Amentum Reports Strong Fourth Quarter and Fiscal Year 2025 Results

Dow Jones Newswires

Annual Revenues of $14.4 billion, 4% growth on a pro forma basis

Annual Net Income of $66 million; Annual Adjusted EBITDA of $1,104 million

Annual Diluted Earnings Per Share of $0.27; Annual Adjusted Diluted Earnings Per Share of $2.22

Annual Operating Cash Flow of $543 million; Annual Free Cash Flow of $516 million

Backlog of $47 billion; Book-to-Bill — 1.6x Fourth Quarter, 1.2x Full Year

Reduced Net Debt to $3.6 billion and Net Leverage to 3.2x

CHANTILLY, Va--(BUSINESS WIRE)--November 24, 2025--

Amentum Holdings, Inc. ("Amentum" or the "Company") , a leading advanced engineering and technology company, today announced results for the fourth quarter and fiscal year ended October 3, 2025, and issued guidance for fiscal year 2026.

"Amentum's strong fourth quarter results cap off what has been 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," said Amentum Chief Executive Officer John Heller. "Looking ahead, Amentum is well positioned to benefit from tailwinds in key strategic growth areas including global nuclear energy, critical digital infrastructure, and space systems and technology. With a robust financial backdrop, recognized leadership in accelerating global markets, and a team focused on delivering innovative solutions, we enter fiscal year 2026 with significant momentum and excitement for the future."

 
Summary 
Operating 
Results 
---------------- 
                       Three Months Ended                Year Ended 
                  ----------------------------  ---------------------------- 
($ in millions,   October                       October 
except per share    3,     September              3,     September 
data)              2025    27, 2024   % Change   2025    27, 2024   % Change 
                  -------  ---------  --------  -------  ---------  -------- 
GAAP Measures: 
Revenues          $3,925    $2,212      77%     $14,393   $8,388      72% 
Operating income   $135       $27       400%     $480      $291       65% 
Net income 
 (loss)             $40       $26       54%       $66      $(82)      180% 
Diluted earnings 
 (loss) per 
 share             $0.16     $0.28     (42)%     $0.27    $(0.90)     130% 
 
Pro Forma and Non-GAAP 
Measures(1,2) : 
Revenues          $3,925    $3,565      10%     $14,393   $13,858      4% 
Adjusted 
 EBITDA(2)         $300      $277        8%     $1,104    $1,049       5% 
Adjusted EBITDA 
 Margin(2)         7.7%      7.8%     (10) bps   7.7%      7.6%     +10 bps 
Adjusted Diluted 
 Earnings Per 
 Share(2)          $0.63     $0.48      31%      $2.22     $2.00      11% 
Free Cash 
 Flow(2)           $261       N/A       N/A      $516       N/A       N/A 
 
1 -- September 27, 2024 Revenues and Non-GAAP financial measures are 
presented on a pro forma basis to include the results of Jacobs' Critical 
Mission Solutions and Cyber & Intelligence (CMS) businesses prepared in 
accordance with the requirements of Article 11 of Regulation S-X. 
2 -- Non-GAAP financial measures should be considered in addition to, but 
not as a substitute for, the information provided in accordance with GAAP. 
Management believes that these non-GAAP measures provide another measure of 
Amentum's results of operations and financial condition, including its 
ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP 
Financial Measures at the end of this press release for more information and 
a reconciliation of our selected reported results to these non-GAAP 
measures.

GAAP Results

GAAP revenues increased 77% for the fourth quarter and 72% for the full year primarily as a result of revenues from the combination with Jacobs' Critical Mission Solutions and Cyber & Intelligence (CMS) businesses. GAAP operating income increased as a result of the contribution from CMS, partially offset by increased intangible amortization expense. GAAP net income and diluted earnings per share improved year-over-year due to higher operating income and lower interest expense.

Pro Forma and Non-GAAP Results

Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 10% for the fourth quarter and 4% for the full year driven by growth in both Digital Solutions and Global Engineering Solutions. Pro Forma Adjusted EBITDA increased 8% for the fourth quarter and 5% for the full year primarily due to the higher revenues and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased primarily as a result of the higher operating profit.

Pro Forma and Non-GAAP Segment Results

 
                       Three Months Ended                Year Ended 
                  ----------------------------  ---------------------------- 
                  October                       October 
                    3,     September              3,     September 
($ in millions)    2025    27, 2024   % Change   2025    27, 2024   % Change 
                  -------  ---------  --------  -------  ---------  -------- 
Revenues(1) 
    Digital 
     Solutions    $1,496    $1,345      11%     $5,543    $5,197       7% 
    Global 
     Engineering 
     Solutions     2,429     2,220       9%      8,850     8,661       2% 
                  -------  ---------            -------  --------- 
Total Revenues    $3,925    $3,565      10%     $14,393   $13,858      4% 
                  =======  =========            =======  ========= 
 
Adjusted 
EBITDA(2) 
    Digital 
     Solutions     $116      $111        5%      $437      $404        8% 
    Global 
     Engineering 
     Solutions      184       166       11%       667       645        3% 
                  -------  ---------            -------  --------- 
Total Adjusted 
 EBITDA            $300      $277        8%     $1,104    $1,049       5% 
                  =======  =========            =======  ========= 
 
1 -- September 27, 2024 Revenues and Non-GAAP financial measures are 
presented on a pro forma basis. 
2 -- Non-GAAP financial measures should be considered in addition to, but 
not as a substitute for, the information provided in accordance with GAAP. 
Management believes that these non-GAAP measures provide another measure of 
Amentum's results of operations and financial condition, including its 
ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP 
Financial Measures at the end of this press release for more information and 
a reconciliation of our selected reported results to these non-GAAP 
measures.

Digital Solutions revenues increased 11% for the fourth quarter and 7% for the full year, driven by higher volume from new commercial digital infrastructure contract awards and the benefit of additional working days; partially offset by the expected ramp-down of certain historical programs and the divestiture of Rapid Solutions. Adjusted EBITDA increased 5% for the fourth quarter and 8% for the full year due to the higher revenues and improved operating performance.

Global Engineering Solutions revenues increased 9% for the fourth quarter and 2% for the full year, driven by new contract awards, growth on existing programs, and the benefit of additional working days; partially offset by the transition of contracts from consolidated to unconsolidated joint ventures and the expected ramp-down of certain historical programs. Adjusted EBITDA increased 11% for the fourth quarter and 3% for the full year due to the higher revenues and improved operating performance.

Cash Flow Summary

During the three months ended October 3, 2025, Amentum generated $270 million of net cash from operating activities and used $8 million and $559 million of cash in investing and financing activities, respectively. Net cash provided by operating activities was driven by strong cash earnings and disciplined working capital management. Net cash used in investing activities included $7 million in capital expenditures which resulted in quarterly free cash flow of $261 million. Financing activities consisted primarily of $550 million in principal payments on our Term Loan. As of October 3, 2025, Amentum had $437 million in cash and cash equivalents and $4.0 billion of gross debt.

Backlog and Contract Awards

As of October 3, 2025, the Company had total backlog of $47.1 billion, compared with $45.0 billion as of September 27, 2024, an annual increase of 5%, driven by $16.5 billion in net bookings and a 1.2x book-to-bill. Funded backlog as of October 3, 2025 was $5.6 billion.

Notable Q4 Fiscal Year 2025 Highlights

Space Force Range Contract (SFRC) -- The United States Space Force awarded Amentum SFRC, a new $4 billion single-award indefinite delivery indefinite quantity contract with a ten-year ordering period, to advance the national capability for Assured Access to Space from the Eastern and Western space and missile ranges through responsive and flexible operations, maintenance, sustainment, systems engineering and integration solutions. The previously announced protest was resolved during the fourth quarter and therefore the award is now reflected in backlog and book-to-bill.
Sellafield Decommissioning and Nuclear Waste Partners (DNWP) -- Sellafield awarded Amentum positions totaling over $1.8 billion over 15 years to deliver expert decommissioning solutions. Under the DNWP framework, which represents an expansion in the scope and scale of Amentum's current operations, the Company will employ multidisciplinary, end-to-end engineering and project management capabilities to carry out remediation work and retrieve hazardous waste from legacy ponds on the site in Cumbria, England.
Contract for Organizing Spaceflight Mission Operations and Systems (COSMOS) -- NASA awarded Ascend Aerospace & Technology, a joint venture in which Amentum is a partner, a new nine-year $1.8 billion contract to leverage advanced engineering and technology solutions, including model-based systems engineering tools for the mission control center, simulated mission environments, training systems, training support for astronauts, instructors and flight controllers. The award is under protest and therefore is not yet included in backlog or book-to-bill.
Classified Intelligence Contracts -- Amentum secured multiple awards totaling nearly $700 million to provide intelligence customers with a comprehensive suite of advanced engineering and technology solutions, including an award to provide AI-enabled software coding in a secure environment.

Fiscal Year 2026 Guidance

Amentum initiates the following fiscal year 2026 guidance which represents our views as of November 24, 2025:

 
($ in millions,                                           Implied 
except per share                                        Underlying 
data)                   Fiscal Year 2026 Guidance        Growth(2) 
------------------    -----------------------------  ----------------- 
Revenues              $13,950        -      $14,300         3% 
Adjusted EBITDA(1)    $1,100         -       $1,140         5% 
Adjusted Diluted 
 EPS(1)               $2.25          -        $2.45        12% 
Free Cash Flow(1)     $525           -         $575        12% 
 
1 -- Represents a Non-GAAP financial measure - see the related 
explanations included elsewhere in this release. Amentum does not 
provide a reconciliation of forward-looking non-GAAP financial 
measures to the most directly comparable GAAP measures due to the 
inherent difficulty in forecasting and quantifying certain significant 
items. These items are uncertain, depend on various factors and could 
have a material impact on GAAP reported results for the relevant 
period. 
2 -- Represents implied growth at the guidance mid-point after 
adjusting fiscal year 2025 for the impact of additional working days, 
the divested Rapid Solutions and New Zealand facilities maintenance 
businesses, and the transition of certain contracts from consolidated 
to unconsolidated joint ventures, which totaled approximately: 
Revenues of $650 million, Adjusted EBITDA of $32 million, Adjusted 
Diluted EPS of $0.12 and Free Cash Flow of $25 million.

Webcast Information

Amentum will host a conference call beginning at 8:30 a.m. Eastern time on Tuesday, November 25, 2025 to discuss the results for the fourth quarter and fiscal year ended October 3, 2025. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the Amentum website at amentum.com. After the call concludes, a replay of the webcast can be accessed on the Investor Relations website.

About Amentum

Amentum is a global leader in advanced engineering and innovative technology solutions, trusted by the United States and its allies to address their most significant and complex challenges in science, security and sustainability. Our people apply undaunted curiosity, relentless ambition and boundless imagination to challenge convention and drive progress. Our commitments are underpinned by the belief that safety, collaboration and well-being are integral to success. Headquartered in Chantilly, Virginia, we have approximately 50,000 employees in over 70 countries across all 7 continents.

Visit us at amentum.com to learn how we advance the future together.

Cautionary Note Regarding Forward Looking Statements

This release contains or incorporates by reference statements that relate to future events and expectations and, as such, could be interpreted to be "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements may be characterized by terminology such as "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "target," "endeavor," "seek," "predict," "intend," "strategy," "plan," "may," "could," "should," "will, " "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including projections of financial performance; statements of plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to products or services; any statements regarding future economic conditions or performance; any statements of assumptions underlying any of the foregoing; and any other statements that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future.

Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others: changes in U.S. or global economic, financial, business and political conditions, including changes to governmental budgetary priorities and tariffs; our ability to comply with the various procurement and other laws and regulations; risks associated with contracts with governmental entities; reviews and audits by the U.S. government and others; changes to our professional reputation and relationship with government agencies; the occurrence of an accident or safety incident; the ability of the Company to control costs, meet performance requirements or contractual schedules, compete effectively or implement its business strategy; the ability of the Company to retain and hire key personnel, and retain and engage key customers and suppliers; the failure to realize the anticipated benefits of the 2024 transaction with Jacobs Solutions Inc.; potential liabilities associated with shareholder litigation or other settlements or investigations; evolving legal, regulatory and tax regimes; and other factors set forth under Item 1A, Risk Factors in the annual report on Form 10-K (the "Annual Report"), and from time to time in documents that we file with the SEC. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussions under the section entitled "Risk Factors" in the Annual Report. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Pro Forma and Non-GAAP Measures

This release includes the presentation and discussion of pro forma financial information that incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X. This release also includes the presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Free Cash Flow, and Net Leverage, which are not measures of financial performance under Generally Accepted Accounting Principles in the United States ("GAAP"), each of which are pro forma when reporting for the year ended September 27, 2024. These pro forma and non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as substitutes for, financial information prepared in accordance with GAAP. Management of the Company believes these pro forma and non-GAAP measures, when read in conjunction with the Company's financial statements prepared in accordance with GAAP and, where applicable, the reconciliations herein to the most directly comparable GAAP measures, provide useful information to management, investors and other users of the Company's financial information in evaluating operating results and understanding operating trends by adjusting for the effects of items we do not consider to be indicative of the Company's ongoing performance, the inclusion of which can obscure underlying trends. Additionally, management of the Company uses such measures in its evaluation of business performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of financial results from period to period. The computation of pro forma and non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Definitions of applicable non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided elsewhere in this release.

In addition to the above non-GAAP financial measures, the Company has included backlog, net bookings, and book-to-bill in this release. Backlog is an operational measure representing the estimated amount of future revenues to be recognized under negotiated contracts, and net bookings represent the change in backlog between reporting periods plus reported revenues for the period. Book-to-bill represents net bookings divided by reported revenues for the same period. We believe these metrics are useful for investors because they are an important measure of business development performance and are used by management to conduct and evaluate its business during its regular review of operating results.

 
 
 
 
                       AMENTUM HOLDINGS, INC. 
      UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                (in millions, except per share data) 
 
                        Three Months Ended         Years Ended 
                       ---------------------  ---------------------- 
                       October    September    October    September 
                       3, 2025    27, 2024     3, 2025    27, 2024 
                       --------  -----------  ---------  ----------- 
Revenues               $ 3,925   $ 2,212      $ 14,393   $ 8,388 
    Cost of revenues    (3,508)   (2,014)      (12,880)   (7,590) 
    Selling, general, 
     and 
     administrative 
     expenses             (176)     (137)         (616)     (353) 
    Amortization of 
     intangibles          (121)      (57)         (479)     (228) 
    Equity earnings 
     of 
     non-consolidated 
     subsidiaries           15        23            62        74 
                        ------    ------       -------    ------ 
Operating income           135        27           480       291 
    Interest expense 
     and other, net        (92)     (108)         (353)     (438) 
    Loss on 
     extinguishment 
     of debt                (9)      (42)          (12)      (45) 
    Gain on 
     acquisition of 
     controlling 
     interest               --        69            --        69 
                        ------    ------       -------    ------ 
Income (loss) before 
 income taxes               34       (54)          115      (123) 
    Benefit 
     (provision) for 
     income taxes            3        76           (56)       40 
                        ------    ------       -------    ------ 
Net income (loss) 
 including 
 non-controlling 
 interests                  37        22            59       (83) 
    Less: net income 
     attributable to 
     non-controlling 
     interests               3         4             7         1 
                        ------    ------       -------    ------ 
Net income (loss) 
 attributable to 
 common shareholders   $    40   $    26      $     66   $   (82) 
                        ======    ======       =======    ====== 
 
Basic earnings (loss) 
 per share 
 attributable to 
 common shareholders   $  0.16   $  0.28      $   0.27   $ (0.90) 
Basic weighted 
 average shares 
 outstanding               243        92           243        91 
Diluted earnings 
 (loss) per share 
 attributable to 
 common shareholders   $  0.16   $  0.28      $   0.27   $ (0.90) 
Diluted weighted 
 average shares 
 outstanding               244        92           244        91 
 
 
 
 
 
 
                          AMENTUM HOLDINGS, INC. 
              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
                   (in millions, except per share data) 
 
                                  October 3, 2025     September 27, 2024 
                                 -----------------  ---------------------- 
ASSETS 
Current assets: 
        Cash and cash 
         equivalents              $           437     $            452 
        Accounts receivable, 
         net                                2,479                2,401 
        Prepaid expenses and 
         other current assets                 197                  231 
                                     ------------   ---  ------------- 
            Total current 
             assets                         3,113                3,084 
    Property and equipment, net               114                  144 
    Equity method investments                 196                  123 
    Goodwill                                5,703                5,556 
    Intangible assets, net                  1,955                2,623 
    Other long-term assets                    379                  444 
                                     ------------   ---  ------------- 
Total assets                      $        11,460     $         11,974 
                                     ============   ===  ============= 
 
LIABILITIES 
Current liabilities: 
        Current portion of 
         long-term debt           $            42     $             36 
        Accounts payable                      892                  764 
        Accrued compensation 
         and benefits                         705                  696 
        Contract liabilities                  227                  113 
            Other current 
             liabilities                      488                  356 
                                     ------------   ---  ------------- 
    Total current liabilities               2,354                1,965 
    Long-term debt, net of 
     current portion                        3,901                4,643 
    Deferred tax liabilities                  260                  370 
    Other long-term liabilities               325                  444 
                                     ------------   ---  ------------- 
Total liabilities                           6,840                7,422 
                                     ------------   ---  ------------- 
 
SHAREHOLDERS' EQUITY 
Common stock, $0.01 par value 
 -- 1,000,000,000 shares 
 authorized and 243,464,776 
 shares issued and outstanding 
 at October 3, 2025; 
 1,000,000,000 shares 
 authorized and 243,302,173 
 shares issued and outstanding 
 at September 27, 2024.                         2                    2 
Additional paid-in capital                  4,924                4,962 
Retained deficit                             (461)                (527) 
Accumulated other comprehensive 
 income                                        40                   23 
                                     ------------   ---  ------------- 
Total Amentum shareholders' 
 equity                                     4,505                4,460 
Non-controlling interests                     115                   92 
                                     ------------   ---  ------------- 
Total shareholders' equity                  4,620                4,552 
                                     ------------   ---  ------------- 
Total liabilities and 
 shareholders' equity             $        11,460     $         11,974 
                                     ============   ===  ============= 
 
 
 
 
 
 
                       AMENTUM HOLDINGS, INC. 
      UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                            (in millions) 
 
                         Three Months Ended         Years Ended 
                       ----------------------  --------------------- 
                        October    September   October    September 
                        3, 2025    27, 2024    3, 2025    27, 2024 
                       ---------  -----------  --------  ----------- 
Cash flows from 
operating activities 
Net income (loss) 
 including 
 non-controlling 
 interests             $  37      $    22      $    59   $   (83) 
Adjustments to 
reconcile net income 
(loss) including 
non-controlling 
interests to net cash 
provided by operating 
activities: 
    Depreciation          11            6           40        23 
    Amortization of 
     intangibles         121           57          479       228 
    Amortization of 
     deferred loan 
     costs and 
     original issue 
     discount              3            6           11        22 
    Derivative 
     instruments           2            3           10        37 
    Equity earnings 
     of 
     non-consolidated 
     subsidiaries        (15)         (23)         (62)      (74) 
    Distributions 
     from equity 
     method 
     investments          19           15           76        61 
    Deferred income 
     taxes                (3)         (98)         (47)     (115) 
    Stock-based 
     compensation          6           15           21        18 
    Gain on 
     acquisition of 
     controlling 
     interest             --          (69)          --       (69) 
    Other                 14            8           17        14 
Changes in assets and 
liabilities, net of 
effects of business 
acquisition: 
    Accounts 
     receivable, net     (17)          52         (171)       81 
    Prepaid expenses 
     and other 
     assets                6            9           81        78 
    Accounts payable, 
     contract 
     liabilities, and 
     other current 
     liabilities          82         (100)          54      (211) 
    Accrued employee 
     compensation and 
     benefits             37          (14)          28        43 
    Other long-term 
     liabilities         (33)          (2)         (53)       (6) 
                        ----       ------       ------    ------ 
Net cash provided by 
 (used in) operating 
 activities              270         (113)         543        47 
                        ----       ------       ------    ------ 
Cash flows from 
investing activities 
    Acquisition, net 
     of cash 
     acquired             --          488          (70)      488 
    Divestitures, net 
     of cash 
     conveyed              7           --          365        -- 
    Payments for 
     property and 
     equipment            (9)          (4)         (27)      (11) 
    Contributions to 
     equity method 
     investments         (20)          (1)         (56)       (1) 
    Return of capital 
     from equity 
     method 
     investments          19           --           19        -- 
    Other                 (5)          --           (3)       (1) 
                        ----       ------       ------    ------ 
Net cash (used in) 
 provided by 
 investing 
 activities               (8)         483          228       475 
                        ----       ------       ------    ------ 
Cash flows from 
financing activities 
    Borrowings on 
     revolving credit 
     facilities          288           --        1,146       562 
    Payments on 
     revolving credit 
     facilities         (288)          --       (1,146)     (562) 
    Proceeds from 
     borrowing under 
     the term loans       --        2,620           --     2,620 
    Repayments of 
     borrowings under 
     the credit 
     agreement          (550)      (4,002)        (750)   (4,177) 
    Proceeds from 
     issuance of 
     Senior Notes         --        1,000           --     1,000 
    Payments of debt 
     issuance fees        --          (38)          --       (38) 
    Repayments of 
     borrowings under 
     other 
     agreements           (2)          (3)          (9)      (13) 
    Capital 
     contribution         --          235           --       235 
    Capital 
     contribution 
     from 
     non-controlling 
     interests             3           --            3        -- 
    Distributions to 
     non-controlling 
     interests           (14)          (4)         (35)       (6) 
    Other                  4           (1)           1        (3) 
                        ----       ------       ------    ------ 
Net cash used in 
 financing 
 activities             (559)        (193)        (790)     (382) 
                        ----       ------       ------    ------ 
Effect of exchange 
 rate changes on 
 cash                     (4)           4            4         7 
Net change in cash 
 and cash 
 equivalents            (301)         181          (15)      147 
Cash and cash 
 equivalents, 
 beginning of period     738          271          452       305 
                        ----       ------       ------    ------ 
Cash and cash 
 equivalents, end of 
 period                $ 437      $   452      $   437   $   452 
                        ====       ======       ======    ======

AMENTUM HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

The presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Net Leverage are not measures of financial performance under Generally Accepted Accounting Principles in the United States ("GAAP"). These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as a substitute for, financial information prepared in accordance with GAAP. Management believes these non-GAAP measures, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP and the reconciliations herein to the most directly comparable GAAP measures, provide useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Adjusted EBITDA is defined as GAAP net income attributable to common shareholders adjusted for interest expense and other, net, provision for income taxes, depreciation and amortization, and excludes the following discrete items:

Acquisition, transaction, and integration costs -- Represents acquisition, transaction and integration costs, including severance, retention, and other adjustments related to acquisition and integration activities.
Amortization of intangibles -- Represents the amortization of intangible assets.
Divestitures -- Represents divestiture gains and losses.
Loss on extinguishment of debt -- Represents the write-off of debt discount and debt issuance costs as a result of debt modifications.
Utilization of certain fair market value adjustments assigned in purchase accounting -- Represents the periodic utilization of the fair market value adjustments assigned to certain equity method investments and non-controlling interests based on the remaining period of performance for the related contract.
Stock-based compensation -- Represents non-cash compensation expenses recognized for stock-based arrangements.

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues.

Adjusted Net Income is defined as GAAP net income attributable to common shareholders excluding the discrete items listed under Adjusted EBITDA and the related tax impacts.

Adjusted Diluted EPS is defined as Adjusted Net Income divided by diluted weighted average number of common shares outstanding.

Free Cash Flow is defined as GAAP cash flow provided by operating activities less purchases of property and equipment. For fiscal year 2025, Free Cash Flow was $516 million, consisting of $543 million of GAAP cash flow provided by operating activities less $27 million of purchases of property and equipment.

Net Leverage is defined as GAAP total debt (excluding unamortized original issue discount and deferred financing costs) less cash and cash equivalents, divided by last twelve months Adjusted EBITDA, which is a non-GAAP measure. For fiscal year 2025, Net Leverage was 3.2x, consisting of $4,008 million of total debt less $437 million of cash and cash equivalents, divided by the last twelve months Adjusted EBITDA of $1,104 million.

 
 
 
 
 
                                                                 AMENTUM HOLDINGS, INC. 
                                                          UNAUDITED NON-GAAP FINANCIAL MEASURES 
                                               (in millions, except per share data and margin percentages) 
 
The following table presents the reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted EPS to the most 
directly comparable GAAP measures for the three months ended October 3, 2025: 
 
                                                                  For the Three Months Ended October 3, 2025 
                      ---------------------------------------------------------------------------------------------------------------------------------- 
 
 
                                    Acquisition, 
                                    transaction                                                              Utilization of 
                                         and          Amortization                            Loss on          fair market 
                          As        integration            of                             extinguishment          value        Stock-based     Non-GAAP 
                       reported         costs          intangibles      Divestitures          of debt          adjustments     compensation     results 
                      ----------  ----------------  ----------------  ----------------  -------------------  ---------------  --------------  ---------- 
Revenues              $3,925       $     --          $     --          $      --          $      --           $      --        $          --  $3,925 
 
Operating income      $  135       $     23          $    121          $      --          $      --           $       8        $           6  $  293 
    Non-operating 
     expenses, net      (101)            --                --                  5                  9                  --                   --     (87) 
                       -----          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------  ---      ----------   ----- 
Income before income 
 taxes                    34             23               121                  5                  9                   8                    6     206 
    Provision for 
     income taxes 
     (1)                   3             (5)              (32)                (8)                (3)                 (3)                  --     (48) 
                       -----          -----   ----      -----   ----      ------   ---  ---  ------   -----      ------           ----------   ----- 
Net income including 
 non-controlling 
 interests                37             18                89                 (3)                 6                   5                    6     158 
    Less: net income 
     (loss) 
     attributable to 
     non-controlling 
     interests             3             --                --                 --                 --                  (7)                  --      (4) 
                       -----          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------           ----------   ----- 
Net income (loss) 
 attributable to 
 common 
 shareholders         $   40       $     18          $     89          $      (3)         $       6           $      (2)       $           6  $  154 
                       =====          =====  =====      =====  =====      ======   ===  ===  ======  ======      ======           ==========   ===== 
 
Basic income per 
 share attributable 
 to common 
 shareholders         $ 0.16       $   0.08          $   0.37          $   (0.01)         $    0.03           $   (0.02)       $        0.02  $ 0.63 
Basic weighted 
 average shares 
 outstanding             243            243               243                243                243                 243                  243     243 
Diluted income per 
 share attributable 
 to common 
 shareholders         $ 0.16       $   0.08          $   0.37          $   (0.01)         $    0.03           $   (0.02)       $        0.02  $ 0.63 
Diluted weighted 
 average shares 
 outstanding             244            244               244                244                244                 244                  244     244 
 
Net income (loss) 
 attributable to 
 common 
 shareholders         $   40       $     18          $     89          $      (3)         $       6           $      (2)       $           6  $  154 
        Net income 
         margin (2)      1.0%                                                                                                                    3.9% 
    Depreciation 
     expense              11             --                --                 --                 --                  --                   --      11 
    Amortization of 
     intangibles         121             --              (121)                --                 --                  --                   --      -- 
    Interest expense 
     and other, net       92             --                --                 (5)                --                  --                   --      87 
    Provision for 
     income taxes         (3)             5                32                  8                  3                   3                   --      48 
                       -----          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------  ---      ----------   ----- 
EBITDA (non-GAAP)     $  261       $     23          $     --          $      --          $       9           $       1        $           6  $  300 
                       =====          =====  =====      =====  =====      ======  ====  ===  ======  ======      ======  ===      ==========   ===== 
        EBITDA 
         margin          6.6%                                                                                                                    7.7% 
 
1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application 
of specific tax treatment for related impacts. 
2 - Calculated as net income attributable to common shareholders divided by revenues. 
 
 
 
 
 
 
 
                                                                   AMENTUM HOLDINGS, INC. 
                                                            UNAUDITED NON-GAAP FINANCIAL MEASURES 
                                                 (in millions, except per share data and margin percentages) 
 
The following table presents the reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted EPS to the most 
directly comparable GAAP measures for the year ended October 3, 2025: 
 
                                                                        For the Year Ended October 3, 2025 
                      -------------------------------------------------------------------------------------------------------------------------------------- 
 
 
                                     Acquisition, 
                                     transaction                                                              Utilization of 
                                          and          Amortization                            Loss on          fair market 
                          As         integration            of                             extinguishment          value         Stock-based      Non-GAAP 
                        reported         costs          intangibles      Divestitures          of debt          adjustments      compensation      results 
                      -----------  ----------------  ----------------  ----------------  -------------------  ---------------  ----------------  ----------- 
Revenues              $14,393       $     --          $     --          $      --          $      --           $      --        $     --         $14,393 
 
Operating income      $   480       $     85          $    479          $      --          $      --           $      24        $     21         $ 1,089 
    Non-operating 
     expenses, net       (365)            --                --                  8                 12                  --              --            (345) 
                       ------          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------  ---      -----  -----   ------ 
Income before income 
 taxes                    115             85               479                  8                 12                  24              21             744 
    Provision for 
     income taxes 
     (1)                  (56)           (20)              (73)               (16)                (3)                 (6)             (3)           (177) 
                       ------          -----   ----      -----   ----      ------   ---  ---  ------   -----      ------           -----   ----   ------ 
Net income (loss) 
 including 
 non-controlling 
 interests                 59             65               406                 (8)                 9                  18              18             567 
    Less: net income 
     (loss) 
     attributable to 
     non-controlling 
     interests              7             --                --                 --                 --                 (32)             --             (25) 
                       ------          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------           -----  -----   ------ 
Net income (loss) 
 attributable to 
 common 
 shareholders         $    66       $     65          $    406          $      (8)         $       9           $     (14)       $     18         $   542 
                       ======          =====  =====      =====  =====      ======   ===  ===  ======  ======      ======           =====  =====   ====== 
 
Basic income per 
 share attributable 
 to common 
 shareholders         $  0.27       $   0.27          $   1.67          $   (0.03)         $    0.04           $   (0.06)       $   0.07         $  2.23 
Basic weighted 
 average shares 
 outstanding              243            243               243                243                243                 243             243             243 
Diluted income per 
 share attributable 
 to common 
 shareholders         $  0.27       $   0.27          $   1.66          $   (0.03)         $    0.04           $   (0.06)       $   0.07         $  2.22 
Diluted weighted 
 average shares 
 outstanding              244            244               244                244                244                 244             244             244 
 
Net income (loss) 
 attributable to 
 common 
 shareholders         $    66       $     65          $    406          $      (8)         $       9           $     (14)       $     18         $   542 
        Net income 
         margin (2)       0.5%                                                                                                                       3.8% 
    Depreciation 
     expense               40             --                --                 --                 --                  --              --              40 
    Amortization of 
     intangibles          479             --              (479)                --                 --                  --              --              -- 
    Interest expense 
     and other, net       353             --                --                 (8)                --                  --              --             345 
    Provision for 
     income taxes          56             20                73                 16                  3                   6               3             177 
                       ------          -----  -----      -----  -----      ------  ----  ---  ------  ------      ------  ---      -----  -----   ------ 
EBITDA (non-GAAP)     $   994       $     85          $     --          $      --          $      12           $      (8)       $     21         $ 1,104 
                       ======          =====  =====      =====  =====      ======  ====  ===  ======  ======      ======           =====  =====   ====== 
        EBITDA 
         margin           6.9%                                                                                                                       7.7% 
 
1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of 
specific tax treatment for related impacts. 
2 - Calculated as net income attributable to common shareholders divided by revenues.

AMENTUM HOLDINGS, INC.

UNAUDITED PRO FORMA NON-GAAP FINANCIAL MEASURES

The presentation and discussion of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro Forma Adjusted Net Income, Pro Forma Adjusted Diluted EPS, and Net Leverage are not measures of financial performance under Generally Accepted Accounting Principles in the United States ("GAAP"). These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as a substitute for, financial information prepared in accordance with GAAP. Management believes these non-GAAP measures, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP and the reconciliations herein to the most directly comparable GAAP measures, provide useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Pro Forma Adjusted EBITDA is defined as pro forma net income attributable to common shareholders, which incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, adjusted for pro forma interest expense and other, net, pro forma provision for income taxes, pro forma depreciation and amortization, and excludes the following discrete pro forma items:

Acquisition, transaction, and integration costs -- Represents acquisition, transaction and integration costs, including severance, retention, and other adjustments related to acquisition and integration activities.
Amortization of intangibles -- Represents the amortization of intangible assets.
Non-cash GAAP expense (gain) -- Represents a non-cash gain on acquisition of controlling interest.
Loss on extinguishment of debt -- Represents the write-off of debt discount and debt issuance costs as a result of debt modifications.
Utilization of certain fair market value adjustments assigned in purchase accounting -- Represents the periodic utilization of the fair market value adjustments assigned to certain equity method investments and non-controlling interests based on the remaining period of performance for the related contract.
Stock-based compensation -- Represents non-cash compensation expenses recognized for stock-based arrangements.

Pro Forma Adjusted EBITDA Margin is defined as Pro Forma Adjusted EBITDA divided by Pro Forma Revenues.

Pro Forma Adjusted Net Income is defined as pro forma net income attributable to common shareholders, which incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, excluding the discrete pro forma items listed under Pro Forma Adjusted EBITDA and the related pro forma tax impacts.

Pro Forma Adjusted Diluted EPS is defined as Pro Forma Adjusted Net Income divided by pro forma diluted weighted average number of common shares outstanding.

 
 
 
 
 
                                                               AMENTUM HOLDINGS, INC. 
                                                   UNAUDITED PRO FORMA NON-GAAP FINANCIAL MEASURES 
                                             (in millions, except per share data and margin percentages) 
 
The following table presents the unaudited pro forma combined reconciliation of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro 
Forma Adjusted Net Income and Pro Forma Adjusted Diluted EPS to the most directly comparable pro forma measures for the Company, including CMS, for 
the three months ended September 27, 2024: 
 
                                                               For the Three Months Ended September 27, 2024 
                      ------------------------------------------------------------------------------------------------------------------------------- 
 
 
                                    Acquisition, 
                                    transaction                        Non-cash                        Utilization of 
                                         and          Amortization       GAAP           Loss on          fair market                      Pro Forma 
                      Pro Forma     integration            of           expense     extinguishment          value        Stock-based      Non-GAAP 
                        results         costs          intangibles      (gain)          of debt          adjustments     compensation      results 
                      ----------  ----------------  ----------------  ----------  -------------------  ---------------  --------------  ------------- 
Revenues              $3,565       $     --          $     --          $     --     $      --           $      --        $          --   $  3,565 
 
Operating income      $   77       $     42          $    133          $     --     $      --           $       1        $          16   $    269 
    Non-operating 
     expenses, net       (71)            --                --               (69)           42                  --                   --        (98) 
                       -----          -----  -----      -----  -----      -----   ---  ------  ------      ------  ---      ----------      ----- 
Income (loss) before 
 income taxes              6             42               133               (69)           42                   1                   16        171 
    (Provision) 
     benefit for 
     income taxes 
     (1)                 (27)            (4)              (31)               17           (10)                 --                   --        (55) 
                       -----          -----   ----      -----   ----      -----   ---  ------   -----      ------  ---      ----------      ----- 
Net (loss) income 
 including 
 non-controlling 
 interests               (21)            38               102               (52)           32                   1                   16        116 
    Less: net (loss) 
     income 
     attributable to 
     non-controlling 
     interests             5             --                --                --            --                  (6)                  --         (1) 
                       -----          -----  -----      -----  -----      -----   ---  ------  ------      ------           ----------      ----- 
Net (loss) income 
 attributable to 
 common 
 shareholders         $  (16)      $     38          $    102          $    (52)    $      32           $      (5)       $          16   $    115 
                       =====          =====  =====      =====  =====      =====   ===  ======  ======      ======           ==========      ===== 
 
Basic and diluted 
 (loss) income per 
 share attributable 
 to common 
 shareholders         $(0.06)      $   0.16          $   0.42          $  (0.21)    $    0.13           $   (0.02)       $        0.06   $   0.48 
Basic and diluted 
 weighted average 
 shares outstanding      243            243               243               243           243                 243                  243        243 
 
Net (loss) income 
 attributable to 
 common 
 shareholders         $  (16)      $     38          $    102          $    (52)    $      32           $      (5)       $          16   $    115 
        Net (loss) 
         income 
         margin (2)     (0.4)%                                                                                                                3.2% 
    Depreciation 
     expense               9             --                --                --            --                  --                   --          9 
    Amortization of 
     intangibles         133             --              (133)               --            --                  --                   --         -- 
    Interest expense 
     and other, net       98             --                --                --            --                  --                   --         98 
    Provision 
     (benefit) for 
     income taxes         27              4                31               (17)           10                  --                   --         55 
                       -----          -----  -----      -----  -----      -----   ---  ------  ------      ------  ---      ----------      ----- 
EBITDA (non-GAAP)     $  251       $     42          $     --          $    (69)    $      42           $      (5)       $          16   $    277 
                       =====          =====  =====      =====  =====      =====   ===  ======  ======      ======           ==========      ===== 
        EBITDA 
         margin          7.0%                                                                                                                 7.8% 
 
1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires 
application of specific tax treatment for related impacts. 
2 - Calculated as net (loss) income attributable to common shareholders divided by revenues. 
 
 
 
 
 
 
 
                                                               AMENTUM HOLDINGS, INC. 
                                                   UNAUDITED PRO FORMA NON-GAAP FINANCIAL MEASURES 
                                             (in millions, except per share data and margin percentages) 
 
The following table presents the unaudited pro forma combined reconciliation of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro 
Forma Adjusted Net Income and Pro Forma Adjusted Diluted EPS to the most directly comparable pro forma measures for the Company, including CMS, for 
the fiscal year ended September 27, 2024: 
 
                                                                  For the Year Ended September 27, 2024 
                      ------------------------------------------------------------------------------------------------------------------------------ 
 
 
                                     Acquisition, 
                                     transaction                        Non-cash                        Utilization of 
                                          and          Amortization       GAAP           Loss on          fair market                     Pro Forma 
                       Pro Forma     integration            of           expense     extinguishment          value        Stock-based     Non-GAAP 
                        results          costs          intangibles      (gain)          of debt          adjustments     compensation     results 
                      -----------  ----------------  ----------------  ----------  -------------------  ---------------  --------------  ----------- 
Revenues              $13,858       $     --          $     --          $     --     $      --           $      --        $          --  $13,858 
 
Operating income      $   422       $     62          $    522          $     --     $      --           $       1        $          23  $ 1,030 
    Non-operating 
     expenses, net       (321)            --                --               (69)           45                  --                   --     (345) 
                       ------          -----  -----      -----  -----      -----   ---  ------  ------      ------  ---      ----------   ------ 
Income (loss) before 
 income taxes             101             62               522               (69)           45                   1                   23      685 
    (Provision) 
     benefit for 
     income taxes 
     (1)                  (31)           (13)             (141)               17           (11)                 --                   --     (179) 
                       ------          -----   ----      -----   ----      -----   ---  ------   -----      ------  ---      ----------   ------ 
Net income (loss) 
 including 
 non-controlling 
 interests                 70             49               381               (52)           34                   1                   23      506 
    Less: net income 
     (loss) 
     attributable to 
     non-controlling 
     interests              1             --                --                --            --                 (20)                  --      (19) 
                       ------          -----  -----      -----  -----      -----   ---  ------  ------      ------           ----------   ------ 
Net income (loss) 
 attributable to 
 common 
 shareholders         $    71       $     49          $    381          $    (52)    $      34           $     (19)       $          23  $   487 
                       ======          =====  =====      =====  =====      =====   ===  ======  ======      ======           ==========   ====== 
 
Basic and diluted 
 income (loss) per 
 share attributable 
 to common 
 shareholders         $  0.29       $   0.20          $   1.57          $  (0.21)    $    0.14           $   (0.08)       $        0.09  $  2.00 
Basic and diluted 
 weighted average 
 shares outstanding       243            243               243               243           243                 243                  243      243 
 
Net income (loss) 
 attributable to 
 common 
 shareholders         $    71       $     49          $    381          $    (52)    $      34           $     (19)       $          23  $   487 
        Net income 
         margin (2)       0.5%                                                                                                               3.5% 
    Depreciation 
     expense               38             --                --                --            --                  --                   --       38 
    Amortization of 
     intangibles          522             --              (522)               --            --                  --                   --       -- 
    Interest expense 
     and other, net       345             --                --                --            --                  --                   --      345 
    Provision 
     (benefit) for 
     income taxes          31             13               141               (17)           11                  --                   --      179 
                       ------          -----  -----      -----  -----      -----   ---  ------  ------      ------  ---      ----------   ------ 
EBITDA (non-GAAP)     $ 1,007       $     62          $     --          $    (69)    $      45           $     (19)       $          23  $ 1,049 
                       ======          =====  =====      =====  =====      =====   ===  ======  ======      ======           ==========   ====== 
        EBITDA 
         margin           7.3%                                                                                                               7.6% 
 
1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires 
application of specific tax treatment for related impacts. 
2 - Calculated as net income attributable to common shareholders divided by revenues.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251124013107/en/

CONTACT: Investor Relations Contact

Nathan Rutledge

IR@amentum.com

Media Contact

Roela Santos

Roela.Santos@amentum.com

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