Amentum Holdings 2025 Q3 Earnings Strong Performance as Net Income Surges 95.8%

Amentum Holdings (AMTM) reported its fiscal 2025 Q3 earnings on Aug 06th, 2025. The company significantly outperformed expectations with a sharp turnaround in profitability and a substantial revenue increase. Amentum raised its full-year guidance, signaling improved operational performance and strategic momentum.

Revenue
Amentum Holdings achieved a 66.2% year-over-year revenue increase, reaching $3.56 billion in the third quarter of 2025. The growth was driven by robust performance across its key business units, with the Global Engineering Solutions segment contributing $2.14 billion and the Digital Solutions segment adding $1.42 billion to the total.

Earnings/Net Income
The company returned to profitability with an EPS of $0.04 in 2025 Q3, representing an 113.8% improvement from a loss of $0.29 per share a year ago. Amentum also drastically reduced its net loss, narrowing it to just $1 million in the quarter, down 95.8% from $24 million in 2024 Q3. This marked a record high for fiscal Q3 net income in over two years, reflecting a strong earnings turnaround.

Price Action
AMTM shares showed positive momentum, with the stock climbing 4.76% on the latest trading day, 1.36% over the past week, and 4.54% month-to-date.

Post-Earnings Price Action Review
Despite the strong earnings, a buy-and-hold strategy of 30 days following a revenue increase quarter-over-quarter has historically underperformed over the past three years. This strategy returned -12.46%, lagging behind the benchmark by 22.76%. The strategy is also marked by high volatility, with a Sharpe ratio of -0.25 and a maximum drawdown of 0%. This suggests elevated risk for investors relying on this approach.

CEO Commentary
Amentum CEO John Heller highlighted the company's momentum in the third quarter, driven by successful integration efforts, a mission-focused portfolio, and a favorable budget environment. He emphasized the strategic benefits of the Rapid Solutions divestiture, which enhanced the company’s financial flexibility. Heller expressed optimism about Amentum’s long-term value creation and its positioning to capitalize on global market trends.

Guidance
Amentum Holdings raised its full-year organic guidance for fiscal 2025, citing operational improvements and the growth of its Digital Solutions segment. While specific numeric targets were not disclosed, the company conveyed confidence in its future trajectory and ongoing strategic initiatives.

Additional News
In the three weeks following its Q3 earnings report, Amentum announced the completion of the divestiture of its Rapid Solutions unit, which has significantly enhanced its balance sheet and strategic focus. Additionally, the company announced a new executive appointment to its senior leadership team, with Sarah Nguyen joining as Chief Transformation Officer. Nguyen brings extensive experience in operational excellence and digital transformation. Lastly, Amentum confirmed plans to establish a new technology innovation center in Austin, Texas, aimed at accelerating its digital capabilities and supporting future growth.