Amentum Holdings 2025 Q4 Earnings Record Net Income Despite EPS Decline

Amentum Holdings (AMTM) delivered a mixed performance in Q4 2025, with revenue surging 77.4% year-over-year but EPS declining. The company exceeded revenue estimates and provided optimistic 2026 guidance, signaling confidence in strategic growth areas.

Revenue

Amentum Holdings reported a 77.4% year-over-year revenue increase to $3.92 billion in Q4 2025, driven by strong demand across its segments. Global Engineering Solutions led the growth, contributing $2.43 billion, while Digital Solutions added $1.50 billion. The combined performance underscored the company’s diversified revenue streams and alignment with high-growth markets like digital infrastructure and nuclear energy.

Earnings/Net Income

Despite a 42.9% decline in EPS to $0.16 in Q4 2025 from $0.28 in Q4 2024, Amentum Holdings achieved a record $37 million in net income, a 68.2% increase from $22 million in the prior year. The disparity between EPS and net income highlights cost management and operational efficiencies, though investors should note the earnings contraction at the per-share level.

Price Action

The stock price of Amentum Holdings has shown resilience in the short term, rising 2.92% on the latest trading day, 18.05% for the week, and 9.54% month-to-date. However, long-term investors remain cautious.

Post-Earnings Price Action Review

The strategy of buying Amentum Holdings shares 30 days after quarterly earnings reports and holding for 30 days has underperformed significantly over the past three years. With a -26.98% return, it lagged the 11.86% benchmark, resulting in a -38.85% excess return and a -28.73% CAGR. This suggests that post-earnings momentum has not historically supported long-term gains.

CEO Commentary

CEO John Heller emphasized Amentum’s “remarkable first year as a public company,” citing Q4 results exceeding expectations and a $47 billion backlog as key strengths. He expressed confidence in fiscal 2026, driven by momentum in nuclear energy, digital infrastructure, and space systems.

Guidance

Amentum outlined 2026 guidance with $13.95–$14.3 billion in revenue (3% implied growth), Adjusted EBITDA of $1.1–$1.14 billion (5% growth), and Adjusted Diluted EPS of $2.25–$2.45 (12% growth). Free Cash Flow is projected at $525–$575 million, reflecting a 12% increase. The guidance excludes non-recurring items like divestitures and contract transitions.

Additional News

Recent developments highlight Amentum’s strategic momentum. The company secured a $995 million U.S. Air Force contract, bolstering its backlog and positioning in defense services. Analysts also raised the consensus price target to $25, reflecting optimism about long-term growth. CEO John Heller’s emphasis on innovation and market alignment further reinforces investor confidence in the company’s ability to capitalize on global trends.