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 - 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]