{"id":871305,"date":"2025-08-05T18:29:07","date_gmt":"2025-08-05T22:29:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/amentum-reports-third-quarter-fiscal-year-2025-results-and-raises-full-year-organic-guidance\/"},"modified":"2025-08-05T18:29:07","modified_gmt":"2025-08-05T22:29:07","slug":"amentum-reports-third-quarter-fiscal-year-2025-results-and-raises-full-year-organic-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/amentum-reports-third-quarter-fiscal-year-2025-results-and-raises-full-year-organic-guidance\/","title":{"rendered":"Amentum Reports Third Quarter Fiscal Year 2025 Results and Raises Full Year Organic Guidance"},"content":{"rendered":"

<\/p>\n

Amentum Reports Third Quarter Fiscal Year 2025 Results <\/b>and Raises Full Year Organic Guidance<\/b><\/p>\n

Revenues of $3.6 billion, 2% growth on a pro forma basis<\/i><\/p>\n

Net Income of $10 million; Adjusted EBITDA of $274 million<\/i><\/p>\n

Diluted Earnings Per Share of $0.04; Adjusted Diluted Earnings Per Share of $0.56<\/i><\/p>\n

Operating Cash Flow of $106 million; Free Cash Flow of $100 million<\/i><\/p>\n

Backlog of $44.6 billion; 1.0x YTD Book-to-Bill<\/i><\/p>\n

Reduced Net Debt to $3.8 billion and Net Leverage to 3.5x<\/i><\/p>\n

CHANTILLY, Va.–(BUSINESS WIRE<\/a>)–
\nAmentum Holdings, Inc. (\u201cAmentum\u201d or the \u201cCompany\u201d) (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the third quarter ended June 27, 2025, and raised its full year organic guidance for fiscal year 2025.<\/p>\n

\n\u201cAmentum\u2019s third quarter performance reflects strong execution and demonstrates the continued strength of our business,\u201d said Amentum Chief Executive Officer John Heller. \u201cWe\u2019re seeing benefits from our integration efforts and mission-focused portfolio converge with tailwinds from enduring global trends and an improving budget environment. In addition, the successful divestiture of Rapid Solutions combined with our strategic growth initiatives enhance our financial flexibility and provide momentum for future growth as we head into the fourth quarter and beyond. We’re pleased with our performance and excited about our ability to deliver long-term value for customers, employees and shareholders.\u201d<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Summary Operating Results<\/span><\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

(in millions, except per share data)<\/i><\/p>\n<\/td>\n

\n

June 27, 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

June 28, 2024<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

% Change<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

GAAP Measures:<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenues<\/p>\n<\/td>\n

\n

\n$3,561<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$2,142<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n66%<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n$103<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$89<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

16%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income (loss)<\/p>\n<\/td>\n

\n

\n$10<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$(26)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

138%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted earnings (loss) per share<\/p>\n<\/td>\n

\n

\n$0.04<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$(0.29)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

114%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

Pro Forma and Non-GAAP Measures1,2<\/sup>:<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenues<\/p>\n<\/td>\n

\n

\n$3,561<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3,490<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA2<\/sup><\/p>\n<\/td>\n

\n

\n$274<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$257<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

7%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA Margin2<\/sup><\/p>\n<\/td>\n

\n

\n7.7%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7.4%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

+30 bps<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted Diluted Earnings Per Share (EPS)2<\/sup><\/p>\n<\/td>\n

\n

\n$0.56<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.51<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

10%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nFree Cash Flow2<\/sup><\/p>\n<\/td>\n

\n

\n$100<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nN\/A<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nN\/A<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n1 \u2013 June 28, 2024 Revenues and Non-GAAP financial measures are presented on a pro forma basis to include the results of Jacobs’ Critical Mission Solutions and Cyber & Intelligence (CMS) businesses prepared in accordance with the requirements of Article 11 of Regulation S-X.<\/p>\n<\/td>\n<\/tr>\n

\n

\n2 \u2013 Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another measure of Amentum\u2019s results of operations and financial condition, including its ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

GAAP Results<\/span><\/p>\n

\nGAAP revenues increased 66% year-over-year primarily as a result of revenues from the combination with Jacobs’ Critical Mission Solutions and Cyber & Intelligence (CMS) businesses. GAAP operating income increased as a result of the contribution from CMS, partially offset by increased intangible amortization expense. GAAP net income and diluted earnings per share improved year-over-year due to the higher operating income and lower interest expense.<\/p>\n

Pro Forma and Non-GAAP Results<\/span><\/p>\n

\nPro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 2% year-over-year driven by growth in Digital Solutions. Pro Forma Adjusted EBITDA increased 7% year-over-year primarily due to the higher revenues and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to higher operating profit partially offset by an increase in interest expense.<\/p>\n

Pro Forma and Non-GAAP Segment Results<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Three Months Ended<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Nine Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

(in millions)<\/i><\/p>\n<\/td>\n

\n

June 27,
\n
2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

June 28,
\n
20241<\/sup><\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

% Change<\/i><\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

June 27,
\n
2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

June 28,
\n
20241<\/sup><\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

% Change<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenues<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nDigital Solutions<\/p>\n<\/td>\n

\n

\n$1,421<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1,274<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

12%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$4,047<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3,852<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

5%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nGlobal Engineering Solutions<\/p>\n<\/td>\n

\n

\n2,140<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n2,216<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

(3)%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6,421<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6,441<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\u2014%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal Revenues<\/p>\n<\/td>\n

\n

\n$3,561<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3,490<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$10,468<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$10,293<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA2<\/sup><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nDigital Solutions<\/p>\n<\/td>\n

\n

\n$114<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$94<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

21%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$321<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$293<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

10%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nGlobal Engineering Solutions<\/p>\n<\/td>\n

\n

\n160<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n163<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

(2)%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n483<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n479<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

1%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal Adjusted EBITDA<\/p>\n<\/td>\n

\n

\n$274<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$257<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

7%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$804<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$772<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

4%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n1 \u2013 June 28, 2024 Revenues and Non-GAAP financial measures are presented on a pro forma basis.<\/p>\n<\/td>\n<\/tr>\n

\n

\n2 \u2013 Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another measure of Amentum\u2019s results of operations and financial condition, including its ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nDigital Solutions revenues for the third quarter increased 12% year-over-year driven by higher volume from the ramp up of new commercial contract awards. Adjusted EBITDA increased 21% year-over-year due to the higher revenues and improved operational performance.<\/p>\n

\nGlobal Engineering Solutions revenues for the third quarter decreased 3% year-over-year as a result of the expected ramp-down on certain historical programs, partially offset by new contract awards and growth on existing programs. Adjusted EBITDA decreased 2% year-over-year as a result of the lower revenue volume, partially offset by improved operational performance.<\/p>\n

Cash Flow Summary<\/span><\/p>\n

\nDuring the three months ended June 27, 2025, Amentum generated $106 million and $275 million of net cash from operating and investing activities, respectively, and used $203 million in financing activities. Net cash provided by operating activities was driven by strong cash earnings and disciplined working capital management. Net cash provided by investing activities included $360 million in proceeds from the sale of Rapid Solutions which were partially offset by a $70 million payment for the final net working capital position from the CMS merger. Investing activities also included $6 million in capital expenditures which resulted in quarterly free cash flow of $100 million. Financing activities consisted primarily of $200 million in principal payments on our Term Loan. As of June 27, 2025, Amentum had $738 million in cash and cash equivalents and $4.6 billion of gross debt. Subsequent to the quarter end, Amentum made an additional $250 million voluntary principal payment on the Term Loan.<\/p>\n

Backlog and Contract Awards<\/span><\/b><\/p>\n

\nAs of June 27, 2025, the Company had total backlog of $44.6 billion, compared with $26.9 billion as of June 28, 2024, an increase of $17.7 billion primarily due to the acquisition of CMS. Funded backlog as of June 27, 2025 was $5.6 billion.<\/p>\n

Notable Q3 Fiscal Year 2025 Highlights<\/span><\/p>\n