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Amentum Holdings, Inc. (AMTM)
NYSE:AMTM
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Amentum Holdings, Inc.
(NYSE:AMTM)
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Select Model
Rating:53Neutral
Price Target:
$24.50
▲(7.22% Upside)
Amentum Holdings, Inc. receives a moderate score due to mixed financial performance and high valuation concerns. The positive sentiment from the earnings call and strategic contract wins provide some optimism, but the company's high debt levels and profitability challenges weigh heavily on the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth showcases Amentum's ability to expand its market reach and maintain strong client relationships, particularly in government contracts, which are a stable revenue source.
Contract Wins
Securing major contracts enhances Amentum's market position and provides long-term revenue visibility, reinforcing its leadership in defense and nuclear sectors.
Job Creation and Industry Growth
Expansion in the UK nuclear and defense sectors indicates strategic growth and alignment with global energy trends, supporting long-term business sustainability.
Negative Factors
Profitability Challenges
Persistent profitability issues could hinder Amentum's ability to reinvest in growth and innovation, affecting its competitive edge and financial health.
High Leverage
A high leverage ratio limits financial flexibility and increases risk, potentially impacting Amentum's ability to finance new projects or weather economic downturns.
Contract Protest
Contract protests can delay project execution and revenue recognition, creating uncertainty in financial projections and operational planning.
Amentum Holdings, Inc. (AMTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.57B
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)107.0
Beta (1Y)1.21
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.56
Shares Outstanding243,328,640
10 Day Avg. Volume1,493,640
30 Day Avg. Volume1,781,913
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)1.40
Price to Sales (P/S)0.74
P/FCF Ratio173.49
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit10.88
Enterprise Value/Ebitda11.32
Forecast
1Y Price Target
$28.06Price Target Upside22.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Amentum Holdings, Inc. Business Overview & Revenue Model
Company DescriptionAmentum Holdings, Inc. provides mission-critical, technology-driven services in government and commercial markets. It operates through two operating segments: Critical Mission Solutions and Cyber & Intelligence. The Critical Mission Solutions segment provides test, training, and operations services for missile defense systems, IT and engineering services to defense clients and the space sector, technological solutions, including installations, decommissioning, and environmental remediation to energy clients, and other highly technical consulting solutions. The Cyber & Intelligence segment provides advanced cyber training and data analytics for government professionals, advanced communication systems and aerial mapping technologies to national security clients, and other technical services for United States defense and intelligence clients. The company was founded on November 26, 2019 and is headquartered in Chantilly, VA.
How the Company Makes MoneyAmentum makes money primarily through contracts with government agencies and commercial clients. The company secures long-term contracts to provide technical and engineering services, which include maintenance, logistics, training, and support for complex systems and infrastructures. Key revenue streams include defense and government services, where Amentum provides mission-critical support and operational services. Significant partnerships with government entities and adherence to contractual obligations play a crucial role in its earnings. The company's revenue model is heavily reliant on its ability to win competitive bids and renew existing contracts, ensuring a steady flow of income.
Amentum Holdings, Inc. Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant achievements in revenue growth, net leverage reduction, and major contract wins, despite some temporary challenges related to divestitures and contract protests.Q3-2025 Updates
Positive Updates
Revenue and Growth Metrics
Amentum reported revenues of $3.6 billion, reflecting 2% growth, and an adjusted EBITDA of $274 million, marking 7% year-over-year growth. Free cash flow was $100 million.
Net Leverage Reduction
Amentum reduced its net leverage ratio to 3.5x, ahead of original expectations, by repaying $200 million in debt during the quarter and an additional $250 million subsequently.
Strong Bookings and Backlog
Reported $3.4 billion in net bookings this quarter and ended with $29 billion in pending awards and a total backlog of $45 billion, representing 3.2x annual revenue.
Significant Contract Wins
Awarded the $4 billion Space Force Range Contract and a CAD 1.2 billion annually valued contract for Canadian Nuclear Laboratories. Secured over $2 billion in bookings from on-contract growth modifications.
Nuclear Market Growth
Amentum is well-positioned in the nuclear market, working on 29 projects with over 50 projects in capture over the next 3 years, supported by favorable U.S. investment environment and executive orders.
Raising Full Year Guidance
Increased full-year revenue expectations to $13.975 billion to $14.175 billion, adjusted EBITDA remains at $1.065 billion to $1.095 billion with a minor $5 million underlying organic increase.
Negative Updates
Divestitures Impact
Completed divestitures of Rapid Solutions and New Zealand facilities maintenance business, which may have short-term revenue impacts.
Space Force Contract Protest
The Space Force Range Contract award is currently under protest, excluding it from the third quarter backlog or book-to-bill results.
Funded Backlog Decline
A decline in the funded backlog due to the transition of the new administration and contracting officer workforce impacts.
Company Guidance
During Amentum's third quarter fiscal year 2025 earnings call, the company provided updated guidance reflecting strong performance and optimistic future prospects. Amentum reported revenues of $3.6 billion, marking a 2% growth, and an adjusted EBITDA of $274 million, representing a 7% year-over-year increase. The company also generated free cash flow of $100 million. Amentum successfully reduced its net leverage ratio to 3.5x, ahead of original expectations, and remains on track to achieve at least $30 million in net run rate cost synergies by the end of the fiscal year. The company's backlog reached $45 billion, equating to 3.2x annual revenue, with a book-to-bill ratio of 1x for the quarter. The call highlighted Amentum's alignment with key global trends and strategic wins, including a $4 billion Space Force Range Contract and significant awards in nuclear solutions, demonstrating its leadership in national security and infrastructure modernization.Amentum Holdings, Inc. Financial Statement Overview
Summary
Amentum Holdings, Inc. demonstrates strong revenue growth but faces challenges in profitability and leverage. The company's high debt levels and negative return on equity raise concerns about financial stability. While cash flow generation shows improvement, the overall financial health is mixed, with significant room for enhancing profitability and reducing leverage.Income Statement
Amentum Holdings, Inc. shows a strong revenue growth rate of 17.61% in the TTM period, indicating robust top-line expansion. However, the company struggles with profitability, as evidenced by a negative net profit margin of -1.11% and declining gross profit margins over time. The EBIT and EBITDA margins are relatively low, suggesting challenges in operational efficiency.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 1.06 in the TTM period, indicating significant leverage. Return on equity is negative, highlighting profitability challenges. The equity ratio is not provided, but the overall leverage and negative ROE suggest potential financial instability.40
Negative
Cash Flow
The cash flow statement shows a positive free cash flow growth rate of 35.85% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.03, reflecting limited cash flow relative to net income. The free cash flow to net income ratio is relatively strong at 0.80, suggesting some efficiency in converting earnings to cash.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 12.68B | 8.39B | 7.86B | 7.68B |
| Gross Profit | 880.00M | 570.00M | 483.35M | 498.55M |
| EBITDA | 846.00M | 566.00M | 381.74M | 380.80M |
| Net Income | 52.00M | -82.00M | -313.70M | -84.42M |
Balance Sheet | ||||
| Total Assets | 11.81B | 11.97B | 6.41B | 4.22B |
| Cash, Cash Equivalents and Short-Term Investments | 738.00M | 452.00M | 305.00M | 207.00M |
| Total Debt | 43.00M | 4.94B | 4.33B | 121.00M |
| Total Liabilities | 7.22B | 7.42B | 6.00B | 919.00M |
| Stockholders Equity | 4.46B | 4.46B | 374.24M | 3.26B |
Cash Flow | ||||
| Free Cash Flow | 72.00M | 36.00M | 55.00M | 108.00M |
| Operating Cash Flow | 73.00M | 47.00M | 67.39M | 126.02M |
| Investing Cash Flow | 719.39M | 475.00M | -4.23M | -1.79B |
| Financing Cash Flow | -423.73M | -382.00M | -125.13M | 1.72B |
Amentum Holdings, Inc. Technical Analysis
Negative
22.85
Price Trends
24.05
Negative
23.87
Negative
22.08
Positive
Market Momentum
-0.29
Positive
42.35
Neutral
16.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTM, the sentiment is Negative. The current price of 22.85 is below the 20-day moving average (MA) of 23.78, below the 50-day MA of 24.05, and above the 200-day MA of 22.08, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMTM.
Amentum Holdings, Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.55B | 30.97 | 11.32% | 0.56% | 4.77% | 4.50% | |
73 Outperform | $7.65B | 174.37 | 4.70% | ― | 26.15% | 251.10% | |
67 Neutral | $5.03B | 58.71 | 5.63% | 1.03% | 1.92% | -15.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $4.62B | ― | -2.57% | ― | 9.19% | 72.88% | |
53 Neutral | $5.57B | 107.02 | 2.20% | ― | ― | ― | |
41 Neutral | $4.57B | ― | ― | ― | -2.60% | -94.76% |
* Industrials Sector Average
AMTM
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-20.85%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.