Amentum Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Good morning and welcome to Amentum's first quarter fiscal year 2025 earnings conference call. Note that today's call is being recorded. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. 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 the press release we issued yesterday afternoon, which is posted on our investor relations website. We have also provided presentation slides to facilitate today's call. Let's move to slide two. Please note that this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results different 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. 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 press release and our supplemental presentation slides include reconciliations to the most comparable GAAP measures. 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 our financial results are John Heller, Chief Executive Officer, and Travis Johnson, Chief Financial Officer. We are also joined by other members of management, including Steve Arnett, our chief operating officer. With that, moving to slide three, it's my pleasure to turn the call over to our CEO, John Heller.

Thank you, Nathan, and good morning, everyone. We appreciate you joining us today, and welcome to Amentum's first quarterly earnings conference call. Fiscal year 2025 is off to a strong start with growth across several key financial and operational metrics. The combined strength of our business has quickly started to yield positive results, as evidenced by our performance in the first quarter with momentum building. Our integration and value capture activities remain on track as we continue to execute on our strategic priorities. I'm immensely proud of the progress we have made in just four months, reinforcing the achievements of our integration efforts and the bright future that lies ahead for Amentum. As you can see on slide three, we delivered a strong first quarter performance across the board, including revenues of $3.4 billion, reflecting 2% year-over-year growth, adjusted EBITDA of $262 million, up 3% from the prior year quarter, and free cash flow of $102 million. Our performance is a testament to outstanding execution by our entire team, and we remain well positioned to deliver on the commitments we set out for the fiscal year. Diving a bit further into our growth, let's move to business development results on slide four. In Q1, we had $3.6 billion in net bookings, resulting in a 1.1 times quarterly book-to-bill ratio. and a total backlog of $45 billion, representing 3.2 times annual revenue coverage. The results underscore our continued strength and capabilities demonstrated through contract wins that reinforce the innovative solutions and consistent value we provide to our customers across diverse end markets. I want to take a moment here to call out a few notable examples from the quarter. all of which use advanced digital methods to drive more efficient and effective outcomes for our customers. First, the Department of Energy awarded the West Valley Demonstration Project, a $3 billion single award IDIQ with a 10-year ordering period to a joint venture which includes Amentum. Under the contract, we will provide advanced technology solutions including unmanned robotics sensors telematics and digital tools to safely decommission nuclear facilities while momentum will not recognize revenues or backlog as a result of this award we expect it to generate meaningful earnings in cash flow for years to come When taking into consideration a mentor's proportional share of all unconsolidated joint venture revenues and bookings for the first quarter, book the bill was 1.5 times driven by the West Valley award. Second, we successfully recompeted the US Department of Defense counter threat finance program. a $248 million contract over eight years that leverages mission-driven data analytic solutions to disrupt and degrade adversary financial networks that support transnational criminal organizations. We take great pride in this mission and are honored to continue this critical work. And finally, on the commercial side, We have secured over $400 million in awards with Fortune 500 customers across key areas such as the deployment and optimization of 5G networks and critical infrastructure modernization, further solidifying our reputation as a trusted partner in the commercial sector. Looking ahead, we entered the second quarter with significant momentum. We currently have $30 billion in pending awards driven by the $12 billion of submitted bids in Q1, and we remain on track to submit over $35 billion for the full fiscal year. We have made a lot of progress in the short months since coming together, and I'd like to highlight how we're starting to realize tangible benefits from the merger. Let's turn to slide five. As a combined company, we are already seeing strong operational and financial performance, improved efficiency, and greater alignment across teams. These benefits are reflected in the form of accelerating growth prospects, advancing our technology enabled solutions, and progressing a strong culture underpinned by excellence and collaboration. Starting with our accelerating growth prospects, We have been operating with an aligned go-to-market structure and strategy in place since day one, and our robust business development engine is working. The benefits of our systematic approach, which was planned in the months leading up to the merger, are evidenced by the significant bid volume during the quarter. In addition, building on the success of both legacy organizations we launched a talented and dedicated enterprise capture team led by Sean Mullen, our Chief Growth Officer, to focus on our largest and most strategic business opportunities. This team will be instrumental in enabling our pursuit of deals greater than $1 billion, which based on our pipeline today, we expect will be more than 15 opportunities from now through the end of fiscal year 2026. We are now positioned to maximize success within our core markets while expanding addressable market opportunities in new and emerging areas that leverage our expanded capabilities and expertise. Second, technology and innovation are critical enablers of our competitive advantage and differentiation. During the quarter, Our Chief Technology Officer, Jill Bruning, launched the new Amentum Technology Advisory Councils, which will drive innovation and ensure Amentum stays ahead of emerging trends for many years to come. Jill also oversees Amentum's broader innovation strategy, fostering collaboration and knowledge sharing across our nine global engineering centers of excellence. Our technology strategy has enabled the creation of a platform to cross-sell capabilities across end markets, taking advantage of our breadth of expertise and the scale of our business. Finally, the foundation of our success lies in the strength and expertise of our talented 53,000 employees who are the driving force behind all of our achievements. Our teams have remained focused on our strategic priorities and are operating at the highest levels, fostering collaboration, prioritizing engagement, and encouraging innovative problem solving to help drive growth. As we continue to expand and strengthen our talent base, I'm excited to welcome to our leadership team Jennifer Wallsmith, President of our Intelligence and Cyber Business, and Darren Burton, our Chief People Officer. Both Jennifer and Darren bring valuable expertise and experience that will be instrumental in advancing Amentum's vision while positioning us for continued success and growth in the future. I also want to take a moment to thank our integration management team. Their tireless dedication and long days have been instrumental in ensuring we remain on track to execute a seamless integration. Because of the incredible work they've done, we remain on a firm path to achieving $30 million in run rate next synergies by the end of fiscal year 2025. This underscores the impact of our proactive planning, which has allowed us to avoid significant delays or disruptions while ensuring a seamless transition as we continue to realize the benefits of our combination. Turning to slide six, we acknowledge the impact of the new administration's priorities on our market, particularly regarding potential shifts in focus and a drive for greater efficiency in government. At its core, Momentum has a culture of innovation and agility, and when coupled with our unmatched advanced engineering and technology expertise, we are uniquely positioned for continued success. Momentum has more than a century-long history supporting America's most complex and challenging defense and national security priorities, including contributions to iconic endeavors like the Manhattan Project and the SR-71 Blackbird, as well as countless other mission-critical initiatives. Further, with an increasingly complex geopolitical landscape, the importance and demand for the modernization and next generation technology solutions Amentum provides has never been greater. There are countless examples of how Amentum is already advancing the future together with our customers today. To highlight a few, we are leveraging our integrated digital engineering approach, or IDEA, to provide cutting edge electronic warfare and ISR solutions to support the DOD's modernization priorities. On our ITeams program, we're advancing DOD goals in INDOPACOM through innovative C5ISR research, development, and engineering. And through our unique delivery model, which emphasizes efficiency at scale and leverages advanced digital methods and outcome-based solutions, Momentum is modernizing complex legacy systems for customers like the US Navy, ensuring they have the critical capabilities they need for today's challenges. Our focus remains on enhancing our advanced engineering and technology capabilities to deliver better, faster, and more cost-effective solutions to the US government. Our solutions are driving modernization and next-generation technology adoption, and we're executing with speed to meet our customers' needs. Amentum's scale, flexible business model, and proactive approach position us for continued growth and success. As a result, I am more confident and energized than ever about Amentum's future and our ability to drive sustained shareholder value through delivering long-term growth and strong free cash flow generation. With that, I will turn it over to Travis, who will take you through the financials and more details. Thank you, John, and good morning, everyone.