Amentum Reports 70.2% Revenue Growth to $3.49 Billion Following Jacobs Merger

Amentum Holdings, Inc. reported significant financial growth in its latest quarterly results, driven primarily by its merger with Jacobs Solutions Inc.'s Critical Mission Solutions (CMS) business. For the three months ending March 28, 2025, the company generated revenues of $3.49 billion, a 70.2% increase from $2.05 billion in the same period last year. The six-month revenue figures also reflected substantial growth, reaching $6.91 billion compared to $4.03 billion in the prior year, marking a 71.2% increase. The company's operating income for the quarter was $110 million, up from $89 million a year earlier, while net income attributable to common shareholders was $4 million, a turnaround from a loss of $41 million in the previous year.

The financial performance was bolstered by the integration of CMS, which contributed significantly to both revenue and operational metrics. Cost of revenues increased to $3.12 billion for the quarter, reflecting the higher revenue volume, but the cost as a percentage of revenue decreased slightly to 89.5% from 90.2% year-over-year. Selling, general, and administrative expenses also rose to $145 million, primarily due to the merger-related costs, which increased SG&A as a percentage of revenue to 4.2% from 3.5%. The company reported an effective tax rate of 91.7% for the quarter, compared to a negative rate of 90.9% in the prior year, largely due to a valuation allowance against a deferred tax asset.

Amentum's operational developments included a strategic realignment of its reporting structure into two segments: Digital Solutions (DS) and Global Engineering Solutions (GES). The DS segment, which focuses on advanced digital solutions, reported revenues of $1.34 billion for the quarter, a substantial increase from $471 million a year ago. The GES segment also saw growth, with revenues of $2.15 billion, up from $1.58 billion. The company’s total backlog as of March 28, 2025, was $44.8 billion, a significant increase from $27.2 billion a year earlier, indicating strong future revenue potential.

Looking ahead, Amentum is optimistic about its growth trajectory, supported by a favorable budgetary environment for U.S. government spending, particularly in defense and technology sectors. The company anticipates continued demand for its services, driven by increasing government focus on modernization and sustainability initiatives. Additionally, Amentum has announced plans to divest its Rapid Solutions hardware and product business to Lockheed Martin for $360 million, which is expected to further enhance its financial position and support debt reduction efforts. The company remains committed to leveraging its expanded capabilities and market position to drive future growth.