Amentum Holdings, Inc. reported fourth‑quarter and full‑year 2025 results that surpassed analyst expectations, with total revenue of $14.4 billion, up 4% on a pro‑forma basis, and a net income of $66 million. Adjusted EBITDA for the year reached $1,104 million, a 5% increase from the prior year, and adjusted diluted earnings per share were $2.22. The Digital Solutions segment generated $5,543 million in revenue, while Global Engineering Solutions delivered $8,850 million, reflecting continued growth in both core areas.
The company beat consensus estimates on both revenue and earnings. Adjusted diluted EPS of $0.63 for the quarter exceeded the consensus of $0.59 by $0.04, a 6.8% beat, while quarterly revenue of $3.93 billion outpaced the $3.61 billion estimate by $0.32 billion, an 8.8% beat. The upside was driven by strong demand in Digital Solutions, where pricing power and a favorable mix of high‑margin contracts offset modest cost inflation, and by Global Engineering Solutions, which benefited from new large‑scale contracts and a 9% revenue increase in the quarter.
Margin performance remained solid, with adjusted EBITDA margin holding at 7.7% in Digital Solutions and 7.6% in Global Engineering Solutions, slightly above the 7.5% and 7.4% levels seen in the prior year. Operating cash flow rose to $543 million, and net debt fell to $3.6 billion, reducing net leverage to 3.2×. The deleveraging effort, combined with a healthy backlog of $47.1 billion, positions the company to fund future growth and manage interest expense.
Management reiterated its fiscal 2026 guidance, maintaining revenue expectations of $13.95 billion to $14.30 billion and adjusted EBITDA guidance of $1.10 billion to $1.14 billion. The unchanged outlook signals confidence in continued demand in the company’s strategic growth areas—global nuclear energy, critical digital infrastructure, and space systems—while acknowledging the impact of divestitures and joint‑venture accounting changes on headline revenue.
CEO John Heller highlighted the company’s resilience as a public entity, noting that “Amentum’s strong fourth‑quarter results cap off a remarkable first year as a public company. Financial performance exceeded our expectations, demonstrating the resilience of our business and its alignment with enduring global trends and the mission‑critical priorities of our customers.” He added that the firm is well positioned to benefit from tailwinds in its key sectors and that the robust financial position will support future investment and debt repayment.
Investors responded positively to the results, with the market welcoming the earnings beat and the firm’s confidence in its 2026 outlook. The strong backlog, continued margin stability, and ongoing deleveraging reinforce the company’s long‑term strategic objectives.
The earnings release underscores Amentum’s ability to execute on its growth strategy while maintaining financial discipline. The combination of robust revenue growth, margin resilience, and a solid balance sheet provides a foundation for sustained performance in the coming years.
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