Amentum Holdings Inc
NYSE:AMTM
Amentum Holdings Inc
Amentum Holdings Inc., a formidable player in the realm of government services, emerged as a distinct entity in February 2020 after acquiring the sprawling legacy of AECOM's management services division. This acquisition marked the company's distinct identity, positioning it as a leader in the government and commercial services industry. Operating from its headquarters in Germantown, Maryland, Amentum brings together a highly skilled workforce across the globe, offering complex services in engineering, project management, and logistics. The company excels in serving critical mission areas such as defense, energy, and environment by providing infrastructure modernization, technical and advisory services, and operations and maintenance solutions, thus reinforcing its reputation as a versatile and resilient contributor to national security and public safety.
Amentum's business model thrives on long-term contracts with government agencies, positioning itself as an indispensable partner in fulfilling the intricate requirements of its clientele. It consolidates its revenue by executing projects that tap into diverse sectors such as intelligence, nuclear decommissioning, and commercial contracts. Its strength lies in crafting tailor-made solutions that meet the high-stakes demands of its customers, thereby establishing a robust and recurring cash flow. Furthermore, by maintaining a competitive edge through innovation and an unwavering commitment to quality, Amentum continues to navigate the complexities of global operations, ensuring steady growth in a sector marked by constant evolution and increasing demands.
Amentum Holdings Inc., a formidable player in the realm of government services, emerged as a distinct entity in February 2020 after acquiring the sprawling legacy of AECOM's management services division. This acquisition marked the company's distinct identity, positioning it as a leader in the government and commercial services industry. Operating from its headquarters in Germantown, Maryland, Amentum brings together a highly skilled workforce across the globe, offering complex services in engineering, project management, and logistics. The company excels in serving critical mission areas such as defense, energy, and environment by providing infrastructure modernization, technical and advisory services, and operations and maintenance solutions, thus reinforcing its reputation as a versatile and resilient contributor to national security and public safety.
Amentum's business model thrives on long-term contracts with government agencies, positioning itself as an indispensable partner in fulfilling the intricate requirements of its clientele. It consolidates its revenue by executing projects that tap into diverse sectors such as intelligence, nuclear decommissioning, and commercial contracts. Its strength lies in crafting tailor-made solutions that meet the high-stakes demands of its customers, thereby establishing a robust and recurring cash flow. Furthermore, by maintaining a competitive edge through innovation and an unwavering commitment to quality, Amentum continues to navigate the complexities of global operations, ensuring steady growth in a sector marked by constant evolution and increasing demands.
Solid Results: Amentum delivered Q1 revenue of $3.24 billion, adjusted EBITDA of $263 million with 8.1% margin, and adjusted diluted EPS of $0.54, up 6% year-over-year, in line with expectations despite a lengthy government shutdown.
Backlog Strength: Backlog grew 4% to over $47 billion, with net bookings of $3.3 billion and a book-to-bill of 1x for the quarter and 1.1x for the last 12 months.
Nuclear Momentum: Over $1 billion in nuclear contract awards in Q1, highlighting this area as a key growth engine, especially in Europe, with US activity expected to accelerate over the coming quarters.
Margin Expansion: EBITDA margin rose 40 basis points year-over-year, reaching 8.1%, thanks to higher-margin work, cost synergies, and disciplined execution.
Free Cash Flow: Q1 free cash flow was negative due to timing (extra pay cycle and government closure), but collections rebounded strongly in early Q2 and full-year free cash flow guidance is reaffirmed.
Guidance Reaffirmed: Management reaffirmed full-year guidance: revenue of $13.95–$14.3 billion, adjusted EBITDA of $1.1–$1.14 billion, adjusted diluted EPS of $2.25–$2.45, and free cash flow of $525–$575 million.
Growth Markets: Accelerating growth seen in nuclear energy, space systems, and critical digital infrastructure, with robust pipelines and strong win rates in these segments.
Capital Structure: Targeting net leverage below 3x by year-end, with $247 million cash and an undrawn $850 million revolver; Moody's credit upgrade reduced interest expense.
