Amentum Holdings Reports 72.3% Revenue Growth to $3.416 Billion in Latest Quarter

Amentum Holdings, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $3.416 billion for the three months ended December 27, 2024, a 72.3% increase from $1.983 billion in the same period last year. The company's operating income also rose to $132 million, up from $86 million, while net income attributable to common shareholders improved to $12 million, compared to a loss of $41 million in the prior year. This turnaround in profitability is attributed primarily to the merger with Jacobs Solutions Inc.'s Critical Mission Solutions business, which contributed substantially to revenue growth.

The merger, completed on September 27, 2024, has led to a restructuring of Amentum's operations into two reportable segments: Digital Solutions (DS) and Global Engineering Solutions (GES). The DS segment generated $1.286 billion in revenues, a remarkable 180% increase from $459 million year-over-year, while GES revenues increased by 40% to $2.130 billion. The company also reported a backlog of $45.2 billion as of December 27, 2024, up from $27.3 billion a year earlier, indicating strong future revenue potential.

Operationally, Amentum's workforce has expanded, with approximately 243 million shares of common stock outstanding post-merger. The company reported a net cash inflow of $110 million from operating activities, a significant improvement from the $83 million outflow in the same quarter last year. This increase was driven by higher cash earnings and favorable changes in operating assets and liabilities. Additionally, Amentum's effective tax rate for the quarter was 53.3%, compared to a negative rate of 56.0% in the previous year, reflecting changes in deferred tax asset valuations.

Looking ahead, Amentum remains optimistic about its growth trajectory, bolstered by the merger and a favorable budgetary environment for U.S. government spending. The company anticipates continued demand for its services, particularly in areas such as environmental sustainability and advanced technology solutions. However, it acknowledges potential risks associated with federal budget approvals and contract awards, which could impact future performance. Overall, Amentum's strategic positioning and recent operational changes suggest a positive outlook for the upcoming fiscal periods.