Amentum's $47 Billion Backlog and Robust Cash Flow Signal Continued Growth Momentum
Financial Strength Underscored by Record Backlog and Solid Operating Metrics
Amentum (NYSE: AMTM) is showing why its inaugural year on the public markets is turning heads: with a reported backlog of $47.1 billion and annual revenues hitting $14.4 billion, the company has staked its claim as a powerhouse in advanced engineering and technology services. At 10:31 AM, AMTM was trading at $31.48, riding a wave of investor confidence fueled by strong fiscal 2025 results.
The numbers are eye-catching: Amentum’s fourth-quarter GAAP revenues climbed 77% year-over-year, powered largely by the integration of Jacobs’ Critical Mission Solutions (CMS) and Cyber & Intelligence (C&I) businesses. Operating income for Q4 quadrupled, and net income for the full year reached $66 million—up 180% from last year’s loss. Free cash flow for FY2025 hit $516 million, giving the company flexibility for further investments and debt reduction.
| Key Metric | Q4 2025 | FY2025 | Change YoY (%) |
|---|---|---|---|
| GAAP Revenues ($M) | 3,925 | 14,393 | Q4: 77% FY: 72% |
| Operating Income ($M) | 135 | 480 | Q4: 400% FY: 65% |
| Net Income ($M) | 40 | 66 | Q4: 54% FY: 180% |
| Adjusted EBITDA ($M) | 300 | 1,104 | Q4: 8% FY: 5% |
| Free Cash Flow ($M) | 261 | 516 | N/A |
| Backlog ($B) | 47.1 | 47.1 | +5% |
| Book-to-Bill | 1.6x (Q4) | 1.2x (FY) | - |
Growth Across Segments and New Contract Wins Provide Further Upside
Both the Digital Solutions and Global Engineering Solutions segments contributed to the momentum, each reporting strong top-line and profitability improvements. Digital Solutions’ revenues grew 11% in Q4 (up 7% for the year), while Global Engineering Solutions rose 9% for the quarter (up 2% for the year). This segment-driven expansion reflects contract wins across defense, nuclear decommissioning, and digital infrastructure markets.
| Segment | Q4 2025 Revenue ($M) | Change YoY (%) | Q4 2025 Adj. EBITDA ($M) | Change YoY (%) |
|---|---|---|---|---|
| Digital Solutions | 1,496 | 11% | 116 | 5% |
| Global Engineering Solutions | 2,429 | 9% | 184 | 11% |
Strategic contract wins helped fill the company’s record backlog, including:
- A $4 billion U.S. Space Force Range Contract, expanding Amentum’s presence in space systems support.
- $1.8 billion in long-term nuclear decommissioning awards in the UK.
- A nine-year, $1.8 billion NASA joint venture for mission operations—currently under protest and not yet in backlog.
- Nearly $700 million in classified intelligence contracts.
Strong Cash Flow, Debt Reduction, and Improved Profitability Set Up for FY2026
Amentum exited FY2025 with $437 million in cash and $4.0 billion in gross debt, having reduced net debt and leverage to 3.2x adjusted EBITDA. Free cash flow conversion remains a strength, supported by robust cash earnings and working capital discipline.
Guidance for fiscal 2026 implies steady, disciplined growth: the company is projecting revenues of $13.95–14.3 billion, adjusted EBITDA of $1.10–1.14 billion, and free cash flow between $525–575 million—representing ~3% to ~12% implied growth depending on the line item.
| FY2026 Guidance (midpoint) | Implied Growth (adj. basis) |
|---|---|
| Revenue: $14.13B | ~3% |
| Adjusted EBITDA: $1.12B | ~5% |
| Adj. Diluted EPS: $2.35 | ~12% |
| Free Cash Flow: $550M | ~12% |
Takeaway: Execution and Contract Pipeline Remain in Focus
While Amentum’s stock performance will hinge on ongoing execution, its strong financials, deep contract backlog, and sector tailwinds in areas like nuclear energy, digital infrastructure, and space systems give the company substantial room to run. Investors may want to keep an eye on updates regarding key contract protests, further deleveraging, and management’s delivery against the newly issued guidance. With over $47 billion in backlog and sector diversification, Amentum’s path into fiscal 2026 appears firmly rooted in sustainable growth and operational strength.
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