Amentum Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Good morning and welcome to Lamentum's third quarter fiscal year 2025 earnings conference call. Today's call is being recorded. At this time, all participants are in 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.

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've also provided presentation slides to facilitate today's call. So 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 to differ materially from anticipated. I refer you to our SEC filings for 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 FX, as well as non-GAAP financial measures, which we believe provide useful information for investors. Both our press release and supplemental presentation slides include reconciliation 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 a 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 are also joined by other members of management, including Steve Arnett, 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 to discuss our third quarter results and update you on the progress we've made executing our long-term strategy. As we entered the last quarter of our first year as a combined company, I'm incredibly proud of the continued momentum that we've had across the business. We're seeing benefits from our integration efforts and mission-focused portfolio converge with tailwinds from global trends and an improving budget environment, and we're excited about the bright future ahead for Amentum. I want to begin by acknowledging the extraordinary efforts of our team. Across the globe, Amentum employees are working side by side with our customers, delivering on complex missions with dedication, agility, and excellence. Their commitment is at the heart of everything we do, and it shows in our results. Our team's resilience and innovation have resulted in strong performance for the quarter and have enabled us to provide updated guidance, which reflects underlying organic increases. Key highlights, which Travis will discuss in more detail shortly, include revenues of $3.6 billion, reflecting 2% growth, adjusted EBITDA of $274 million, marking 7% -over-year growth, and free cash flow of $100 million. During the quarter, we also successfully completed two divestitures, our Rapid Solutions business, which was originally announced in April, and our non-core New Zealand facilities maintenance business. These divestitures demonstrate a continued focus on optimizing our core business to align with long-term growth priorities. As a result of these actions, along with our strong -to-date operational performance, we have made significant progress in reducing our net leverage ratio to 3.5 times ahead of our original expectations. Additionally, I am pleased with what we've accomplished on the operational front. We remain on track with our integration plans and have a clear line of sight to achieving at least $30 million in net run rate cost synergies by the end of this fiscal year. Now, I would like to take a moment to discuss key global trends, as well as updates to the budget and policy environment impacting our market. Please turn to slide four. The fiscal year 26 budget reconciliation bill, or the one big beautiful bill, along with recent executive orders, represent generational investments in national security and other critical areas that are well aligned with the momentum's portfolio of advanced engineering and technology solutions. The bill includes $150 billion in additional defense spending and $133 billion in supplemental funding for border security, both to be deployed over the next two years. It also contains sweeping investments in NASA's human space flight and infrastructure modernization, as well as steps to reduce regulatory friction and accelerate execution across enduring mission areas. Let me highlight a few areas where we are excited to continue and expand our advanced solution offerings in an agile and efficient manner to help our customers execute their key mission priorities. Today, we deliver real-time detection, tracking, and response solutions that support the warfighter's ability to counter emerging threats, including hypersonic systems through our I-RES contract with the Missile Defense Agency. With the $25 billion initial investment in the Golden Dome Initiative, the U.S. is doubling down on integrated layered defense, and a momentum is poised to immediately scale our contributions. Next, our teams are delivering unmanned and counter-unmanned integration solutions, including advanced sustainment, AI-enhanced mission assurance, and real-time testing for several key customers. With multi-billion dollar funding secured for air and sea-based unmanned solutions, momentum is positioned to drive the next evolution of autonomy and airspace dominance. In the Pacific region, momentum is supporting mission preparedness through programs such as I-Teams, where we're driving agility and innovating command and control systems for the Department of Defense. With billions of dollars aimed at bolstering Indo-PACOM's posture, we're ready to continue enabling deterrence. A momentum is at the heart of America's space infrastructure, powering the next era of human exploration and space superiority. Our engineers are modernizing launch vehicle systems, ground infrastructure, and other mission-critical facilities that support lunar missions and deep space exploration. Backed by $10 billion in new funding for NASA's spaceflight and modernization efforts, we're accelerating launch readiness and reinforcing U.S. space leadership. Next, from AI ML-enabled decision environments to cyber-hardened cloud migration and digital twin infrastructure, momentum is working with our customers modernizing national security IT for real-world applications. The decision to allocate billions for next-gen federal infrastructure reinforces what we've known all along. The mission demands leading-edge solutions, and a momentum is delivering them. Finally, we are excited about the administration's focus on the future of energy dominance. As demand for reliable baseload power explodes, driven by AI, electrification, and geopolitical risk, momentum is already at work across the nuclear lifecycle. From advanced reactor engineering to nuclear remediation, we operate the core of U.S. and allied energy security strategies. The administration's May executive orders, along with funding in the reconciliation bill, aim to remove regulatory barriers and inject capital into small modular reactors, fuel supply chains, and licensing, areas where momentum is already moving fast. I'll have more to say about the role we're playing in the global nuclear renaissance shortly, but the key takeaway is this, momentum isn't preparing to lead, we are leading. Across all of these areas, our work is embedded in today's most important missions, and we're scaling up as our customers and Congress prioritize the areas we've built our business around. We're ready to meet the moment with speed, precision, and unmatched technical depth. Let's move on to slide five, highlighting the continued strong demand for momentum's mission-focused solutions across our diversified markets. We reported $3.4 billion in net bookings this quarter, resulting in a third quarter and a -to-date -to-bill of one times. As noted before, awards to unconsolidated joint ventures are excluded from our reported -to-bill, including momentum's proportional share of joint venture revenues and bookings. Our third quarter and -to-date imputed -to-bill were 1.8 times and 1.4 times respectively, which highlights the significance of key awards that will generate meaningful earnings and cash flow for years to come. Finally, we ended the quarter with $29 billion in pending awards and a total backlog of $45 billion, representing 3.2 times our annual revenue. Our strong bookings this quarter reflect not only growing demand, but also our ability to win in the markets that matter most. We're executing against a high-quality pipeline translating into strategic wins, and we remain on track to achieve our $35 billion submits target. Now, let me walk you through some examples from Q3, highlighting this progress. First, we were awarded the $4 billion Space Force Range Contract, or SFRC, which deepens our partnership with the U.S. Space Force and significantly expands our presence in space operations. Through this work, momentum will modernize and maintain range infrastructure, supporting launches on both the eastern and western ranges. The SFRC positions us at the center of commercial and national security space integration, enabling direct relationships with commercial launch providers. It also expands our footprint in Colorado, Florida, and California, three critical nodes of U.S. space activity. Recently, we were notified that this award is being protested. Therefore, it is not included in our third quarter backlog or -to-bill results. We are confident in the strength of our bid and look forward to its resolution. Next, demonstrating our global nuclear leadership, Amentum, through an unconsolidated joint venture, was selected to deliver comprehensive nuclear engineering and technology solutions for Canadian nuclear laboratories. This award, which is a continuation and expansion of work we do today, has a six-year base and an extension period of up to 20 years and is valued at approximately $1.2 billion Canadian annually. It underscores Amentum's nuclear solutions and strengthens our position across nuclear energy, from environmental remediation and waste management to the advancement of SMR technology. It also reinforces our cross-border solutions and supports our broader commercial nuclear growth strategy. Also in the quarter, Amentum secured two new intelligence awards supporting classified customers, totaling over $500 million. We're proud to support these customers by leveraging a broad range of advanced engineering and technology solutions, including mission-critical data modeling and analysis. Finally, we benefited from over $2 billion in bookings from on-contract growth modifications and extensions from existing customers. While big new awards are exciting, Amentum's significant growth from modifications highlights our ability to win and expand scope across priority areas and validates the value Amentum delivers to our customers every day. While I am proud of these recent awards, I am also excited about what lies ahead. Let's now turn to slide six and take a closer look at the global nuclear resurgence. Amentum brings advanced engineering and technology solutions to some of the world's most complex challenges. One of the profound changes shaping our world today is the exponential growth of AI in compute infrastructure. Demand for computing power is skyrocketing due to the rise of autonomous systems and industrial applications supporting manufacturing. This surge boosts energy requirements, accelerating the need for enhanced grid capacity and resilience. In the U.S., local grid space shortages link to data center expansion. Globally, the energy trilemma, security, affordability, and sustainability, is intensifying. Global electricity demand is expected to increase by 25% by 2030 and double over the next 25 years. Global data center demand investment is expected to exceed $5 trillion through 2030. Bringing new nuclear power plants online and extending existing infrastructure is critical to meet this demand. Nuclear power is the only scalable and reliable baseload energy source that can meet these demands. With our long history providing engineering solutions to the nuclear industry, including the deployment of new gigawatt power plants and research and design for small modular reactors, Amentum is well equipped to lead as this market continues to grow. Amentum is delivering solutions that fuel the nuclear resurgence across key submarkets. Please turn to slide seven, which provides a visual overview of our comprehensive nuclear solutions built over more than 50 years. We cover the full life cycle from planning, design, and licensing to construction, operations, modernization, and life extension and decommissioning. We have deep expertise and an integrated approach to these long-term priorities. To that end, in May, we opened our Nuclear Center of Excellence in Oak Ridge, Tennessee, which will serve as a strategic hub solving the challenges facing the nuclear resurgence to our advanced engineering and technology solutions. While much of our current work focuses on gigawatt reactors, we're increasingly applying that same expertise to next-generation nuclear technologies, including SMRs. SMRs provide scalable power with enhanced flexibility and safety features, ideal for data centers and high-density compute zones driving the AI revolution. We are deeply embedded in this ecosystem, working with developers and governments across the US, UK, and Europe to accelerate deployment and enhance grid reliability. We support flagship programs like Sizewell C in the UK, New Starts in Poland and throughout other European countries, and early-stage deployments in North America. To strengthen our differentiation, we've developed our own solutions, including proprietary software that enables high-resolution simulation of reactor physics. This tool is used by regulators and operators worldwide, accelerating the adoption and construction of gigawatt reactors and SMRs. We estimate that the current addressable market for Amentum's nuclear solutions is approximately $20 billion, and based on projections for growth in the market for new builds, we expect it to more than double in size within the next decade. When we think longer term, the market size could experience a tenfold increase by 2050 if estimates for new builds are realized. With the backdrop of growing global demand, a robust pipeline including partnerships with key OEMs, and converging policy support, we are executing a strategy to capture a significant share of this fast-growing market. For gigawatt plants, Amentum delivers full life cycle solutions including design and regulatory support, program management and life extension. For SMRs today, Amentum is focused on supporting design and regulatory efforts, and we are positioned to provide the same solutions that we provide to customers for new gigawatt builds. These same engineering and capabilities are directly applicable to reactor life extensions. In the past five years alone, commitments have been made to prolong the operational lives of more than 60 reactors globally. While it's too early to set long-term financial targets, one thing is clear, nuclear will be a critical engine of global growth at Amentum. The tailwinds, growing global demand, and driving policy and technology have aligned to uniquely position Amentum for continued leadership. And with that, I'll turn the call over to Travis to discuss our financials in more depth.