EBITDA growth for the six-month period, primarily due to the CMS merger Digital Solutions Performance (Six Months Ended, in millions) | Metric | March 28, 2025 | March 29, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $2,626 | $930 | 182% | | Adjusted EBITDA | $207 | $78 | 165% | Global Engineering Solutions Performance (Six Months Ended, in millions) | Metric | March 28, 2025 | March 29, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $4,281 | $3,104 | 38% | | Adjusted EBITDA | $323 | $232 | 39% | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash, operations, and credit facilities, with the planned $360 million sale of Rapid Solutions set to accelerate debt reduction - The company has a **$3.75 billion Term Loan and $1.0 billion in Senior Notes**, with the Term Loan requiring quarterly principal payments of $9 million starting March 31, 2025[123](index=123&type=chunk) - The company entered into a definitive agreement to sell its **Rapid Solutions business for $360 million**, with proceeds intended to accelerate debt reduction[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk on its variable-rate debt, which it mitigates through $1.9 billion in floating-to-fixed interest rate swaps - The company has **$1.9 billion in floating-to-fixed interest rate swaps** to manage risk on its variable-rate debt[138](index=138&type=chunk) - A **1% change in interest rates** would have resulted in a **$19 million change in interest expense** for the six months ended March 28, 2025[138](index=138&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 28, 2025, with no material changes to internal controls - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of the end of the reporting period[139](index=139&type=chunk) - **No material changes** to internal control over financial reporting occurred during the fiscal quarter ended March 28, 2025[140](index=140&type=chunk) [PART II: OTHER INFORMATION](index=29&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various routine claims and disputes which are not expected to have a material adverse effect on its financial condition or operations - Information regarding legal proceedings is detailed in **Note 14 of the financial statements**[142](index=142&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor has emerged concerning significant uncertainty around U.S. Government tariffs and trade policies, which could increase costs and disrupt supply chains - A new risk factor has been identified concerning significant uncertainty around **U.S. Government tariffs and trade policies** following announcements by President Trump on April 2, 2025[144](index=144&type=chunk) - Potential impacts include **increased costs of materials, supply chain disruptions**, and greater difficulty in business planning for both U.S. and international operations[144](index=144&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[145](index=145&type=chunk)