Executive Summary

Q1 FY25 delivered modest pro forma growth with revenues of $3.416B (+2% YoY pro forma), Adjusted EBITDA of $262M (+3% YoY), Adjusted EBITDA margin of 7.7% (+10 bps), GAAP EPS of $0.05 and Adjusted EPS of $0.51; free cash flow was $102M and operating cash flow $110M .
Bookings momentum was solid (net bookings $3.6B; book-to-bill 1.1x; total backlog $45.2B, 3.2x annual revenue coverage); including unconsolidated JVs, book-to-bill was 1.5x, driven by the DOE West Valley award contribution on an imputed basis .
Full-year FY25 guidance was reaffirmed (Revenue $13.8–$14.2B, Adj. EBITDA $1.06–$1.10B, Adj. EPS $2.00–$2.20, FCF $475–$525M); management expects sequential improvement through the year and notes only ~1% revenue headwind embedded from the new administration’s initiatives .
The quarter’s narrative skewed positive: stronger-than-modeled FCF per one analyst, improving DSO (-2 days YoY pro forma), robust pipeline ($30B pending; $12B submitted in Q1), and synergy execution on track ($30M run-rate net synergies by FY25 year-end) .

What Went Well and What Went Wrong

What Went Well

Execution and cash: Adjusted EBITDA rose 3% YoY to $262M with a 10 bps margin lift; free cash flow of $102M on disciplined working capital and favorable timing; DSO improved by 2 days YoY pro forma. “Financial performance was in line with our expectations… robust Q1 business development results” .
Business development and backlog: $3.6B net bookings, 1.1x book-to-bill; backlog reached $45.2B; on a JV-imputed basis, book-to-bill was 1.5x, highlighting strong win activity (e.g., DOE West Valley, DOD GCTF, AFCENT GPMS) .
Guidance confidence: FY25 guide reaffirmed with 96% of revenue expected from existing/recompete and expectation for sequential improvement through FY25; only ~1% revenue impact assumed from administration initiatives .

What Went Wrong

Accounting headwinds: GAAP EPS of $0.05 reflects heavy non-cash amortization ($120M) and interest expense ($87M), despite solid operating trends .
Sequential revenue step-down vs pro forma Q4: Pro forma revenue was $3.565B in Q4 FY24 vs $3.416B in Q1 FY25, reflecting normal seasonality and program ramps (management still expects sequential improvement from here) .
Award timing/new-admin noise: Management cited some delays in awards tied to executive order implementation; foreign-aid exposure is immaterial (<1% of revenue), but the team embedded ~1% revenue headwind in guidance for prudence .

Financial Results

Metric	Q1 2024 (Pro Forma)	Q4 2024 (Pro Forma)	Q1 2025
Revenues ($B)	$3.338	$3.565	$3.416
Adjusted EBITDA ($M)	$255	$277	$262
Adjusted EBITDA Margin (%)	7.6%	7.8%	7.7%
Adjusted Diluted EPS ($)	$0.50	$0.47	$0.51
GAAP Diluted EPS ($)	$(0.46)	$0.28	$0.05
Operating Cash Flow ($M)	N/A	N/A	$110
Free Cash Flow ($M)	N/A	N/A	$102

Notes:

Q1 2024 and Q4 2024 are presented on a pro forma basis for comparability with the post-merger business. Q1 2025 is reported actual; management references pro forma growth vs Q1 2024 .

Segment performance (Pro Forma where indicated):

Segment	Q1 2024 (Pro Forma) Revenue ($M)	Q1 2025 Revenue ($M)	YoY	Q1 2024 (Pro Forma) Adj. EBITDA ($M)	Q1 2025 Adj. EBITDA ($M)	YoY
Digital Solutions	$1,279	$1,286	+1%	$99	$100	+1%
Global Engineering Solutions	$2,059	$2,130	+3%	$156	$162	+4%

Selected KPIs and balance sheet:

KPI	Q1 2025
Net bookings ($B)	$3.6
Book-to-bill (x)	1.1x
Backlog ($B)	$45.2
Funded backlog ($B)	$6.6
JV-imputed book-to-bill (x)	1.5x (incl. unconsolidated JVs)
Cash & equivalents ($M)	$522
Total debt ($B)	$4.7
Net leverage (x)	4.0x (improved from 4.1x at FY24 end)
Revolver availability ($M)	$850, no outstanding balance
DSO trend	Down ~2 days YoY pro forma

Guidance Changes

Metric	Period	Previous Guidance (12/16/24)	Current Guidance (2/4/25)	Change
Revenue ($B)	FY25	$13.8 – $14.2	$13.8 – $14.2	Maintained
Adjusted EBITDA ($B)	FY25	$1.06 – $1.10	$1.06 – $1.10	Maintained
Adjusted Diluted EPS ($)	FY25	$2.00 – $2.20	$2.00 – $2.20	Maintained
Free Cash Flow ($M)	FY25	$475 – $525	$475 – $525	Maintained

Management expects sequential increases across metrics through FY25, with normal FCF seasonality skewed to 2H and a 53rd week in Q4; guidance embeds ~1% revenue headwind from administration initiatives .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2)	Previous Mentions (Q-1: Q4 FY24)	Current Period (Q1 FY25)	Trend
AI/technology initiatives	N/A – no public Q3 FY24 disclosure found	Highlighted digital modernization, 5G deployments, microelectronics/EW/ISR RDT&E awards; affirmed FY25 tech-driven growth	CTO launched Technology Advisory Councils; cross-selling via 9 Centers of Excellence; hyperscaler AI enablement work in commercial sector	Building momentum
Pipeline & bookings	N/A	FY24 backlog $45.0B; strong awards across DOE/NAVSEA/UK MOD; FY25 guide affirmed	$3.6B bookings; 1.1x book-to-bill; $30B pending; $12B submits in Q1; JV-imputed 1.5x book-to-bill	Strong, improving
Macro/admin policy	N/A	Affirmed FY25 guide into new admin backdrop	~1% revenue headwind in guide; some award delays; foreign-aid exposure <1% of revenue	Prudent conservatism
Space/NASA/Defense	N/A	Major defense/UK/AUKUS positioning; space-related capability support	Continued NASA activity (Artemis II/III); emphasis on space superiority; defense/IC modernization (IDEA, C5ISR)	Consistent strength
Cash/Leverage	N/A	FY24 pro forma Adj. EBITDA +7%; FCF profile emphasized	FCF $102M; DSO better YoY; net leverage 4.0x with path to ~3x by FY26	Improving

Note: No Q3 FY24 quarter-specific document found; search returned no publications for that period. We used FY24 8-K and Q1 FY25 materials for trend context [Search error noted; attempt logged].

Management Commentary

“We delivered a strong first quarter performance across the board… revenues of $3.4 billion… adjusted EBITDA of $262 million… free cash flow of $102 million.” – CEO John Heller .
“We currently have $30 billion in pending awards driven by the $12 billion of submitted bids in Q1… book-to-bill was 1.5x [including unconsolidated JVs].” – CEO John Heller .
“We remain confident in the outlook… reaffirming guidance… expect sequential increases in all metrics… 96% of FY25 revenues expected to come from existing and recompete business.” – CFO Travis Johnson .
“We remain on a firm path to achieving $30 million in run rate net synergies by the end of fiscal year 2025.” – CEO John Heller .

Q&A Highlights

Pipeline mix and BD engine: ~$30B pending awards, with roughly two-thirds new business; both segments posted >1.0x book-to-bill in Q1 .
Free cash flow cadence: Q1 FCF beat one analyst’s model; DSO -2 days YoY pro forma; Q2 likely the low FCF quarter due to interest timing; majority of FCF in 2H .
Commercial momentum and AI: Increasing hyperscaler work to enable next-gen AI compute; automotive RDT&E and smart infrastructure deployments; commercial book-to-bill implied >1 .
New administration impacts: Award delays in some areas; foreign-aid exposure <1%; guidance prudently includes ~1% revenue headwind; potential upside opportunities not included in guide .
Space/NASA resilience: No impact to NASA programs; Artemis II/III support ongoing; broader emphasis on space superiority and commercial space enablement through NASA infrastructure .

Estimates Context

S&P Global consensus estimates for Q1 FY25 were not retrievable at time of query due to data access limits; therefore, we cannot quantify beat/miss versus Street. Management stated results were “in line with our expectations” and reaffirmed FY25 guidance .
Implication: Without published consensus, near-term estimate revisions may hinge on backlog momentum, cash conversion signals (DSO improvement), and confidence from reaffirmed guidance.

Key Takeaways for Investors

Early integration delivery with balanced P&L and cash: modest pro forma growth, margin uptick, and $102M FCF support the de-leveraging path (target ~3x by FY26) .
BD traction is a central bull point: 1.1x book-to-bill (1.5x JV-imputed), $45.2B backlog, and $30B pending awards underpin multi-quarter revenue visibility .
Guidance reaffirmation and sequential improvement narrative reduce downside risk; embedded ~1% headwind appears conservative against strong Q1 execution .
Accounting headwinds (amortization, interest) mute GAAP EPS; non-GAAP profitability and cash are better indicators during post-merger phases .
Watch commercial AI projects, defense/NASA modernization, and large >$1B pursuits enabled by the combined platform for incremental upside catalysts .
Near-term trading: momentum supported by pipeline and FCF; absent consensus data, stock moves likely track bookings cadence, JV wins translating to revenue/cash, and any guidance updates.
Medium-term thesis: execution on synergy capture, cash conversion, and segment margin accretion should drive de-leveraging and multiple support as integration benefits accrue .

Amentum Holdings, Inc. (AMTM)·Q1 2025 Earnings Summary