The company realigned its reporting structure into two segments: Digital Solutions (DS) and Global Engineering Solutions (GES). This change aims to provide more transparency and focus on specific areas of expertise.

Total backlog increased to $45.2 billion as of December 27, 2024, compared to $27.3 billion as of December 29, 2023. The $17.9 billion increase is primarily due to the merger with CMS, indicating strong future revenue potential.

Amentum believes its capabilities are strategically aligned to well-funded, long-term priorities for the federal government, allied nations, and commercial customers, positioning the company for continued growth.

The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of December 27, 2024, indicating sound internal controls.

The company is integrating the CMS business, and there have been no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

The company was in compliance with all covenants related to its Credit Facility as of December 27, 2024, demonstrating effective financial management.

The company reports no material changes to its risk factors as disclosed in its Form 10-K for the year ended September 27, 2024, suggesting a stable risk environment.

The company acknowledges that U.S. Government investigations could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed on us, or could lead to suspension or debarment from future U.S. Government contracting.

Decreases in, or delays in approving, the federal government's budget, decreases in government spending on the types of programs that we support, delays in government contract awards, and pauses on government contracts on which we are currently performing could have an adverse impact on our business.

Amentum's capabilities are strategically aligned to well-funded, long-term priorities for the federal government, allied nations, and commercial customers, which positions the company well to win new business.

The increasing demand for outsourced services and solutions with federal government customers is a trend that Amentum believes will continue to drive new business opportunities.

Amentum's broad range of capabilities, including environment and climate sustainability, intelligence and counter threat solutions, and data fusion and analytics, provides a competitive advantage in the market.

Cost of revenues as a percentage of revenues decreased slightly to 89.4% for the three months ended December 27, 2024, compared to 90.2% for the three months ended December 29, 2023, indicating improved operational efficiency.

SG&A as a percentage of revenues increased to 3.8% for the three months ended December 27, 2024, from 3.4% for the three months ended December 29, 2023, primarily due to the merger with CMS.

Given the nature of our operations and contract type mix, we expect the impact of inflation on our business may be limited for some of our contracts.

The Digital Solutions segment provides advanced digital and data-driven solutions including intelligence analytics, space system development, cybersecurity, and next generation IT across the federal government and commercial clients.

Increased investment in advanced technologies (e.g., hypersonics, microelectronics, unmanned, electromagnetic spectrum) is a key trend in the company's addressable market.

Increased spending on government-wide modernization priorities is a key trend in the company's addressable market.

The Company utilizes derivative financial instruments to manage interest rate risk related to its variable rate debt. The Company's objective is to manage its exposure to interest rate movements and reduce volatility of interest expense.

In August 2024, the Company completed an offering of $1,000 million in aggregate principal amount of 7.250% senior notes due August 1, 2032.

We believe that the combination of internally generated funds, available bank borrowings, and cash and cash equivalents on hand will provide the required liquidity and capital resources necessary to fund on-going operations.

Increased global demand for clean and environmentally sustainable solutions is a key trend in the company's addressable market.

Underpinned by a strong culture of ethics, safety and inclusivity, Amentum is committed to operational excellence and successful execution.

Global Engineering Solutions provides large-scale environmental remediation, clean energy, platform engineering, sustainment and supply chain management across all 7 continents for the U.S. government and allied nations.

In fiscal year 2024, we generated approximately 90% of our revenues from contracts with the U.S. federal government, either as a prime contractor or a subcontractor to other contractors engaged in work for the U.S. federal government.

We carefully follow the U.S. federal budget, legislative and contracting trends and activities and evolve our strategies accordingly.

We continue to monitor the actions of the new administration which could result in a change to budgetary priorities or impact federal government procurement timing.