Amentum (AMTM) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 delivered strong pro forma results with revenues of $13.9 billion (4% organic growth) and adjusted EBITDA of $1.05 billion (7% year-over-year growth), following a transformative merger with Jacobs' Critical Mission Solutions and Cyber & Intelligence businesses, creating a sector leader with over 53,000 employees in 80+ countries.

• The company debuted as a public entity on the NYSE, positioning itself as a global leader in advanced engineering and technology solutions across defense, intelligence, environment, space, and civilian markets.

• Backlog ended at $45 billion (3.2× annual revenue coverage), with $12 billion in net bookings and a robust pipeline of $23 billion in submitted bids awaiting award.

• Integration efforts are progressing well, with nine centers of excellence and technical advisory groups established to drive innovation and growth.

Financial highlights

• Pro forma adjusted EBITDA margin improved by 20 basis points year-over-year to 7.6%.

• Net income attributable to common shareholders was $489 million, with adjusted diluted EPS of $2.01.

• Fiscal year 2024 ending net leverage was 3.9×–4.1×, with a target of 3× by end of FY26.

• Free cash flow guidance for FY25 is $475–$525 million, supported by a capital-light model and operational efficiencies.

• Book-to-bill for FY24 was 0.8×, impacted by timing of recompetes and pending awards.

Outlook and guidance

• FY25 revenue guidance: $13.8–$14.2 billion; adjusted EBITDA: $1.06–$1.1 billion; adjusted diluted EPS: $2.00–$2.20; non-GAAP tax rate ~24%.

• Free cash flow expected between $475–$525 million, with capital expenditures of $40–$50 million.

• Only 8% of FY25 revenue expected from new business, with 92% from existing/recompete work.

• Over $35 billion in bids planned for FY25, with strong backlog and pipeline supporting growth objectives.

• Assumes stable budget environment and no material impacts from administration change.