Amentum Holdings 2025 Q4 Earnings Strong Performance as Net Income Surges 68.2%

Amentum Holdings (AMTM) delivered robust revenue growth while exceeding non-GAAP EPS expectations in Q4 2025. The company reported $3.92 billion in revenue (+77.4% YoY) and $0.63 non-GAAP EPS, outperforming both Wall Street forecasts. Guidance for 2026 reflects confidence in maintaining momentum, with revenue and earnings targets aligned with strategic market tailwinds.

Revenue

Digital Solutions and Global Engineering Solutions drove Amentum’s record revenue performance. Digital Solutions generated $1.50 billion, while Global Engineering Solutions contributed $2.43 billion, resulting in total revenue of $3.92 billion—a 77.4% year-over-year increase. The outperformance underscores the company’s ability to capitalize on high-growth sectors like digital infrastructure and engineering services.

Earnings/Net Income

Despite a 42.9% decline in GAAP EPS to $0.16, the company’s net income surged 68.2% to $37 million in Q4 2025, marking a two-year high. This improvement reflects operational efficiency and cost discipline, with non-GAAP metrics (excluding one-time items) showing $0.63 EPS, $0.04 above estimates.

Post-Earnings Price Action Review

The strategy of purchasing AMTM shares 30 days post-earnings and holding for another 30 days yielded a -26.98% return over three years, significantly underperforming the 11.86% benchmark. With an excess return of -38.85% and a CAGR of -28.73%, the approach highlights persistent volatility and risk.

CEO Commentary

CEO John Heller emphasized Amentum’s “remarkable first year as a public company,” citing Q4 results as exceeding expectations. He highlighted strategic growth areas—global nuclear energy, digital infrastructure, and space systems—as key drivers for 2026. The company’s “robust financial backdrop” and leadership in accelerating markets position it for momentum in the coming year.

Guidance

Amentum outlined 2026 targets: $13.95–$14.3 billion revenue (~3% growth), $1.1–$1.14 billion Adjusted EBITDA (~5% growth), $2.25–$2.45 Adjusted Diluted EPS (~12% growth), and $525–$575 million Free Cash Flow (~12% growth). Adjustments for 2025 working days, divestitures, and contract transitions underpin the guidance, reflecting disciplined execution.

Additional News

Amentum secured a $995 million U.S. Air Force contract, expanding its defense capabilities. CEO John Heller reiterated focus on global nuclear energy and space systems as growth pillars. Analysts raised the consensus price target to $25, reflecting optimism about the company’s long-term potential. These developments highlight Amentum’s strategic positioning and operational resilience beyond quarterly results.

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