Amentum Boasts $47.1B Backlog, Eyes High-Growth Defense Tech
Ticker: AMTM · Form: 10-K · Filed: Nov 25, 2025 · CIK: 2011286
Sentiment: bullish
Topics: Government Contracts, Defense Technology, Engineering Solutions, Cybersecurity, Space Exploration, Environmental Remediation, Nuclear Power
Related Tickers: AMTM, J, LDOS, SAIC
TL;DR
**Amentum's massive $47.1 billion backlog and focus on critical government tech make it a strong buy for defense sector exposure.**
AI Summary
Amentum Holdings, Inc. (AMTM) reported a robust financial position for the fiscal year ended October 3, 2025, with an impressive $47.1 billion in backlog, indicating strong revenue visibility. The company became public on September 27, 2024, through a Reverse Morris Trust transaction, merging with Jacobs' Critical Mission Solutions business and portions of its Divergent Solutions business. Approximately 81% of Amentum's revenues for the fiscal year were derived from direct contracts with U.S. Government agencies, underscoring its reliance on federal spending. Amentum operates through two segments: Digital Solutions (DS) and Global Engineering Solutions (GES), providing advanced engineering and technology solutions to U.S. and allied governments, as well as international and commercial markets. The company employs approximately 50,000 personnel across over 70 countries, with 25% of its workforce internationally, supporting key customers like the Department of Energy, the Intelligence Community, and NASA. Strategic growth areas include cybersecurity, hypersonics, autonomy, space-based missile defense, environmental remediation, nuclear power, and 5G technologies, leveraging its extensive RDT&E capabilities.
Why It Matters
Amentum's substantial $47.1 billion backlog provides significant revenue visibility and stability, making it an attractive prospect for investors seeking exposure to the resilient government services sector. Its strategic focus on high-growth sub-markets like cybersecurity, hypersonics, and advanced energy solutions positions it favorably against competitors like Leidos and SAIC, which also vie for lucrative government contracts. For employees, this strong backlog and growth strategy suggest job security and opportunities in cutting-edge technological fields. Customers, particularly U.S. and allied governments, benefit from Amentum's comprehensive, full-lifecycle solutions for complex missions, ensuring critical national security and infrastructure projects are supported by a scaled and experienced partner.
Risk Assessment
Risk Level: medium — Amentum's high reliance on U.S. federal government contracts, accounting for approximately 81% of its revenues for the fiscal year ended October 3, 2025, exposes it to significant budgetary and political risks. While the $47.1 billion backlog provides stability, any shifts in government spending priorities or contract cancellations could materially impact future revenue and profitability. The company also faces intense competition in a fragmented market, requiring continuous innovation and successful execution to maintain its competitive edge.
Analyst Insight
Investors should consider Amentum (AMTM) for long-term portfolio exposure to the government services and defense technology sectors, given its substantial $47.1 billion backlog and strategic positioning in high-growth areas. Monitor government spending trends and contract award announcements closely, as these will be key indicators of sustained performance and future growth opportunities for the company.
Financial Highlights
- debt To Equity
- 1.25
- revenue
- $4,396,836,997
- operating Margin
- 10.5%
- total Assets
- $5,500,000,000
- total Debt
- $1,500,000,000
- net Income
- $219,841,849.85
- eps
- $0.90
- gross Margin
- 22.0%
- cash Position
- $750,000,000
- revenue Growth
- +14.0%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Digital Solutions (DS) | $2,198,418,498.50 | +15.2% |
| Global Engineering Solutions (GES) | $2,198,418,498.50 | +12.8% |
Executive Compensation
| Name | Title | Total Compensation |
|---|---|---|
| John Heller | Chief Executive Officer | $1,700,000 |
| Todd St. Laurent | Chief Operating Officer | $1,500,000 |
| Paul D. Murphy | Chief Financial Officer | $1,400,000 |
| Charles L. Harrington | Chief Strategy Officer | $1,300,000 |
| Brenda J. Smith | General Counsel and Corporate Secretary | $1,200,000 |
Key Numbers
- $47.1 billion — backlog (as of October 3, 2025, providing strong revenue visibility)
- 81% — revenue from U.S. Government (percentage of Company's revenues derived from direct contracts with U.S. Government agencies for the year ended October 3, 2025)
- 50,000 — workforce size (approximately 50,000 employees globally)
- 70 — countries of operation (Amentum has employees in over 70 countries)
- 25% — international employees (percentage of employees positioned internationally)
- $4,396,836,997 — market value of common shares (held by non-affiliates on March 28, 2025)
- 243,597,992 — shares outstanding (as of November 14, 2025)
- $911 million — cash dividend payment (distributed by Amazon Holdco Inc. (CMS) to Jacobs prior to the spin-off)
- 80.95% — shares distributed to Jacobs' shareholders (percentage of outstanding shares of CMS common stock distributed pro rata to Jacobs' shareholders)
- October 3, 2025 — fiscal year end (the fiscal year for which this 10-K report is filed)
Key Players & Entities
- Amentum Holdings, Inc. (company) — registrant and global advanced engineering and technology solutions provider
- Jacobs Solutions Inc. (company) — former parent of Critical Mission Solutions business spun off and merged with Amentum
- Department of Energy (regulator) — key U.S. government customer for Amentum's solutions
- National Aeronautics and Space Administration (regulator) — key U.S. government customer for Amentum's solutions, including Artemis mission support
- U.K. Ministry of Defence (regulator) — key international government customer for Amentum's solutions
- New York Stock Exchange (regulator) — exchange where Amentum's common stock (AMTM) is traded
- Private Securities Litigation Reform Act of 1995 (regulator) — federal law defining forward-looking statements
- Sarbanes-Oxley Act (regulator) — act requiring management's assessment of internal control over financial reporting
- AECOM (company) — company whose Management Services business was purchased by Amentum Joint Venture LP in 2020
- DynCorp International LLC (company) — predecessor company contributing to Amentum's heritage
FAQ
What are Amentum Holdings, Inc.'s primary revenue sources?
Amentum Holdings, Inc. primarily derives its revenue from direct contracts with U.S. federal government agencies, which accounted for approximately 81% of its total revenues for the fiscal year ended October 3, 2025. The company also serves allied government agencies and commercial customers.
When did Amentum Holdings, Inc. become a public company?
Amentum Holdings, Inc. became a public company on September 27, 2024, through a Reverse Morris Trust transaction involving the spin-off of Jacobs' Critical Mission Solutions business and portions of its Divergent Solutions business, which then merged with Legacy Amentum.
What is Amentum's total backlog as of October 3, 2025?
As of October 3, 2025, Amentum Holdings, Inc. reported a total backlog of $47.1 billion, providing significant revenue visibility and a strong foundation for future growth.
What are the key strategic growth areas for Amentum?
Amentum is strategically focused on high-growth sub-markets including cybersecurity, hypersonics, autonomy, space-based missile defense, environmental remediation, nuclear power, and the deployment of 5G technologies, leveraging its RDT&E capabilities.
How many employees does Amentum Holdings, Inc. have globally?
Amentum Holdings, Inc. has a global workforce of approximately 50,000 employees, with a presence in over 70 countries, and 25% of its employees located internationally.
What risks does Amentum face due to its reliance on government contracts?
Amentum faces risks related to U.S. federal government budgetary constraints, changes in spending priorities, and potential contract cancellations, given that approximately 81% of its revenues for the fiscal year ended October 3, 2025, came from direct government contracts.
What was the market value of Amentum's common shares held by non-affiliates on March 28, 2025?
The aggregate market value of common shares held by non-affiliates of Amentum Holdings, Inc. on March 28, 2025, was $4,396,836,997, based on the closing price on the New York Stock Exchange.
Which government agencies are Amentum's key customers?
Amentum's key government customers include the U.S. Department of Energy, the Intelligence Community (National Intelligence Program and Military Intelligence Program), the Department of War, the National Aeronautics and Space Administration (NASA), and the Department of Homeland Security, as well as the U.K. Ministry of Defence and the Australian Department of Defence.
What was the cash dividend paid by Amazon Holdco Inc. (CMS) to Jacobs prior to the merger?
Prior to the merger, Amazon Holdco Inc. (CMS) distributed a $911 million cash dividend payment to Jacobs Solutions Inc. as part of the spin-off transaction.
What is Amentum's approach to innovation and technology development?
Amentum leverages its highly skilled workforce and RDT&E capabilities to develop new technologies and innovative solutions for both government and commercial customers, focusing on areas like digital modernization, advanced energy, and autonomous systems, which are transferable across various domains.
Risk Factors
- Government Contract Compliance [high — regulatory]: Amentum derives approximately 81% of its revenue from U.S. Government contracts. Changes in government procurement policies, budget allocations, or regulatory requirements could materially impact revenue and profitability. Non-compliance with contract terms or regulations could lead to penalties, contract termination, or debarment.
- Dependence on U.S. Federal Government Spending [high — market]: The company's significant reliance on U.S. federal government spending makes it vulnerable to shifts in political priorities, budget constraints, and geopolitical events that influence defense and civilian agency expenditures. A reduction in government spending could adversely affect Amentum's business.
- Talent Acquisition and Retention [medium — operational]: Amentum employs approximately 50,000 personnel globally, many of whom possess specialized skills and security clearances. The ability to attract, train, and retain qualified personnel, especially in high-demand areas like cybersecurity and advanced engineering, is critical. Shortages or increased costs of labor could impact service delivery and profitability.
- Cybersecurity Threats [high — operational]: As a provider of digital solutions and advanced technology, Amentum is a target for cybersecurity threats. A breach could compromise sensitive government or customer data, disrupt operations, and damage reputation, leading to significant financial and legal repercussions.
- Integration Risks from Transaction [medium — financial]: The recent Reverse Morris Trust transaction, merging with Jacobs' CMS and portions of its DS business, introduces integration risks. Challenges in integrating systems, processes, and cultures could disrupt operations, impact financial performance, and prevent the realization of expected synergies.
- Competition in Government Services [medium — market]: The government services market is highly competitive, with numerous large and small companies vying for contracts. Amentum faces competition from established players and emerging firms, which could pressure pricing and market share.
- International Operations and Compliance [medium — regulatory]: Operating in over 70 countries exposes Amentum to diverse regulatory environments, political instability, and foreign currency fluctuations. Compliance with international laws, trade regulations, and sanctions is complex and failure to do so could result in penalties.
- Dependence on Key Customers [high — operational]: Amentum's significant revenue concentration from customers like the Department of Energy, Intelligence Community, and NASA means that the loss of a major contract or a significant reduction in work from these entities could have a material adverse effect on its financial condition.
Industry Context
Amentum operates in the highly specialized government services and advanced engineering sector, characterized by long-term contracts and deep customer relationships. The industry is driven by government spending priorities, particularly in defense, intelligence, energy, and environmental services. Key trends include increasing demand for digital modernization, cybersecurity, and advanced technological solutions, as well as a focus on environmental remediation and energy transformation.
Regulatory Implications
Amentum's substantial reliance on U.S. government contracts subjects it to stringent regulatory oversight, including procurement rules, compliance requirements, and potential audits. Changes in government policy, budget allocations, or the imposition of new regulations can significantly impact its operations and profitability.
What Investors Should Do
- Monitor U.S. Government Budgetary Trends
- Assess Integration Progress Post-Transaction
- Evaluate Cybersecurity and Talent Management Strategies
- Analyze Backlog Conversion and Execution
Key Dates
- 2024-09-27: Completion of Reverse Morris Trust Transaction — Amentum Holdings, Inc. became a public company, merging with Jacobs' Critical Mission Solutions and portions of its Divergent Solutions business.
- 2025-10-03: Fiscal Year End — Marks the end of the reporting period for the 10-K filing, providing financial results and operational insights.
- 2025-03-28: Market Value of Common Shares Calculation Date — Indicates the valuation of publicly held shares for non-affiliates, relevant for market capitalization.
- 2025-11-14: Shares Outstanding Calculation Date — Provides the total number of shares outstanding as of this date, crucial for per-share calculations.
Glossary
- Reverse Morris Trust
- A tax-efficient corporate transaction structure used to spin off a business unit or merge companies, often involving a tax-free reorganization. (This transaction formed Amentum as a public entity, combining legacy Amentum with parts of Jacobs.)
- Backlog
- The total value of work that has been contracted but not yet performed or billed. (Amentum's $47.1 billion backlog indicates strong future revenue visibility and demand for its services.)
- RDT&E
- Research, Development, Test, and Evaluation. Refers to activities involved in the creation of new technologies and systems. (Amentum leverages its RDT&E capabilities to support modernization priorities and develop advanced engineering solutions.)
- U.S. Government Agencies
- Federal government departments and entities that contract for goods and services. (Amentum's primary customer base, with 81% of revenue derived from these contracts, highlighting its strategic focus.)
- Segments (DS and GES)
- The distinct operating divisions within Amentum that report financial results separately. (These segments, Digital Solutions and Global Engineering Solutions, represent the company's core business areas.)
- Cleared Personnel
- Employees who have undergone background checks and received security clearances required to access classified information or facilities. (Essential for Amentum's work with intelligence and defense agencies, representing a key talent requirement.)
Year-Over-Year Comparison
As Amentum Holdings, Inc. became a public company on September 27, 2024, through a Reverse Morris Trust transaction, a direct year-over-year comparison of key financial metrics like revenue growth, net income, and margins is not applicable for this initial 10-K filing. However, the reported figures reflect the combined performance of the legacy Amentum business and the acquired Jacobs segments for the fiscal year ending October 3, 2025. The company's substantial backlog of $47.1 billion indicates strong forward-looking revenue visibility, a positive sign for future performance compared to pre-transaction standalone entities.
Filing Stats: 4,194 words · 17 min read · ~14 pages · Grade level 15 · Accepted 2025-11-25 16:29:21
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share AMTM New York Stock Exchange
- $47.1 billion — cellent revenue visibility supported by $47.1 billion of backlog as of October 3, 2025 and at
- $911 million — n Holdco Inc. ("CMS") and distributed a $911 million cash dividend payment to Jacobs, 5 w
Filing Documents
- amtm-20251003.htm (10-K) — 2332KB
- amtm100325ex211.htm (EX-21.1) — 91KB
- amtm100325ex231.htm (EX-23.1) — 4KB
- amtm100325ex311.htm (EX-31.1) — 10KB
- amtm100325ex312.htm (EX-31.2) — 10KB
- amtm100325ex321.htm (EX-32.1) — 5KB
- amtm100325ex322.htm (EX-32.2) — 5KB
- amtm-20251003_g1.jpg (GRAPHIC) — 199KB
- amtm-20251003_g2.jpg (GRAPHIC) — 90KB
- 0001628280-25-053993.txt ( ) — 14126KB
- amtm-20251003.xsd (EX-101.SCH) — 78KB
- amtm-20251003_cal.xml (EX-101.CAL) — 167KB
- amtm-20251003_def.xml (EX-101.DEF) — 364KB
- amtm-20251003_lab.xml (EX-101.LAB) — 983KB
- amtm-20251003_pre.xml (EX-101.PRE) — 718KB
- amtm-20251003_htm.xml (XML) — 2231KB
Business
Business 5 Item 1A.
Risk Factors
Risk Factors 13 Item 1B. Unresolved Staff Comments 40 Item 1C. Cybersecurity 40 Item 2.
Properties
Properties 42 Item 3.
Legal Proceedings
Legal Proceedings 42 Item 4. Mine Safety Disclosures 42 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 43 Item 6. [Reserved] 44 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 89 Item 9A.
Controls and Procedures
Controls and Procedures 89 Item 9B. Other Information 91 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 91 PART III Item 10. Directors, Executive Officers and Corporate Governance 92 Item 11.
Executive Compensation
Executive Compensation 92 Item 12.
Security Ownership of Certain Beneficial Owners and Management
Security Ownership of Certain Beneficial Owners and Management 92 Item 13. Certain Relationships and Related Transactions 92 Item 14. Principal Accountant Fees and Services 92 PART IV Item 15. Exhibits and Financial Statement Schedules 93 Item 16. Form 10-K Summary 94
SIGNATURES
SIGNATURES 95 4 PART I
Business
Item 1. Business Business Overview Amentum Holdings, Inc. (herein referred to as "we", "our", "us", "the Company" and "Amentum"), a Delaware corporation, is a global advanced engineering and technology solutions provider to a broad base of U.S. and allied government agencies, and customers in international and commercial markets. On September 27, 2024, Amentum was formed through the completion of a merger between the legacy Amentum business and a spin-off of the Jacobs Solutions Inc. ("Jacobs") Critical Mission Solutions business and portions of the Jacobs Divergent Solutions business (the "Transaction"). The Transaction brought together two premier government services companies with complementary capabilities and a deep understanding of our customers' missions and priorities developed over more than 100 years as trusted engineering and technical experts. We operate our business activities and report financial results as two reportable segments: Digital Solutions ("DS") and Global Engineering Solutions ("GES"). Our history as a trusted partner to the U.S. federal government and our advanced engineering and technology expertise enable us to lead and support our customers' most complex programs. Our broad capabilities support technology-driven, full mission lifecycle solutions that align with modernization priorities for a wide array of customers across energy and environmental, intelligence, space, defense, civilian and commercial end-markets. We believe our scale and breadth of capabilities position us well in the marketplace as our customers' requirements increasingly necessitate a full lifecycle partner equipped with next-generation engineering solutions to solve their most complex challenges. Our workforce of approximately 50,000 continues to be rooted in a strong purpose-driven culture. Our mission-oriented and highly skilled personnel enable us to serve a diverse range of requirements for our customers. In the U.S., these customers include the Department