Amentum Reports 4% Growth in FY24 Pro Forma Revenues, $45B Total Backlog

Amentum posted $8.4 billion in generally accepted accounting principles, or GAAP, revenues for fiscal year 2024 and reported $13.9 billion in FY 2024 pro forma revenues, reflecting a 4 percent year-over-year increase associated with new contract awards and growth on existing programs.

In an earnings release published Monday, the Chantilly, Virginia-based government technology company said that its total backlog was $45 billion as of Sept. 27, of which about $7.6 billion was funded.

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

Merger With Jacobs CMS, Cyber & Intel Businesses

Heller, an eight-time Wash100 awardee, also mentioned the completion of Amentum’s merger with Jacobs’ critical mission solutions, or CMS, and cyber and intelligence businesses in September to create a publicly traded company focused on delivering advanced engineering and technology platforms and services to customers. 

“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,” the chief executive added.

CEO John Heller on Expanding Addressable Markets

At Tuesday’s earnings conference call, Heller told analysts that the company has “identified several key areas where the end-to-end solution capabilities unlocked through the merger strategically aligned the new Amentum with mega trends and customer priorities.”

According to the chief executive, the combination has enabled Amentum to strengthen its ability to deliver mission-critical support across a wider range of customer offerings. 

“This broader range of advanced engineering and technology solutions, supported by our multi disciplined engineering centers of excellence, enables us to expand our pipeline of large enterprise contracts and opens the door to growing addressable markets, such as the energy transition and digital modernization,” Heller noted.

The GovCon industry veteran said the new Amentum sees significant growth potential in new markets and an opportunity for growth through its portfolio of indefinite-delivery/indefinite-quantity, or IDIQ, contracts.

“Both Amentum and CMS had IDIQ vehicles with contracts representing a combined $450 billion in contract ceiling. This strengthened position with more experienced capabilities and stronger customer relationships will enable us to expand our addressable market inside these IDIQs to accelerate revenue growth and enhance margins,” Heller added.

Notable Contract Wins

Amentum secured several key contracts in FY 2024, including a six-year, $946 million contract with the U.S. Army for fixed-wing aircraft fleet maintenance and modernization support, a five-year, $592 million contract with Naval Sea Systems Command for lifecycle and engineering services and the 10-year, $45 billion Hanford Integrated Tank Disposition Contract, or HITDC, with the Department of Energy.

In late February, DOE awarded HITDC to Hanford Tank Waste Operations & Closure, a limited liability company formed by Amentum, BWX Technologies and Fluor.

FY 2025 Guidance

Amentum affirmed its outlook for FY 2025, expecting to record revenues of $13.8 billion to $14.2 billion and adjusted diluted earnings per share of between $2 and $2.20.

For the full fiscal year, adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of between $1.06 billion and $1.1 billion are anticipated. 

The company expects its FY 2025 free cash flow to range between $475 million and $525 million.