AMTM - Amentum Holdings, Inc.

Amentum Holdings provides government technical services including nuclear facility management, environmental remediation, and defense systems engineering and maintenance under cost-plus and fixed-price government contracts. The core customer is the U.S. federal government, particularly the Department of Energy, Department of Defense, and intelligence community, operating on long-term government contracts. Amentum generates approximately $13B in annual revenue, with operations primarily in the United States but with significant international presence supporting allied government clients. The company was spun off from AECOM in 2020 and merged with Jacobs Engineering's government services segment in 2024 to form its current scale.

Past Year Trends

• Amentum completed its spin-off from Jacobs Engineering on September 27, 2024 via a Reverse Morris Trust transaction, merging Jacobs' Critical Mission Solutions and Cyber & Intelligence units into a standalone NYSE-listed company (AMTM), with Jacobs shareholders receiving approximately 51% ownership. (Neutral)
• Revenue reached $14.4 billion in FY2025 (fiscal year ended October 3, 2025) on a pro forma basis, representing 4% growth, while the company paid down $550 million in Term Loan principal and refinanced into a new $1.4 billion Term Loan A, reducing its weighted average cost of debt by 50 basis points and targeting net leverage below 3x. (Bullish)
• Amentum won a $4 billion single-award Space Force Range contract and was named one of six awardees on the $3.5 billion DTRA Cooperative Threat Reduction Integrating Contract IV, contributing to total backlog growing 5% year-over-year to $47.1 billion with a book-to-bill ratio of 1.2x in FY2025. (Bullish)

Next Year Trends

• Amentum's $4 billion Space Force Range contract, awarded in 2025 as a ten-year single-award IDIQ, is expected to ramp task order activity over FY2026, representing a concentrated revenue catalyst given its single-award structure and mission-critical space operations scope. (Bullish)
• With 81% of revenue derived from U.S. government contracts and Q1 FY2026 already showing revenue impact from continuing resolutions, any prolonged federal budget impasse or DOGE-driven discretionary spending cuts in FY2026 could delay contract awards and pressure the $13.975–$14.175 billion revenue guidance range. (Bearish)
• Amentum's $406 million 14-year U.K. small modular reactor joint venture contract, signed in 2025, begins execution over the coming year and represents an early proof point for the company's stated goal of growing its 19–20% commercial and international revenue mix to reduce U.S. government concentration risk. (Bullish)

Red Flags

No severe red flags identified as of August 2025.