Amentum Holdings 2025 Q4 Earnings Strong Net Income Growth of 68.2%

Amentum Holdings (AMTM) delivered a mixed performance in its Q4 2025 earnings report, with revenue exceeding expectations but EPS declining year-over-year. The company provided raised fiscal 2026 guidance, reflecting optimism about its strategic initiatives and market positioning.

Revenue

Amentum Holdings reported a 77.4% year-over-year revenue increase to $3.92 billion in Q4 2025, driven by robust performance across its core segments. Digital Solutions contributed $1.50 billion, while Global Engineering Solutions added $2.43 billion, underscoring the company’s diversified revenue streams. The growth highlights strong demand for technology-driven services and engineering solutions in both government and commercial markets.

Earnings/Net Income

Despite a 42.9% decline in EPS to $0.16, Amentum Holdings’ net income surged 68.2% year-over-year to $37 million in Q4 2025. This marked a record high for Q4 net income in two years, demonstrating improved profitability despite lower per-share earnings.

Price Action

The stock price of Amentum Holdings gained 2.92% in the latest trading day, 18.05% over the past week, and 9.54% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, Amentum Holdings’ shares surged 8.51% in after-hours trading, reacting positively to the revenue beat and strong net income growth. While the EPS miss initially weighed on sentiment, the company’s record profitability and raised 2026 guidance fueled optimism. Analysts noted that the stock’s performance may hinge on management’s ability to sustain growth in strategic areas like global nuclear energy and space systems.

CEO Commentary

Amentum CEO John Heller emphasized the company’s “remarkable first year as a public company,” citing resilience and alignment with global trends. He highlighted strategic growth areas—global nuclear energy, critical digital infrastructure, and space systems—as key drivers for 2026.

Guidance

Amentum Holdings provided fiscal 2026 guidance: revenues of $13.95–$14.30 billion (~3% growth), Adjusted EBITDA of $1.10–$1.14 billion (~5% growth), Adjusted Diluted EPS of $2.25–$2.45 (~12% growth), and Free Cash Flow of $525–$575 million (~12% growth). The guidance accounts for adjustments to 2025 results, including working-day impacts, divestitures, and contract transitions.

Additional News

Amentum Services secured a $995 million U.S. Air Force contract, bolstering its position in defense services. The CEO reiterated confidence in innovation leadership and “robust financial backdrops.” Analyst Tobey Sommer from Truist Financial raised the price target to $31, reflecting optimism about the company’s long-term potential.

The consensus price target for Amentum Holdings has risen to $25 in the last month, reflecting growing analyst optimism. Recent strategic wins, including the Air Force contract, and strong Q4 performance have reinforced confidence in its growth trajectory.