Amentum Holdings, Inc. ( AMTM ) shares traded higher on Tuesday following Monday’s release of fourth-quarter adjusted earnings per share of 63 cents, beating the analyst consensus estimate of 59 cents. Quarterly sales of $3.925 billion (+77% year over year) outpaced the Street view of $3.613 billion.

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Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 10% for the fourth quarter.

Digital Solutions revenues increased 11% for the fourth quarter, while Global Engineering Solutions revenues increased 9%.

Profitability And Cash Flow

Operating income in the quarter under review jumped 400% to $135 million.

Adjusted EBITDA rose 8% to $300 million, while adjusted EBITDA margin fell 10 basis points to 7.7%.

During the three months ended October 3, 2025, Amentum generated $270 million of net cash from operating activities and used $8 million and $559 million of cash in investing and financing activities, respectively. 

As of October 3, 2025, Amentum had $437 million in cash and cash equivalents and $4.0 billion of gross debt.

Backlog And Bookings Momentum

Amentum Holdings ( AMTM ) reported a total backlog of $47.1 billion, up from $45.0 billion a year earlier.

That 5% increase reflected $16.5 billion in net bookings and a book-to-bill ratio of 1.2x.

Funded backlog as of October 3, 2025, stood at $5.6 billion.

Key Defense Win

Earlier this month, the firm was awarded the Remotely Piloted Aircraft (RPA) Maintenance Support IDIQ contract by the Air Force Air Combat Command with a ceiling value of up to $995 million.

The MQ-9 Reaper is an essential unmanned aerial system equipped with cutting-edge technologies, including sensors, armaments, ground control stations, and a satellite link. Unmanned aerial systems are a strategic element of today’s modern warfare and ensure the U.S. maintains its competitive military edge.

Outlook

Amentum Holdings ( AMTM ) guided 2026 revenue between $13.95 billion and $14.30 billion. The outlook compares with the analysts' consensus estimate of $14.08 billion.

Price Action: AMTM shares are trading higher by 22.7% to $31.13 at last check on Tuesday.

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