Q4 2025 Amentum Holdings Inc Earnings Call

At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session and instructions will be provided at that time I would now like to turn the call over to Nathan Rutledge Senior Vice President of Investor Relations. Please go ahead Sir.

Thank you and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our Investor Relations website.

Speaker #1: Ladies and gentlemen, thank you for standing by. Good morning and welcome to Amentum's fourth quarter and full fiscal year 2025 earnings conference call. Today's call is being recorded.

Operator: Ladies and gentlemen, thank you for standing by. Good morning and welcome to Amentum's Q4 and full fiscal year 2025 earnings conference call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session, and instructions will be provided at that time. I would now like to turn the call over to Nathan Rutledge, Senior Vice President of Investor Relations. Please go ahead, sir.

Operator: Ladies and gentlemen, thank you for standing by. Good morning and welcome to Amentum's Q4 and Full Fiscal year 2025 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session, and instructions will be provided at that time. I would now like to turn the call over to Nathan Rutledge, Senior Vice President of Investor Relations. Please go ahead, sir.

Also provided presentation slides to facilitate today's call. So let's move to slide two please.

Please note. This morning's discussion will contain forward looking statements that are subject to important factors that could cause actual results to differ materially from anticipated.

Speaker #1: At this time, all participants are in a speaker's presentation, there will be a listen-only mode. After this provided at that time. I would now question-and-answer session, and instructions will be like to turn the call over to Nathan Rutledge, Senior Vice President of Investor Relations, please go ahead, sir.

I refer you to our SEC filings for a discussion of these factors, including the risk factors section of our annual report on Form 10-K, the statements represent our views as of today and subsequent events may cause our views to change we may elect to update the forward looking statements at some point in the future specifically disclaim any.

Speaker #2: Thank you, and good morning. Please read our earnings release, which we issued to everyone. We hope you've had an opportunity to visit our Investor Relations website. We have also provided presentation slides to facilitate today's call.

Nathan Rutledge: Thank you, and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our Investor Relations website. We have also provided presentation slides to facilitate today's call, so let's move to slide two. Please note this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our SEC filings for a discussion of these factors, including the risk factor section of our annual report on Form 10-K. The statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do so.

Nathan Rutledge: Thank you, and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our Investor Relations website. We have also provided presentation slides to facilitate today's call, so let's move to slide two. Please note this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our SEC filings for a discussion of these factors, including the risk factor section of our annual report on Form 10-K. The statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do so.

And to do so.

In addition, we will discuss pro forma financial measures prepared in accordance with article 11 of regulation S X.

Speaker #2: So let's move to slide two. Please note, this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated.

Well as non-GAAP financial measures, which we believe provide useful information for investors.

Speaker #2: I refer you to our SEC filings for a discussion of these factors, including the risk factor section of our annual report on Form 10-K.

Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures.

We do not provide reconciliations of forward looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant items.

Speaker #2: The statements represent our views as of today to change. We may elect to and subsequent events may cause our views update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do pro forma financial measures prepared in so.

These pro forma and non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.

Nathan Rutledge: In addition, we will discuss pro forma financial measures prepared in accordance with Article 11 of Regulation SX, as well as non-GAAP financial measures, which we believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures. We do not provide reconciliations of forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant items. These pro forma and non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Our safe harbor statement included on this slide should be incorporated as part of any transcript of this call. With me today to discuss our business and financial results are John Heller, Chief Executive Officer, and Travis Johnson, Chief Financial Officer.

In addition, we will discuss pro forma financial measures prepared in accordance with Article 11 of Regulation SX, as well as non-GAAP financial measures, which we believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures. We do not provide reconciliations of forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant items. These pro forma and non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Our safe harbor statement included on this slide should be incorporated as part of any transcript of this call. With me today to discuss our business and financial results are John Heller, Chief Executive Officer, and Travis Johnson, Chief Financial Officer.

Speaker #2: Regulation SX. As well believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most We do not provide reconciliations of forward-looking comparable GAAP measures.

Our safe Harbor statements included on this slide should be incorporated as part of any transcript of this call.

With me today to discuss our business and financial results are John Heller, Chief Executive Officer, and Travis Johnson, Chief Financial Officer.

We're also joined by other members of management, including Steve Arnette, Chief operating officer.

Speaker #2: non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant In addition, we will discuss items. These pro forma and non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.

With that moving to slide three its my pleasure to turn the call over to our CEO John Heller.

Thank you Nathan and thank you everyone for joining us today fiscal year 2025, Mark to Mentos first full year as a public company a transformational year that helped define who we are our differentiated position in the marketplace and where we're going it was a year of disciplined execution strong.

Speaker #2: safe harbor statement included on this slide should be incorporated as part of any transcript of this call. With me today to discuss our business and financial results are John Our And Travis Johnson, Chief Financial Officer.

<unk> and meaningful progress across every part of our business I am so proud of our people and what we've accomplished together at capital markets day in August of last year, we established our objective to successfully integrate and deliver end to end advanced engineering and technology solutions to government international and commercial.

Speaker #2: We are also joined by other members of management: John Heller, Chief Executive Officer. With that, moving to slide three, it's my pleasure to turn the call over to our CEO, John Heller.

Nathan Rutledge: We are also joined by other members of management, including Steve Arnette, Chief Operating Officer. With that, moving to slide three, it's my pleasure to turn the call over to our CEO, John Heller.

We are also joined by other members of management, including Steve Arnette, Chief Operating Officer. With that, moving to slide three, it's my pleasure to turn the call over to our CEO, John Heller.

John Heller: Thank you, Nathan, and thank you, everyone, for joining us today. Fiscal year 2025 marked Amentum's first full year as a public company, a transformational year that helped define who we are, our differentiated position in the marketplace, and where we're going. It was a year of disciplined execution, strong performance, and meaningful progress across every part of our business. I am so proud of our people and what we've accomplished together. At Capital Markets Day in August of last year, we established our objective to successfully integrate and deliver end-to-end advanced engineering and technology solutions to government, international, and commercial customers across key end markets, including defense, nuclear energy, intelligence, and space, and we're executing exactly as we had envisioned. As a result, Amentum has established a solid foundation for sustainable growth.

John Heller: Thank you, Nathan, and thank you, everyone, for joining us today. Fiscal year 2025 marked Amentum's first full year as a public company, a transformational year that helped define who we are, our differentiated position in the marketplace, and where we're going. It was a year of disciplined execution, strong performance, and meaningful progress across every part of our business. I am so proud of our people and what we've accomplished together. At Capital Markets Day in August of last year, we established our objective to successfully integrate and deliver end-to-end advanced engineering and technology solutions to government, international, and commercial customers across key end markets, including defense, nuclear energy, intelligence, and space, and we're executing exactly as we had envisioned. As a result, Amentum has established a solid foundation for sustainable growth.

<unk> customers across key end markets, including defense nuclear energy intelligence and space and we're executing exactly as we had envisioned as a result momentum has established a solid foundation for sustainable growth. This morning, I will detail, how our mentum has proven our ability to offer.

Speaker #3: our people and what we've accomplished marketplace, and where we're together. At Capital Markets Day in August of last year, we established our objective to successfully integrate and deliver end-to-end advanced engineering and technology solutions to government, international, and commercial customers across key end markets, including defense, nuclear energy, intelligence, and space.

Right with agility deliver for our customers and create long term value for our shareholders.

We'll focus on three key areas first an overview of how this exceptional year unfolded and how it positions inventum for a promising future second highlights from an impressive quarter, including strategic awards in key performance metrics.

Speaker #3: And we're executing

And finally, our strategy to drive <unk> growth in fiscal year 2026 and beyond.

Let's begin on slide four which captures the core of our fiscal year 2025 performance centering around momentum people operational excellence financial performance and effective execution of our strategy.

John Heller: This morning, I will detail how Amentum has proven our ability to operate with agility, deliver for our customers, and create long-term value for our shareholders. I will focus on three key areas. First, an overview of how this exceptional year unfolded and how it positions Amentum for a promising future. Second, highlights from an impressive quarter, including strategic awards, and key performance metrics. Finally, our strategy to drive Amentum's growth in fiscal year 2026 and beyond. Let's begin on slide four, which captures the core of our fiscal year 2025 performance, centering around Amentum's people, operational excellence, financial performance, and effective execution of our strategy. First, our people. Fiscal year 2025 tested our resilience, and our people delivered. Against the backdrop of evolving customer priorities, our team stayed focused and delivered without pause.

This morning, I will detail how Amentum has proven our ability to operate with agility, deliver for our customers, and create long-term value for our shareholders. I will focus on three key areas. First, an overview of how this exceptional year unfolded and how it positions Amentum for a promising future. Second, highlights from an impressive quarter, including strategic awards, and key performance metrics. Finally, our strategy to drive Amentum's growth in fiscal year 2026 and beyond. Let's begin on slide four, which captures the core of our fiscal year 2025 performance, centering around Amentum's people, operational excellence, financial performance, and effective execution of our strategy. First, our people. Fiscal year 2025 tested our resilience, and our people delivered. Against the backdrop of evolving customer priorities, our team stayed focused and delivered without pause.

Art people fiscal year, 2025 tested our resilience and our people delivered against the backdrop of evolving customer priorities. Our team stayed focused and delivered without pause our leadership.

Maintained its steady focus on the fundamentals protecting the long term health of the business, ensuring continuity for our customers and ensuring that our people continue to thrive regardless of the market environment.

Dynamic operating environment, our teams continued designing and delivering critical solutions for our customers that resilience is reinforced by our ability to hire thousands of skilled professionals worldwide, maintaining attrition well below the industry average and in our continued recognition as an <unk>.

John Heller: Our leadership maintained its steady focus on the fundamentals, protecting the long-term health of the business, ensuring continuity for our customers, and ensuring that our people continue to thrive regardless of the market environment. Through a dynamic operating environment, our teams continued designing and delivering critical solutions for our customers. That resilience is reinforced by our ability to hire thousands of skilled professionals worldwide, maintaining attrition well below the industry average, and in our continued recognition as an employer of choice. We take pride in being a company where people want to build their careers while having a positive impact on our world. To that end, we're continuing to expand our centers of excellence, which provide specialized technology to drive innovation and progress. For example, we recently opened our Nuclear Center of Excellence in Oak Ridge, Tennessee, which serves as a strategic hub for nuclear expertise for North America.

Our leadership maintained its steady focus on the fundamentals, protecting the long-term health of the business, ensuring continuity for our customers, and ensuring that our people continue to thrive regardless of the market environment. Through a dynamic operating environment, our teams continued designing and delivering critical solutions for our customers. That resilience is reinforced by our ability to hire thousands of skilled professionals worldwide, maintaining attrition well below the industry average, and in our continued recognition as an employer of choice. We take pride in being a company where people want to build their careers while having a positive impact on our world. To that end, we're continuing to expand our centers of excellence, which provide specialized technology to drive innovation and progress. For example, we recently opened our Nuclear Center of Excellence in Oak Ridge, Tennessee, which serves as a strategic hub for nuclear expertise for North America.

Employer of choice, we take pride in being a company where people want to build their careers, while having a positive impact on our world.

To that end, we're continuing to expand our centers of excellence, which provides specialized technology to drive innovation and progress. For example, we recently opened our nuclear center of excellence in Oak Ridge, Tennessee, which serves as a strategic hub for nuclear expertise for North America.

We've launched technical connection teams and mobilized and AI expert community network supporting Upskilling and innovation at every level across the globe.

The integration of our legacy businesses was one of the most significant in our industry's history, a massive undertaking that demanded focus collaboration and discipline across every part of the company. Thanks to our team we have exited our transition service agreements completed all of our key.

Ration milestones on time and within budget.

John Heller: We've launched technical connection teams and mobilized an AI expert community network, supporting upskilling and innovation at every level across the globe. The integration of our legacy businesses was one of the most significant in our industry's history, a massive undertaking that demanded focus, collaboration, and discipline across every part of the company. Thanks to our team, we have exited all transition service agreements, completed all of our key integration milestones on time and within budget, and are on track to deliver at least $60 million in net run rate synergies by the end of fiscal year 2026. That operational readiness, anchored in the strength of our people and culture, is one of Amentum's defining advantages, and it translated directly into strong financial performance. As a result, we met or exceeded guidance across every key metric, underscoring our consistency and discipline.

We've launched technical connection teams and mobilized an AI expert community network, supporting upskilling and innovation at every level across the globe. The integration of our legacy businesses was one of the most significant in our industry's history, a massive undertaking that demanded focus, collaboration, and discipline across every part of the company. Thanks to our team, we have exited all transition service agreements, completed all of our key integration milestones on time and within budget, and are on track to deliver at least $60 million in Net run rate synergies by the end of fiscal year 2026. That operational readiness, anchored in the strength of our people and culture, is one of Amentum's defining advantages, and it translated directly into strong financial performance. As a result, we met or exceeded guidance across every key metric, underscoring our consistency and discipline.

And are on track to deliver at least $60 million and net run rate synergies by the end of fiscal year 2026.

<unk> operational readiness anchored in the strength of our people and culture is one of them <unk> defining advantages and it translated directly into strong financial performance as.

As a result, we met or exceeded guidance across every key metric underscoring our consistency and discipline.

Starting with revenues, which increased to $14 4 billion.

Representing pro forma growth of 4%.

Adjusted EBITDA of $1 1 billion, an increase of 5% year over year.

Adjusted diluted earnings per share of $2 22.

That's up 11%.

And free cash flow of $516 million.

Reporting acceleration of our debt reduction objectives, bringing net leverage to three two times.

These results demonstrate the strength of our operations and the reliability of our business model and taken together this year's achievements underscore the strength and breadth of our platform in short we executed with precision in strength delivering on our commitments, while positioning <unk> momentum for sustained success.

John Heller: Starting with revenues, which increased to $14.4 billion, representing pro forma growth of 4%, adjusted EBITDA of $1.1 billion, an increase of 5% year over year, adjusted diluted earnings per share of $2.22, which is up 11%, and free cash flow of $516 million, supporting acceleration of our debt reduction objectives, bringing net leverage to 3.2x. These results demonstrate the strength of our operations and the reliability of our business model. Taken together, this year's achievements underscore the strength and breadth of our platform. In short, we executed with precision and strength, delivering on our commitments while positioning Amentum for sustained success. Please turn to slide five. Our disciplined execution and focus on growth translated into a series of strategically significant wins that strengthen our position across key markets.

Starting with revenues, which increased to $14.4 billion, representing pro forma growth of 4%, Adjusted EBITDA of $1.1 billion, an increase of 5% year over year, adjusted diluted earnings per share of $2.22, which is up 11%, and free cash flow of $516 million, supporting acceleration of our debt reduction objectives, bringing net leverage to 3.2x. These results demonstrate the strength of our operations and the reliability of our business model. Taken together, this year's achievements underscore the strength and breadth of our platform. In short, we executed with precision and strength, delivering on our commitments while positioning Amentum for sustained success. Please turn to slide five. Our disciplined execution and focus on growth translated into a series of strategically significant wins that strengthen our position across key markets.

Please turn to slide five.

Our disciplined execution and focus on growth translated into a series of strategically significant wins that strengthen our position across key markets during.

During fiscal year 'twenty, five we submitted $35 billion in bids achieving a full year book to Bill ratio of one two times in a quarterly book to Bill ratio of one six times, our backlog grew 5% reaching over 47 billion.

And at year end, we had $20 billion in proposals awaiting awards.

Our quarterly book to Bill ratio was driven by $6 4 billion and total bookings, reflecting continued demand in several strategically important wins, including.

John Heller: During fiscal year 2025, we submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2x and a quarterly book-to-bill ratio of 1.6x. Our backlog grew 5%, reaching over $47 billion, and at year-end, we had $20 billion in proposals awaiting awards. Our quarterly book-to-bill ratio was driven by $6.4 billion in total bookings, reflecting continued demand in several strategically important wins, including the US Space Force Range contract, a new $4 billion 10-year single award IDIQ. This award, now adjudicated and booked into backlog, is one of the largest services contracts ever awarded by this customer. It cements Amentum's leadership in space systems and technology, and solidifies our position in this fast-growing market.

During fiscal year 2025, we submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2x and a quarterly book-to-bill ratio of 1.6x. Our backlog grew 5%, reaching over $47 billion, and at year-end, we had $20 billion in proposals awaiting awards. Our quarterly book-to-bill ratio was driven by $6.4 billion in total bookings, reflecting continued demand in several strategically important wins, including the US Space Force Range contract, a new $4 billion 10-year single award IDIQ. This award, now adjudicated and booked into backlog, is one of the largest services contracts ever awarded by this customer. It cements Amentum's leadership in space systems and technology, and solidifies our position in this fast-growing market.

The U S space Force range contract, a new $4 billion 10 year single Award <unk> IQ. This award now adjudicated and booked into backlog is one of the largest services contract ever awarded by this customer it cements amendments leadership in space systems and technology and solidify.

Our position in this fast growing market.

In the UK Sellafield selected momentum as it remediation partner for this site under our $1 $8 billion 15 year contract, where we are leveraging our advanced decommissioning solutions systems engineering, and next generation nuclear material processing and disposition capabilities.

Another exciting win came from the civilian side of our space portfolio with the NASA Cosmos contract, which is a nine year one $8 billion joint venture award to deliver critical mission operations systems and training solutions supporting Masters current space flight programs and enable.

John Heller: In the UK, Sellafield selected Amentum as a remediation partner for the site under a $1.8 billion, 15-year contract, where we are leveraging our advanced decommissioning solutions, systems engineering, and next-generation nuclear material processing and disposition capabilities. Another exciting win came from the civilian side of our space portfolio with the NASA Cosmos contract, which is a nine-year, $1.8 billion joint venture award to deliver critical mission operations, systems, and training solutions supporting NASA's current spaceflight programs, and enabling future deep space exploration. In the quarter, we were notified that this award is being protested. Therefore, it is not included in our fourth quarter backlog or book-to-bill results. We are confident in the strength of our bid, and look forward to its resolution.

In the UK, Sellafield selected Amentum as a remediation partner for the site under a $1.8 billion, 15-year contract, where we are leveraging our advanced decommissioning solutions, systems engineering, and next-generation nuclear material processing and disposition capabilities. Another exciting win came from the civilian side of our space portfolio with the NASA Cosmos contract, which is a nine-year, $1.8 billion joint venture award to deliver critical mission operations, systems, and training solutions supporting NASA's current Spaceflight programs, and enabling future deep space exploration. In the quarter, we were notified that this award is being protested. Therefore, it is not included in our fourth quarter backlog or book-to-bill results. We are confident in the strength of our bid, and look forward to its resolution.

During future deep space exploration.

In the quarter, we were notified that this award is being protested therefore it is not included in our fourth quarter backlog or book to Bill results. We are confident in the strength of our bid and look forward to its resolution.

And finally, we secured nearly $700 million in awards, providing a range of advanced engineering and technology solutions for intelligence customers, including a win developing and delivering AI enabled software coding solutions.

Together these results underscore the trust that our customers have placed in our mentum to execute complex programs at scale.

We enter fiscal year 2026, with strong momentum preparing to bid at least $35 billion.

Turning to slide six.

John Heller: We secured nearly $700 million in awards providing a range of advanced engineering and technology solutions for intelligence customers, including a win developing and delivering AI-enabled software coding solutions. Together, these results underscore the trust that our customers have placed in Amentum to execute complex programs at scale. We enter fiscal year 2026 with strong momentum, preparing to bid at least $35 billion. Turning to slide six, fiscal year 2025 brought significant change, not just in Washington, but across the globe and throughout our industry. The transition to a new administration introduced a new set of priorities and objectives, impacting contracting timelines, funding cycles, and future spending direction. For Amentum, this environment reinforced the strength and resilience of our business model. Our work is anchored in mission-critical, long-duration programs that are essential to national defense, energy security, and space superiority.

We secured nearly $700 million in awards providing a range of advanced engineering and technology solutions for intelligence customers, including a win developing and delivering AI-enabled software coding solutions. Together, these results underscore the trust that our customers have placed in Amentum to execute complex programs at scale. We enter fiscal year 2026 with strong momentum, preparing to bid at least $35 billion. Turning to slide six, fiscal year 2025 brought significant change, not just in Washington, but across the globe and throughout our industry. The transition to a new administration introduced a new set of priorities and objectives, impacting contracting timelines, funding cycles, and future spending direction. For Amentum, this environment reinforced the strength and resilience of our business model. Our work is anchored in mission-critical, long-duration programs that are essential to national defense, energy security, and space superiority.

Fiscal year 2025 brought significant change not just in Washington, but across the globe and throughout our industry. The transition to a new administration introduced a new set of priorities and objectives impacting contracting timelines funding cycles and future spending direction fundamental this is.

<unk> reinforced the strength and resilience of our business model. Our work is anchored in mission critical long duration programs that are essential to national defense energy security and space superiority.

Our diverse portfolio, which includes 20% of revenue tied to commercial and international work provides a degree of insulation from sector volatility combined with our strong backlog and robust pipeline, we have high visibility into future revenues. This.

Truck show agility allows a mentum to rapidly adapt to shifting priorities, while delivering consistent results for customers.

As the government refocuses on efficiency speed and accountability momentum is well position our scale performance record and proven operational discipline make us a trusted partner to our customers for investors that combination represents a low risk high visibility opportunity at <unk>.

John Heller: Our diverse portfolio, which includes 20% of revenue tied to commercial and international work, provides a degree of insulation from sector volatility. Combined with our strong backlog and robust pipeline, we have high visibility into future revenues. This structural agility allows Amentum to rapidly adapt to shifting priorities while delivering consistent results for customers. As the government refocuses on efficiency, speed, and accountability, Amentum is well-positioned. Our scale, performance record, and proven operational discipline make us a trusted partner to our customers. For investors, that combination represents a low-risk, high-visibility opportunity at a time when consistency and reliability are at a premium. Simply put, Amentum represents stability in a period of transition. Let's turn to slide seven to discuss Amentum's growth strategy.

Our diverse portfolio, which includes 20% of revenue tied to commercial and international work, provides a degree of insulation from sector volatility. Combined with our strong backlog and robust pipeline, we have high visibility into future revenues. This structural agility allows Amentum to rapidly adapt to shifting priorities while delivering consistent results for customers. As the government refocuses on efficiency, speed, and accountability, Amentum is well-positioned. Our scale, performance record, and proven operational discipline make us a trusted partner to our customers. For investors, that combination represents a low-risk, high-visibility opportunity at a time when consistency and reliability are at a premium. Simply put, Amentum represents stability in a period of transition. Let's turn to slide seven to discuss Amentum's growth strategy.

<unk> with consistency and reliability are at a premium simply put momentum represents stability in a period of transition.

Let's turn to slide seven to discuss momentum growth strategy.

Our core growth areas, where we have long standing leadership positions across large stable mission critical areas provide dependable revenue strong cash flow and predictable returns and they remain central to the steady performance that defines our company. These.

These areas underpinned by several core capabilities are deployed across multi year, often multi decade programs and some notable areas include <unk> intelligence operations and analysis homeland security and border protection environmental remediation.

John Heller: Our core growth areas, where we have long-standing leadership positions across large, stable, mission-critical areas, provide dependable revenue, strong cash flow, and predictable returns, and they remain central to the steady performance that defines our company. These areas, underpinned by several core capabilities, are deployed across multi-year, often multi-decade programs, and some notable areas include RDT&E, intelligence operations and analysis, homeland security and border protection, environmental remediation, and defense engineering, logistics, and modernization. As an example, you can see this in work on our ITEAMS program in Indo-PACOM, where we're strengthening C5ISR capabilities for the US Armed Forces by applying rapid prototyping and digital engineering methods to accelerate speed to mission. It's also reflected in our support to the Naval Surface Warfare Center Crane, where we integrate next-generation sensors and apply model-based systems engineering to enhance reliability and lifecycle management.

Our core growth areas, where we have long-standing leadership positions across large, stable, mission-critical areas, provide dependable revenue, strong cash flow, and predictable returns, and they remain central to the steady performance that defines our company. These areas, underpinned by several core capabilities, are deployed across multi-year, often multi-decade programs, and some notable areas include RDT&E, intelligence operations and analysis, homeland security and border protection, environmental remediation, and defense engineering, logistics, and modernization. As an example, you can see this in work on our ITEAMS program in Indo-PACOM, where we're strengthening C5ISR capabilities for the US Armed Forces by applying rapid prototyping and digital engineering methods to accelerate speed to mission. It's also reflected in our support to the Naval Surface Warfare Center Crane, where we integrate next-generation sensors and apply model-based systems engineering to enhance reliability and lifecycle management.

Defence Engineering logistics and modernization.

As an example, you can see this and work on our <unk> program and <unk> com.

We're strengthening <unk> ISR capabilities for the U S armed forces by applying rapid prototyping and digital engineering methods to accelerate speed to mission.

It is also reflected in our support to the naval surface warfare Center Crane, where we integrate next generation sensors and applied model based systems engineering to enhance reliability and lifecycle management.

We're leveraging machine learning solutions in support of customers across homeland and National security missions.

Delivering digital engineering tools on behalf of intelligence customers or deploying advanced environmental solutions around the world our core growth areas deliver consistent performance and create the platform from which the rest of our business continues to scale.

Turning to slide eight complementing that foundation are our accelerating growth markets powering our future growth space systems and technologies critical digital infrastructure and global nuclear energy.

John Heller: Whether we're leveraging machine learning solutions in support of customers across homeland and national security missions, delivering digital engineering tools on behalf of intelligence customers, or deploying advanced environmental solutions around the world, our core growth areas deliver consistent performance and create the platform from which the rest of our business continues to scale. Turning to slide eight, complementing that foundation are our accelerating growth markets powering our future growth, space systems and technologies, critical digital infrastructure, and global nuclear energy. They are growing rapidly, fueled by generational investments in national security, energy resilience, and advanced technologies such as AI, robotics, and automation. They are also margin accretive, relying on advanced engineering, AI-enabled integration, and high-value technical expertise.

Whether we're leveraging machine learning solutions in support of customers across homeland and national security missions, delivering digital engineering tools on behalf of intelligence customers, or deploying advanced environmental solutions around the world, our core growth areas deliver consistent performance and create the platform from which the rest of our business continues to scale. Turning to slide eight, complementing that foundation are our accelerating growth markets powering our future growth, space systems and technologies, critical digital infrastructure, and global nuclear energy. They are growing rapidly, fueled by generational investments in national security, energy resilience, and advanced technologies such as AI, robotics, and automation. They are also margin accretive, relying on advanced engineering, AI-enabled integration, and high-value technical expertise.

We are growing rapidly fueled by generational investments in National Security energy resilience and advanced technologies, such as AI robotics and automation.

They are also margin accretive relying on advanced engineering, AI enabled integration and high value technical expertise and they are global creating opportunities across the U S. U K Europe, and other Allied nations, where <unk> credibility and scale make us a natural choice for government and.

Commercial customers seeking a trusted partner.

Now, let me provide a bit more detail on these markets first but rapidly evolving market for space systems and technologies is generating demand signals from both the national security community and our fast growing commercial sector.

And launch infrastructure systems integration and spaceflight operations positions of Mentum at the intersection of government and commercial space.

John Heller: They are global, creating opportunities across the US, UK, Europe, and other allied nations, where Amentum's credibility and scale make us a natural choice for government and commercial customers seeking a trusted partner. Now, let me provide a bit more detail on these markets. First, the rapidly evolving market for space systems and technologies is generating demand signals from both the national security community and a fast-growing commercial sector. Our work in launch infrastructure, systems integration, and spaceflight operations positions Amentum at the intersection of government and commercial space, supporting missions that will define the next generation of space exploration and defense readiness. Next, we're excited about our growing work providing digital infrastructure solutions. Here, we're supporting advanced telecom systems, deploying next-generation data center solutions, and engineering the backbone of networks for national security and commercial customers alike.

They are global, creating opportunities across the US, UK, Europe, and other Allied nations, where Amentum's credibility and scale make us a natural choice for government and commercial customers seeking a trusted partner. Now, let me provide a bit more detail on these markets. First, the rapidly evolving market for space systems and technologies is generating demand signals from both the national security community and a fast-growing commercial sector. Our work in launch infrastructure, systems integration, and spaceflight operations positions Amentum at the intersection of government and commercial space, supporting missions that will define the next generation of space exploration and defense readiness. Next, we're excited about our growing work providing digital infrastructure solutions. Here, we're supporting advanced telecom systems, deploying next-generation data center solutions, and engineering the backbone of networks for national security and commercial customers alike.

Porting missions that will define the next generation of space exploration and defence readiness next.

Next we are excited about our growing work, providing digital infrastructure solutions here, we're supporting advanced Telecom systems deploying next generation data Center solutions and engineering, the backbone networks for National security and commercial customers alike.

For example, commercial awards in fiscal year 2025, encompass the design deployment and optimization of <unk> networks and critical infrastructure management.

Through strategic partnerships and capabilities, including <unk> enabled platforms, often leverage from work in our core growth areas, we're future proofing networks and data centers to meet the demands of low latency data intensive mission environments by combining our engineering debt with turnkey connect.

<unk> and resilient cloud architectures momentum is positioning itself as a trusted provider of mission critical digital infrastructure for the world's most demanding users.

John Heller: For example, commercial awards in fiscal year 2025 encompass the design, deployment, and optimization of 5G networks and critical infrastructure management. Through strategic partnerships and capabilities, including MBSE-enabled platforms often leveraged from work in our core growth areas, we're future-proofing networks and data centers to meet the demands of low-latency, data-intensive mission environments. By combining our engineering depth with turnkey connectivity and resilient cloud architectures, Amentum is positioning itself as a trusted provider of mission-critical digital infrastructure for the world's most demanding users. Finally, turning to slide nine, as I reviewed during last quarter's call, Amentum is well-positioned to lead the next generation of nuclear power. Our teams deliver full lifecycle nuclear engineering capabilities, including design and licensing to construction, operations, modernization, life extension, and decommissioning.

For example, commercial awards in fiscal year 2025 encompass the design, deployment, and optimization of 5G networks and critical infrastructure management. Through strategic partnerships and capabilities, including MBSE-enabled platforms often leveraged from work in our core growth areas, we're future-proofing networks and data centers to meet the demands of Low-latency, data-intensive mission environments. By combining our engineering depth with turnkey connectivity and resilient cloud architectures, Amentum is positioning itself as a trusted provider of mission-critical digital infrastructure for the world's most demanding users. Finally, turning to slide nine, as I reviewed during last quarter's call, Amentum is well-positioned to lead the next generation of nuclear power. Our teams deliver full lifecycle nuclear engineering capabilities, including design and licensing to construction, operations, modernization, life extension, and decommissioning.

And finally, turning to slide nine as I reviewed during last quarter's call momentum is well positioned to lead the next generation of nuclear power our teams deliver full lifecycle nuclear engineering capabilities, including design and licensing to construction operations modernization.

<unk> and life extension and decommissioning.

The global resurgence of nuclear energy driven by energy security needs and the explosive demand from artificial intelligence and next generation manufacturing is creating a market with substantial tailwind.

For Mentum. This represents a multi decade opportunity for sustained double digit growth and meaningful margin expansion.

I look forward to providing future updates on our work in the nuclear market and diving deeper into the space systems and technologies and critical digital infrastructure markets on future earnings calls.

John Heller: The global resurgence of nuclear energy driven by energy security needs, and the explosive demand from artificial intelligence and next-generation manufacturing, is creating a market with substantial tailwinds. For Amentum, this represents a multi-decade opportunity for sustained double-digit growth and meaningful margin expansion. I look forward to providing future updates on our work in the nuclear market and diving deeper into the space systems and technologies, and critical digital infrastructure markets, on future earnings calls. When you combine the durability of our core growth areas with the momentum of our accelerating growth markets, the result is a portfolio that delivers both stability and scalability. Our lower-risk, long-cycle businesses generate the cash flow and institutional strength that allow us to incubate high-growth opportunities without compromising financial discipline or balance sheet flexibility.

The Global resurgence of nuclear energy driven by energy security needs, and the explosive demand from artificial intelligence and next-generation manufacturing, is creating a market with substantial tailwinds. For Amentum, this represents a multi-decade opportunity for sustained double-digit growth and meaningful margin expansion. I look forward to providing future updates on our work in the nuclear market and diving deeper into the space systems and technologies, and critical digital infrastructure markets, on future earnings calls. When you combine the durability of our core growth areas with the momentum of our accelerating growth markets, the result is a portfolio that delivers both stability and scalability. Our lower-risk, long-cycle businesses generate the cash flow and institutional strength that allow us to incubate high-growth opportunities without compromising financial discipline or balance sheet flexibility.

When you combine the durability of our core growth areas with the momentum of our accelerating growth markets. The result is a portfolio that delivers both stability and scalability of our lower risk long cycle businesses generate the cash flow and institutional strength that allow us to incubate hi.

Growth opportunities without compromising financial discipline or balance sheet flexibility.

This is how we think of momentum strategy for growth, a well positioned portfolio that consistently delivers growth margin expansion sustainable free cash flow and compounding returns year after year.

With that I'll turn it over to Travis.

Thank you John and good morning, everyone.

I'm excited to discuss with you today another outstanding quarter performance capped off what has been an exceptional first year firm Mentum as a publicly traded company.

And to share our outlook for fiscal year, 2026, which reflects momentum we're seeing across the business and underlying growth across all key metrics.

John Heller: This is how we think of Amentum's strategy for growth: a well-positioned portfolio that consistently delivers growth, margin expansion, sustainable free cash flow, and compounding returns year after year. With that, I'll turn it over to Travis. Thank you, John, and good morning, everyone. I'm excited to discuss with you today another outstanding quarter of performance that caps off what has been an exceptional first year for Amentum as a publicly traded company, and to share our outlook for fiscal year 2026, which reflects momentum we're seeing across the business and underlying growth across all key metrics. As John noted, our strong finish to the year demonstrates the continued resilience of our diversified portfolio and was enabled by the extraordinary efforts of our dedicated employees around the world. Their unwavering commitment to execution and operational excellence delivered both exceptional outcomes for our customers and financial results that surpassed our expectations.

This is how we think of Amentum's strategy for growth: a well-positioned portfolio that consistently delivers growth, margin expansion, sustainable free cash flow, and compounding returns year after year. With that, I'll turn it over to Travis.

As John noted our strong finish to the year demonstrates the continued resilience of our diversified portfolio and was enabled by the extraordinary efforts of our dedicated employees around the world.

Their unwavering commitment to execution and operational excellence deliver both exceptional outcomes for our customers and financial results that surpassed our expectations.

Travis Johnson: Thank you, John, and good morning, everyone. I'm excited to discuss with you today another outstanding quarter of performance that caps off what has been an exceptional first year for Amentum as a publicly traded company, and to share our outlook for fiscal year 2026, which reflects momentum we're seeing across the business and underlying growth across all key metrics. As John noted, our strong finish to the year demonstrates the continued resilience of our diversified portfolio and was enabled by the extraordinary efforts of our dedicated employees around the world. Their unwavering commitment to execution and operational excellence delivered both exceptional outcomes for our customers and financial results that surpassed our expectations.

With that let's begin with an overview of our financial performance on slide 10.

I'd like to again highlight that while our GAAP results provide an accounting view of momentum legacy business. Excluding CMS today's discussion will focus on our non-GAAP results compared to the pro forma results from fiscal year 2024.

These figures offer combined view of the new amendment business and provide performance insights on a more comparable basis.

Revenue momentum accelerated to end the year with $3 9 billion for the quarter and $14 4 billion for the year.

John Heller: With that, let's begin with an overview of our financial performance on slide 10. I'd like to again highlight that while our GAAP results provide an accounting view of Amentum's legacy business excluding CMS, today's discussion will focus on our non-GAAP results compared to the pro forma results from fiscal year 2024. These figures offer a combined view of the new Amentum business and provide performance insights on a more comparable basis. Revenue momentum accelerated to end the year with $3.9 billion for the quarter and $14.4 billion for the year. The strong performance was driven by continued demand and year-over-year increases in both digital solutions and global engineering solutions, and exceeded our expectations as a result of non-labor timing and higher customer spend ahead of the government shutdown.

With that, let's begin with an overview of our financial performance on slide 10. I'd like to again highlight that while our GAAP results provide an accounting view of Amentum's legacy business excluding CMS, today's discussion will focus on our non-GAAP results compared to the pro forma results from fiscal year 2024. These figures offer a combined view of the new Amentum business and provide performance insights on a more comparable basis. Revenue momentum accelerated to end the year with $3.9 billion for the quarter and $14.4 billion for the year. The strong performance was driven by continued demand and year-over-year increases in both digital solutions and global engineering solutions, and exceeded our expectations as a result of non-labor timing and higher customer spend ahead of the government shutdown.

Our strong performance was driven by continued demand and year over year increases in both digital solutions and global engineering solutions and exceeded our expectations as a result of non labor timing and higher customer spend ahead of the government shutdown.

On an underlying basis after normalizing for the previously disclosed additional working days joint venture transitions and divestitures revenue growth was approximately 4% for the quarter and two 5% for the full year.

Adjusted EBITDA of $300 million in the quarter resulted in $1 1 billion for the full year reps.

Representing annual growth of 5% and adjusted EBITDA margin expansion of 10 basis points full.

Full year margins, which were impacted by a higher non labor mix in the fourth quarter benefited from strong operational performance in both segments and from a cost synergy initiatives.

John Heller: On an underlying basis, after normalizing for the previously disclosed additional working days, joint venture transitions, and divestitures, revenue growth was approximately 4% for the quarter and 2.5% for the full year. Adjusted EBITDA of $300 million in the quarter resulted in $1.1 billion for the full year, representing annual growth of 5% and adjusted EBITDA margin expansion of 10 basis points. Full-year margins, which were impacted by a higher non-labor mix in the fourth quarter, benefited from strong operational performance in both segments, and from our cost synergy initiatives. Adjusted net income was $154 million for the quarter and $542 million for the year, which generated adjusted diluted earnings per share of $0.63 for the quarter and $2.22 for the year. Adjusted EPS grew 11% year-over-year, consistent with the strong revenue and margin expansion performance.

On an underlying basis, after normalizing for the previously disclosed additional working days, joint venture transitions, and divestitures, revenue growth was approximately 4% for the quarter and 2.5% for the full year. Adjusted EBITDA of $300 million in the quarter resulted in $1.1 billion for the full year, representing annual growth of 5% and Adjusted EBITDA margin expansion of 10 basis points. Full-year margins, which were impacted by a higher non-labor mix in the fourth quarter, benefited from strong operational performance in both segments, and from our cost synergy initiatives. Adjusted net income was $154 million for the quarter and $542 million for the year, which generated adjusted diluted earnings per share of $0.63 for the quarter and $2.22 for the year. Adjusted EPS grew 11% year-over-year, consistent with the strong revenue and margin expansion performance.

Adjusted net income was $154 million for the quarter and $542 million for the year, which generated adjusted diluted earnings per share of <unk> 63 for the quarter and $2 22 for the year.

Adjusted EPS grew 11% year over year, consistent with the strong revenue and margin expansion performance.

Moving to our reportable segment results on slide 11.

Digital solutions generated revenues of $1 5 billion for the quarter and $5 5 billion for the year, representing a 11% and 7% growth respectively.

The year over year increases were driven by the ramp up of New contract Awards led by continued strength in the commercial digital infrastructure market and additional working days, which more than offset expected contract ramp down and the divestiture of rapid solutions.

Adjusted EBITDA increased to $116 million for the quarter and $437 million for the year, resulting in full year growth of 8% and adjusted EBIT margin of seven 9%.

John Heller: Moving to our recordable segment results on slide 11, digital solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth, respectively. The year-over-year increases were driven by the ramp-up of new contract awards, led by continued strength in the commercial digital infrastructure market and additional working days, which more than offset expected contract ramp-downs and the divestiture of rapid solutions. Adjusted EBITDA increased to $116 million for the quarter and $437 million for the year, resulting in full-year growth of 8% and adjusted EBITDA margins of 7.9%. Turning to slide 12, global engineering solutions generated revenues of $2.4 billion for the quarter and $8.9 billion for the year, representing 9% and 2% growth, respectively.

Moving to our recordable segment results on slide 11, digital solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth, respectively. The year-over-year increases were driven by the ramp-up of new contract awards, led by continued strength in the commercial digital infrastructure market and additional working days, which more than offset expected contract ramp-downs and the divestiture of rapid solutions. Adjusted EBITDA increased to $116 million for the quarter and $437 million for the year, resulting in full-year growth of 8% and Adjusted EBITDA margins of 7.9%. Turning to slide 12, global engineering solutions generated revenues of $2.4 billion for the quarter and $8.9 billion for the year, representing 9% and 2% growth, respectively.

Turning to slide 12.

Global Engineering solutions generated revenues of $2 4 billion for the quarter and $8 9 billion for the year, representing 9% and 2% growth respectively.

The year over year increases were driven by new contract awards growth on existing program and additional working days.

Which more than offset the expected contract ramp down and the impact from JV transitions in the fourth quarter.

Adjusted EBITDA increased to $184 million for the quarter and $667 million for the year, resulting in full year growth of 3% and adjusted EBITDA margin of seven 5%.

Turning to slide 13 to cover our cash flow and capital structure highlights.

Fourth quarter and full year free cash flow of 261, and $516 million, respectively were slightly better than our expectation and reflects strong cash earnings and our continued unwavering focus on working capital efficiency.

John Heller: The year-over-year increases were driven by new contract awards, growth on existing programs, and additional working days, which more than offset the expected contract ramp-downs and the impact from JV transitions in the fourth quarter. Adjusted EBITDA increased to $184 million for the quarter and $667 million for the year, resulting in full-year growth of 3% and adjusted EBITDA margins of 7.5%. Turning to slide 13 to cover our cash flow and capital structure highlights, fourth quarter and full-year free cash flow of $261 million and $516 million, respectively, were slightly better than our expectations and reflect strong cash earnings, and our continued unwavering focus on working capital efficiency. This performance enabled additional debt repayments of $550 million during the quarter, bringing full-year repayments to $750 million and reducing our net leverage to 3.2x.

The year-over-year increases were driven by new contract awards, growth on existing programs, and additional working days, which more than offset the expected contract ramp-downs and the impact from JV transitions in the fourth quarter. Adjusted EBITDA increased to $184 million for the quarter and $667 million for the year, resulting in full-year growth of 3% and Adjusted EBITDA margins of 7.5%. Turning to slide 13 to cover our cash flow and capital structure highlights, fourth quarter and full-year free cash flow of $261 million and $516 million, respectively, were slightly better than our expectations and reflect strong cash earnings, and our continued unwavering focus on working capital efficiency. This performance enabled additional debt repayments of $550 million during the quarter, bringing full-year repayments to $750 million and reducing our net leverage to 3.2x.

This performance enabled additional debt repayments of $550 million during the quarter.

Bringing full year repayments to $750 million and reducing our net leverage to three two times.

We ended the year with $437 million in cash and Undrawn $850 million revolver and no near term maturities.

With an enhanced balance sheet position, we now have an accelerated and clear path to achieving net leverage of less than three times by the end of fiscal year 2026.

Looking ahead, we will remain disciplined in our approach maintaining a prudent capital structure that enables flexible and opportunistic deployment.

Whether we are investing to drive sustained organic growth reduce debt pursue accretive strategic acquisitions or return capital to shareholders. Our goals are the same.

John Heller: We ended the year with $437 million in cash and undrawn $850 million revolver and no near-term maturity. With an enhanced balance sheet position, we now have an accelerated and clear path to achieving net leverage of less than 3x by the end of fiscal year 2026. Looking ahead, we will remain disciplined in our approach, maintaining a prudent capital structure that enables flexible and opportunistic deployment. Whether we are investing to drive sustained organic growth, reduce debt, pursue accretive strategic acquisitions, or return capital to shareholders, our goals are the same: maximize free cash flow per share, and deliver strong, compounding shareholder returns. Simply stated, we're committed to retaining the financial strength that enables Amentum to grow, invest, and create long-term value, while doing so with precision, prudence, and purpose. On slide 14, let's now discuss our fiscal year 2026 outlook.

We ended the year with $437 million in cash and undrawn $850 million revolver and no near-term maturity. With an enhanced balance sheet position, we now have an accelerated and clear path to achieving net leverage of less than 3x by the end of fiscal year 2026. Looking ahead, we will remain disciplined in our approach, maintaining a prudent capital structure that enables flexible and opportunistic deployment. Whether we are investing to drive sustained organic growth, reduce debt, pursue accretive strategic acquisitions, or return capital to shareholders, our goals are the same: maximize free cash flow per share, and deliver strong, compounding shareholder returns. Simply stated, we're committed to retaining the financial strength that enables Amentum to grow, invest, and create long-term value, while doing so with precision, prudence, and purpose. On slide 14, let's now discuss our fiscal year 2026 outlook.

Maximize free cash flow per share and deliver strong compounding shareholder returns.

Simply stated we are committed to retaining the financial strength that enables momentum to grow invest and create long term value, while doing so with precision prudent and purpose.

On slide 14, let's now discuss our fiscal year 2026 outlook.

Based on our bottoms up forecast process for fiscal 2026, we expect revenues in the range of $13 95 to $14 3 billion.

Our 3% growth at the midpoint after normalizing for the additional working days JV transition and divestitures previously mentioned.

The ramp up of New program awards and on contract growth is expected to more than offset the wind down of certain historical program and impacts from the federal government shutdown.

With the majority of them <unk> work is mission critical and continued without interruption our guidance contemplates an approximately 1% impact as a result of reduced spending in Q1 on certain programs and from delays in award decisions.

John Heller: Based on our bottoms-up forecast process for fiscal 2026, we expect revenues in the range of $13.95 to 14.3 billion, a 3% growth at the midpoint after normalizing for the additional working days, JV transitions, and divestitures previously mentioned. The ramp-up of new program awards and on-contract growth is expected to more than offset the wind-down of certain historical programs and impacts from the federal government shutdown. Where the majority of Amentum's work is mission-critical and continued without interruption, our guidance contemplates an approximately 1% impact as a result of reduced spending in Q1 on certain programs and from delays in award decisions. With less than 10% of revenues expected to come from new business, and with $20 billion of submitted bids awaiting award decision, we have good visibility and are confident in our position starting the fiscal year.

Based on our bottoms-up forecast process for fiscal 2026, we expect revenues in the range of $13.95 to 14.3 billion, a 3% growth at the midpoint after normalizing for the additional working days, JV transitions, and divestitures previously mentioned. The Ramp-up of new program awards and on-contract growth is expected to more than offset the wind-down of certain historical programs and impacts from the Federal Government shutdown. Where the majority of Amentum's work is mission-critical and continued without interruption, our guidance contemplates an approximately 1% impact as a result of reduced spending in Q1 on certain programs and from delays in award decisions. With less than 10% of revenues expected to come from new business, and with $20 billion of submitted bids awaiting award decision, we have good visibility and are confident in our position starting the fiscal year.

With less than 10% of revenues expected to come from new business and with $20 billion of submitted bids awaiting award decision. We have good visibility and are confident in our position starting the fiscal year.

We.

Adjusted EBITDA in the range of one one to $1 4 billion.

Reflecting underlying growth of 5% at the midpoint driven by margin expansion of approximately 20 basis points as we realize the benefits of our cost synergy initiatives as well as contract mix and operational improvements.

We expect adjusted diluted earnings per share of $2 25.

To $2 45.

Up 12% at the midpoint on an underlying basis, which assumes $245 million weighted average shares outstanding and a tax rate of about 24, 5%.

John Heller: We expect adjusted EBITDA in the range of $1.1 to 1.14 billion, reflecting underlying growth of 5% at the midpoint, driven by margin expansion of approximately 20 basis points as we realize the benefits of our cost synergy initiatives, as well as contract mix and operational improvements. We expect adjusted diluted earnings per share of $2.25 to 2.45, up 12% at the midpoint on an underlying basis, which assumes 245 million weighted average shares outstanding and a tax rate of about 24.5%. Finally, we expect free cash flow of $525 to 575 million, or 12% underlying growth at the midpoint, driven by higher cash earnings and reduced interest from our debt reduction initiatives.

We expect Adjusted EBITDA in the range of $1.1 to 1.14 billion, reflecting underlying growth of 5% at the midpoint, driven by margin expansion of approximately 20 basis points as we realize the benefits of our cost synergy initiatives, as well as contract mix and operational improvements. We expect adjusted diluted earnings per share of $2.25 to 2.45, up 12% at the midpoint on an underlying basis, which assumes 245 million weighted average shares outstanding and a tax rate of about 24.5%. Finally, we expect free cash flow of $525 to 575 million, or 12% underlying growth at the midpoint, driven by higher cash earnings and reduced interest from our debt reduction initiatives.

And finally, we expect free cash flow of $525 million to $575 million or.

Our 12% underlying growth at the midpoint driven by higher cash earnings and reduced interest from our debt reduction initiatives.

As it relates to timing, we expect first quarter revenue and adjusted EBITDA to be consistent year over year on an underlying basis, followed by quarterly sequential increases as newly awarded programs, including the key words, John mentioned earlier ramp up throughout the year.

Free cash flow is also expected to follow normal seasonality with the majority of generated in the second half of the fiscal year as a result of fringe benefits and payroll timing and as a result of expected strong collections in the fourth quarter, given our alignment with the government fiscal year end.

Additional key assumptions for guidance are included on slide 14 in today's presentation posted on our Investor Relations website.

John Heller: As it relates to timing, we expect first quarter revenues and adjusted EBITDA to be consistent year-over-year on an underlying basis, followed by quarterly sequential increases as newly awarded programs, including the key awards John mentioned earlier, ramp up throughout the year. Free cash flow is also expected to follow normal seasonality, with the majority generated in the second half of the fiscal year as a result of fringe benefit and payroll timing, and as a result of expected strong collections in the fourth quarter, given our alignment with the government fiscal year-end. Additional key assumptions for our guidance are included on slide 14 in today's presentation posted on our investor relations website. Wrapping up on slide 15.

As it relates to timing, we expect first quarter revenues and Adjusted EBITDA to be consistent year-over-year on an underlying basis, followed by quarterly sequential increases as newly awarded programs, including the key awards John mentioned earlier, ramp up throughout the year. Free cash flow is also expected to follow normal seasonality, with the majority generated in the second half of the fiscal year as a result of fringe benefit and payroll timing, and as a result of expected strong collections in the fourth quarter, given our alignment with the government fiscal year-end. Additional key assumptions for our guidance are included on slide 14 in today's presentation posted on our investor relations website. Wrapping up on slide 15.

Wrapping up on slide 15.

As we conclude a transformative year for mentum highlighted by exceeding our financial commitments in a dynamic market environment advancing our growth objectives with key strategic wins and a one two times book to Bill and surpassing our cash flow and deleveraging expectations. We're excited about the road ahead, our portfolio is strategically aligned with enduring.

Global trends customer priority and tailwind and accelerating growth market.

While pleased with our current progress and achievements, we remain focused on delivering our strategic objectives and driving long term value for all stakeholders.

John Heller: As we conclude a transformative year for Amentum, highlighted by exceeding our financial commitments in a dynamic market environment, advancing our growth objectives with key strategic wins and a 1.2x book-to-bill, and surpassing our cash flow and deleveraging expectations, we are excited about the road ahead. Our portfolio is strategically aligned with enduring global trends, customer priorities, and tailwinds in accelerating growth markets. While pleased with our current progress and achievements, we remain focused on delivering our strategic objectives and driving long-term value for all stakeholders. With that, Operator, please open the line for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press the star followed by the number one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.

As we conclude a transformative year for Amentum, highlighted by exceeding our financial commitments in a dynamic market environment, advancing our growth objectives with key strategic wins and a 1.2x book-to-bill, and surpassing our cash flow and deleveraging expectations, we are excited about the road ahead. Our portfolio is strategically aligned with enduring global trends, customer priorities, and tailwinds in accelerating growth markets. While pleased with our current progress and achievements, we remain focused on delivering our strategic objectives and driving long-term value for all stakeholders. With that, Operator, please open the line for questions.

With that operator, please open the line for questions.

Thank you, ladies and gentlemen, I will now begin the question and answer session to ask a question you May press star followed by the number one on your telephone keypad.

Speakerphone, please pick up your handset before pressing the keys to meet you by your question. Please press star followed by Bloomberg handle your first question comes from Colin Canfield with Cantor. Please go ahead.

Hey, Thank you for the question.

You discuss perhaps the level of kind of timing or one time margin and cash flow dynamics in the quarter.

And then how much section 174 benefits were included in fiscal <unk> versus the guide.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press the star followed by the number one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.

And then maybe talk through if there are any kind of pull forward or push out dynamics around margins and cash related to the merger. Thank you.

Yeah.

Hey, good morning.

John Heller: To withdraw your question, please press the star followed by the number two. Your first question comes from Colin Canfield with Cantor. Please go ahead. Hey, thank you for the question. Can you discuss perhaps the level of kind of timing or one-time margin and cash flow dynamics in the quarter, and then how much Section 174 benefits were included in Fiscal Q4 versus the guide, and then maybe talk through if there are any kind of pull-forward or push-out dynamics around margins and cash related to the merger? Thank you. Hey, John, good morning. A little bit to unpack there, obviously, all focused on cash. Maybe starting at the top, obviously, we're pleased with our year-end cash performance, which, as I said in my prepared remarks, slightly exceeded our expectations as a result of the strong revenue performance that we saw in the year.

To withdraw your question, please press the star followed by the number two. Your first question comes from Colin Canfield with Cantor. Please go ahead.

A little bit to unpack there obviously all focused on cash maybe starting at the top obviously, we're pleased with our year end cash performance, which as I said in the prepared remarks slightly exceeded our expectations as a result of the strong revenue performance that we saw late in the year.

Colin Canfield: Hey, thank you for the question. Can you discuss perhaps the level of kind of timing or one-time margin and cash flow dynamics in the quarter, and then how much Section 174 benefits were included in fiscal Q4 versus the guide, and then maybe talk through if there are any kind of pull-forward or push-out dynamics around margins and cash related to the merger? Thank you.

As far as one time items in the quarter, obviously, we've talked about the additional working days, which generated additional cash around $20 million is the impact from that so that would be kind of an item to normalize as we head into FY 'twenty six.

Moving into FY 'twenty six we're obviously really excited about the cash flow trajectory, we're expecting as I said, 12%.

John Heller: Hey, John, good morning. A little bit to unpack there, obviously, all focused on cash. Maybe starting at the top, obviously, we're pleased with our year-end cash performance, which, as I said in my prepared remarks, slightly exceeded our expectations as a result of the strong revenue performance that we saw in the year.

At the midpoint of our guidance on underlying basis, and we do expect to receive some benefits from the <unk> BBA.

Ex law changes around immediate expensing of R&D also smaller benefits, but still benefits around disallowed interest in.

John Heller: As far as one-time items in the quarter, obviously, we talked about the additional working days, which generated additional cash, around $20 million is the impact from that. That would be kind of an item to normalize as we head into FY26. Moving into FY26, we're obviously really excited about the cash flow trajectory. We're expecting, as I said, 12% growth at the midpoint of our guide on an underlying basis. We do expect to receive some benefits from the OBDA tax law changes around immediate expensing of R&D, also smaller benefits, but still benefits, around disallowed interest and CapEx bonus depreciation. Altogether, that's about a $35 million benefit to tax cash payments in FY26.

As far as one-time items in the quarter, obviously, we talked about the additional working days, which generated additional cash, around $20 million is the impact from that. That would be kind of an item to normalize as we head into FY 26. Moving into FY 26, we're obviously really excited about the cash flow trajectory. We're expecting, as I said, 12% growth at the midpoint of our guide on an underlying basis. We do expect to receive some benefits from the OBDA tax law changes around immediate expensing of R&D, also smaller benefits, but still benefits, around disallowed interest and CapEx bonus depreciation. Altogether, that's about a $35 million benefit to tax cash payments in FY 26.

Capex bonus depreciation so altogether thats about a $35 million benefit.

Tax cash payments in FY 'twenty six.

Put all that together and again just.

Right, along where we expect it to be at this point driving that double digit free cash flow growth that we committed to a capital markets day and excited to continue to add in that trajectory.

Got it and then maybe level setting us on the multiyear margin progression in terms of the synergy targets I think one of the theses that kind of folks are focused on is essentially shutdown related dynamics pushing everything one year to the right.

Fundamentally happening so perhaps you could talk through kind of how you think about FY 'twenty six margin progression.

John Heller: Put all that together, just right along where we expect it to be at this point, driving that double-digit free cash flow growth that we committed to at Capital Markets today, and excited to continue to head in that trajectory. Got it. Maybe level-setting us on the multi-year margin progression in terms of the synergy targets. I think one of the theses that kind of folks are focused on is essentially shutdown-related dynamics, just pushing everything one year to the right, but still fundamentally happening. Perhaps if you could talk through kind of how you think about FY26 margin progression, the synergy contribution, and perhaps kind of the multi-year framework set out at the investor day. Sure. As we talked about at Capital Markets today, our goal, kind of a long-term goal by FY28, is to get to 8.5% to 9% margins.

Put all that together, just right along where we expect it to be at this point, driving that double-digit free cash flow growth that we committed to at Capital Markets today, and excited to continue to head in that trajectory.

The synergy contribution and perhaps kind of a multiyear framework set out at the Investor day.

Sure. So as we talked about our capital markets day, our goal kind of a long year long term goal by FY 'twenty eight is to get to.

Colin Canfield: Got it. Maybe level-setting us on the multi-year margin progression in terms of the synergy targets. I think one of the theses that kind of folks are focused on is essentially shutdown-related dynamics, just pushing everything one year to the right, but still fundamentally happening. Perhaps if you could talk through kind of how you think about FY 26 margin progression, the synergy contribution, and perhaps kind of the multi-year framework set out at the investor day.

As a 9% margins and as we sit here today, we're exactly where we thought we would be.

Cost synergies were obviously part of it but we drove 10 basis points margin expansion in FY 'twenty, five and our actual results and the midpoint of our guide for FY 'twenty six of another 20 basis points.

So all in all 30 basis points in the first two years at together is exact exactly the trajectory. We thought we would be on and then as we head into FY 'twenty seven obviously, we'll have the full year impact from all of our cost synergy initiatives.

Travis Johnson: Sure. As we talked about at Capital Markets today, our goal, kind of a long-term goal by FY 28, is to get to 8.5% to 9% margins.

As John said, we're on track with all of our integration activities, including cost synergies and will exceed $60 million and net run rate cost synergies by the end of FY 'twenty six.

John Heller: As we sit here today, we're exactly where we thought we would be. Cost synergies were obviously part of it, but we drove 10 basis points margin expansion in FY25 in our actual results, and the midpoint of our guide for FY26 is another 20 basis points. All in all, 30 basis points in the first two years together is exactly the trajectory we thought we would be on. As we head into FY27, obviously, we'll have the full-year impact from all of our cost synergy initiatives. As John said, we're on track with all of our integration activities, including cost synergies, and we'll exceed $60 million in net run rate cost synergies by the end of FY26. I think the other part that we talked about on the call, we introduced for the first time kind of our overall two-pronged strategy of growth.

As we sit here today, we're exactly where we thought we would be. Cost synergies were obviously part of it, but we drove 10 basis points margin expansion in FY 25 in our actual results, and the midpoint of our guide for FY 26 is another 20 basis points. All in all, 30 basis points in the first two years together is exactly the trajectory we thought we would be on. As we head into FY 27, obviously, we'll have the full-year impact from all of our cost synergy initiatives. As John said, we're on track with all of our integration activities, including cost synergies, and we'll exceed $60 million in net run rate cost synergies by the end of FY 26.

I think the.

The other part.

We talked about on the call and we introduced for the first time.

Overall, two pronged strategy of growth.

And that to us is really good.

<unk> is all about.

As we started out a year ago.

We knew this would be a transition year this year.

Integrating identifying the real opportunities to white space opportunities to growth opportunities that neither of those of the.

Our company to be put together to go after and we've really strongly.

I think the other part that we talked about on the call, we introduced for the first time kind of our overall two-pronged strategy of growth.

Set our sights on putting a strategy together that can leverage the broad enterprise of Maxim we talked about are our core markets, which we're very we're.

John Heller: That, to us, is really what this story is all about. As we started out a year ago, we knew this would be a transition year this year, integrating, identifying the real opportunities, the white space opportunities, the growth opportunities that neither of the companies we put together could go after. We've really strongly set our sights on putting a strategy together that can leverage the broad enterprise of Amentum. We talked about our core markets, which we're leaders across those core markets, which gives us great opportunity for sustained growth. It's about the accelerating growth markets that we've identified that are strong already. We're leaders there as well, but it's only $4 billion of the $14 billion company. We think there the growth opportunities are stronger, and the margin accretion opportunities are also stronger.

That, to us, is really what this story is all about. As we started out a year ago, we knew this would be a transition year this year, integrating, identifying the real opportunities, the white space opportunities, the growth opportunities that neither of the companies we put together could go after. We've really strongly set our sights on putting a strategy together that can leverage the broad enterprise of Amentum. We talked about our core markets, which we're leaders across those core markets, which gives us great opportunity for sustained growth. It's about the accelerating growth markets that we've identified that are strong already. We're leaders there as well, but it's only $4 billion of the $14 billion company. We think there the growth opportunities are stronger, and the margin accretion opportunities are also stronger.

Leaders across those core markets, which gives us great opportunity for sustained growth, but it's about the accelerating growth markets that we've identified there are strong already we are leaders there as well, there's only 4 billion of the $14 billion company and we think there.

The growth opportunities are stronger and the margin accretion opportunities are also stronger so driving focus in those three accelerated growth markets across space systems and technologies critical digital infrastructure and global nuclear energy.

All will result in margin improvement.

That's why we're still very excited about the targets, we set out in the Gulf.

Of eight 5% to 9% by 28.

Got it maybe sneak in a third if you could just update us on how you think about kind of a timing magnitude and multiple of any potential divestitures.

John Heller: Driving focus in those three accelerating growth markets across space systems and technologies, critical digital infrastructure, and global nuclear energy all will result in margin improvement. That is why we're still very excited about the targets we set out and the goal of 8.5% to 9% by 2028. Got it. Maybe speaking of third, if you could just update us on how you think about the timing, magnitude, and multiple of any potential divestitures, as well as the timing and magnitude of the upcoming SLS award. Thank you. I'm sorry. Repeat the second part of the question, the what award? I didn't catch all of that. Oh, sorry. SLS. There is $4 billion in the reconciliation bill. It has been three years since we've gotten a pretty major SLS award, and the competitive dynamics of that race are obviously a national security focus as well.

Driving focus in those three accelerating growth markets across space systems and technologies, critical digital infrastructure, and global nuclear energy all will result in margin improvement. That is why we're still very excited about the targets we set out and the goal of 8.5% to 9% by 2028.

As well as the timing and magnitude of the upcoming SLS Award. Thank you.

Alright.

I'm sorry repeat the second part of the question What award I didn't catch all of that.

So there is $4 billion in the reconciliation Bill it's been three years since you've gotten a pretty major SLS award in the competitive dynamics of that race are obviously, a national security focus as well. So I just want to make sure we're level set a happy to breath.

Travis Johnson: Got it. Maybe speaking of third, if you could just update us on how you think about the timing, magnitude, and multiple of any potential divestitures, as well as the timing and magnitude of the upcoming SLS award. Thank you. I'm sorry. Repeat the second part of the question, the what award? I didn't catch all of that. Oh, sorry. SLS. There is $4 billion in the reconciliation bill. It has been three years since we've gotten a pretty major SLS award, and the competitive dynamics of that race are obviously a national security focus as well.

Yes. Thank you for the repeat happy to provide just a little bit of color on the space Force range contracted it.

It is a topical issue for US right now because we've gotten through successfully protest period and our teams are busy work right now today, even as we prepared to assume operations for that large contract in December.

So really excited about the space force range contract.

Really it's just a quick synopsis at the top level.

John Heller: I just want to make sure we're level set on that. Yeah. Thank you for the repeat. Happy to provide just a little bit of color on the Space Force range contract. It is a topical issue for us right now because we've gotten through successfully a protest period, and our teams are busy work right now, today even, as we prepare to assume operations for that large contract in December. Really excited about the Space Force range contract. Really, just a quick synopsis at the top level, we're on that contract about making sure the US has assured access to space.

I just want to make sure we're level set on that.

Work on that contract about making sure the U S has assured access to space.

John Heller: Yeah. Thank you for the repeat. Happy to provide just a little bit of color on the Space Force range contract. It is a topical issue for us right now because we've gotten through successfully a protest period, and our teams are busy work right now, today even, as we prepare to assume operations for that large contract in December. Really excited about the Space Force range contract. Really, just a quick synopsis at the top level, we're on that contract about making sure the US has assured access to space.

There was a great article just yesterday in the space news publication, where they interviewed kernel Chapman, who is the commander of space launch Delta 45, and he talked about how does the launch cadence just continues to ramp and both on the eastern and Western range, We're working with Apollo era infrastructure, a highlighted how congress is appropriate.

Rated nearly $1 $5 billion to be invested between now and 2028 to begin to upgrade that infrastructure and and so for us submit them, we're coming in at an exciting time to that contract.

So when they are certainly to maintain and sustain and support this launch cadence, but we're also there to engineer upgrade and integrate all of the capabilities needed for the future. So very excited about how that's going to play out beginning in December.

John Heller: Actually, there was a great article just yesterday in the Space News publication where they interviewed Colonel Chapman, who's the commander of Space Launch Delta 45. He talked about how the launch cadence just continues to ramp, and both on the Eastern and Western range, we're working with Apollo-era infrastructure. He highlighted how Congress has appropriated nearly $1.5 billion to be invested between now and 2028 to begin to upgrade that infrastructure. For us at Amentum, we're coming in at an exciting time to that contract. We're there certainly to maintain, sustain, and support this launch cadence, but we're also there to engineer, upgrade, and integrate all the capabilities needed for the future. Very excited about how that's going to play out beginning in December. Phase in underway. Yeah. Just to be clear, that contract cleared protest.

Actually, there was a great article just yesterday in the Space News publication where they interviewed Colonel Chapman, who's the commander of Space Launch Delta 45. He talked about how the launch cadence just continues to ramp, and both on the Eastern and Western range, we're working with Apollo-era infrastructure. He highlighted how Congress has appropriated nearly $1.5 billion to be invested between now and 2028 to begin to upgrade that infrastructure. For us at Amentum, we're coming in at an exciting time to that contract. We're there certainly to maintain, sustain, and support this launch cadence, but we're also there to engineer, upgrade, and integrate all the capabilities needed for the future. Very excited about how that's going to play out beginning in December. Phase in underway.

Phase in underway.

Yes, so just to be clear that contract cleared protest we are executing on that contract today.

Steve mentioned very excited the first part of your question just about portfolio shaping.

We're excited to have the opportunity with rapid solutions, and our New Zealand business and noncore very clear noncore elements of the business, but I would say today, we're very excited about our entire portfolio. The capabilities. We've put together, we're leveraging across our entire business.

Very important for us as we look at the company as an enterprise and don't create silos.

Travis Johnson: Yeah. Just to be clear, that contract cleared protest.

John Heller: We are executing on that contract today. As Steve mentioned, very excited. The first part of your question just about portfolio shaping, we were excited to have the opportunity with Rapid Solutions in our New Zealand business and very clear non-core elements of the business. I would say today, we're very excited about our entire portfolio, the capabilities we've put together. We're leveraging across our entire business, very important for us as we look at the company as an enterprise and don't create silos. We're leveraging across all different capability areas as we look at every opportunity we're bidding. Right now, we're excited about the portfolio we have. Obviously, we go through strategic planning every year, we look at where the largest growth opportunities are, and we will obviously look if there are any non-core assets and identify those.

We are executing on that contract today. As Steve mentioned, very excited. The first part of your question just about portfolio shaping, we were excited to have the opportunity with Rapid Solutions in our New Zealand business and very clear non-core elements of the business. I would say today, we're very excited about our entire portfolio, the capabilities we've put together. We're leveraging across our entire business, very important for us as we look at the company as an enterprise and don't create silos. We're leveraging across all different capability areas as we look at every opportunity we're bidding. Right now, we're excited about the portfolio we have. Obviously, we go through strategic planning every year, we look at where the largest growth opportunities are, and we will obviously look if there are any non-core assets and identify those.

And we're leveraging across all different capability areas as we look at every opportunity we're bidding right now.

We're excited about the portfolio. We have obviously, we go through strategic planning every year, we look at where the growth largest growth opportunities are.

And we will obviously look if there are any non core assets and identify those but I would say right now we're real excited about what we put together and it's working.

Thank you and the next.

From Brian <unk> with Robert with Raymond James. Please go ahead.

Hey, good morning, Thanks for taking my questions and nice job on the print here.

I wanted to dig in a little bit to these growth areas.

John if I could can you remind us how you play throughout the entire kind of.

Nuclear lifecycle, how big that business is today and maybe as you lay out these broad ambitions for nuclear power in the future that had been put forward when.

John Heller: I would say right now, we're real excited about what we've put together, and it's working. Thank you. The next question comes from Ryan Giswale with Raymond James. Please go ahead. Hey, good morning. Thanks for taking my questions, and nice job on the print here. I want to dig in a little bit to these growth areas, John, if I could. Can you remind us how you play throughout the entire kind of nuclear life cycle, how big that business is today, and maybe as you lay out these broad ambitions for nuclear power in the future that have been put forward, when you'll start to see some of those things inflect for your business? Yeah, sure. We highlighted this last quarter as well. I would reference everyone to go back to that quarter.

I would say right now, we're real excited about what we've put together, and it's working.

When youll start to see some of those things inflect for your business.

Operator: Thank you. The next question comes from Brian Gesuale with Raymond James. Please go ahead.

Yes, sure we highlighted this last quarter as well so I do I would reference everyone to go back to that quarter.

Brian Gesuale: Hey, good morning. Thanks for taking my questions, and nice job on the print here. I want to dig in a little bit to these growth areas, John, if I could. Can you remind us how you play throughout the entire kind of nuclear life cycle, how big that business is today, and maybe as you lay out these broad ambitions for nuclear power in the future that have been put forward, when you'll start to see some of those things inflect for your business?

Additional slide there, but we brought.

Brought in.

One of the slides from last quarter into this quarter.

Yes.

Actually helps answer that exact question so for us, but I would say we play.

Mission critical role across the entire nuclear energy.

Cycle, so it starts with design.

Into construction and commissioning all the way through operation maintenance and decommissioning.

John Heller: Yeah, sure. We highlighted this last quarter as well. I would reference everyone to go back to that quarter.

It's really across all sectors of the industry, which starts with new <unk>.

John Heller: There's an additional slide there, but we kind of brought in one of the slides from last quarter into this quarter that actually helps answer that exact question. For us, what I would say is we play a mission-critical role across the entire nuclear energy life cycle. It starts with design into construction and commissioning, all the way through operation, maintenance, and decommissioning. It's really across all sectors of the industry, which starts with new development, construction, and operation of gigawatt-sized reactors. It also covers SMRs, a lot of activity in the marketplace today around the world on developing that capability, that new design capability so that we could have small modular reactors existing in the United States and around the world.

There's an additional slide there, but we kind of brought in one of the slides from last quarter into this quarter that actually helps answer that exact question. For us, what I would say is we play a mission-critical role across the entire nuclear energy life cycle. It starts with design into construction and commissioning, all the way through operation, maintenance, and decommissioning. It's really across all sectors of the industry, which starts with new development, construction, and operation of gigawatt-sized reactors. It also covers SMRs, a lot of activity in the marketplace today around the world on developing that capability, that new design capability so that we could have small modular reactors existing in the United States and around the world.

<unk> construction and operation of gigawatt size reactors. It also covers.

<unk> is a lot of activity in the marketplace today around the world on developing that.

That capability that new design capability, so that we could have small modular reactors existing in the United States and around the world and we're working with.

Large number of these developers to help bring those capabilities to the market, but that's going to take some time. So a lot of engineering work right now through likely this decade, but then the other area is really on plant life extension and upgrades and overseeing the three mile Island.

<unk>.

Other areas across the United States.

We want to ensure that we have the electricity we need to fuel the AI data center demands and other demands of robotic manufacturing and just overall electricity demand generally.

John Heller: We're working with a large number of these developers to help bring those capabilities to the market, but that's going to take some time. A lot of engineering work right now through likely this decade. The other area is really on plant life extension and upgrades. We're seeing the Three Mile Island news, other areas across the United States where we want to ensure that we have the electricity we need to fuel the AI data center demands, and other demands of robotic manufacturing, and just overall electricity demand generally. It's an important part of the economy. It's been deemed a national security priority by this administration, and we're seeing a lot of good policy coming out of this administration that's driving this renaissance within the US. Great. Really helpful.

We're working with a large number of these developers to help bring those capabilities to the market, but that's going to take some time. A lot of engineering work right now through likely this decade. The other area is really on plant life extension and upgrades. We're seeing the Three Mile news, other areas across the United States where we want to ensure that we have the electricity we need to fuel the AI data center demands, and other demands of robotic manufacturing, and just overall electricity demand generally. It's an important part of the economy. It's been deemed a national security priority by this administration, and we're seeing a lot of good policy coming out of this administration that's driving this renaissance within the US. Great.

It's an important part of the economy.

Been deemed a national security priority by this administration and we're seeing a lot of good.

Policy coming out of this administration, that's driving this renaissance within the U S.

Great really helpful. I wanted to talk also maybe about one of the other growth areas that we're really excited about on the space side of things.

Can you maybe help us understand how much of that business is commercially oriented in defence given theres just so much activity in both those areas and maybe if you could help us think a little bit about how Golden Dome from award at presence and our launch activity perspective.

Would drive your business and maybe the timing of that whether Thats part of 2006 are part of an unfolding 27 storey thats yet to reveal itself.

Brian Gesuale: Really helpful, I want to talk also maybe about one of the other growth areas that we're really excited about on the space side of things. Can you maybe help us understand how much of that business is commercially oriented in defense, given there's just so much activity in both those areas? Maybe if you could help us think a little bit about how Golden Dome from a Wardett presence and a launch activity perspective would drive your business and maybe the timing of that, whether that's part of 2026 or part of an unfolding 2027 story that's yet to reveal itself.

Okay.

John Heller: I want to talk also maybe about one of the other growth areas that we're really excited about on the space side of things. Can you maybe help us understand how much of that business is commercially oriented in defense, given there's just so much activity in both those areas? Maybe if you could help us think a little bit about how Golden Dome from a Wardett presence and a launch activity perspective would drive your business and maybe the timing of that, whether that's part of 2026 or part of an unfolding 2027 story that's yet to reveal itself. Yeah. Today at Amentum, we're just super excited about where we're at in this market and the continuing, accelerating growth opportunities.

Yes.

Today as I mentioned, we're just.

Super excited about where we're at in this market and the continuing accelerating growth opportunities.

Just to start I think most people are familiar with the leading presence we have supporting the government with NASA and the whole civilian space exploration and all of those activities.

A lot of Mentum colleagues right now preparing for the Artemis to mission that is scheduled for early 2026, and we're excited to be.

Such a critical player in putting astronauts backend space and really excited about.

John Heller: Yeah. Today at Amentum, we're just super excited about where we're at in this market and the continuing, accelerating growth opportunities.

About the preparation for that mission everything from integrating the vehicle launch control software mission control software.

I think that our recent win on Cosmos, where we'll have now in our maintenance team at NASA Johnson space Center, becoming engaged.

John Heller: Just to start, I think most people are familiar with the leading presence we have supporting the government with NASA and the whole civilian space exploration and all of those activities. A lot of Amentum colleagues right now preparing for the Artemis II mission that's scheduled for early 2026, and we're excited to be such a critical player in putting astronauts back in space, and really excited about the preparation for that mission. Everything from integrating the vehicle, launch control software, mission control software. I think that our recent win on Cosmos, where we'll have now an Amentum team at NASA Johnson Space Center, becoming engaged in mission operations and all of the things that extend through the complete life cycle of the mission, kind of speaks to our strength in supporting that customer and their missions.

Just to start, I think most people are familiar with the leading presence we have supporting the government with NASA and the whole civilian space exploration and all of those activities. A lot of Amentum colleagues right now preparing for the Artemis II mission that's scheduled for early 2026, and we're excited to be such a critical player in putting astronauts back in space, and really excited about the preparation for that mission. Everything from integrating the vehicle, launch control software, mission control software. I think that our recent win on Cosmos, where we'll have now an Amentum team at NASA Johnson Space Center, becoming engaged in mission operations and all of the things that extend through the complete life cycle of the mission, kind of speaks to our strength in supporting that customer and their missions.

In mission operations and all of the things that extend through the complete lifecycle of emission kind of speaks to our strength in supporting that customer and their missions of course that contract. Currently has undergone corrective actions were not underway yet, but that's that's a really good one as far as your question about Golden Don just to give a bit of insight there.

We really think we have a great right to win in terms of being a part of the solution that the U S. Government is developing today, we're heavily engaged with the missile defense agency and helping to take the missile defense system Digital if you will it's allowed us to deploy things like the hypersonic nextgen satellites for detection we're doing.

Things like virtual engineering digital message to integrate new technologies into the system that capability and that expertise. We're also deploying for the Norad mission, which is the north American.

John Heller: Of course, that contract currently is undergoing corrective action, so we're not underway yet, but that's a really good one. As far as your question about Golden Dome, just to give a bit of insight there, we really think we have a great right to win in terms of being a part of the solution that the US government is developing. Today, we're heavily engaged with the Missile Defense Agency in helping to take the missile defense system digital, if you will. It's allowed us to deploy things like the hypersonic next-gen satellites for detection. We're doing things like virtual engineering, digital methods to integrate new technologies into the system. That capability and that expertise, we're also deploying for the NORAD mission, which is the North American Aerospace Defense Command. We're really excited about those capabilities.

Of course, that contract currently is undergoing corrective action, so we're not underway yet, but that's a really good one. As far as your question about Golden Dome, just to give a bit of insight there, we really think we have a great right to win in terms of being a part of the solution that the US government is developing. Today, we're heavily engaged with the Missile Defense Agency in helping to take the missile defense system digital, if you will. It's allowed us to deploy things like the hypersonic next-gen satellites for detection. We're doing things like virtual engineering, digital methods to integrate new technologies into the system. That capability and that expertise, we're also deploying for the NORAD mission, which is the North American Aerospace Defense Command. We're really excited about those capabilities.

Aerospace Defense command and so we're really excited about those capabilities and the way Golden don't comes to life for US is right now the government is moving out on a shield procurement shield is the acronym for a large <unk> vehicle will be a multiple award vehicle $150 billion.

We are engaged in that procurement like many other in the industry and so our proposal is in and we're looking forward to the adjudication of that and I think that specific to your question as we get toward deeper into FY 'twenty six will begin to see specific task orders and taxing come out under that shield vehicle. So we're excited about the opportunity.

There, so really cut any cross national security as well as civilian space Theres a lot for us to draw on in the portfolio and I think the last thing I had mentioned and it comes into play even with our new space loss range contract John hit it in the prepared remarks, but so many of these contracts put us at the intersection of government and commercial space.

John Heller: The way Golden Dome comes to life for us is right now the government is moving out on a SHIELD procurement. SHIELD is the acronym for a large IDIQ vehicle. It will be a multiple award vehicle, $150 billion. We are engaged in that procurement like many others in the industry. Our proposal is in. We're looking forward to the adjudication of that. I think that, specific to your question, as we get deeper into FY26, we'll begin to see specific task orders and tasking come out under that SHIELD vehicle. We're excited about the opportunity there. Really cutting across national security as well as civilian space, there's a lot for us to draw on in the portfolio.

The way Golden Dome comes to life for us is right now the government is moving out on a SHIELD procurement. SHIELD is the acronym for a large IDIQ vehicle. It will be a multiple award vehicle, $150 billion. We are engaged in that procurement like many others in the industry. Our proposal is in. We're looking forward to the adjudication of that. I think that, specific to your question, as we get deeper into FY 26, we'll begin to see specific task orders and tasking come out under that SHIELD vehicle. We're excited about the opportunity there. Really cutting across national security as well as civilian space, there's a lot for us to draw on in the portfolio.

Have a great track record of working with those commercial partners. So we think that proven capability is going to be instrumental for the government to accomplish all of their objectives that they have for the space domain.

Okay.

Thanks, very much I'll jump back in the queue.

Thank you and just a reminder, again please limit yourself to one question one follow up. The next question comes from Tobey Sommer with Lewis. Please go ahead.

John Heller: I think the last thing I would mention, and it comes into play even with our new US Space Force range contract, John hit it in the prepared remarks, but so many of these contracts put us at the intersection of government and commercial space. We have a great track record of working with those commercial partners. We think that proven capability is going to be instrumental for the government to accomplish all of their objectives that they have for the space domain. Thanks very much. I'll jump back in the queue. Thank you. Just a reminder again, please limit yourself to one question and one follow-up. The next question comes from Tobey Sommer with Truist. Please go ahead. Tobey, you might be on mute. The company has reduced leverage faster than we anticipated.

I think the last thing I would mention, and it comes into play even with our new US Space Force range contract, John hit it in the prepared remarks, but so many of these contracts put us at the intersection of government and commercial space. We have a great track record of working with those commercial partners. We think that proven capability is going to be instrumental for the government to accomplish all of their objectives that they have for the space domain.

Okay.

Toby you might be on mute.

The company has reduced leverage faster than we anticipated.

When do you think you'd be at a point, where you may be able to go on offense with capital deployment.

Starting cooperating inorganic growth into the story.

Brian Gesuale: Thanks very much. I'll jump back in the queue.

Brian Gesuale: Thank you. Just a reminder again, please limit yourself to one question and one follow-up. The next question comes from Tobey Sommer with Truist. Please go ahead. Tobey, you might be on mute.

Thanks, Kevin Good morning, Yes, certainly we're pleased with.

Leverage trajectory sitting at three two times here, one year in to our merger and public company transition.

A head of where we thought we would be.

I'd say, we remain committed to getting to that target that we set out at capital markets day last year of less than three times net levered and we're on track to do that by the end of FY 'twenty six as you know or kind of cash.

Tobey Sommer: The company has reduced leverage faster than we anticipated.

John Heller: When do you think you'd be at a point where you may be able to go on offense with capital deployment and start incorporating inorganic growth into the story? Hey, Tobey. Good morning. Yeah, certainly we're pleased with the leverage trajectory sitting at 3.2x here one year into our merger and public company transition, ahead of where we thought we would be. I'd say we remain committed to getting to that target that we set out at Capital Markets Day last year of less than 3x on net leverage, and we're on track to do that by the end of FY2026. As you know, our kind of cash timing, H2 will be back half-weighted, so we'll get there in the second half of FY2026. Obviously, now it's right around the corner, right? We're starting to shift our focus into what that could look like.

When do you think you'd be at a point where you may be able to go on offense with capital deployment and start incorporating inorganic growth into the story?

Timing to H will be back half weighted so we will get there in the second half of FY 'twenty six and so obviously now.

John Heller: Hey, Tobey. Good morning. Yeah, certainly we're pleased with the leverage Trajectory sitting at 3.2x here one year into our merger and public company transition, ahead of where we thought we would be. I'd say we remain committed to getting to that target that we set out at Capital Markets Day last year of less than 3x on net leverage, and we're on track to do that by the end of FY 2026. As you know, our kind of cash timing, H2 will be back half-weighted, so we'll get there in the second half of FY 2026. Obviously, now it's right around the corner, right? We're starting to shift our focus into what that could look like.

Right around the corner right. So we're starting to shift our focus and so what that could look like.

It will be obviously dependent on what opportunities are out there and available at that point in time, but as I said in my prepared remarks, regardless of.

What we do at that given point in time with our capital deployment strategy, we will be looking to maximize free cash flow per share.

Okay could be part of that but it also could be continue to pay down debt or returning capital to shareholders certainly as we get out of that kind of three year restriction period of the RMT looking at share buybacks when it's trading at something below the intrinsic value of the stock.

John Heller: It will be obviously dependent on what opportunities are out there and available at that point in time. As I said in my prepared remarks, regardless of what we do at that given point in time with our capital deployment strategy, we'll be looking to maximize free cash flow per share. It could be part of that, but it also could be continue to pay down debt or return capital to shareholders. Certainly, as we get out of the kind of two-year restriction period of the R&D, looking at share buybacks when it's trading at something below the intrinsic value of the stock could be an option. We look forward to getting there in the second half of 2026. Yeah.

It will be obviously dependent on what opportunities are out there and available at that point in time. As I said in my prepared remarks, regardless of what we do at that given point in time with our capital deployment strategy, we'll be looking to maximize free cash flow per share. It could be part of that, but it also could be continue to pay down debt or return capital to shareholders. Certainly, as we get out of the kind of two-year restriction period of the R&D, looking at share buybacks when it's trading at something below the intrinsic value of the stock could be an option. We look forward to getting there in the second half of 2026.

It could be an option. So we look forward to getting there in the second half of 'twenty six.

What I would put a bow on that discussion is really the fact that we have these accelerated growth markets that we see is organic opportunities given the.

What we've created and the new momentum and we think we can leverage and exploit those three areas space systems and technologies that Steve talked about and the opportunities that are upcoming there that our organic the critical digital infrastructure.

We'll talk about on future calls, we haven't dived into that but really about helping the aif.

Travis Johnson: Yeah, What I would put a bow on that discussion is really the fact that we have these accelerating growth markets that we see as organic opportunities given what we've created in the new momentum. We think we can leverage and exploit those three areas of space systems and technologies that Steve talked about, and the opportunities that are upcoming there that are organic, the critical digital infrastructure, which we will talk about on future calls. We haven't dived into that, but really about helping the AI economy to succeed, cybersecurity, and then global nuclear energy, which, again, we feel very confident that we have the organic capabilities to exploit. That doesn't mean we wouldn't look at M&A in the future to help us accelerate those, but we're confident we can win and grow in those areas today.

Economy to succeed cyber security and then global nuclear energy, which again, we feel very confident that we have the organic capabilities to exploit.

John Heller: What I would put a bow on that discussion is really the fact that we have these accelerating growth markets that we see as organic opportunities given what we've created in the new momentum. We think we can leverage and exploit those three areas of space systems and technologies that Steve talked about, and the opportunities that are upcoming there that are organic, the critical digital infrastructure, which we will talk about on future calls. We haven't dived into that, but really about helping the AI economy to succeed, cybersecurity, and then global nuclear energy, which, again, we feel very confident that we have the organic capabilities to exploit. That doesn't mean we wouldn't look at M&A in the future to help us accelerate those, but we're confident we can win and grow in those areas today. Thank you. I appreciate that.

That doesn't mean, we wouldn't look at.

M&A in the future to help.

US accelerate dose, but we're confident we can win and grow in those areas today.

Thank you.

And just sort of have.

Modeling question since some of the growth areas have already been discussed that interest us.

Are there timing or mix issues for us to contemplate near term in modeling the quarterly cadence of revenue and EBITDA across fiscal 'twenty six.

So just.

As we look at the time phasing throughout FY 'twenty six Q1, we'll obviously have the impact from from the government shutdown, but that will normalize throughout the year. So we do expect quarterly sequential increases in both revenue profitability and cash flow for that matter, maybe just provide a little bit more color, we see digital solutions.

Tobey Sommer: Thank you. I appreciate that.

John Heller: I just sort of have a modeling question since some of the growth areas have already been discussed that interest us. Are there timing or mix issues for us to contemplate near term in modeling the quarterly cadence of revenue and EBITDA across fiscal 2026? Just as we look at the time phasing throughout FY26, Q1 will obviously have the impact from the government shutdown, but that will normalize throughout the year. We do expect quarterly sequential increases in both revenue, profitability, and cash flow, for that matter. Maybe just to provide a little bit more color, we see digital solutions as the predominant driver of growth for the company in FY26. Obviously, the Space Force range contract is in that segment, and that will be ramping up as we grow throughout the year on that contract.

I just sort of have a modeling question since some of the growth areas have already been discussed that interest us. Are there timing or mix issues for us to contemplate near term in modeling the quarterly cadence of revenue and EBITDA across fiscal 2026?

The predominant driver of growth for the company in FY 'twenty six obviously face horse range contracts is in that segment and that will be ramping up as well.

Growth throughout the year on that contract.

Some margin expansion in digital solutions may be a little bit more modest than what we expect to see in global engineering solutions, but.

John Heller: Just as we look at the time phasing throughout FY26, Q1 will obviously have the impact from the government shutdown, but that will normalize throughout the year. We do expect quarterly sequential increases in both revenue, profitability, and cash flow, for that matter. Maybe just to provide a little bit more color, we see digital solutions as the predominant driver of growth for the company in FY 26. Obviously, the Space Force range contract is in that segment, and that will be ramping up as we grow throughout the year on that contract.

But we do expect some revenue growth in global engineering solutions as well due to continued ramp up of some new work as well as on contract growth and that's where we believe a lot of the margin expansion will come from an FY 'twenty six.

So you can think about FY 'twenty six kind of quarterly sequential increases as we move throughout the year.

Yeah.

Thank you very much.

And the next question comes from Mariana Perez Mora with Bank of America. Please go ahead.

John Heller: expect some margin expansion in digital solutions, maybe a little bit more modest than what we expect to see in global engineering solutions. We do expect some revenue growth in global engineering solutions as well due to continued ramp-up of some new work, as well as on-contract growth. That's where we believe a lot of the margin expansion will come from in FY26. You can think about FY26 as kind of quarterly sequential increases as we move throughout the year. Thank you very much. The next question comes from Mariana Perez Morrow with Bank of America. Please go ahead. Good morning, everyone. Good morning. I wanted to follow up on the nuclear opportunities. In the prepared remarks, you mentioned double-digit growth and margin, a creative type of work.

expect some margin expansion in digital solutions, maybe a little bit more modest than what we expect to see in global engineering solutions. We do expect some revenue growth in global engineering solutions as well due to continued ramp-up of some new work, as well as on-contract growth. That's where we believe a lot of the margin expansion will come from in FY 26. You can think about FY 26 as kind of quarterly sequential increases as we move throughout the year.

Good morning, everyone.

Good morning, I wanted to follow up on the nuclear opportunities and the prepared remarks, you mentioned double digit growth and margin accretive type of work. When you talk about these margins are they accretive because timing I'd like significant alike.

EBITDA pure till that contract or is mostly be causing a lot of them come through.

Tobey Sommer: Thank you very much.

Non consolidated like John benchmark tap off.

Operator: The next question comes from Mariana Perez Mora with Bank of America. Please go ahead.

EBITDA added to the segment.

Mariana Perez Mora: Good morning, everyone. Good morning. I wanted to follow up on the nuclear opportunities. In the prepared remarks, you mentioned double-digit growth and margin, a creative type of work.

And then as a follow up to that when we think about this opportunity.

How fast can be Anthony Com for example on the $20 billion.

Having the pipeline is expected to be awarded how much of that is related to Nokia.

John Heller: When you talk about these margins, are they accretive because they are coming significant like EBITDA pure to the contract, or it's mostly because a lot of them come through non-consolidated like joint venture type of EBITDA added to the segment? As a follow-up to that, when we think about these opportunities, how fast can they actually come? For example, on the $20 billion that you have in the pipeline expecting to be awarded, how much of that is related to nuclear? Yeah. I'll take the first part of the question, Mariana. Good morning. John, maybe you can tackle the second part of that. When we look at the front-end nuclear energy market, it's more of the former as it relates to margin expansion, not unconsolidated joint ventures. A lot of that work tends to come not only in the US.

When you talk about these margins, are they accretive because they are coming significant like EBITDA pure to the contract, or it's mostly because a lot of them come through non-consolidated like joint venture type of EBITDA added to the segment? As a follow-up to that, when we think about these opportunities, how fast can they actually come? For example, on the $20 billion that you have in the pipeline expecting to be awarded, how much of that is related to nuclear?

Yes, I'll take the first part of the question Meredith Good morning, John maybe you can.

The second part of that when we look at the front end nuclear energy market. It's more of the former as it relates to margin expansion not on consolidated joint ventures, a lot of that work tends to come not only in.

In the U S commercial, but also international and due to the nature of the work that our capabilities and what we're providing there it does tend.

Tend to be margin accretive to the overall portfolio not to say that especially on kind of backend environmental remediation decommissioning there could be some joint venture opportunities that could also be margin accretive, but as we look to the future and where we expect the growth to come from that part of our portfolio. It's certainly.

John Heller: Yeah. I'll take the first part of the question, Mariana. Good morning. John, maybe you can tackle the second part of that. When we look at the front-end nuclear energy market, it's more of the former as it relates to margin expansion, not unconsolidated joint ventures. A lot of that work tends to come not only in the US.

Not JV consolidation, it's more the nature of work.

Yes, when we talk about this market.

The global nuclear market first of all we are in this market today globally in the United States all across Europe, Japan, we are currently delivering capability across that entire lifecycle.

John Heller: Commercial but also international, right? Due to the nature of the work and our capabilities and what we're providing there, it does tend to be margin accretive to the overall portfolio. Not to say that, especially on kind of back-end environmental remediation and decommissioning, there could be some joint venture opportunities that could also be margin accretive. As we look to the future and where we expect the growth to come from out of that part of our portfolio, it's certainly not JV consolidation. It's more of the nature of work. Yeah. We talk about this market, the global nuclear market. First of all, we are in this market today globally in the United States, all across Europe, Japan. We are currently delivering capability across that entire life cycle. It represents about 17% of our business today, so very substantial.

Commercial but also international, right? Due to the nature of the work and our capabilities and what we're providing there, it does tend to be margin accretive to the overall portfolio. Not to say that, especially on kind of back-end environmental remediation and decommissioning, there could be some joint venture opportunities that could also be margin accretive. As we look to the future and where we expect the growth to come from out of that part of our portfolio, it's certainly not JV consolidation. It's more of the nature of work.

Represents about 17% of our business today, so very substantial.

We are a leader both in the United States and across Europe and recognized brought into.

Japan because of the work that we've done in our history.

So for us it's a it's a real business delivering real strong margins today as.

Travis Johnson: Yeah. We talk about this market, the global nuclear market. First of all, we are in this market today globally in the United States, all across Europe, Japan. We are currently delivering capability across that entire life cycle. It represents about 17% of our business today, so very substantial.

As we talk about kind of a nuclear Renaissance that is happening driven by real demand for electricity.

And.

AI and the expansion of data centers to enable our AI economy.

Demand is real.

John Heller: We are a leader both in the United States and across Europe, and recognized and brought into Japan because of the work that we have done in our history. For us, it's a real business delivering real, strong margins today as we talk about kind of a nuclear renaissance that is happening, driven by real demand for electricity and AI, and the expansion of data centers to enable our AI economy. The demand is real, but nuclear takes time. You have to do significant design work, planning, and then you go into construction. In the gigawatt-sized plants, which we have traditionally worked, we've been involved in every nuclear power plant constructed in the UK in its history. We have great expertise in the United States.

We are a leader both in the United States and across Europe, and recognized and brought into Japan because of the work that we have done in our history. For us, it's a real business delivering real, strong margins today as we talk about kind of a nuclear renaissance that is happening, driven by real demand for electricity and AI, and the expansion of data centers to enable our AI economy. The demand is real, but nuclear takes time. You have to do significant design work, planning, and then you go into construction. In the gigawatt-sized plants, which we have traditionally worked, we've been involved in every nuclear power plant constructed in the UK in its history. We have great expertise in the United States.

But nuclear it takes time.

Have to do.

Design work planning and then you go into construction.

The gigawatt size plants, which we have traditionally work we've been involved in every nuclear power plant constructed in the U K in its history.

We have great expertise in the United States, we've just not seen.

An industry that has been operating on a regular cadence, but there is absolute.

Support from the current administration as well as industry and.

There is to bring more of this capability online.

So hasn't dropped laid out.

Executive borders, saying wanted to see 10 more gigawatt plants under construction by 2030.

Thats.

Achievable goal, but it will take a lot of work and we are one of the leaders that is capable of supporting that.

John Heller: We've just not seen an industry that has been operating on a regular cadence, but there is absolute support from the current administration, as well as industry, to bring more of this capability online. President Trump laid out executive orders saying he wanted to see 10 more gigawatt plants under construction by 2030. I think that's an achievable goal, but it will take a lot of work. We are one of the leaders that is capable of supporting that achievement, working with the companies in the industry that have the designs that could be used to deliver that. On SMRs, it will take a little longer. We are in the phase of working with companies to actually put the designs together and then kind of prove those designs so that they can be certified and approved designs that can then move into construction.

We've just not seen an industry that has been operating on a regular cadence, but there is absolute support from the current administration, as well as industry, to bring more of this capability online. President Trump laid out executive orders saying he wanted to see 10 more gigawatt plants under construction by 2030. I think that's an achievable goal, but it will take a lot of work. We are one of the leaders that is capable of supporting that achievement, working with the companies in the industry that have the designs that could be used to deliver that. On SMRs, it will take a little longer. We are in the phase of working with companies to actually put the designs together and then kind of prove those designs so that they can be certified and approved designs that can then move into construction.

<unk> working with the companies in the industry that have designs that could be used to deliver that on <unk>. It will take a little longer we are in the phase of working with companies to actually.

Speaker #2: Trump laid out executive orders stating he wants to see 10 more gigawatt plants under construction by 2030. I think that's an achievable goal, but it will take a lot of work, and we are one of the leaders capable of supporting that achievement, working with the companies in the industry that have the designs that could be used to deliver that.

Put the designs together and then <unk>.

Those designs so that they can be certified and approved designs that can then move into construction, so thats going to take more or less the rest of this decade to move the <unk> capability to a point, where we would see projects going into construction, but there will be quite a bit of.

Engineering work between now and then.

Thank you so much and then as a follow up to margins fourth quarter on fiscal 'twenty six margins came in a little bit lighter than expected. According to what you said in Investor day.

Besides the nuclear opportunity that Wolfcamp lastpass creative margins what are the.

Other.

John Heller: That's going to take more or less the rest of this decade to move the SMR capability to a point where we would see projects going into construction, but there will be quite a bit of engineering work between now and then. Thank you so much. As a follow-up to margins, the fourth quarter in fiscal 2026, margins came a little bit lighter than expected, according to what you said in the investor day. Besides the nuclear opportunity that will come with these accretive margins, what are the other drivers that will get you to the 8.5% to 9% that you expect to have by 2028? Yeah. Certainly, as John talked about, the accelerating growth areas in aggregate, not just global nuclear energy, but also critical digital infrastructure, and space systems and technologies in total, are margin accretive to the portfolio.

That's going to take more or less the rest of this decade to move the SMR capability to a point where we would see projects going into construction, but there will be quite a bit of engineering work between now and then.

Drivers that will get you to the eight 5% to 9% that you expect to have pipeline Yang.

Yes, certainly.

As John talked about the accelerating growth areas in aggregate not just global nuclear energy, but also critical digital infrastructure and space systems and technologies in total are margin accretive to the portfolio and as we see those outpace growth of the rest of the portfolio in our core growth areas that will lead to margin expansion.

Mariana Perez Mora: Thank you so much. As a follow-up to margins, the fourth quarter in fiscal 2026, margins came a little bit lighter than expected, according to what you said in the investor day. Besides the nuclear opportunity that will come with these accretive margins, what are the other drivers that will get you to the 8.5% to 9% that you expect to have by 2028? Yeah.

In addition to obviously the cost synergy initiatives that we talked.

Talked about a little bit of Q&A on that today, but those will derive call. It 30 to 50 basis points as we move through FY 'twenty seven into FY 'twenty eight so those combined.

John Heller: Certainly, as John talked about, the accelerating growth areas in aggregate, not just global nuclear energy, but also critical digital infrastructure, and space systems and technologies in total, are margin accretive to the portfolio.

Or the predominant drivers of the margin expansion.

Thank you so much.

And the next question comes from Andre Mcveigh Anthony <unk>. Please go ahead.

John Heller: As we see those outpaced growth of the rest of the portfolio and our core growth areas, that will lead to margin expansion. In addition to, obviously, the cost energy initiatives that we've talked about and a little bit of Q&A on that today, those will drive, call it, 30 to 50 basis points as we move through FY27 into FY28. Those combined are the predominant drivers of the margin expansion. Thank you so much. The next question comes from Andre Madrid with BTIG. Please go ahead. Yep. Good morning, everyone. Thanks for my question. Doge came to an earlier than expected end, it seems, probably eight months ahead of schedule there. I think previously you were anticipating that maybe there's going to be a 1% headwind going into 2026 based on policy changes. I see that there's a 1% headwind based on the shutdown.

As we see those outpaced growth of the rest of the portfolio and our core growth areas, that will lead to margin expansion. In addition to, obviously, the cost energy initiatives that we've talked about and a little bit of Q&A on that today, those will drive, call it, 30 to 50 basis points as we move through FY 27 into FY 28. Those combined are the predominant drivers of the margin expansion.

Yes, good morning, everyone. Thanks for my questions.

No.

<unk> came to an earlier than expected and it seems you know probably eight months ahead of schedule. There I think previously you are anticipating that maybe we can be a 1% headwind going into 2006 based on policy changes I see that there is a 1% headwind based on the shutdown is it kind of just shifting towards that where it's like <unk>.

Mariana Perez Mora: Thank you so much.

Maybe you could have clawed some back on on the policy shift side, given the and the dose but it's now.

Operator: The next question comes from Andre Madrid with BTIG. Please go ahead.

Headwind from the shutdown of I'm, just trying to understand the moving pieces. There should we expect kind of both layered on top of each other or.

Andre Madrid: Yep. Good morning, everyone. Thanks for my question. Doge came to an earlier than expected end, it seems, probably eight months ahead of schedule there. I think previously you were anticipating that maybe there's going to be a 1% headwind going into 2026 based on policy changes. I see that there's a 1% headwind based on the shutdown.

Yeah.

Okay.

I would I would think about them Andre not related at all.

We obviously went through the administration change, though is all of that and throughout 'twenty five and you did call out the approximate 1% impact of the portfolio that was back half weighted we will see some noise of that continuing kind of throughout the first quarter or two here of FY 'twenty, six but nothing significant to call out a separate and independent of <unk>.

John Heller: Is it kind of just shifting towards that where it's like maybe you could have clawed some back on the policy shift side given the end of Doge, but it's now the headwind from the shutdown? I'm just trying to understand the moving pieces there. Should we expect kind of both layered on top of each other, or? I would think the bottom, Andre, is not related at all. We obviously went through the administration change, Doge, all of that, and throughout 2025, and we did call out the approximate 1% impact of the portfolio. That was back half-weighted. We'll see some noise of that continuing and kind of throughout the first quarter or two here of FY26, but nothing significant to call out.

Is it kind of just shifting towards that where it's like maybe you could have clawed some back on the policy shift side given the end of Doge, but it's now the headwind from the shutdown? I'm just trying to understand the moving pieces there. Should we expect kind of both layered on top of each other, or?

That as we see.

In times of government shutdown in the past obviously this one was a little bit extended.

Importantly, as seen in the past, but some disruption that spending on contracts and then some delays in the procurement environment is the 1% that we called out for this fiscal year.

John Heller: I would think the bottom, Andre, is not related at all. We obviously went through the administration change, Doge, all of that, and throughout 2025, and we did call out the approximate 1% impact of the portfolio. That was back half-weighted. We'll see some noise of that continuing and kind of throughout the first quarter or two here of FY 26, but nothing significant to call out.

All that being said.

Still feel good about the trajectory of the underlying business, excluding that government shutdown impact 4% growth at the midpoint on revenue.

Above mid single digits on EBITDA, and obviously double digit on EPS.

John Heller: In separate and independent of that, as we see in times of government shutdown in the past, obviously this one was a little bit extended more than we've seen in the past, some disruptions to spending on contracts and then some delays in the procurement environment is the 1% that we called out for this fiscal year. All that being said, still feel good about the trajectory of the underlying business, excluding that government shutdown impact, 4% growth at the midpoint on revenue, above mid-single digits on EBITDA, and obviously double-digit on EPS and free cash flow despite those dynamics that are occurring. Got it. Got it. Maybe, I mean, just in terms of debt paydown, you've still got a ways to go, a little ways to go until you get to less than 3x.

In separate and independent of that, as we see in times of government shutdown in the past, obviously this one was a little bit extended more than we've seen in the past, some disruptions to spending on contracts and then some delays in the procurement environment is the 1% that we called out for this fiscal year. All that being said, still feel good about the trajectory of the underlying business, excluding that government shutdown impact, 4% growth at the midpoint on revenue, above mid-single digits on EBITDA, and obviously double-digit on EPS and free cash flow despite those dynamics that are occurring.

And free cash flow despite those dynamics that are occurring.

Got it got it and then maybe I mean, just in terms of debt pay down you still got a ways to go a little ways to go until you get to the Watson returned.

I mean, how should we think about the pace of that through the year is it also are you guys thinking of going a step further should we think it is.

It's still a sizable portion of free cash flow for the year or.

Okay.

Yes, so the predominance of our cash flow.

Okay, I will follow normal seasonality and be generated in the second half of FY 'twenty, six which is when you'll see us start to get to below the three times net leverage that we've talked about.

Andre Madrid: Got it. Got it. Maybe, I mean, just in terms of debt paydown, you've still got a ways to go, a little ways to go until you get to less than 3x.

Got it got it maybe if I could squeeze one more in I mean, you've talked about organic investments I mean, which areas do you think or.

John Heller: I mean, how should we think about the pace of that through the year? Is it also, are you guys thinking of going a step further? Should we think it's still a sizable portion of free cash flow for the year, or? Yeah. The predominance of our cash flow will follow normal seasonality and be generated in the second half of FY2026, which is when you'll see us start to get to below the 3x net leverage that we talked about. Got it. Got it. Maybe if I could squeeze one more in. I mean, you talked about organic investments. I mean, which areas do you think are poised for the most? Well, we talked about our core markets. We're still very comfortable with our core markets, so we're looking at investing there as well as those three accelerating growth markets.

I mean, how should we think about the pace of that through the year? Is it also, are you guys thinking of going a step further? Should we think it's still a sizable portion of free cash flow for the year, or?

<unk> for the most.

Okay.

Well, we talked about our core markets, we still very comfortable with our core markets. So we're looking at investing there as well as those three accelerating growth markets.

John Heller: Yeah. The predominance of our cash flow will follow normal seasonality and be generated in the second half of FY 2026, which is when you'll see us start to get to below the 3x net leverage that we talked about.

So all of those areas still represent real strengths to the business.

And.

Yes.

I think we highlighted in the strategy, where we're focused those are priority areas.

Andre Madrid: Got it. Got it. Maybe if I could squeeze one more in. I mean, you talked about organic investments. I mean, which areas do you think are poised for the most?

Got it thanks.

And the next question comes from Ken Herbert with RBC capital markets. Please go ahead.

Travis Johnson: Well, we talked about our core markets. We're still very comfortable with our core markets, so we're looking at investing there as well as those three accelerating growth markets.

Yes, hi, good morning.

I wanted to see first on the 26 and maybe mid term growth outlook can you can you get more specific on what kind of growth youre expecting in <unk>.

John Heller: All of those areas still represent real strengths to the business. I think we highlighted in the strategy where we're focused. Those are our priority areas. Got it. Thanks. The next question comes from Ken Herbert with RBC Capital Markets. Please go ahead. Yeah. Hi. Good morning. I wanted to see first on the '26 and maybe midterm growth outlook, can you get more specific on what kind of growth you're expecting in, I guess, from the accelerating growth portfolio as you outlined it here as we think about sort of the 3% to 4% organic growth in '26? Are you at the high single digits for that market, the accelerating growth businesses? Maybe how much does that accelerate into '27 and '28? Yeah. I'll start, and then John, you can feel free to add in.

All of those areas still represent real strengths to the business. I think we highlighted in the strategy where we're focused. Those are our priority areas.

Yes from the accelerating growth portfolio as you outlined it here.

As we think about sort of the 3% to 4% organic growth and 26 are you at the high single digits for that market. The accelerating growth businesses and then maybe how much does that accelerate into 27 and 28.

Andre Madrid: Got it. Thanks.

Operator: The next question comes from Kenneth Herbert

Yeah.

Kenneth Herbert: Yeah. Hi. Good morning. I wanted to see first on the '26 and maybe midterm growth outlook, can you get more specific on what kind of growth you're expecting in, I guess, from the accelerating growth portfolio as you outlined it here as we think about sort of the 3% to 4% organic growth in '26? Are you at the high single digits for that market, the accelerating growth businesses? Maybe how much does that accelerate into '27 and '28?

Yeah.

Yes, so I'll start and then John you can feel free to add in so for FY 'twenty six obviously absent the government shutdown as we've talked about from a revenue perspective expect underlying growth of two to five sorry, 3% to 5% right.

And that's kind of right in line with where we thought we would be at this point in time.

As we kind of transition and start to benefit from all of the pipeline and things that we bid as a newly merged company and the accelerating growth markets that John mentioned in his prepared remarks, obviously, we think that will accelerate not only as we move through FY 'twenty six but also in the FY 'twenty seven and beyond.

Travis Johnson: Yeah. I'll start, and then John, you can feel free to add in.

So those will start to pick up in awards such as Space Force range. You mentioned of Sellafield Award. It's also and those are accelerating growth markets. Those will continue to ramp up as we move into the back half of 'twenty six.

John Heller: For FY26, obviously, absent the government shutdown, as we talked about, from a revenue perspective, expect underlying growth of 3% to 5%, right? That is kind of right in line with where we thought we would be at this point in time. As we kind of transition and start to benefit from all the pipeline and things that we bid as a newly merged company in the accelerating growth markets that John mentioned in his prepared remarks, obviously, we think that will accelerate not only as we move through FY26, but also into FY27 and beyond. Those will start to tick up in awards such as Space Force Range. We mentioned a Sellafield award that is also in those accelerating growth markets. Those will continue to ramp up as we move into the back half of 2026. Yeah.

For FY 26, obviously, absent the government shutdown, as we talked about, from a revenue perspective, expect underlying growth of 3% to 5%, right? That is kind of right in line with where we thought we would be at this point in time. As we kind of transition and start to benefit from all the pipeline and things that we bid as a newly merged company in the accelerating growth markets that John mentioned in his prepared remarks, obviously, we think that will accelerate not only as we move through FY 26, but also into FY 27 and beyond. Those will start to tick up in awards such as Space Force Range. We mentioned a Sellafield award that is also in those accelerating growth markets. Those will continue to ramp up as we move into the back half of 2026. Yeah.

Yes, Steve talked about some of the opportunities I think that we're seeing in the space market that we think.

Will adjudicate this year and therefore impact next year and a more significant way and I think the same as we think about the global nuclear energy market. We continue to see an uptick in activity, which will accelerate.

This year through next year, so we should see a higher pace of activity in that market as we think about 27% 28 as well and then the digital infrastructure, we have strong activities and working with the Hyperscale orders on helping with design.

John Heller: Steve talked about some of the opportunities, I think, that we're seeing in the space market that we think will adjudicate this year and therefore impact next year in a more significant way. I think the same as we think about the global nuclear energy market, we continue to see an uptick in activity, which will accelerate this year through next year. We should see a higher pace of activity in that market as we think about 2027 and 2028 as well. The digital infrastructure, we have strong activities in working with the hyperscalers on helping with design and development of upgrades to data centers as an example on telecom, outfitting 5G networks and beyond.

John Heller: Steve talked about some of the opportunities, I think, that we're seeing in the space market that we think will adjudicate this year and therefore impact next year in a more significant way. I think the same as we think about the global nuclear energy market, we continue to see an uptick in activity, which will accelerate this year through next year. We should see a higher pace of activity in that market as we think about 2027 and 2028 as well. The digital infrastructure, we have strong activities in working with the hyperscalers on helping with design and development of upgrades to data centers as an example on telecom, outfitting 5G networks and beyond.

And development of upgrades to data centers as an example.

On telecom outfitting <unk> networks and <unk>.

Beyond so we see areas like this we will also continue to expand for us as we continue to reach into other hyperscale.

These capabilities.

The growth of those into 27% and 28 as we.

Kind of breaking into new customers with these offerings.

Great. That's helpful and just if you could remind us what's the recompete risk or Recompete exposure you have here as part of fiscal 'twenty six.

Yes.

John Heller: We see areas like this will also continue to expand for us as we continue to reach into other hyperscalers with these capabilities and push the growth of those into 2027 and 2028 as we kind of break into new customers with these offerings. Great. That's helpful. Just if you could remind us, what's the recompete risk or recompete exposure you have here as part of fiscal 2026? Yeah. We're really confident in kind of the composition of revenue in our FY26 guidance. Over 90% of it will be coming from firm and follow-on work, so less than 10% from new business, and it's less than 5% recompete risk. Great. Thanks. Thanks, Travis. Thank you. That is all the time we have for questions. I would like to turn it back to John Heller, CEO, for closing remarks. Thank you.

Really confident in kind of the composition of revenue in our FY 'twenty six guidance over 90% of it will be coming from firm and follow on work so less than 10% from new business and it is less than 5% Recompete risk.

We see areas like this will also continue to expand for us as we continue to reach into other hyperscalers with these capabilities and push the growth of those into 2027 and 2028 as we kind of break into new customers with these offerings.

Great. Thanks.

Thanks Travis.

Okay.

Thank you and that is all the time, we have for questions I would like to turn it back to John Hello, CEO for closing remarks.

Kenneth Herbert: Great. That's helpful. Just if you could remind us, what's the recompete risk or recompete exposure you have here as part of fiscal 2026?

Thank you.

As we enter a new year, we are encouraged by our performance and confident in the path forward. Our strategy remains firmly aligned with long cycle mission critical markets and we remain agile to meet the evolving needs of our customers I want to extend my sincere thanks to our employees, particularly those who were impacted by endo.

Travis Johnson: Yeah. We're really confident in kind of the composition of revenue in our FY 26 guidance. Over 90% of it will be coming from firm and follow-on work, so less than 10% from new business, and it's less than 5% Recompete risk.

Kenneth Herbert: Great. Thanks. Thanks, Travis.

<unk>, who worked tirelessly to support our customers during the government shutdown.

Operator: Thank you. That is all the time we have for questions. I would like to turn it back to John Heller, CEO, for closing remarks. Thank you.

Their resilience and professionalism exemplified what makes them mentum a trusted partner, we are well positioned to capture growing demand in our core growth areas and our accelerating growth markets and to deliver sustainable long term value for our shareholders.

John Heller: Thank you, as we enter a new year, we're encouraged by our performance and confident in the path forward. Our strategy remains firmly aligned with long-cycle, mission-critical markets, and we remain agile to meet the evolving needs of our customers. I want to extend my sincere thanks to our employees, particularly those who were impacted by, and those who worked tirelessly to support our customers during the government shutdown. Their resilience and professionalism exemplify what makes Amentum a trusted partner. We are well-positioned to capture growing demand in our core growth areas, and our accelerating growth markets, and to deliver sustainable, long-term value for our shareholders. Thank you for your continued interest in Amentum. We look forward to sharing our progress in the quarters ahead. We wish everyone a safe and joyful holiday season.

John Heller: As we enter a new year, we're encouraged by our performance and confident in the path forward. Our strategy remains firmly aligned with long-cycle, mission-critical markets, and we remain agile to meet the evolving needs of our customers. I want to extend my sincere thanks to our employees, particularly those who were impacted by, and those who worked tirelessly to support our customers during the government shutdown. Their resilience and professionalism exemplify what makes Amentum a trusted partner. We are well-positioned to capture growing demand in our core growth areas, and our accelerating growth markets, and to deliver sustainable, long-term value for our shareholders. Thank you for your continued interest in Amentum. We look forward to sharing our progress in the quarters ahead. We wish everyone a safe and joyful holiday season. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining.

And for your continued interest and momentum we look forward to sharing our progress in the quarters ahead.

Everyone have a safe and joyful holiday season.

Thank you ladies and gentlemen. This concludes today's conference call. Thank you all for joining you may now disconnect.

John Heller: Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining.

Speaker #5: Ladies and gentlemen, this concludes today's conference call. Thank you all for joining me. Now, this connects.

John Heller: You may now disconnect.

John Heller: You may now disconnect.