Amentum Holdings 2025 Q4 Earnings Record Net Income Surges 68.2% Despite EPS Drop

Amentum Holdings (AMTM) reported Q4 2025 results that exceeded expectations, with non-GAAP EPS of $0.63 beating estimates by $0.04 and revenue rising 77.4% to $3.92 billion. The company provided in-line 2026 guidance, reflecting confidence in its strategic growth areas and operational resilience.

Revenue

Digital Solutions contributed $1.50 billion, while Global Engineering Solutions accounted for $2.43 billion, totaling $3.92 billion in total revenue. This 77.4% year-over-year growth underscores the company’s strong market position in mission-critical services.

Earnings/Net Income

Amentum’s EPS declined 42.9% to $0.16, but net income surged 68.2% to $37 million, marking a two-year record for Q4. Despite the EPS drop, the company’s profitability and revenue growth highlight operational efficiency.

Price Action

The stock gained 2.92% in the latest trading day, 18.05% for the week, and 9.54% month-to-date.

Post-Earnings Price Action Review

The strategy of buying AMTM shares 30 days after earnings and holding for 30 days underperformed, yielding -26.98% versus the benchmark’s 11.86%. With an excess return of -38.85% and a CAGR of -28.73%, the approach reflected declining portfolio value over three years.

CEO Commentary

CEO John Heller emphasized “strong fourth-quarter results” and optimism for 2026, citing resilience in global nuclear energy, digital infrastructure, and space systems. The tone underscored confidence in Amentum’s innovation-driven solutions and market alignment.

Guidance

Amentum provided 2026 guidance: $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).

Additional News

Amentum secured a $995 million U.S. Air Force contract, expanding its defense sector footprint. CEO John Heller highlighted strategic growth in nuclear energy, digital infrastructure, and space systems. Analysts at Seeking Alpha and Zacks Investment Research upgraded the stock’s outlook, citing strong execution and integration efforts. The company’s Quant Rating and Zacks Rank #3 (Hold) reflect cautious optimism amid industry challenges.