Amentum Holdings 2025 Q4 Earnings Strong Net Income Growth Amid EPS Decline

Amentum Holdings (AMTM) reported Q4 2025 results that exceeded revenue estimates and provided in-line guidance, reflecting mixed performance. The company’s Q4 revenue surged 77.4% year-over-year, outperforming expectations, while non-GAAP EPS of $0.63 beat by $0.04. Management reaffirmed long-term growth themes but acknowledged near-term execution challenges.

Revenue

Amentum Holdings’ total revenue surged to $3.92 billion in Q4 2025, a 77.4% increase from $2.21 billion in the prior-year period. The performance was driven by robust contributions across segments: Digital Solutions generated $1.50 billion, and Global Engineering Solutions accounted for $2.43 billion. This diversified revenue stream underscores the company’s strategic alignment with high-growth markets.

Earnings/Net Income

The company’s earnings per share (EPS) declined 42.9% to $0.16 in Q4 2025 compared to $0.28 in Q4 2024, a concerning trend. However, net income more than doubled to $37 million, a 68.2% increase from $22 million in the prior year. This marked a new two-year record for Q4 net income, highlighting improved operational efficiency. Despite the EPS decline, the net income surge reflects strong cost management and revenue scalability.

Price Action

Amentum’s stock price rose 2.92% in the latest trading day, 18.05% over the past week, and 9.54% month-to-date, indicating short-term investor optimism.

Post-Earnings Price Action Review

The strategy of buying Amentum shares 30 days after quarterly earnings and holding for an additional 30 days has underperformed over the past three years. This approach yielded a -26.98% return, lagging the 11.86% benchmark, with an excess return of -38.85% and a -28.73% CAGR. These results suggest a challenging environment for post-earnings momentum strategies.

CEO Commentary

CEO John Heller emphasized the company’s “remarkable first year as a public company,” with Q4 results exceeding expectations. He highlighted strategic focus areas: global nuclear energy, critical digital infrastructure, and space systems. The CEO expressed confidence in Amentum’s ability to capitalize on industry tailwinds, citing a “robust financial backdrop” and innovation-driven growth.

Guidance

Amentum provided 2026 guidance: revenues of $13.95–$14.3 billion (~3% implied growth), adjusted EBITDA of $1.1–$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 excludes $650 million in revenues and $32 million in adjusted EBITDA from working-day impacts, divestitures, and contract transitions.

Additional News

Amentum secured a $995 million U.S. Air Force contract, expanding its footprint in defense services. CEO John Heller reiterated strategic priorities in global nuclear energy and digital infrastructure, aligning with long-term market trends. Analysts raised the consensus price target to $25, reflecting renewed optimism about the company’s growth potential and contract wins.