The 10-K highlights the completion of the merger with the Jacobs Critical Mission Solutions (CMS) business on September 27, 2024. This transaction significantly expands Amentum's capabilities, scale, and market presence.

The total backlog increased from $26.8 billion in 2023 to $45.0 billion in 2024, primarily due to the CMS acquisition. This demonstrates the immediate impact of the acquisition on future revenue visibility.

The 10-K emphasizes Amentum's focus on creating digital decision advantages, advancing RDT&E initiatives, and supporting energy transition, aligning with key government modernization priorities. This positions the company to capitalize on growing areas of government spending.

The 10-K acknowledges the difficulties inherent in integrating the CMS Business, including creating uniform standards, controls, and procedures, and retaining key personnel. Successful integration is crucial for realizing the anticipated benefits of the transaction.

The 10-K highlights the company's commitment to attracting, developing, and retaining top talent, as well as fostering diversity, equity, inclusion, and belonging. These initiatives are viewed as essential for driving innovation and operational excellence.

The 10-K emphasizes the company's commitment to ethical business practices, transparency, and accountability, as well as the importance of regulatory compliance. These factors are viewed as essential for maintaining the company's reputation and ability to win contracts.

The 10-K states that 90% of revenues are derived from U.S. federal government contracts, making the company highly dependent on government spending and priorities. Any significant decrease or cessation of business with the U.S. federal government would materially and adversely affect the company's financial condition.

The 10-K highlights the risk of cybersecurity breaches and systems interruptions, which could lead to financial losses, reputational harm, and legal liabilities. The company's reliance on technology and sensitive information makes it a prime target for cyberattacks.

The 10-K states that the company has a significant amount of indebtedness, which could reduce financial flexibility, increase vulnerability to adverse economic conditions, and limit the ability to obtain additional financing.

The 10-K acknowledges that the company operates in a highly competitive market for engineering and technology solutions. Success depends on factors such as technical capabilities, successful performance history, qualified personnel, reputation, price, and geographic presence.

The 10-K highlights the company's reliance on third-party subcontractors and suppliers, and the potential for disruptions or failures by these parties to negatively impact project completion and profitability.

The 10-K states that many U.S. federal government contracts contain OCI clauses that may limit the company's ability to compete for or perform certain other contracts or types of services for particular customers.

The 10-K emphasizes the importance of managing the contract mix and controlling costs to improve profitability. This includes accurately estimating costs, effectively managing resources, and mitigating the risk of cost overruns.

The 10-K acknowledges the risk of cost overruns on fixed-price contracts due to factors such as inaccurate estimates, unanticipated technical problems, and changes in economic conditions. Cost overruns could lead to reduced profits or losses on these contracts.

The 10-K emphasizes the importance of maintaining adequate safety standards at work sites to avoid accidents, injuries, and environmental damages. Failure to maintain safety standards could lead to reputational harm, reduced profitability, and loss of projects or customers.

The 10-K highlights Amentum's advantage in creating digital decision advantages, advancing RDT&E initiatives, and delivering space superiority. These capabilities are viewed as critical for supporting key government modernization priorities.

The 10-K states that the company develops new technologies and innovative solutions for both government and commercial customers, which are transferrable and tailorable across domains. This includes leveraging digital modernization for commercial space and ISR capabilities for autonomous driving.

The 10-K highlights the company's cyber capabilities, which extend across multiple markets and enable greater delivery of next-generation solutions into multi-domain operations across government customers.

The 10-K states that the company's strategic capital allocation policy will prioritize reducing debt in the near-term and delivering long-term value to stakeholders. This indicates a focus on financial stability and shareholder returns.

The 10-K acknowledges the company's significant amount of indebtedness and the need to dedicate a substantial portion of cash flows to debt service payments. This highlights the importance of effective capital allocation to manage debt obligations.

The 10-K states that restrictions imposed by the senior secured credit facility could limit the company's ability to operate its business and finance future operations or capital needs. This highlights the potential constraints on capital allocation decisions.

The 10-K emphasizes the company's commitment to being a good steward of the environment and implementing sustainable business practices. Actions include increasing electric vehicles in the fleet and improving energy efficiency.

The 10-K highlights the company's commitment to environmental, health, and safety excellence. Protecting people and communities is viewed as essential for success.

The 10-K emphasizes the company's commitment to DEIB, with a focus on recruiting and retaining diverse talent, fostering an inclusive workplace culture, and ensuring equitable opportunities.

The 10-K acknowledges that uncertain global economic, socioeconomic and political conditions may negatively impact customers' ability and willingness to fund their projects.

The 10-K highlights the potential for climate change-related events to negatively impact the company's or its customers' equipment and infrastructure.

The 10-K states that a delay in the completion of the federal government's budget process, a decline in the federal government budget, changes in spending or budgetary priorities or delays in contract awards may materially adversely affect the company's business, financial condition and results of operations.