Amentum (AMTM) Q2 2025 earnings summary

Executive summary

• Q2 FY25 delivered solid results with $3.5 billion in revenue, $268 million adjusted EBITDA (up 3% YoY), and $0.53 adjusted diluted EPS, reflecting strong execution and demand for mission-focused solutions.

• Completed merger with Jacobs' Critical Mission Solutions (CMS) business, significantly expanding scale and capabilities; integration drove substantial revenue and earnings growth year-over-year.

• Announced divestiture of Rapid Solutions for $360 million in cash ($325 million after-tax), expected to close in H2 2025, supporting deleveraging and a capital-light strategy.

• Maintained robust backlog of $44.8–$45 billion (3.2x annual revenue), with $2.8 billion in net bookings for the quarter and a year-to-date book-to-bill ratio of 1.0x.

• Major contract wins in intelligence (over $1 billion), nuclear (Sizewell C, Hinkley Point C), and naval sectors, supporting growth in key markets.

Financial highlights

• Q2 FY25 revenues were $3.49 billion, up 70% YoY due to the CMS merger; pro forma revenues rose 1% YoY.

• Adjusted EBITDA was $268 million (up from $156 million YoY), with margin improvement to 7.7% (+20 bps YoY); adjusted diluted EPS was $0.53, up 4% YoY.

• Free cash flow was $53 million; cash on hand $546 million, no outstanding revolver balance, and $4.7 billion in debt.

• Net income improved from a $41 million loss to $4 million profit YoY.

• Backlog coverage was approximately 3.2x last twelve months pro forma revenues.

Outlook and guidance

• FY2025 guidance reaffirmed: revenues of $13.85–$14.15 billion, adjusted EBITDA of $1.065–$1.095 billion, adjusted diluted EPS of $2.00–$2.20, and free cash flow of $475–$525 million.

• 98% of FY2025 revenue expected from existing or recompete business; sequential increases in revenue, profitability, and cash generation expected in H2, with acceleration in Q4.

• Guidance assumes no significant impact from Rapid Solutions divestiture in FY2025.