Financial Data and Key Metrics Changes - Revenue increased to $14.4 billion, representing pro forma growth of 4% year-over-year [9] - Adjusted EBITDA reached $1.1 billion, an increase of 5% year-over-year [9] - Adjusted diluted earnings per share rose to $2.22, up 11% [9] - Free cash flow was $516 million, supporting debt reduction objectives and bringing net leverage to 3.2 times [9][26] Business Line Data and Key Metrics Changes - Digital solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth respectively [24] - Global engineering solutions generated revenues of $2.4 billion for the quarter and $8.9 billion for the year, representing 9% and 2% growth respectively [25] Market Data and Key Metrics Changes - The company submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2 times and a quarterly book-to-bill ratio of 1.6 times [10] - Backlog grew 5%, reaching over $47 billion, with $20 billion in proposals awaiting awards [10] Company Strategy and Development Direction - Amentum aims to integrate and deliver end-to-end advanced engineering and technology solutions across key markets including defense, nuclear energy, intelligence, and space [5][6] - The company is focusing on core growth areas such as RDT&E, intelligence operations, and environmental remediation, while also targeting accelerating growth markets like space systems and technologies, critical digital infrastructure, and global nuclear energy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing government priorities and maintain operational resilience [13][14] - The outlook for fiscal year 2026 includes expected revenues in the range of $13.95-$14.3 billion, with adjusted EBITDA projected between $1.1 billion and $1.14 billion [28][29] Other Important Information - The company has exited all transition service agreements and is on track to deliver at least $60 million in net run rate synergies by the end of fiscal year 2026 [8] - Amentum's diverse portfolio, with 20% of revenue tied to commercial and international work, provides insulation from sector volatility [14] Q&A Session Summary Question: Can you discuss the level of timing or one-time margin and cash flow dynamics in the quarter? - Management noted that additional working days generated around $20 million in cash, which should be normalized moving into FY26 [35] Question: Can you provide an update on the multi-year margin progression and synergy targets? - The long-term goal is to achieve 8.5%-9% margins by FY28, with expected margin expansion of 20 basis points in FY26 [38][42] Question: How do you view the timing and magnitude of potential divestitures? - Management is currently excited about the entire portfolio and will evaluate non-core assets during strategic planning [50] Question: Can you elaborate on the nuclear opportunities and their impact on margins? - The nuclear energy market represents about 17% of the business today, with strong margins expected from both front-end and back-end nuclear work [76] Question: What is the expected impact of the government shutdown on FY26? - Management anticipates a 1% impact from reduced spending in Q1 due to the government shutdown, but remains confident in the underlying business trajectory [84]

Financial Data and Key Metrics Changes - Revenue increased to $14.4 billion, representing pro forma growth of 4% [9] - Adjusted EBITDA reached $1.1 billion, an increase of 5% year over year [9] - Adjusted diluted earnings per share rose to $2.22, up 11% [9] - Free cash flow totaled $516 million, supporting debt reduction objectives and bringing net leverage to 3.2 times [9][26] Business Line Data and Key Metrics Changes - Digital Solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth respectively [24] - Global Engineering Solutions reported revenues of $2.4 billion for the quarter and $8.9 billion for the year, reflecting 9% and 2% growth respectively [25] Market Data and Key Metrics Changes - The company submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2 times and a quarterly ratio of 1.6 times [10] - Backlog grew 5%, reaching over $47 billion, with $20 billion in proposals awaiting awards [10] Company Strategy and Development Direction - Amentum aims to integrate and deliver advanced engineering and technology solutions across key markets, including defense, nuclear energy, intelligence, and space [5][6] - The company is focusing on core growth areas that provide dependable revenue and strong cash flow, while also targeting accelerating growth markets such as space systems and technologies, critical digital infrastructure, and global nuclear energy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing government priorities and maintain operational resilience [13][14] - The outlook for fiscal year 2026 includes expected revenues in the range of $13.95 to $14.3 billion, with adjusted EBITDA projected between $1.1 to $1.14 billion [28][29] Other Important Information - The company has exited all transition service agreements and completed key integration milestones on time and within budget, aiming for at least $60 million in net run rate synergies by the end of fiscal year 2026 [8] Q&A Session Summary Question: Discussion on timing or one-time margin and cash flow dynamics - Management noted that additional working days contributed approximately $20 million to cash flow, and they expect a strong cash flow trajectory moving forward [35][36] Question: Multi-year margin progression and synergy targets - Management confirmed a long-term goal of achieving 8.5 to 9% margins by FY28, with expected margin expansion of 20 basis points in FY26 [38][42] Question: Update on potential divestitures and upcoming awards - Management expressed excitement about the Space Force range contract, which has cleared the protest period and is set to begin operations [47][49] Question: Insights on nuclear opportunities and growth areas - The company plays a critical role across the entire nuclear energy life cycle, with nuclear representing about 17% of its business today [77][78]

Financial Data and Key Metrics Changes - Revenue increased to $14,400,000,000, representing pro forma growth of 4% year over year [13] - Adjusted EBITDA reached $1,100,000,000, an increase of 5% year over year [13] - Adjusted diluted earnings per share (EPS) of $2.22 was up 11% [13] - Free cash flow totaled $516,000,000, supporting debt reduction objectives and bringing net leverage to 3.2 times [13][34] Business Line Data and Key Metrics Changes - Digital Solutions generated revenues of $1,500,000,000 for the quarter and $5,500,000,000 for the year, representing 117% growth [31] - Global Engineering Solutions generated revenues of $2,400,000,000 for the quarter and $8,900,000,000 for the year, representing 92% growth [32] Market Data and Key Metrics Changes - The company submitted $35,000,000,000 in bids, achieving a full year book to bill ratio of 1.2 times and a quarterly book to bill ratio of 1.6 times [14] - Backlog grew 5%, reaching over $47,000,000,000, with $20,000,000,000 in proposals awaiting awards [14] Company Strategy and Development Direction - The company aims to integrate and deliver end-to-end advanced engineering and technology solutions across key markets, including defense, nuclear energy, intelligence, and space [8] - Focus on core growth areas such as RDT&E, intelligence operations, and environmental remediation, while also targeting accelerating growth markets like Space Systems and Technologies and global nuclear energy [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing government priorities and maintain operational resilience [18] - The outlook for fiscal year 2026 includes expected revenues in the range of $13,950,000,000 to $14,300,000, reflecting 3% growth at the midpoint [35] - Adjusted EBITDA is expected to be in the range of $1,100,000,000 to $1,140,000, reflecting underlying growth of 5% [36] Other Important Information - The company has exited all transition service agreements and completed key integration milestones on time and within budget, aiming for at least $60,000,000 in net run rate synergies by the end of fiscal year 2026 [12] - The company ended the year with $437,000,000 in cash and an undrawn $850,000,000 revolver, with no near-term maturities [34] Q&A Session Summary Question: Can you discuss the level of timing or one-time margin and cash flow dynamics in the quarter? - Management noted that additional working days generated around $20,000,000 in cash, which should be normalized in FY 2026 [42] Question: Can you talk through the multiyear margin progression in terms of synergy targets? - The long-term goal is to achieve 8.5% to 9% margins by FY 2028, with expected margin expansion of 20 basis points in FY 2026 [46] Question: How do you think about the timing, magnitude, and multiple of any potential divestitures? - Management expressed excitement about the current portfolio and capabilities, indicating that any potential divestitures would be evaluated based on growth opportunities [56] Question: Can you remind us how you play throughout the entire nuclear life cycle? - The company plays a critical role across the entire nuclear energy life cycle, representing about 17% of its business today [88] Question: How much of the business is commercially oriented defense? - The company is heavily engaged with both government and commercial sectors, with significant opportunities in both areas [66] Question: When do you think you may be able to go on offense with capital deployment? - Management indicated that they are on track to achieve net leverage of less than three times by the end of FY 2026, which would allow for potential capital deployment strategies [75]

Financial Data and Key Metrics Changes - Revenue increased to $14.4 billion, representing pro forma growth of 4% [11] - Adjusted EBITDA reached $1.1 billion, an increase of 5% year over year [11] - Adjusted diluted earnings per share rose to $2.22, up 11% [11] - Free cash flow totaled $516 million, supporting debt reduction objectives and bringing net leverage to 3.2 times [11][28] Business Line Data and Key Metrics Changes - Digital Solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth respectively [26] - Global Engineering Solutions reported revenues of $2.4 billion for the quarter and $8.9 billion for the year, showing 9% and 2% growth respectively [27] Market Data and Key Metrics Changes - The company submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2 times and a quarterly ratio of 1.6 times [12] - Backlog grew 5%, reaching over $47 billion, with $20 billion in proposals awaiting awards [12] Company Strategy and Development Direction - Amentum aims to integrate and deliver advanced engineering and technology solutions across key markets, including defense, nuclear energy, intelligence, and space [6][10] - The company is focusing on core growth areas such as RDT&E, intelligence operations, and environmental remediation, while also targeting accelerating growth markets like space systems and digital infrastructure [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to adapt to changing customer priorities and government spending dynamics [15][23] - The outlook for fiscal year 2026 includes expected revenues in the range of $13.95 to $14.3 billion, with adjusted EBITDA projected between $1.1 to $1.14 billion [29][31] Other Important Information - The company has exited all transition service agreements and is on track to deliver at least $60 million in net run rate synergies by the end of fiscal year 2026 [10] - Amentum's diverse portfolio, with 20% of revenue tied to commercial and international work, provides insulation from sector volatility [15] Q&A Session Summary Question: Discussion on timing or one-time margin and cash flow dynamics in the quarter - Management noted that additional working days contributed approximately $20 million to cash flow, and they expect a strong cash flow trajectory with 12% growth in FY26 [34][35] Question: Multi-year margin progression and synergy targets - The company aims for 8.5 to 9% margins by FY28, with a target of exceeding $60 million in net run rate cost synergies by the end of FY26 [36][39] Question: Update on nuclear opportunities and growth areas - Amentum plays a critical role across the entire nuclear energy life cycle, with 17% of its business currently in this sector, and anticipates significant growth driven by demand for electricity and AI [58][59] Question: Timing and magnitude of potential divestitures and upcoming awards - Management expressed excitement about the current portfolio and indicated that they are evaluating growth opportunities while remaining committed to maximizing free cash flow per share [50][52]

FY25 Performance - Revenues reached $14.4 billion, a 4% year-over-year increase[10] - Adjusted EBITDA was $1,104 million, up 5% year-over-year[10] - Adjusted Diluted EPS increased by 11% year-over-year to $2.22[10] - Free Cash Flow amounted to $516 million[10] - The company's Backlog was $47.1 billion with a Book-to-Bill ratio of 1.2x[10] Q4 FY25 Highlights - The company achieved a robust Q4 book-to-bill ratio of 1.6x[9] - Secured a Space Force Range Contract worth $4 billion over ten years[15] - Awarded nuclear services totaling over $1.8 billion over 15 years for Sellafield Decommissioning and Nuclear Waste Partners[16] - NASA awarded Ascend Aerospace & Technology, a joint venture in which Amentum is a partner, a new nine-year $1.8 billion contract to support flight mission operations and training[17] - Secured multiple classified intelligence contracts totaling nearly $700 million[18] FY26 Guidance - The company initiated FY26 guidance with revenue expected to be between $13.95 billion and $14.3 billion, implying underlying growth of approximately 3%[56] - Adjusted EBITDA is projected to be between $1.1 billion and $1.14 billion, representing approximately 5% underlying growth[56] - Adjusted Diluted EPS is expected to be between $2.25 and $2.45, indicating approximately 12% underlying growth[56] - Free Cash Flow is forecasted to be between $525 million and $575 million, also representing approximately 12% underlying growth[56]

Core Insights - Premarket trading is showing notable activity with early price movements indicating potential opportunities before the market opens [1] Premarket Gainers - Mawson Infrastructure Group Inc. (MIGI) is up 10% at $5.65 [3] - Mingteng International Corporation Inc. (MTEN) is up 9% at $1.88 [3] - Barnwell Industries, Inc. (BRN) is up 9% at $1.20 [3] - Amentum Holdings, Inc. (AMTM) is up 8% at $27.57 [3] - Antelope Enterprise Holdings Limited (AEHL) is up 8% at $2.75 [3] - Protagenic Therapeutics, Inc. (PTIX) is up 8% at $2.43 [3] - Envirotech Vehicles, Inc. (EVTV) is up 8% at $1.18 [3] - Vir Biotechnology, Inc. (VIR) is up 6% at $6.49 [3] - Zoom Communications Inc. (ZM) is up 5% at $82.73 [3] - Core AI Holdings (CHAI) is up 5% at $2.68 [3] Premarket Losers - Foxx Development Holdings Inc. (FOXX) is down 13% at $4.00 [4] - Jaguar Health, Inc. (JAGX) is down 11% at $1.13 [4] - AlphaTON Capital Corp. (ATON) is down 7% at $2.54 [4] - Semtech Corporation (SMTC) is down 6% at $65.81 [4] - Cypherpunk Technologies Inc. (CYPH) is down 5% at $1.73 [4] - SunPower Inc. (SPWR) is down 5% at $1.59 [4] - Visionary Holdings Inc. (GV) is down 4% at $1.23 [4] - Gelteq Limited (GELS) is down 4% at $1.01 [4] - Capricor Therapeutics, Inc. (CAPR) is down 3% at $4.47 [4] - Mobile-Network Solutions (MNDR) is down 3% at $2.82 [4]

Core Insights - Amentum Holdings reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and showing an increase from $0.47 per share a year ago, resulting in an earnings surprise of +6.78% [1][2] - The company achieved revenues of $3.93 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.81%, compared to $2.21 billion in the same quarter last year [2] - Amentum has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Amentum's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $3.4 billion, and for the current fiscal year, it is $2.39 on revenues of $14.05 billion [7] Industry Context - Amentum operates within the Zacks Engineering - R and D Services industry, which is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Amentum's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Annual revenues reached $14.4 billion, representing a 4% growth on a pro forma basis[1] - Annual net income was $66 million, with annual adjusted EBITDA of $1,104 million[1] - Revenues for the year ended October 3, 2025, were $14,393 million, with an operating income of $1,089 million[47] - Adjusted EBITDA for the year ended October 3, 2025, was $1,104 million, with an EBITDA margin of 7.7%[47] - Net income attributable to common shareholders for the year was $542 million, resulting in a net income margin of 3.8%[47] - Basic income per share attributable to common shareholders was $2.23 for the year ended October 3, 2025[47] - Revenues for the three months ended October 3, 2025, were $3,925 million, a 77.4% increase from $2,212 million for the same period in 2024[31] - Net income attributable to common shareholders for the three months ended October 3, 2025, was $40 million, compared to $26 million for the same period in 2024, representing a 53.8% increase[31] - Revenues for the three months ended September 27, 2024, were $3,565 million, with an operating income of $269 million[56] - For the fiscal year ended September 27, 2024, revenues reached $13,858 million, and operating income was $1,030 million[59] Backlog and Contracts - Backlog totaled $47.1 billion, with a book-to-bill ratio of 1.2x for the full year[13] - Amentum secured a $4 billion contract with the U.S. Space Force, enhancing its backlog[14] - The company reported a backlog as an operational measure, indicating future revenue potential under negotiated contracts, although specific figures were not disclosed[30] Debt and Cash Management - The company reduced net debt to $3.6 billion, achieving a net leverage ratio of 3.2x[1] - For fiscal year 2025, Net Leverage was 3.2x, with total debt of $4,008 million and cash and cash equivalents of $437 million, resulting in Adjusted EBITDA of $1,104 million[40] - Total assets decreased from $11,974 million as of September 27, 2024, to $11,460 million as of October 3, 2025[34] - Total liabilities decreased from $7,422 million as of September 27, 2024, to $6,840 million as of October 3, 2025[34] - The company had cash and cash equivalents of $437 million as of October 3, 2025, slightly down from $452 million as of September 27, 2024[34] - The company experienced a net cash provided by operating activities of $270 million for the three months ended October 3, 2025, compared to a net cash used of $113 million for the same period in 2024[35] Adjusted EBITDA and Non-Operating Expenses - Pro forma adjusted EBITDA increased by 8% for Q4 and 5% for the full year, driven by higher revenues[7] - Adjusted EBITDA for fiscal year 2025 was $516 million, with a Free Cash Flow of $516 million after deducting $27 million for property and equipment purchases[39] - Non-operating expenses for the year totaled $345 million, impacting overall income before income taxes of $744 million[47] - Acquisition, transaction, and integration costs for the year amounted to $85 million, contributing to the operating income adjustments[47] - Stock-based compensation expenses recognized for the year were $21 million, affecting the overall non-GAAP results[47] - Non-operating expenses for the three months ended September 27, 2024, totaled $(98) million, impacting overall income before income taxes[56] - Acquisition, transaction, and integration costs for the fiscal year were $62 million, contributing to the overall operating income[59] Earnings Per Share - Basic earnings per share attributable to common shareholders for the three months ended October 3, 2025, were $0.16, compared to $0.28 for the same period in 2024[31] - The reconciliation of Adjusted EBITDA to GAAP measures highlights the impact of various non-cash and one-time expenses on financial performance[51] - The company reported a diluted income per share of $2.22 for the year ended October 3, 2025[47] - Net income attributable to common shareholders for the three months ended September 27, 2024, was $(16) million, translating to a basic and diluted loss per share of $(0.06)[56] - For the fiscal year ended September 27, 2024, net income attributable to common shareholders was $487 million, with a basic and diluted income per share of $2.00[59] - The net income margin for the three months ended September 27, 2024, was (0.4)%, while for the fiscal year it was 3.5%[59]

Core Insights - Amentum reported strong financial results for the fourth quarter and fiscal year 2025, with annual revenues of $14.4 billion, reflecting a 4% growth on a pro forma basis, and a net income of $66 million [1][2][3] Financial Performance - Annual revenues reached $14.4 billion, a 4% increase on a pro forma basis, and a 72% increase year-over-year [3][4] - Annual net income was $66 million, compared to a net loss of $82 million in the previous year, marking a 180% improvement [3][4] - Annual adjusted EBITDA was $1,104 million, up 5% from $1,049 million in the previous year [3][4] - Annual diluted earnings per share were $0.27, compared to a loss of $0.90 in the previous year [3][4] Cash Flow and Debt Management - Operating cash flow for the year was $543 million, with free cash flow of $516 million [1][3] - The company reduced net debt to $3.6 billion and net leverage to 3.2x [1][3] Backlog and Contract Awards - Amentum's backlog stood at $47 billion, with a book-to-bill ratio of 1.2x for the full year and 1.6x for the fourth quarter [1][9] - Notable contract awards included a $4 billion contract from the U.S. Space Force and over $1.8 billion from Sellafield for decommissioning solutions [13] Segment Performance - Digital Solutions revenues increased by 11% in Q4 and 7% for the full year, driven by new contract awards [6][7] - Global Engineering Solutions revenues grew by 9% in Q4 and 2% for the full year, supported by new contract awards and growth on existing programs [6][7] Guidance for Fiscal Year 2026 - Amentum provided guidance for fiscal year 2026, projecting revenues between $13,950 million and $14,300 million, with an implied growth of approximately 3% [9] - Adjusted EBITDA is expected to be between $1,100 million and $1,140 million, indicating a growth of around 5% [9]

Core Insights - Amentum Holdings, Inc. is a significant player in mission-critical, technology-driven services for government and commercial markets, operating through Critical Mission Solutions and Cyber & Intelligence segments [1] Financial Performance - Amentum reported a substantial 66% increase in third-quarter revenue, indicating strong market performance [3][6] - The consensus price target for Amentum has risen to $25 in the last month, reflecting growing optimism among analysts [2][6] Analyst Sentiment - Analyst Tobey Sommer from Truist Financial has set a price target of $31 for Amentum, demonstrating confidence in the company's future prospects [3][6] - The upward trend in the price target from an average of $23.67 a year ago to $25 indicates increasing analyst optimism about Amentum's growth potential [2] Strategic Moves - Amentum's strategic actions, including contract wins and service expansions, are likely contributing to positive analyst sentiment [4] - CEO John Heller highlighted the company's strong execution and integration efforts, which may have influenced the upward revision of the price target [4] Future Outlook - Investors are advised to monitor Amentum's upcoming earnings reports and strategic announcements, as these could further impact analyst opinions and stock price targets [5] - The company's ability to exceed earnings expectations and its raised full-year organic guidance for fiscal year 2025 are key indicators of its potential for continued growth [5]