Amentum reported $3.4 billion in first-quarter revenues for fiscal year 2025, reflecting a 2.3 percent increase on a pro forma basis driven by growth in the company’s digital and global engineering solutions segments.
Q1 Fiscal 2025 Results
In an earnings release published Tuesday, Amentum said its generally accepted accounting principles, or GAAP, revenues increased 72 percent year over year, driven by the company’s merger with Jacobs’ critical mission solutions, or CMS, and cyber and intelligence businesses.
As of Dec. 27, 2024, the Chantilly, Virginia-based government technology company’s total backlog was $45.2 billion, of which about $6.6 billion was funded.
For the first quarter, Amentum posted $102 million in free cash flow, $0.51 in adjusted diluted earnings per share and $262 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA.
“We are off to a strong start as a newly combined company,” said John Heller, CEO of Amentum and a nine-time Wash100 awardee.
“Our first quarter results were robust and in line with our expectations across all key financial metrics, including organic growth and free cash flow. This solid start to the year, coupled with strong bid volume and growing momentum, position Amentum to meet our fiscal year 2025 commitments and drive long-term value for shareholders,” added the 2025 Wash100 Award recipient.
Realizing Value From the Merger
During its earnings call presentation on Wednesday, Amentum stated that it is working to unlock value from the combination by accelerating growth prospects, advancing technology platforms and progressing people and culture.
To advance growth prospects, the company has launched enterprise capture operations to pursue $1 billion worth of opportunities through FY 2026, recorded $12 billion in Q1 submissions and leveraged benefits of scale to strengthen proposals and improve cost competitiveness.
When it comes to tech solutions, the contractor has established tech advisory councils for priority tech areas, driven innovation through engineering centers of excellence to improve customer proposals and contract execution and identified tech-enabled platforms to cross-sell across markets.
Addressing National Security, Modernization Challenges
At the call, Amentum said it is well-positioned to support the U.S. government’s transformation efforts and address national security and modernization challenges.
The company discussed how it supports the Department of Defense’s modernization efforts.
These include supporting the development of next-generation electronic warfare/ISR airborne systems; providing research, development and engineering platforms for C5ISR systems to advance the priorities of U.S. Indo-Pacific Command; and migrating legacy systems for engineering and design projects using advanced digital techniques for the U.S. Navy.
FY 2025 Guidance
Amentum reaffirmed its outlook for FY 2025, expecting to record revenues of $13.8 billion to $14.2 billion and adjusted EBITDA of between $1.06 billion and $1.1 billion.
The contractor anticipates reporting adjusted diluted EPS of $2 to $2.20 per share for the full fiscal year and expects its FY 2025 free cash flow to range between $475 million and $525 million.
