Earnings rose at Amentum, Chantilly, Va., in the first quarter of fiscal 2025, which the company that recently combined with the government contracting wing of Jacobs attributed to strong core businesses linked with national security.
In response to questions from Wall Street analysts during a Wednesday morning conference call, CEO John Heller said Amentum management was not worried about being hurt by potential federal cuts initiated by the new administration’s Department of Government Efficiency, led by billionaire Elon Musk.
While perhaps 1% of Amentum’s revenue comes from contracts tied to U.S. foreign aid, most of its income is centered around programs dealing with national security, cyber, intelligence and NASA, Heller said.
Net earnings for the first quarter ended Dec. 27 were $12 million, or $$0.05 a share, up from a loss of $41 million, or negative $0.46 a share, in the year-ago quarter, according to Amentum’s Tuesday press release. Quarterly revenue was $3.4 billion, up year-over-year from $1.98 billion.
Amentum is a junior partner in a BWX Technologies-led team that won a new $3-billion, 10-year Department of Energy environmental remediation contract at the West Valley Demonstration Project in New York state during November. Amentum will provide advanced technology including robotics as part of the award, Heller said.
Also during the quarter, the Department of Defense awarded Amentum a seven-year, $447 million contract for Air Forces Central Command Global Prepositioned Materiel Services, according to the company’s slide presentation. .
In December, Virginia-based Amentum completed its merger with the government contracting arm of Dallas-based Jacobs, which remains a major stakeholder in the combined company.
“We are off to a strong start as a newly combined company,” Heller said during a Wednesday conference call with Wall Street analysts. “Our first quarter results were robust and in line with our expectations across all key financial metrics, including organic growth and free cash flow.”
The new combined Amentum is the team lead on billions of dollars worth of DOE Office of Environmental Management contracts at locations such as the Hanford Site in Washington state, the Idaho National Laboratory and the Oak Ridge Site in Tennessee.
