Amentum Reports Fiscal Year 2024 Results and Affirms its Fiscal Year 2025 Guidance
Strong finish to Fiscal Year 2024 including a successful public market debut
GAAP Revenues of $8.4 billion, 7% growth; GAAP Net Loss of $82 million
Pro Forma Revenues of $13.9 billion, 4% growth
Pro Forma Net Income of $32 million; Pro Forma Adjusted EBITDA of $1,052 million, up 7%
Amentum affirms its Fiscal Year 2025 Capital Markets Day financial guidance
CHANTILLY, Va.--(BUSINESS WIRE)--December 16, 2024--
Amentum Holdings, Inc. ("Amentum" or the "Company") (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the fiscal year ended September 27, 2024, and affirmed its outlook for fiscal year 2025.
"We reported strong results for fiscal year 2024, delivering top-line and bottom-line growth," commented Amentum Chief Executive Officer John Heller. "2024 was a significant year in our Company's history, culminating in the merger of Amentum with Jacobs' Critical Mission Solutions and Cyber & Intelligence businesses to create one of the strongest advanced engineering and technology companies in the industry. Today, over two months since the merger, we continue to be excited about the combined strength of these two historic businesses. We have transformed Amentum into a larger, more diversified company with broader customer reach and capabilities to deliver greater value to the world's most complex challenges. In fiscal year 2025 we already see positive momentum and are confident in our outlook."
Summary Operating Results
----------------------------------
Fiscal Year Ended
--------------------------------------
(in millions, except per share September 27, September 29,
data) 2024 2023 % Change
------------- ------------- --------
GAAP Measures:
Revenues $8,388 $7,865 7%
Operating income $291 $57 411%
Net loss $(82) $(314) 74%
Diluted loss per share $(0.90) $(3.49) 74%
Pro Forma and Non-GAAP Measures(1)
:
Pro Forma Revenues $13,858 $13,371 4%
Pro Forma Adjusted EBITDA(1) $1,052 $986 7%
Pro Forma Adjusted EBITDA
Margin(1) 7.6% 7.4% +20 bps
Pro Forma Adjusted Net Income(1) $489 $453 8%
Pro Forma Adjusted Diluted
Earnings Per Share (EPS)(1) $2.01 $1.86 8%
1 -- 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, which exclude Jacobs' Critical Mission Solutions and Cyber & Intelligence $(CMS)$ businesses, increased 7% year-over-year driven by new contract awards and growth on existing programs. GAAP operating income increased primarily as a result of a non-cash impairment charge that was recognized during fiscal year 2023. Operating income also benefited from reduced intangible amortization expense and the higher revenue volume. GAAP net loss and diluted loss per share improved year-over-year due to the higher operating income and a gain on the acquisition of a controlling interest, partially offset by higher interest expense and a loss on extinguishment of debt.
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 4% year-over-year driven by new contract awards and growth on existing programs partially offset by the expected ramp-down of other historical programs. Pro Forma Adjusted EBITDA increased 7% year-over-year primarily due to the higher revenue volume and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to the higher operating income partially offset by increased tax expense.
Backlog and Contract Awards
As of September 27, 2024, the Company had a total backlog of $45.0 billion, compared with $26.8 billion a year ago, an increase of $18.2 billion primarily due the addition of backlog from CMS. Funded backlog as of September 27, 2024 was $7.6 billion.
Notable Fiscal Year 2024 Awards
--
U.S. Department of Energy (DOE) Hanford Integrated Tank Disposition
Contract (HITDC) -- The U.S DOE awarded HITDC, a ten-year $45 billion
single-award indefinite delivery indefinite quantity contract, to Hanford
Tank Waste Operations & Closure, LLC, a joint venture partnership which
includes Amentum that will bring the most advanced environmental
capabilities to safely clean up the Hanford Site near Richland,
Washington.
--
U.S. Naval Sea Systems Command (NAVSEA) Lifecycle and Engineering
Solutions -- The NAVSEA International Fleet Support Program Office
awarded Amentum a five-year $592 million contract to deliver life-cycle
support, system upgrades, systems integration support, training, and
other technical solutions to eligible allied international naval forces.
--
U.K. Ministry of Defence $(MOD)$ Hypersonic Technologies and Capability
Development Framework (HTCDF) -- Amentum secured a position across all
lots on the HTCDF framework, which is valued at up to $1.25 Billion (GBP1
billion) over seven years, and was established to accelerate development
of a sovereign UK Hypersonic Capability, while bolstering AUKUS
collaboration with Australia and the United States.
--
U.S. Army Fixed Wing Aircraft Fleet Maintenance and Modernization --
The U.S. Army's Program Executive Office -- Aviation, Fixed Wing Project
Office awarded Amentum a six-year $946 million contract to provide
complete system maintenance and modernization solutions for the U.S.
Army's government-owned fixed wing transport aircraft fleet.
--
Information Analysis Center Multiple-Award Contract (IAC-MAC) Research,
Development, Test, and Evaluation (RDT&E) Solutions -- Amentum was
awarded multiple five-year task orders under IAC-MAC totaling over $350
million to deliver critical research and development capabilities in
areas such as microelectronics, electronic warfare, and Intelligence,
Surveillance, and Reconnaissance systems.
--
U.K. and Australia Awards -- Amentum was awarded contracts valued over
$1 billion in fiscal year 2024 to support the U.K. and Australian
governments by providing solutions on pressing challenges, from energy
transition and environmental remediation to cybersecurity and digital
modernization.
--
Commercial Awards -- Amentum was awarded contracts valued at over $1
billion in fiscal year 2024 to support a variety of Fortune 500 customers
in critical areas including: advanced product research and development;
design, deployment and optimization of 5G networks, critical
infrastructure management, and development of clean energy solutions.
Fiscal Year 2025 Guidance
Amentum affirms its fiscal year 2025 guidance originally presented at Capital Markets Day on August 13, 2024 and provides Adjusted Diluted Earnings Per Share (EPS) guidance.
(in millions, except per share data) Fiscal Year 2025 Guidance ----------------------------------- -------------------------------- Revenues $13,800 - $14,200 Adjusted EBITDA(1) $1,060 - $1,100 Adjusted Diluted EPS(1) $2.00 - $2.20 Free Cash Flow(1) $475 - $525 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.
Webcast Information
Amentum will host a conference call beginning at 8:30 a.m. Eastern time on Tuesday, December 17, 2024 to discuss the results for the fiscal year ended September 27, 2024. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the Amentum website at ir.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, inclusion and well-being are integral to success. Headquartered in Chantilly, Virginia, we have more than 53,000 employees in approximately 80 countries.
Visit us at amentum.com to learn how we advance the future together.
Cautionary Note Regarding Forward Looking Statements
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