Core Insights - Amentum Holdings experienced a decline in share value following executives' comments regarding fiscal 2025 growth being impacted by the winding down of certain government programs [1][2][4] - The company reported a fourth-quarter profit with earnings per share (EPS) of $0.28, a recovery from a loss of $0.07 per share a year prior, and a revenue increase of 3.5% year-over-year to $2.21 billion [3] - Amentum's full-year guidance remains affirmed, with an adjusted EPS estimate for fiscal 2025 projected between $2.00 and $2.20 [3] Company Developments - Amentum recently joined the S&P 500 Index on September 30 after being spun off from Jacobs Solutions, but will be moved to the S&P SmallCap 600 Index effective December 23 [5] - Since the spinoff, Amentum's shares have decreased by 28% [6]

Financial Data and Key Metrics - Full-year revenue for fiscal 2024 was $13.9 billion, representing 4% organic growth [17] - Adjusted EBITDA for fiscal 2024 was $1.05 billion, reflecting a 7% year-over-year increase, driven by a 20-basis-point margin improvement [17] - Ending backlog for fiscal 2024 was $45 billion, representing 3.2x annual revenue coverage [17] - Net bookings totaled $12 billion, highlighting strong end-market demand [17] - Pro forma book-to-bill ratio was 0.8x, excluding the Hanford contract and $2 billion of recompete awards under protest [37] Business Line Performance - The company secured a $45 billion, 10-year contract for the Hanford Integrated Tank Disposition Contract, showcasing its expertise in environmental and energy solutions [19] - Amentum was awarded a task order to deliver microelectronics capabilities to the U.S. Navy, emphasizing its focus on cutting-edge RDT&E programs [18] - The company secured a position on the UK's Hypersonic Technologies and Capabilities Development Framework, leveraging its digital engineering solutions [20] - Commercial contracts exceeded $1 billion in fiscal 2024, supporting Fortune 500 customers in areas like advanced product R&D, next-gen wireless networks, and clean energy solutions [21] Market Performance - The company has a diversified customer base, with 80% of revenue from the U.S. government and 20% from international and commercial markets [28] - Amentum is well-positioned in defense, intelligence, and space markets, aligning with national security priorities [28] - The company sees growth opportunities in the energy transition and digital modernization, supported by its multi-disciplinary engineering centers of excellence [22] Strategic Direction and Industry Competition - The merger with Jacobs' Critical Mission Solutions and Cyber and Intelligence units has created a more diversified company capable of tackling complex global challenges [14] - Amentum is leveraging its combined capabilities to expand into new markets, including clean energy, nuclear, and international growth opportunities like AUKUS [23][24] - The company is focusing on digital solutions and global engineering solutions as key growth areas, with plans to report these as separate segments starting in fiscal 2025 [45] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in navigating potential changes under the new administration, citing Amentum's strong backlog and diversified customer base [32] - The company expects to submit over $35 billion in bids in fiscal 2025, with a robust pipeline supporting future growth objectives [38] - Amentum is targeting a net leverage ratio of approximately 3x by the end of fiscal 2026, supported by strong free cash flow and operational efficiencies [39][44] Other Important Information - The company introduced adjusted net income and adjusted diluted EPS metrics for fiscal 2025, with expectations of $2.00 to $2.20 per share [43] - Free cash flow guidance for fiscal 2025 is projected to be between $475 million and $525 million, supported by a capital-light business model [44] - The company expects quarterly sequential increases in all metrics through fiscal 2025, driven by new program ramp-ups and a 53rd week in the fourth quarter [44] Q&A Session Summary Question: Impact of DOGE and CR timeline - Amentum has limited exposure to civilian agencies, with most of its U.S. government work focused on national security, which is less likely to face budget pressure [52][53] - The company expects the continuing resolution (CR) to extend into February or April 2025 [55] Question: Post-merger learnings and leverage reduction - The merger has strengthened Amentum's market position, with opportunities to accelerate digital capabilities and expand into new markets like clean energy and international growth [59][60] - The company is committed to reducing leverage to 3x by fiscal 2026, with potential acceleration through improved working capital and higher EBITDA performance [66][67] Question: Nuclear and AI opportunities - Amentum is well-positioned in the nuclear and clean energy sectors, with significant growth opportunities in small modular reactors (SMRs) and environmental remediation [73][76] - The company is leveraging AI across multiple sectors, including defense, intelligence, and commercial applications, with a focus on real-time threat detection and predictive analytics [78][80] Question: Guidance assumptions and new business - Amentum's fiscal 2025 guidance assumes 8% of revenue from new business, with a well-diversified set of opportunities aligned with critical national and international priorities [85] - The company has $23 billion in submitted bids awaiting decision, with 80% representing new business [94] Question: Hanford contract and backlog - The Hanford contract is not included in backlog due to its joint venture structure, but its earnings contributions are reflected in the company's financial outlook [91] Question: Intelligence market growth - The merger has significantly expanded Amentum's intelligence market footprint, with opportunities to pursue larger enterprise contracts and expand its pipeline in the intelligence community [100][102] Question: Seasonality and geopolitical exposure - Amentum expects stronger performance in the second half of fiscal 2025, with normal seasonality in cash flow driven by government fiscal year-end collections [107][109] - The company has minimal exposure to geopolitical conflicts, with no significant contracts tied to Ukraine or the Middle East [115][116]

amentum Amentum Fiscal Year 2024 Earnings Conference Call December 17, 2024 A M E N T U M P R O P R I E T A R Y Forward Looking Statements and Disclaimers Cautionary Note Regarding Forward Looking Statements This presentation contains or incorporates by reference statements that relate to future events and expectations and, as such, could be interpreted to be "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forwar ...

Core Viewpoint - Amentum Holdings, Inc. is set to release its quarterly earnings on December 17, with expectations of reporting earnings of 25 cents per share and revenue of $3.41 billion for the recent quarter [1][2]. Earnings Expectations - Analysts anticipate Amentum to report quarterly earnings at 25 cents per share [2]. - The projected revenue for the recent quarter is $3.41 billion [2]. Stock Performance and Analyst Ratings - Amentum shares experienced a decline of 1%, closing at $23.61 [2]. - The consensus price target for Amentum is $30.5, with a high target of $31 from Truist Securities and a low target not specified [2]. - Raymond James analyst Brian Gesuale initiated coverage with an Outperform rating and a price target of $30, achieving an accuracy rate of 71% [2]. - Truist Securities analyst Tobey Sommer initiated coverage with a Buy rating and a price target of $31, with an accuracy rate of 77% [2]. Management Changes - On December 2, Amentum appointed Darren Burton as Chief People Officer [2].

Core Insights - Jacobs Solutions Inc. has successfully completed the separation of its Critical Mission Solutions and Cyber & Intelligence businesses, merging them with Amentum, which is now publicly traded under the ticker AMTM [1][4] - The company reported a significant increase in backlog, which grew by 23% year-over-year, with a trailing twelve-month (TTM) book-to-bill ratio of 1.35x [1][2] - Fiscal Year 2025 guidance indicates expectations for mid-to-high single-digit growth in adjusted net revenue, an adjusted EBITDA margin of 13.8-14.0%, and adjusted EPS ranging from $5.80 to $6.20 [3][4] Financial Performance - For Q4 2024, Jacobs reported revenue of $3.0 billion, a 4.4% increase year-over-year, with net income rising to $309 million, up 333.1% year-over-year [2][7] - Adjusted EBITDA for Q4 2024 was $289 million, reflecting a 12.5% year-over-year increase, while adjusted EPS reached $1.37, up 28.0% year-over-year [2][7] - For the full fiscal year 2024, Jacobs achieved revenue of $11.5 billion, a 6.0% increase year-over-year, with net income of $613 million, up 61.6% year-over-year [2][9] Strategic Outlook - The company anticipates strong demand in key markets such as Water and Environmental, Critical Infrastructure, and Life Sciences and Advanced Manufacturing, positioning itself for profitable growth in FY25 and beyond [1][2] - Jacobs' balance sheet remains robust post-separation, allowing for continued investment in organic growth, share repurchases, and dividend increases [2][4] - The company returned $545 million to shareholders in FY24 through dividends and share repurchases, demonstrating a commitment to returning free cash flow to investors [2][4]