Amentum earnings fall but future looks bright, Heller says

Earnings fell at Amentum Holdings, Chantilly, Va., in fiscal 2024, although the company, which consolidated this summer with the government contracting and cyber wings of Jacobs, sees better days ahead with new  contracts entering the pipeline, such as at the Department of Energy’s Hanford Site in Washington.

For the company’s 2024 fiscal year ended Sept. 27, Amentum Holdings had a net loss of $82 million or $0.90 a share, which is better than the net loss of $314 million, or a net loss of $3.49 a share, in fiscal 2023, said in a Tuesday press release. 

Fiscal 2024 revenue was $8.4 billion, up year-over-year from $7.9 billion in fiscal 2023. Amentum also listed operating income of $291 million, up from $57 million in fiscal 2023. 

In fiscal 2025, Amentum expects earnings per share between $2.00 and $2.20 per share, company officials said. Revenues during fiscal 2025 could range from $13.8 billion to $14.2 billion, according to company guidance.

“We reported strong results for fiscal year 2024, delivering top-line and bottom-line growth,” said Amentum CEO 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.”

Amentum is a junior partner to a BWX Technologies-led team that recently started a transition to  a ten-year, $45 billion single-award indefinite delivery indefinite quantity contract to manage liquid waste at DOE’s Hanford Site, Heller said in his presentation to Wall Street analysts.

Because so many of the new Amentum’s contracts are in critical  missions, ranging from NASA to DOE’s National Nuclear Security Administration, Heller expects minimal impact during any continuing budget resolution. The CEO added he expects the next stopgap funding measure will extend beyond Donald Trump’s presidential inauguration and run until February or perhaps April.

Amentum “is waiting to see what the details are” going to be from President-elect Trump’s planned Department of Government Efficiency, led in part by industrialist Elon Musk, Heller said. Amentum has 80% of its business focused on the U.S. government but only a small percentage  of that with “civilian agencies,” Heller said. 

The global engineering solutions division appears to be where Amentum will direct its DOE business. It will include “large-scale environmental remediation,clean energy, platform engineering, sustainment and supply chain management across all 7 continents for the U.S. government and allied nations,” Amentum said in its presentation. 

A link to the webcast is available here. 

Between the two, Amentum and Jacobs currently are lead partners in joint ventures with environmental cleanup contracts at DOE’s Hanford Site, the Idaho National Laboratory, the Paducah Site in Kentucky, the Oak Ridge Site in Tennessee and the West Valley Demonstration Project in New York state. The companies also do much work for DOE’s National Nuclear Security Administration, the Department of Defense and NASA.

The legacy Amentum was formally created as a privately-held company in January 2020 when two New York-based investment firms bought out the Management Services division of Los Angeles-based AECOM, which is a public company.