Core Viewpoint - Amentum has been selected as the program delivery partner for the first deployments of Rolls-Royce Small Modular Reactor (SMR), which aims to provide up to 1.5GW of low-carbon energy in the UK, supporting net zero goals and creating over 8,000 long-term jobs [1][4]. Group 1: Partnership and Responsibilities - Amentum will serve as the program delivery partner responsible for integration, oversight, governance, construction management, and execution of SMR deployment [2][3]. - The collaboration between Amentum and Rolls-Royce SMR is expected to enhance energy security in the UK and continental Europe, leveraging Amentum's expertise in complex energy infrastructure [4][5]. Group 2: Project Execution and Impact - Amentum will utilize its nuclear life cycle experience to ensure the on-time and on-budget delivery of SMR-generated power in the UK and Czech Republic [3][4]. - The partnership is anticipated to significantly advance the deployment plans for Rolls-Royce SMRs, contributing to the growth of the energy sector and job creation in the UK over the next four years [4][5]. Group 3: Industry Context and Future Outlook - With global electricity demand projected to double in the coming decades, Rolls-Royce SMR represents a new approach to nuclear energy, featuring smaller, scalable, factory-built power plants [4]. - Amentum's extensive experience and robust supplier network are positioned to meet growing energy requirements and drive long-term industrial growth [4][5].

Core Insights - Amentum has successfully completed a significant milestone for NASA's Artemis II mission by rolling out the Space Launch System (SLS) rocket and Orion spacecraft to Launch Complex 39B, marking a crucial step in preparations for the crewed launch [1][5] - The Artemis II mission will involve a 10-day journey around the Moon with four astronauts aboard the Orion crew capsule, propelled by the SLS, which is noted as NASA's most powerful rocket to date [1][5] Company Role and Contributions - Amentum provided essential engineering expertise and operational discipline, ensuring the progress of Artemis II towards launch preparations and supporting the broader human space exploration mission [2][3] - The company played a central role in operating the crawler-transporter, which is vital for moving the SLS and Orion from the Vehicle Assembly Building to the launch pad, requiring precise coordination and continuous systems monitoring [2][4] Operational Responsibilities - Under NASA's Exploration Ground Systems program, Amentum is responsible for engineering, technician support, systems integration, and the maintenance and modernization of ground equipment for Artemis II [3] - Amentum's experience in high-consequence ground operations is reflected in its role in operating and sustaining the crawler-transporter, which is designed for precise movement over several miles [4] Upcoming Milestones - Following the successful rollout, NASA and Amentum are advancing to the next major phase of the Artemis II mission, which includes pad integration activities, final checkouts, and launch readiness preparations [5]

Core Insights - The article emphasizes the importance of understanding market dynamics and the potential impact of macroeconomic factors on investment decisions [2] Group 1: Market Analysis - The current market conditions are influenced by rising interest rates, which may lead to increased borrowing costs for companies [2] - Analysts predict a potential slowdown in economic growth, which could affect corporate earnings in the upcoming quarters [2] Group 2: Company Performance - Several companies in the technology sector have reported strong earnings, driven by increased demand for digital services [2] - The healthcare industry is experiencing growth due to advancements in biotechnology and an aging population, presenting investment opportunities [2]

Core Viewpoint - Amentum is positioned for growth with strong financial performance and significant government contracts, making it an attractive investment opportunity as it benefits from increased focus on national security and energy sectors [6][12]. Company Overview - Amentum is a leading provider of technical and mission support services, focusing on defense, intelligence, and energy sectors [6]. - The company operates a services-based business model, generating revenue primarily through government and commercial contracts [9]. - As of December 29, 2025, Amentum's stock price was $29.20, with a market capitalization of $7.1 billion and a revenue of $14.39 billion for the trailing twelve months (TTM) [4][10]. Financial Performance - Amentum reported a net income of $66 million for the TTM [4]. - The company ended the fiscal year with a backlog of $47 billion and generated over $500 million in free cash flow, which is being used to reduce debt and invest in growth [11]. - The stock has increased by 28% over the past three months and is up nearly 40% in 2025 [7]. Recent Developments - SEGRA Capital Management established a new stake in Amentum, acquiring 417,025 shares valued at approximately $9.99 million [2]. - Amentum secured a significant $4 billion, 10-year contract from the United States Space Force, highlighting its capability in handling complex national security challenges [11]. Market Position - Amentum's expertise in critical mission solutions and cyber intelligence positions it as a key partner for national security and infrastructure projects [6]. - The company does not manufacture military equipment but excels in providing mission-critical, technology-driven services [10].

Core Insights - Amentum Holdings, Inc. is a prominent provider of specialized technical and operational services, focusing on defense, intelligence, and commercial markets, leveraging advanced technology and domain expertise [1] - The company reported fiscal 2025 revenue of $14.4 billion, adjusted EBITDA of $1.1 billion, and free cash flow of $516 million, indicating strong financial performance for a newly public firm [5] - Amentum's stock price increased by 51% over the past year, significantly outperforming the S&P 500, which rose by approximately 15% [2] Financial Performance - Amentum finished fiscal 2025 with $14.4 billion in revenue, $1.1 billion in adjusted EBITDA, and $516 million in free cash flow, showcasing robust financial health [5] - The company's backlog reached $47 billion with a book-to-bill ratio of 1.2x, providing clear visibility for future revenue [5] - Net leverage decreased to 3.2x, with management projecting further growth in free cash flow for fiscal 2026 [5] Investment Activity - Hyperion Capital Advisors LP acquired an additional 368,521 shares of Amentum Holdings during the third quarter, valued at $10.06 million, representing 5.38% of the fund's U.S. equity holdings [3][4] - The increase in Hyperion's position reflects a strategy to invest in stable, cash-generating businesses rather than high-risk trades [6] Competitive Position - Amentum's diversified contract base and focus on high-value, complex projects enhance its competitive position in the government services sector [1] - The company is positioned alongside other durable businesses in Hyperion's portfolio, indicating a preference for predictability and scale in investments [6]

Core Insights - Amentum has been awarded a $3.5 billion contract by the Defense Threat Reduction Agency (DTRA) for the Cooperative Threat Reduction Integrating Contract (CTRIC) IV, focusing on chemical, biological, radiological, and nuclear threat reduction capabilities [1][2] - The contract spans 10 years, allowing Amentum to compete for various task orders to provide a wide range of services and products to DTRA [2] Company Overview - Amentum is recognized as a global leader in advanced engineering and technology solutions, with a workforce of approximately 50,000 employees operating in over 70 countries [4] - The company emphasizes its commitment to safety, collaboration, and well-being as integral to its success in addressing complex challenges in science, security, and sustainability [4] Industry Context - The DTRA's mission includes deterring strategic attacks, preventing and countering weapons of mass destruction, and supporting national security for the U.S. and its allies [3]

Core Insights - Engine Capital Management has completely divested its position in Amentum Holdings, selling 635,255 shares for an estimated $15 million, marking a strategic exit from the investment [2][3][7] Company Overview - Amentum Holdings is currently priced at $28.88, with a market capitalization of $7 billion, trailing a revenue of $14.4 billion and a net income of $66 million over the trailing twelve months [5] - The company specializes in mission-critical services, including missile defense, IT and engineering for defense and space, environmental remediation, and advanced cyber and intelligence solutions [9][10] Financial Performance - Amentum reported a strong fourth quarter with $3.9 billion in revenue, $300 million in adjusted EBITDA, and $261 million in free cash flow, while expanding its backlog to $47.1 billion and reducing net leverage [11] - The company has multi-year contract visibility and fiscal year 2026 guidance suggests potential revenue of up to $14.3 billion and free cash flow of as much as $575 million, indicating long-term appeal [12] Market Position - Amentum serves U.S. government agencies, defense and intelligence clients, and energy sector organizations, positioning itself as a key partner in critical mission solutions and advanced cyber capabilities [10] - The stock has shown volatility since its public-market debut last September, but the underlying growth trajectory remains intact, driven by mission-critical spending across defense, space, nuclear, and digital infrastructure [12]

Core Thesis - Amentum Holdings, Inc. is positioned as a leading government technology contractor following its merger with Jacobs Solutions, creating a scaled entity with significant revenue and backlog [2][3] Company Overview - Amentum provides engineering and technology solutions to U.S. and allied government agencies, with a pro forma revenue near $14 billion and a backlog exceeding $44.6 billion [2][3] - The company has over 53,000 employees across 80 countries, enhancing its competitive positioning against Tier 1 incumbents like Leidos and Booz Allen Hamilton [3] Financial Metrics - As of November 28th, Amentum's share price was $28.63, with trailing and forward P/E ratios of 106.04 and 12.03 respectively [1] - The market currently undervalues Amentum, pricing it at a forward P/E of 10.4x, reflecting a typical "conglomerate discount" [5] - The company has an Owner Earnings yield of 10.8%, indicating strong free cash flow generation and deleveraging potential [6] Strategic Initiatives - Key value drivers include anticipated cost synergies of $50–70 million, aggressive debt paydown, and expansion of the Digital Solutions segment, which has shown 8% EBITDA margins [5] - Recent contract wins, including a $946 million U.S. Army contract and $350 million in digital task orders, validate the strategic rationale behind the merger [6] Growth Potential - With net leverage improving to 3.5x and a strong pipeline, Amentum presents a compelling risk/reward profile, with potential stock valuation reaching mid-$30s or even $42 with successful growth [7] - The combination of stable revenue, high free cash flow, and operational scale makes Amentum an attractive investment opportunity in the government technology sector [7] Historical Performance - Amentum's stock price has appreciated approximately 53.34% since March 2025, reflecting the successful execution of the bullish thesis on the company [8]

Group 1: Company Performance - Argan (AGX) has returned approximately 156.2% since the beginning of the calendar year, significantly outperforming the average gain of 5.5% in the Construction group [4] - The Zacks Consensus Estimate for AGX's full-year earnings has increased by 14% over the past three months, indicating improving analyst sentiment and a positive earnings outlook [3] - Argan is currently ranked 1 (Strong Buy) in the Zacks Rank system, suggesting strong potential for future performance [3] Group 2: Industry Context - Argan belongs to the Building Products - Miscellaneous industry, which includes 33 individual stocks and currently holds a Zacks Industry Rank of 89, with an average loss of 2.9% this year [5] - Another stock in the Construction sector, Amentum Holdings (AMTM), has a year-to-date return of 35.8% and is ranked 2 (Buy) in the Zacks Rank system [4][5] - The Engineering - R and D Services industry, to which Amentum Holdings belongs, has gained 13% year to date, indicating a relatively stronger performance compared to the Building Products - Miscellaneous industry [6]

Core Insights - Amentum Holdings, Inc. reported better-than-expected fourth-quarter results, with adjusted earnings per share of 63 cents, surpassing the analyst consensus estimate of 59 cents [1] - Quarterly sales reached $3.925 billion, reflecting a 77% year-over-year increase, exceeding the expected $3.613 billion [1] - The company provided guidance for 2026 revenue between $13.95 billion and $14.30 billion, compared to the analysts' consensus estimate of $14.08 billion [1] Company Performance - Amentum's strong fourth-quarter results mark a successful first year as a public company, showcasing financial performance that exceeded expectations [2] - CEO John Heller highlighted the company's resilience and alignment with global trends, emphasizing growth areas such as global nuclear energy, critical digital infrastructure, and space systems [2] - Despite the positive results, Amentum shares fell 0.6% to $29.82 following the announcement [2] Analyst Reactions - Following the earnings announcement, several analysts adjusted their price targets for Amentum [3] - Citizens analyst Trevor Walsh maintained a Market Outperform rating and raised the price target from $30 to $35 [5] - Morgan Stanley analyst Kristine Liwag upgraded the stock from Underweight to Equal-Weight and increased the price target from $20 to $35 [5] - RBC Capital analyst Ken Herbert maintained a Sector Perform rating and raised the price target from $26 to $30 [5] - JP Morgan analyst Seth Seifman maintained a Neutral rating and increased the price target from $30 to $34 [5]