Earnings rose at Amentum, Chantilly, Va., in the past quarter, which the company attributed to “tailwinds” in nuclear power and defense.
This is Amentum’s first year as a publicly traded company following its combination with the government contracting branches of Dallas-based Jacobs.
Net earnings for the quarter ended Oct. 3 were $3.9 billion, or $0.16 a share, up from $3.5 billion, or $0.28 a share, in the year-ago quarter. Quarterly revenue was $135 million, a five-fold increase year-over-year from $27 million. That is according to the earnings press release out Tuesday morning, Nov. 25.
Quarterly segment revenue for the Global Engineering Solutions segment, where Amentum oversees much of its Department of Energy and Department of Defense-related work, was $2.4 billion, up from $2.2 billion a year ago.
“The global resurgence of nuclear energy driven by energy security needs” and to power artificial intelligence centers “is creating a market with substantial tailwinds,” CEO John Heller said during the conference call with Wall Street analysts. He added Amentum is “well positioned to benefit from tailwinds in key strategic growth areas including global nuclear energy, critical digital infrastructure, and space systems and technology.”
Heller also said impact from the shutdown was minimal given the rise in earnings.
On the earnings call, Heller called out contracts that contributed to earnings like the $4 billion U.S. Space Force Range contract, which he said was “one of the largest” contracts “ever awarded by this customer.” He also mentioned the 15-year, $1.8 billion decommissioning contract with Sellafield to retrieve nuclear waste from ponds in England.
Heller also praised the Nuclear Center of Excellence in Oak Ridge, Tenn. announced in May. The Center aims to be a hub for nuclear expertise near Oak Ridge National Laboratory, collaborate with government agencies, and support nuclear power expansion.
The NASA Contract for Organizing Spaceflight Mission Operations and Systems (COSMOS) contract, which was awarded to a joint venture involving Amentum, is being protested, Heller said. The COSMOS contract would be nine years and worth $1.8 billion and would involve developing engineering tools for NASA’s mission control center.
Amentum is the lead partner in joint ventures with multi-billion-dollar DOE cleanup contracts at Idaho National Laboratory and the Oak Ridge Site in Tennessee. Amentum is also part of a team with BWX Technologies that landed an Atomic Energy of Canada Limited contract with a six-year base period up to a total of 20 years.
A link to the Amentum slide presentation is available here.