Amentum Holdings 2025 Q2 Earnings Strong Turnaround as Net Income Swings 104.8%

Amentum Holdings reported its fiscal 2025 Q2 earnings on May 06th, 2025. The company exceeded expectations, achieving a remarkable turnaround with a 104.8% positive swing in net income compared to the same quarter last year. Amentum reaffirmed its fiscal year 2025 guidance, maintaining stable revenue and earnings projections. With consistent operational execution, the company is poised to capitalize on market opportunities and deliver sustained growth.

Revenue
Amentum Holdings saw its total revenue increase by 70.2% to $3.49 billion in Q2 2025, up from $2.05 billion in Q2 2024. Within its business segments, Digital Solutions generated $1.34 billion, showcasing significant growth, while Global Engineering Solutions contributed $2.15 billion, reinforcing Amentum's position in the engineering sector.

Earnings/Net Income
In Q2 2025, Amentum Holdings returned to profitability with an EPS of $0.02, reversing from a loss of $0.46 per share in Q2 2024, marking a 104.3% positive change. The net income achieved a remarkable turnaround to $2 million, a 104.8% positive swing from the previous year's net loss of $42 million. This performance indicates a favorable outlook for EPS.

Price Action
The stock price of Amentum Holdings edged up 2.17% during the latest trading day, decreased by 0.36% over the most recent full trading week, and surged by 20.82% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Amentum Holdings shares after a quarter-over-quarter revenue increase and holding them for 30 days has consistently delivered strong returns over the past five years. This approach yielded a 25.59% return, significantly outperforming the benchmark's -6.35% return, generating an excess return of 31.94%. The strategy demonstrated a robust compound annual growth rate (CAGR) of 50.70%, indicating effective compounding. Despite experiencing a maximum drawdown of -6.72%, the strategy maintained a reasonable Sharpe ratio of 1.95, suggesting acceptable risk-adjusted returns. With a volatility rate of 26.04%, the strategy's returns were broadly supported by diverse contributors, minimizing reliance on any single factor.

CEO Commentary
Amentum Chief Executive Officer John Heller emphasized the solid quarterly performance, highlighting the strength of the mission-focused portfolio and consistent market demand. He noted that the recent divestiture of Rapid Solutions enhances Amentum's financial flexibility and reinforces its position as a premier provider of advanced engineering and technology solutions. Heller underscored the company's commitment to delivering differentiated value to customers while pursuing long-term growth through disciplined execution.

Guidance
Amentum reaffirmed the mid-points of its previous guidance for fiscal year 2025, expecting continued demand across its markets and focusing on driving long-term growth. The outlook remains positive, maintaining stability as operational execution continues to be a priority in achieving strategic objectives.

Additional News
Amentum Holdings recently announced a strategic partnership with Rivada Space Networks to enhance secure low earth orbit connectivity for U.S. government communications. This collaboration aims to strengthen digital infrastructure globally. Furthermore, Amentum agreed to divest its Rapid Solutions hardware and product business to Lockheed Martin for $360 million, expected to close in the second half of 2025. The company also appointed Corhyn Parr as Vice President of International Business Development, bringing extensive nuclear industry experience to expand Amentum's global presence in defense, energy, and environment sectors.