Amentum Holdings, Inc. Price & Performance (AMTM)

Amentum Holdings reported $3.4 billion in revenue for Q1 FY2025, exceeding expectations of $3.3 billion. Adjusted EBITDA also surpassed forecasts at $262 million. The company secured an $822.7 million NASA contract, reflecting its robust business development efforts. Analysts maintain positive ratings, citing strong financial performance and growth potential.12

Jacobs Solutions has completed a debt-for-equity exchange, divesting its 19.4 million shares in Amentum Holdings. This secondary offering, managed by major financial institutions, shifts Amentum's ownership structure. While non-dilutive, the transaction introduces significant shares to the market, potentially impacting short-term stock performance.34

Amentum's management aims to reduce its debt-to-EBITDA ratio below 3.0x within two years, enhancing free cash flow yield. The company plans to focus on higher-margin contracts and strategic divestitures. Analysts predict substantial upside, with potential stock price targets as high as $70 per share in optimistic scenarios.56