Why Amentum Holdings Stock Rocked the Market Today

AMTM -2.23%

Key Points

• The company's fiscal fourth-quarter results wowed a great many investors.

• They also topped analyst estimates on both the top and bottom lines.

• 10 stocks we like better than Amentum ›

Just after market close on Monday, Amentum Holdings (NYSE: AMTM) posted its latest set of quarterly figures. This led to a bull stampede into the stock the following day, with eager investors boosting the defense company's share price by more than 18%.

Double-digit improvements

Amentum's final quarter of fiscal 2025 saw the company reap nearly $3.93 billion in revenue. That was 10% higher year-over-year when accounting for the critical mission solutions and cyber and intelligence (CMS) business, a company acquisition from peer Jacobs that closed in September 2024.

Net income not according to generally accepted accounting principles (GAAP) also headed north, rising by a robust 34% to $154 million ($0.63 per share).

According to data compiled by Zacks, this meant a twin beat on the consensus analyst estimates. On average, those pundits were expecting revenue of $3.61 billion and non-GAAP (adjusted) net income of $0.59 per share.

Both of Amentum's two main reporting segments did well during the quarter. Revenue from digital solutions increased by 11% to almost $1.5 billion, and global engineering's take rose by 9% to $2.43 billion.

In its earnings release, the company quoted CEO John Heller as saying that "Financial performance exceeded our expectations, demonstrating the resilience of our business and its alignment with enduring global trends and the mission-critical priorities of our customers."

Amentum has momentum

Amentum is guiding for continued growth across its current fiscal year (2026). The company expects its revenue for the period to be between $14 billion and $14.3 billion, with adjusted net profit ranging from $2.25 to $2.45 per share. Although the top-line range falls below the 2025 tally of almost $14.4 billion, the profitability forecast sits well above the $2 per share of that year.

It's a prosperous time for the defense industry, particularly in a world marked by increased tensions in numerous regions and heightened cybersecurity threats. Amentum is clearly taking advantage of the opportunity; thus, it's a stock that should be on many investors' watchlists.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amentum. The Motley Fool has a disclosure policy.

Why Amentum Holdings Stock Rocked the Market Today was originally published by The Motley Fool