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]

Core Insights - Citron Research identifies Amentum Holdings Inc. as a crucial player in the U.S. nuclear strategy, managing 90% of the nation's nuclear infrastructure for the Department of Energy (DOE) [2][3] - The company is involved in various nuclear-related operations, including weapons management, waste cleanup, and reactor engineering, positioning it as a keystone of U.S. nuclear capability [3] - Amentum's valuation is considered "absurd" at 10 times earnings, significantly lower than industry peers, despite superior margins and a monopoly position in a growing sector [5] Company Overview - Amentum Holdings Inc. is headquartered in Virginia and is described as "the most important company in America that nobody's heard of" [2] - The company oversees critical aspects of nuclear energy and defense, including operations related to nuclear weapons and facility management [3][4] Industry Context - The Trump administration's policy shift aims to quadruple the nation's nuclear energy output to 400 gigawatts by 2050, creating long-term growth opportunities for nuclear-linked companies [6] - Amentum is positioned to benefit from the DOE's $250 billion loan program for the nuclear industry, being the only company with the necessary expertise and relationships to execute it [4]

Core Insights - Amentum Holdings (AMTM) is gaining attention due to its significant role in the nuclear energy sector, managing nearly 90% of America's nuclear infrastructure for the Department of Energy [1][4] - The company's stock price increased by 17% following a positive note from Citron Research, which highlighted its importance to national security [1][2] - Amentum's alignment with government priorities on energy independence and military modernization is expected to drive future growth [2][3] Company Performance - Amentum Holdings has a market capitalization of $5.3 billion, with its stock trading at $24.99 as of November 21, reflecting an 18% year-to-date gain [4] - The company's forward price-to-earnings ratio is 10.97x, significantly lower than the sector median of 19.86x, indicating a potential undervaluation [5] - Amentum reported $3.6 billion in revenues for the latest quarter, marking a 2% increase on a pro forma basis, with a net income of $10 million and adjusted EBITDA of $274 million [6][7] Financial Metrics - The diluted earnings per share for Amentum stands at $0.04, while the adjusted diluted earnings per share is reported at $0.56, highlighting the company's operational leverage [6][7] - The price-to-sales ratio is 0.47x compared to the sector median of 1.68x, further emphasizing the company's attractive valuation relative to its peers [5]