Wed, May 7, 8:43 PM (8 days ago)
**Amentum Holdings, Inc. (AMTM) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $3,491 million (Q1 2025) vs. $2,051 million (Q1 2024), a 70.2% increase. - **Profit Margins:** Operating margin improved to 3.2% (Q1 2025) from 4.3% loss (Q1 2024). Net margin was 0.1% (Q1 2025) compared to a 20.0% loss (Q1 2024). - **Cash Flow:** Operating cash flow was $167 million (Q1 2025) vs. a use of $78 million (Q1 2024). Free cash flow was $128 million (Q1 2025) vs. a use of $84 million (Q1 2024). - **Earnings:** Net income was $4 million (Q1 2025) vs. a loss of $41 million (Q1 2024). EPS was $0.02 (Q1 2025) vs. a loss of $0.46 (Q1 2024). **Segment Performance:** - **Digital Solutions (DS):** Revenue increased by 185% (Q1 2025) and 182% (H1 2025). Adjusted EBITDA increased by 168% (Q1 2025) and 165% (H1 2025). - **Global Engineering Solutions (GES):** Revenue increased by 36% (Q1 2025) and 38% (H1 2025). Adjusted EBITDA increased by 39% (Q1 2025 and H1 2025). **Trends & Uncertainties:** - **Merger Impact:** Significant revenue and earnings growth due to the merger with CMS. - **Budgetary Environment:** U.S. federal budget increases for defense and non-defense spending. Potential impacts from tariffs and trade policies. - **Market Environment:** Increasing demand for outsourced services, clean energy solutions, and advanced technologies. **Future Operations Impact:** - **Debt Reduction:** Proceeds from the sale of the Rapid Solutions business will accelerate debt reduction. - **Cash Flow:** Strong operating cash flow and free cash flow generation. - **Growth Opportunities:** Strategic alignment with well-funded, long-term priorities for federal government, allied nations, and commercial customers. **Notable Changes:** - **Segment Realignment:** Identification of two reportable segments: Digital Solutions and Global Engineering Solutions. - **Divestiture:** Planned sale of the Rapid Solutions business for $360 million in cash.