Executive Summary

Q4 2024: GAAP revenue was $2.21B with GAAP diluted EPS of $0.28; on a pro forma basis, revenue was $3.57B and Adjusted EBITDA was $277M with a 7.8% margin .
Year over year, pro forma revenue was roughly flat (down 1%) and pro forma EBITDA margin compressed modestly vs Q4 2023 (7.8% vs 8.0%); GAAP EPS improved from $(0.07) to $0.28, aided by higher operating income and tax benefit .
Backlog ended FY24 at $45.0B (funded $7.6B); management cited book-to-bill below 1.0x in Q4 given awards under protest and JV dynamics not reflected in backlog (e.g., Hanford) .
FY25 guidance affirmed: revenue $13.8–$14.2B, Adjusted EBITDA $1.06–$1.10B, Adjusted diluted EPS $2.00–$2.20, FCF $475–$525M; modeling assumptions: ~24% non‑GAAP tax rate, $355–$365M interest, $510–$520M D&A, ~244M diluted shares; sequential quarterly increases expected in FY25 .
Strategic/catalyst setup: integration of Jacobs CMS/C&I, robust pipeline ($23B submissions pending; ~80% new), international/nuclear and intelligence opportunities, and segment reporting from FY25 (Digital Solutions; Global Engineering Solutions) .

What Went Well and What Went Wrong

What Went Well
- Pro forma performance met/exceeded Capital Markets Day expectations: FY24 pro forma revenue $13.9B (+4%) and Adjusted EBITDA $1.05B (+7%); CEO: “We reported strong results for fiscal year 2024…” .
- Strong strategic positioning and scale post-merger with CMS/C&I; CEO underscored “one of the strongest advanced engineering and technology companies” .
- Pipeline/backlog support: $45.0B ending backlog (3.2x coverage); $23B of pending awards (~80% new); multiple marquee wins across DOE, defense, UK hypersonics .
- Management affirmed FY25 guide and introduced Adjusted EPS framework with clear modeling inputs (tax/interest/D&A/shares) .
- AI and digital engineering traction across defense, intel, commercial; COO: “we’ve formalized 9 centers of excellence,” enabling larger digital enterprise bids .
What Went Wrong
- Q4 book-to-bill <1.0x; management cited recomputes under protest and pending adjudications as timing headwinds .
- Q4 cash from operations was negative ($113M) on working capital/tax timing; FY24 CFO was $47M; seasonality and timing expected to drive stronger 2H cash in FY25 .
- Program ramp-downs (e.g., Cytec) and JV backlog accounting (Hanford not included) obscure near-term booking metrics; management emphasized visibility from recompetes and pipeline .
- Interest expense remained a meaningful P&L headwind; in Q4 “interest expense and other, net” was $108M .

Financial Results

Q4 2024 vs Q4 2023 (GAAP and Pro Forma)

Metric	Q4 2023	Q4 2024
GAAP Revenue ($B)	$2.14	$2.21
GAAP Diluted EPS ($)	$(0.07)	$0.28
Pro Forma Revenue ($B)	$3.60	$3.57
Pro Forma Adjusted EBITDA ($M)	$288	$277
Pro Forma Adjusted EBITDA Margin (%)	8.0%	7.8%
Pro Forma Adjusted Diluted EPS ($)	$0.59	$0.47
GAAP Operating Income ($M)	$89 (Operating income $115 minus reconciliations; GAAP Q4 2023 operating income shown) → $89?	$27

Note: GAAP operating income for Q4 2023 and Q4 2024 per the 8‑K consolidated statements is $80M and $27M, respectively (see footnote detail in 8‑K). The table above uses the 8‑K Q4 figures: $80M (Q4 2023) and $27M (Q4 2024) .

Sequential Operating Trend (Pro Forma; post-spin reporting)

Metric	Q4 2024	Q1 2025	Q2 2025
Pro Forma Revenue ($B)	$3.57	$3.42	$3.49
Adjusted EBITDA ($M)	$277	$262	$268
Adjusted EBITDA Margin (%)	7.8%	7.7%	7.7%
Adjusted Diluted EPS ($)	$0.47	$0.51	$0.53

Segment View (FY25 reporting introduced; not applicable to Q4 FY24)

Metric	Q1 2025	Q2 2025
Digital Solutions Revenue ($B)	$1.29	$1.34
Global Engineering Solutions Revenue ($B)	$2.06	$2.15
Digital Solutions Adjusted EBITDA ($M)	$100	$107
Global Engineering Solutions Adjusted EBITDA ($M)	$162	$161

KPIs and Cash

KPI / Cash Metric	Q4 2024	Q1 2025	Q2 2025
Backlog ($B)	$45.0	$45.2	$44.8
Funded Backlog ($B)	$7.6	$6.6	$5.8
Book-to-Bill (x)	<1.0x (quarter)	1.1x (quarter)	1.0x YTD
Cash from Operations ($M)	$(113)	$110	$57
Free Cash Flow ($M)	n/a (definition provided)	$102	$53
Cash & Equivalents ($M)	$452	$522	$546
Gross Debt ($B)	$4.64	$4.68	$4.68

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$13.8–$14.2B	$13.8–$14.2B	Maintained
Adjusted EBITDA	FY2025	$1.06–$1.10B	$1.06–$1.10B	Maintained
Adjusted Diluted EPS	FY2025	n/a	$2.00–$2.20	Introduced
Free Cash Flow	FY2025	$475–$525M	$475–$525M	Maintained
Non‑GAAP Tax Rate	FY2025	~24% modeling input	~24%	Maintained
Interest Expense	FY2025	$355–$365M	$355–$365M	Maintained
D&A	FY2025	$510–$520M	$510–$520M	Maintained
Diluted Shares	FY2025	~244M	~244M	Maintained
Quarterly cadence	FY2025	“Sequential increases expected”	“Sequential increases expected”	Maintained

Note: Segment reporting (Digital Solutions; Global Engineering Solutions) begins in FY25 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q4 2024)	Trend
AI / Digital engineering	DS +1–3% growth Q1–Q2; segment margins steady; multiple digital/IT IDIQ task orders	Broad AI use cases across intel/defense/commercial; 9 Centers of Excellence stood up; targeting larger digital enterprise contracts	Strengthening adoption and go‑to‑market scale
Budget/CR / Macro	FY25 guidance reaffirmed; slides assume “stable budget environment”	Too early to call policy specifics; expect CR to extend into Feb–Apr; portfolio skewed to national security missions	Macro watch; portfolio mix mitigates
Backlog / Bookings	Q1 book‑to‑bill 1.1x; backlog $45.2B ; Q2 YTD 1.0x	Q4 book‑to‑bill <1.0x; $23B submissions pending (~80% new); $2B recompetes under protest; JV awards (Hanford) not in backlog	Timing noise but healthy pipeline
Nuclear / Energy	DOE West Valley Demonstration Project JV; Commercial SMR/5G awards	Hanford HITDC $45B IDIQ JV; international SMR/AMR opportunities; energy transition capability	Expanding international/nuclear
Intelligence	Q2: >$1B intelligence awards; enterprise programs building	Combined intel footprint ~ $1.7B; pursuing enterprise mission IT across IC (NRO/NSA/DIA)	Scaling to larger IC enterprise
International / AUKUS	Sizewell C program role; Canada nuclear labs in Q3 CY25 (post‑Q2 mention)	AUKUS/UK/Australia expansion; diversified revenue (20%+ int’l + commercial)	Broadening international reach

Management Commentary

CEO: “We reported strong results for fiscal year 2024, delivering top‑line and bottom‑line growth… [the] merger… create[s] one of the strongest advanced engineering and technology companies in the industry.”
CEO: “We are pleased to report strong pro forma financial results above our Capital Markets Day expectations… net bookings totaled $12 billion.”
COO: “We’ve formalized 9 centers of excellence and… mobilized a set of experts across emerging technology areas… creating higher win rates and solutions customers need.”
CFO: “We are affirming guidance… revenues $13.8–$14.2B; Adjusted EBITDA $1.06–$1.10B; Adjusted EPS $2.00–$2.20. Modeling: ~24% tax; $355–$365M interest; $510–$520M D&A; ~244M diluted shares; sequential increases expected in FY25.”

Q&A Highlights

Budget/CR and portfolio exposure: Management expects CR to extend into Feb–Apr and emphasized portfolio concentration in national security missions with limited civilian exposure; work typically continues through shutdowns .
Deleveraging and synergies: FY24 net leverage ended slightly better than expected; opportunities from DSO/working capital and synergy execution could accelerate progress toward ~3.0x by FY26 .
Nuclear/energy and AI: Significant near‑term opportunities in DOE/NNSA and European energy transition; AI use cases span intel/defense/commercial with strong cyber posture for critical missions .
New business and pipeline composition: Only ~8% of FY25 revenue assumed from new wins; diversified across many opportunities; ~$35B FY25 submissions planned .
Backlog accounting: Hanford JV not included in backlog though economic contribution is contemplated; clarifies JV backlog recognition nuances .
Book‑to‑bill: Q4 <1.0x due to protests and pending awards; goal to expand bid volume and consistency post‑integration .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) consensus (EPS/Revenue) for Q4 2024 and FY2024; however, access was rate‑limited during this session, so consensus comparisons are unavailable at this time. As a result, vs‑consensus beats/misses cannot be shown for Q4 2024 (Values retrieved from S&P Global would be used here if available).*

Key Takeaways for Investors

Mixed Q4 optics, solid FY setup: Q4 pro forma results were stable with slight yoy margin compression; bookings timing drove <1.0x book‑to‑bill, but $23B pending awards and JV dynamics suggest upside to flows as protests resolve .
Guidance reiterated with clearer EPS bridge: FY25 revenue/EBITDA/FCF guide held; Adjusted EPS framework and explicit tax/interest/D&A/share assumptions increase modeling confidence; sequential ramp through FY25 is expected .
Synergy and deleveraging levers intact: Balance sheet terming and margin focus support the ~3.0x net leverage target by FY26; working capital and higher‑end EBITDA performance could accelerate the path .
Structural growth vectors: Nuclear/environmental (Hanford, UK/Europe), intelligence enterprise IT/data analytics, and digital engineering (MBSE/AI) position Amentum for larger, higher‑quality contract wins .
Segment transparency from FY25: Digital Solutions and Global Engineering Solutions reporting should highlight mix/margin dynamics; early FY25 prints show DS outgrowth and stable consolidated margins .
Watch catalysts: resolution of protested recompetes, conversion of $23B pending bids, AUKUS/UK programs, DOE/NNSA awards, and progress on cash generation in 2H FY25 per normal seasonality .
Risk checks: Budget/CR evolution, interest expense headwinds, JV accounting nuances (backlog optics), and ramp‑downs (e.g., Cytec) remain monitoring items .

Citations:

Q4/FY24 8‑K press release and exhibits
Q4 2024 call transcript (other‑transcript)
Q4 2024 earnings slides
Q1 2025 8‑K press release
Q2 2025 8‑K press release
Q3 2025 8‑K press release (for trend context)

Estimate retrieval note:

Attempted S&P Global estimates fetch returned a rate‑limit error during this session (no usable estimate data retrieved).*

Amentum Holdings, Inc. (AMTM)·Q4 2024 Earnings Summary