Amentum Holdings, Inc.(AMTM) - 2025 Q1 - Quarterly Report

Revenue and Backlog - Revenues for the three months ended December 27, 2024, were $3,416 million, a 72.3$1,983 million for the same period in 2023, primarily due to the merger with CMS[90] - The company's total backlog increased to $45.2 billion as of December 27, 2024, up from$27.3 billion as of December 29, 2023, reflecting a $17.9 billion increase primarily due to the merger with CMS[104] - Digital Solutions segment revenues rose to$1,286 million, a 180% increase from $459 million in the prior year, driven by the merger with CMS and new contract awards[98] - Global Engineering Solutions segment revenues increased to$2,130 million, a 40% rise from $1,524 million in the same period last year, attributed to the merger with CMS and growth in existing programs[100] Tax and Expenses - The effective tax rate for the three months ended December 27, 2024, was 53.3$886 billion[84] Cash Flow and Financing - Net cash provided by operating activities increased by $193 million for the three months ended December 27, 2024, compared to the same period in 2023, driven by a$110 million increase in cash earnings from the merger with CMS[115] - Net cash used in investing activities increased by $5 million for the three months ended December 27, 2024, due to increased capital expenditures related to the merger with CMS[116] - Net cash used in financing activities increased by$2 million for the three months ended December 27, 2024, primarily due to distributions to non-controlling interests and the absence of quarterly principal amortization payments on the Term Loan, which will commence in March 2025[117] - The company completed an offering of $1,000 million in aggregate principal amount of 7.250$1.9 billion related to a portion of its variable rate debt[120] - With every one percent fluctuation in applicable interest rates, interest expense on variable rate debt for the three months ended December 27, 2024, would have fluctuated by approximately $9 million[120] - The company believes that the combination of internally generated funds, available bank borrowings, and cash and cash equivalents will provide the necessary liquidity for ongoing operations over at least the next twelve months[111] - Future financial performance, which affects the ability to generate sufficient cash flows from operations, may be influenced by factors outside of the company's control, including global economic conditions[112] Backlog Definitions - Funded backlog represents contract value for which funding is appropriated less revenues previously recognized on the contract[114] - Unfunded backlog includes estimated values from negotiated contracts for which funding has not been appropriated and from unexercised contract options[114] Accounting Policies - There have been no significant changes to the company's critical accounting policies as disclosed in the Annual Report for the year ended September 27, 2024[118]