Executive Summary

Amentum delivered a clean beat versus S&P Global consensus: revenue $3.49B vs $3.43B and Primary EPS $0.53 vs $0.47; Adjusted EBITDA printed $268M with 7.7% margin, up ~20 bps YoY, supported by disciplined execution and early synergy capture (consensus from S&P Global).
FY25 guidance was narrowed but midpoints reaffirmed: revenue to $13.85–$14.15B (from $13.80–$14.20B) and Adjusted EBITDA to $1.065–$1.095B; Adjusted EPS $2.00–$2.20 and FCF $475–$525M unchanged; management reiterated typical 4Q seasonality and expects 2H revenue +3% vs 1H .
Backlog remains robust at $44.8B; Q2 net bookings of $2.8B drove 0.9x book-to-bill (YTD 1.0x; imputed 1.2x incl. JVs), with notable wins in Intelligence (> $1B total) and U.K. nuclear (Sizewell C) .
Strategic portfolio action: sale of Rapid Solutions for $360M (≈$325M after-tax proceeds) expected to close in 2H25; accretive to adj. EPS/FCF and accelerates deleveraging (target ≈3x net leverage by end FY26) .

What Went Well and What Went Wrong

What Went Well

Contract momentum and pipeline: Q2 net bookings of $2.8B (0.9x quarterly; YTD 1.0x; imputed 1.2x incl. JVs) and $29B pending awards underscore durable demand; backlog at $44.8B (3.2x annual revenue) supports multi-year visibility .
Segment execution: Digital Solutions revenue +3% YoY and adj. EBITDA +7% (margin +30 bps to 8.0%); GES adj. EBITDA +1% despite –1% revenue, reflecting operating performance improvement .
Strategic focus and balance sheet: divestiture of Rapid Solutions enhances capital-light profile and provides ~$325M after-tax proceeds to accelerate deleveraging; “will be accretive to adjusted earnings per share and free cash flow” .
- CEO: “Amentum delivered solid results… and the divestiture of Rapid Solutions… enhances our financial flexibility.”

What Went Wrong

Book-to-bill below 1.0 in Q2 (0.9x), with management citing timing delays in awards amid federal workforce disruption and administrative changes; impact framed as timing rather than demand .
JV transitions reduce reported revenue (from consolidated to unconsolidated), with ~zero 4Q revenue contribution expected, though bottom-line/FCF unaffected; total FY25 top-line impact “a little over $100M” YoY .
GAAP profitability remains slim due to intangible amortization and interest expense; Q2 GAAP EPS $0.02 despite solid non-GAAP performance and 7.7% adj. EBITDA margin .

Financial Results

Headline metrics vs prior year and prior quarter (Pro forma where indicated)

Metric	Q2 FY2024 (Pro Forma)	Q1 FY2025	Q2 FY2025
Revenue ($B)	$3.47	$3.42	$3.49
Adjusted EBITDA ($M)	$260	$262	$268
Adjusted EBITDA Margin (%)	7.5%	7.7%	7.7%
Adjusted Diluted EPS ($)	$0.51	$0.51	$0.53
GAAP Diluted EPS ($)	$(0.46)	$0.05	$0.02
Operating Cash Flow ($M)	N/A	$110	$57
Free Cash Flow ($M)	N/A	$102	$53

Results vs S&P Global consensus (Q2 FY2025)

Metric	Consensus	Actual	Surprise
Primary EPS ($)	0.472	0.53	+$0.06
Revenue ($B)	3.431	3.491	+$0.06B (+1.8%)
EBITDA ($M)	255.9	252.0	−$3.9M (−1.5%)

Values from S&P Global; consensus and actuals as reported in S&P Global estimate dataset.

Segment performance (Pro forma/Non-GAAP)

Metric	Q2 FY2024	Q2 FY2025
Digital Solutions Revenue ($B)	$1.30	$1.34
Digital Solutions Adjusted EBITDA ($M)	$100	$107
Global Engineering Solutions Revenue ($B)	$2.17	$2.15
Global Engineering Solutions Adjusted EBITDA ($M)	$160	$161

KPIs and balance sheet

KPI	Q1 FY2025	Q2 FY2025
Net Bookings ($B)	$3.6	$2.8
Book-to-Bill (x)	1.1x	0.9x; YTD 1.0x; YTD imputed incl. JVs 1.2x
Backlog ($B)	$45.2	$44.8
Funded Backlog ($B)	$6.6	$5.8
Cash & Equivalents ($M)	$522	$546
Total Debt ($B)	~$4.7	~$4.7

Guidance Changes

Metric	Period	Previous Guidance (Q1)	Current Guidance (Q2)	Change
Revenue	FY2025	$13.80–$14.20B	$13.85–$14.15B	Narrowed (midpoint reaffirmed)
Adjusted EBITDA	FY2025	$1.060–$1.100B	$1.065–$1.095B	Narrowed (midpoint reaffirmed)
Adjusted Diluted EPS	FY2025	$2.00–$2.20	$2.00–$2.20	Maintained
Free Cash Flow	FY2025	$475–$525M	$475–$525M	Maintained

Management expects 3Q to be in line with 2Q and 4Q to accelerate, with 2H revenue +3% vs 1H (includes a 53rd week; JV transitions and admin changes are partial offsets) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2024, Q1 FY2025)	Current Period (Q2 FY2025)	Trend
AI/Technology initiatives	Emphasis on digital engineering and innovation councils to cross-sell at scale	AI/ML analytics in counter-narcotics; spectrum dominance solutions; enterprise capture for >$1B deals	Strengthening
Award timing/macro	Reaffirmed FY25 despite new admin; 96% revenue from existing/recompete; timing of awards acknowledged	Some delays in awards; Q2 book-to-bill 0.9x; expect timing normalization (YTD 1.0x; imputed 1.2x)	Mixed (timing delays; demand intact)
Nuclear & energy (UK/Intl)	FY24 wins incl. UK/Australia; pipeline building	Program manager/lead designer for Sizewell C; long-term UK and SMR opportunities; global push incl. Australia	Improving
JV transitions/accounting	FY24 JV wins (Hanford, etc.) noted	Shift from consolidated to unconsolidated JVs reduces reported revenue (no bottom-line/FCF impact)	Accounting mix headwind to revenue
NASA/Space	Artemis work highlighted; no impact yet; strong priority on space superiority	No material FY25 impact expected from proposed NASA changes; Artemis II/III priorities reaffirmed	Stable
Portfolio/Capital allocation	FY25 guidance affirmed; deleveraging to ~3x by FY26	Rapid Solutions sale ($360M; ~$325M after-tax) to accelerate deleverage; accretive to adj. EPS/FCF	Positive

Management Commentary

“We delivered revenue of $3.5 billion, adjusted EBITDA of $268 million… and free cash flow of $53 million. We are encouraged by our results… positioning ourselves to deliver sustained growth” — CEO John Heller .
“We reported $2.8 billion in net bookings this quarter… quarterly book-to-bill ratio of 0.9x… year-to-date book-to-bill 1x… ending backlog of $45 billion” — CEO John Heller .
“We are narrowing guidance ranges for both revenues and adjusted EBITDA… revenues $13.85–$14.15B and adjusted EBITDA $1.065–$1.095B… adjusted EPS $2.00–$2.20; FCF $475–$525M” — CFO Travis Johnson .
On divestiture: “Sale… will be accretive to adjusted earnings per share and free cash flow… expected to generate approximately $325 million in after-tax proceeds” — CFO Travis Johnson .

Q&A Highlights

Nuclear opportunity: Leadership sees multi-year growth across UK gigawatt projects (Sizewell C, Hinkley Point C), SMRs, U.S. engineering front-end, and Australian AUKUS support; AI/data center energy needs seen as a tailwind .
Guidance and JV transitions: 2H revenue +3% vs 1H; JV transitions remove ~$80M/quarter revenue exiting by Q4 but no EBITDA/FCF impact; top end implies ~5% 2H growth vs 1H .
Award environment: Some timing slippage under new administration; diversification and on-contract growth offsetting; pending awards $29B .
Capital deployment/deleveraging: Rapid Solutions proceeds ($360M; ~$325M after-tax) to accelerate deleveraging; target ~3x net leverage by end FY26 .
NASA/space budgets: No material FY25 impact expected; Artemis II/III priorities support multi-year activity at Kennedy .

Estimates Context

Q2 FY2025 vs S&P Global: Primary EPS $0.53 vs $0.47 consensus (beat by $0.06); revenue $3.49B vs $3.43B (beat by ~$0.06B, ~1.8%). S&P Global consensus for EBITDA was ~$256M vs actual $252M in the S&P dataset; company-reported Adjusted EBITDA was $268M, reflecting definition differences (Adjusted vs EBITDA basis) (S&P Global).
FY2025 S&P Global consensus: Primary EPS ≈$2.16; revenue ≈$14.08B; 11 estimates for FY25 revenue/EPS, indicating healthy coverage breadth (S&P Global).

Key Takeaways for Investors

Clean top-line and EPS beats with steady 7.7% adj. EBITDA margin signal resilient demand and solid execution despite award timing headwinds (Q2 book-to-bill 0.9x) .
Robust backlog ($44.8B) and YTD 1.0x book-to-bill (1.2x imputed with JVs) underpin multi-year growth; near-term awards timing remains the swing factor for quarterly cadence .
Reported revenue face-mix headwinds from JV deconsolidation (~$100M+ FY impact), but EBITDA and FCF are unaffected; investors should focus on earnings and cash generation vs top-line optics .
FY25 guide midpoints reaffirmed and ranges narrowed; 3Q expected similar to 2Q with 4Q acceleration (53rd week), positioning for seasonal cash flow inflection in 4Q .
Rapid Solutions sale ($360M; ~$325M after tax) is a clear deleveraging catalyst and EPS/FCF accretive, enhancing optionality for capital deployment over the next 12–18 months .
Strategic exposure to Intelligence, cyber, spectrum dominance, and nuclear/energy (Sizewell C) provides structural growth vectors into FY26–FY27 .
Watch items: pace of federal award adjudication, JV transitions through 3Q, and additional portfolio actions; estimate revisions likely drift modestly higher on the Q2 beat and narrowed guidance (S&P Global) .

Appendix: Notable Awards and Business Updates

Intelligence (> $1B total), Naval Surface Warfare IDIQ tasks (> $500M), and U.K. Sizewell C program manager/lead designer (two 1.6GW reactors) highlight competitive strength and cross-selling potential .
Partnership with Rivada Space Networks to offer ultra-secure LEO connectivity (Outernet) for mission-critical government communications broadens space/cyber offering .

Amentum Holdings, Inc. (AMTM)·Q2 2025 Earnings Summary