Latest news with #Backlog
Yahoo
2 days ago
- Business
- Yahoo
Jacobs Solutions Inc (J) Q3 2025 Earnings Call Highlights: Record Backlog and Raised EPS Guidance
Adjusted EPS: Increased 25% to $1.62. Net Revenue Growth: 7% year-over-year. Backlog: Grew 14% to nearly $23 billion. Adjusted EBITDA: Increased over 13% to $314 million. Adjusted EBITDA Margin: 14.1%, up 80 basis points year-over-year. Gross Revenue: Increased 5% year-over-year. Free Cash Flow: $271 million in Q3. Share Repurchases: $101 million in Q3, $653 million fiscal year-to-date. Dividend: $0.32 per share, representing 10% year-over-year growth. Book-to-Bill Ratio: 1.2x trailing 12-month. PA Consulting Revenue Growth: 15% year-over-year. Adjusted Net Revenue Growth for Water and Environmental: Over 5% in Q3. Adjusted Net Revenue Growth for Life Sciences and Advanced Manufacturing: Approximately 5% in Q3. Adjusted Net Revenue Growth for Critical Infrastructure: Over 6% year-on-year. Fiscal Year '25 Adjusted EPS Guidance: Raised to $6 to $6.10. Warning! GuruFocus has detected 9 Warning Signs with J. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Adjusted EPS grew 25% to $1.62, supported by 7% net revenue growth and meaningful year-over-year margin expansion. PA Consulting delivered double-digit revenue and operating profit growth, capitalizing on strong demand. Backlog grew 14% to nearly $23 billion, setting a new record for Jacobs Solutions Inc (NYSE:J). Strong performance in life sciences, semiconductor, data center, energy and power, and water sectors, driving upward trends in spending. The company raised its FY '25 adjusted EPS guidance for the second time this year, reflecting confidence in future performance. Negative Points The environmental sector experienced a slowdown due to regulatory uncertainties, impacting year-on-year comparisons. The pace of IIJA funding allocation has been slower than anticipated, affecting infrastructure project timelines. There are concerns about potential impacts from state and local government budget adjustments, particularly in Medicaid and education programs. The company is still incurring onetime restructuring costs related to the separation, although these are expected to decrease significantly. The adjusted net revenue growth guidance for FY '25 was slightly reduced, implying a deceleration in Q4 compared to Q3. Q & A Highlights Q: Can you expand on the data center submarket growth and the type of work involved? A: Robert Pragada, CEO: The growth involves all aspects, including design, power, and water requirements. We're seeing increased scope in projects, moving from just design to full program delivery. Our partnership with NVIDIA is transformational, as it will serve as a reference design for their customers, leading to more inquiries for Jacobs. Q: Can you discuss the backlog growth and the pace of burn expected? A: Robert Pragada, CEO: The backlog is growing fastest in advanced facilities and water sectors, which have longer burn profiles. Venkatesh Nathamuni, CFO: Life sciences and advanced manufacturing have faster burn rates, and we expect strong growth in these areas in Q4 and into fiscal 2026. Q: How does the One Big Beautiful Bill impact Jacobs, especially with federal government policy changes? A: Robert Pragada, CEO: The bill provides stability in state and local government spending, particularly in transportation and water. It also supports DoD infrastructure and FAA opportunities. While there are concerns about Medicaid cuts, the secular trends and needs are expected to prevail. Q: What are the expected one-time costs associated with the separation, and how will they impact fiscal 2026? A: Venkatesh Nathamuni, CFO: We are on track with our guidance of $75 million to $95 million in one-time restructuring costs, significantly reduced from the previous year. We expect these costs to decrease further in fiscal 2026, with more detailed guidance to be provided next quarter. Q: What gives you confidence in expecting FY '26 growth to be ahead of FY '25? A: Robert Pragada, CEO: Confidence comes from growth in life sciences, data centers, and water sectors. These areas have shown consistent backlog growth over the past four quarters, and projects are now moving into material burn phases, supporting strong growth projections for FY '26. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
National Post
3 days ago
- Business
- National Post
Amentum Reports Third Quarter Fiscal Year 2025 Results and Raises Full Year Organic Guidance
Article content Operating Cash Flow of $106 million; Free Cash Flow of $100 million Article content Backlog of $44.6 billion; 1.0x YTD Book-to-Bill Article content Reduced Net Debt to $3.8 billion and Net Leverage to 3.5x Article content CHANTILLY, Va. — Amentum Holdings, Inc. ('Amentum' or the 'Company') (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the third quarter ended June 27, 2025, and raised its full year organic guidance for fiscal year 2025. Article content 'Amentum's third quarter performance reflects strong execution and demonstrates the continued strength of our business,' said Amentum Chief Executive Officer John Heller. 'We're seeing benefits from our integration efforts and mission-focused portfolio converge with tailwinds from enduring global trends and an improving budget environment. In addition, the successful divestiture of Rapid Solutions combined with our strategic growth initiatives enhance our financial flexibility and provide momentum for future growth as we head into the fourth quarter and beyond. We're pleased with our performance and excited about our ability to deliver long-term value for customers, employees and shareholders.' Article content Summary Operating Results Three Months Ended (in millions, except per share data) June 27, 2025 June 28, 2024 % Change GAAP Measures: Revenues $3,561 $2,142 66% Operating income $103 $89 16% Net income (loss) $10 $(26) 138% Diluted earnings (loss) per share $0.04 $(0.29) 114% Pro Forma and Non-GAAP Measures 1,2: Revenues $3,561 $3,490 2% Adjusted EBITDA 2 $274 $257 7% Adjusted EBITDA Margin 2 7.7% 7.4% +30 bps Adjusted Diluted Earnings Per Share (EPS) 2 $0.56 $0.51 10% Free Cash Flow 2 $100 N/A N/A 1 – June 28, 2024 Revenues and Non-GAAP financial measures are presented on a pro forma basis to include the results of Jacobs' Critical Mission Solutions and Cyber & Intelligence (CMS) businesses prepared in accordance with the requirements of Article 11 of Regulation S-X. 2 – Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another measure of Amentum's results of operations and financial condition, including its ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures. Article content GAAP Results Article content GAAP revenues increased 66% year-over-year primarily as a result of revenues from the combination with Jacobs' Critical Mission Solutions and Cyber & Intelligence (CMS) businesses. GAAP operating income increased as a result of the contribution from CMS, partially offset by increased intangible amortization expense. GAAP net income and diluted earnings per share improved year-over-year due to the higher operating income and lower interest expense. Article content Pro Forma and Non-GAAP Results Article content Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 2% year-over-year driven by growth in Digital Solutions. Pro Forma Adjusted EBITDA increased 7% year-over-year primarily due to the higher revenues and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to higher operating profit partially offset by an increase in interest expense. Article content Three Months Ended Nine Months Ended (in millions) June 27, 2025 June 28, 2024 1 % Change June 27, 2025 June 28, 2024 1 % Change Revenues Digital Solutions $1,421 $1,274 12% $4,047 $3,852 5% Global Engineering Solutions 2,140 2,216 (3)% 6,421 6,441 —% Total Revenues $3,561 $3,490 2% $10,468 $10,293 2% Adjusted EBITDA 2 Digital Solutions $114 $94 21% $321 $293 10% Global Engineering Solutions 160 163 (2)% 483 479 1% Total Adjusted EBITDA $274 $257 7% $804 $772 4% 1 – June 28, 2024 Revenues and Non-GAAP financial measures are presented on a pro forma basis. 2 – Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another measure of Amentum's results of operations and financial condition, including its ability to comply with financial covenants. See Unaudited Pro Forma Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures. Article content Digital Solutions revenues for the third quarter increased 12% year-over-year driven by higher volume from the ramp up of new commercial contract awards. Adjusted EBITDA increased 21% year-over-year due to the higher revenues and improved operational performance. Article content Global Engineering Solutions revenues for the third quarter decreased 3% year-over-year as a result of the expected ramp-down on certain historical programs, partially offset by new contract awards and growth on existing programs. Adjusted EBITDA decreased 2% year-over-year as a result of the lower revenue volume, partially offset by improved operational performance. Article content Cash Flow Summary Article content During the three months ended June 27, 2025, Amentum generated $106 million and $275 million of net cash from operating and investing activities, respectively, and used $203 million in financing activities. Net cash provided by operating activities was driven by strong cash earnings and disciplined working capital management. Net cash provided by investing activities included $360 million in proceeds from the sale of Rapid Solutions which were partially offset by a $70 million payment for the final net working capital position from the CMS merger. Investing activities also included $6 million in capital expenditures which resulted in quarterly free cash flow of $100 million. Financing activities consisted primarily of $200 million in principal payments on our Term Loan. As of June 27, 2025, Amentum had $738 million in cash and cash equivalents and $4.6 billion of gross debt. Subsequent to the quarter end, Amentum made an additional $250 million voluntary principal payment on the Term Loan. Article content Backlog and Contract Awards Article content As of June 27, 2025, the Company had total backlog of $44.6 billion, compared with $26.9 billion as of June 28, 2024, an increase of $17.7 billion primarily due to the acquisition of CMS. Funded backlog as of June 27, 2025 was $5.6 billion. Article content Notable Q3 Fiscal Year 2025 Highlights Article content Space Force Range Contract (SFRC) – The United States Space Force awarded Amentum SFRC, a $4 billion single-award indefinite delivery indefinite quantity contract with a ten-year ordering period, to advance the national capability for Assured Access To Space from the Eastern and Western Ranges through responsive and flexible operations, maintenance, sustainment, systems engineering and integration solutions. The award is under protest and therefore is not yet included in backlog or book-to-bill. Canadian Nuclear Laboratories (CNL) – The Atomic Energy of Canada Limited awarded the CNL operations and management solutions contract, a CAD $1.2 billion annual contract with a six-year base and extension periods up to a total of twenty years, to Nuclear Laboratory Partners of Canada, Inc. As part of the joint venture partnership, Amentum will continue to bring comprehensive nuclear operational solutions, research and development, and technical expertise in Canada. Multiple Intelligence Awards – Amentum secured two new awards totaling over $500 million to provide Intelligence customers with a broad range of advanced engineering and technology solutions including mission-critical data modeling and analysis. The awards illustrate the continued strong demand for Amentum's expertise and innovative intelligence solutions. On-Contract Growth Modifications and Extensions – Amentum benefited from over $2 billion in bookings from contract modifications and extensions from a variety of end-market customers, including the U.S. Air Force, U.S. Navy, and Fortune 500 clients. Article content Completed Divestitures Article content On June 26, 2025, Amentum announced it completed the divestiture of a hardware and products business, Rapid Solutions, for $360 million in cash. The business accounted for approximately 1% of Amentum's annual revenues and Adjusted EBITDA. In addition, during the third quarter Amentum also completed the sale of its non-core New Zealand facilities maintenance business which accounted for approximately $50 million in annual revenues. Article content Updated Fiscal Year 2025 Guidance Article content (in millions, except per share data) Prior Guidance Current Guidance Implied Underlying Organic Increase 2 Revenues $13,850 – $14,150 $13,975 – $14,175 ~$125 Adjusted EBITDA 1 $1,065 – $1,095 $1,065 – $1,095 ~$5 Adjusted Diluted EPS 1 $2.00 – $2.20 $2.05 – $2.20 ~$0.05 Free Cash Flow 1 $475 – $525 $475 – $525 ~$20 1 – Represents a Non-GAAP financial measure – see the related explanations included elsewhere in this release. Amentum does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results for the relevant period. 2 – Represents increases to the guidance mid-points plus the estimated fourth quarter impact from the divested Rapid Solutions and New Zealand facilities maintenance businesses included in the prior guidance issued on May 6, 2025 which were approximately: Revenues of $50 million, Adjusted EBITDA of $5 million, Adjusted Diluted EPS of $0.02 and Free Cash Flow of $20 million. Article content Webcast Information Article content Amentum will host a conference call beginning at 8:30 a.m. Eastern time on Wednesday, August 6, 2025 to discuss the results for the third quarter ended June 27, 2025. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the Amentum website at After the call concludes, a replay of the webcast can be accessed on the Investor Relations website. Article content Amentum is a global leader in advanced engineering and innovative technology solutions, trusted by the United States and its allies to address their most significant and complex challenges in science, security and sustainability. Our people apply undaunted curiosity, relentless ambition and boundless imagination to challenge convention and drive progress. Our commitments are underpinned by the belief that safety, collaboration and well-being are integral to success. Headquartered in Chantilly, Virginia, we have more than 53,000 employees in approximately 80 countries across all 7 continents. Article content Visit us at to learn how we advance the future together. Article content This release contains or incorporates by reference statements that relate to future events and expectations and, as such, could be interpreted to be 'forward-looking statements' as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements may be characterized by terminology such as 'believe,' 'project,' 'expect,' 'anticipate,' 'estimate,' 'forecast,' 'outlook,' 'target,' 'endeavor,' 'seek,' 'predict,' 'intend,' 'strategy,' 'plan,' 'may,' 'could,' 'should,' 'will,' 'would,' 'will be,' 'will continue,' 'will likely result,' or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including projections of financial performance; statements of plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to products or services; any statements regarding future economic conditions or performance; any statements of assumptions underlying any of the foregoing; and any other statements that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Article content Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others: changes in U.S. or global economic, financial, business and political conditions, including changes to governmental budgetary priorities and tariffs; our ability to comply with the various procurement and other laws and regulations; risks associated with contracts with governmental entities; reviews and audits by the U.S. government and others; changes to our professional reputation and relationship with government agencies; the occurrence of an accident or safety incident; the ability of the Company to control costs, meet performance requirements or contractual schedules, compete effectively or implement its business strategy; the ability of the Company to retain and hire key personnel, and retain and engage key customers and suppliers; the failure to realize the anticipated benefits of the 2024 transaction with Jacobs Solutions Inc.; potential liabilities associated with shareholder litigation or other settlements or investigations; evolving legal, regulatory and tax regimes; and other factors set forth under Item 1A, Risk Factors in the annual report on Form 10-K (the 'Annual Report'), and from time to time in documents that we file with the SEC. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussions under the section entitled 'Risk Factors' in the Annual Report. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Article content This release includes the presentation and discussion of pro forma financial information that incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X. This release also includes the presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Free Cash Flow and Net Leverage, which are not measures of financial performance under Generally Accepted Accounting Principles in the United States ('GAAP'), each of which are pro forma when reporting for the three and nine months ended June 28, 2024. These pro forma and non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as substitutes for, financial information prepared in accordance with GAAP. Management of the Company believes these pro forma and non-GAAP measures, when read in conjunction with the Company's financial statements prepared in accordance with GAAP and, where applicable, the reconciliations herein to the most directly comparable GAAP measures, provide useful information to management, investors and other users of the Company's financial information in evaluating operating results and understanding operating trends by adjusting for the effects of items we do not consider to be indicative of the Company's ongoing performance, the inclusion of which can obscure underlying trends. Additionally, management of the Company uses such measures in its evaluation of business performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of financial results from period to period. The computation of pro forma and non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability. Article content Definitions of applicable non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided elsewhere in this release. Article content In addition to the above non-GAAP financial measures, the Company has included backlog, net bookings, and book-to-bill in this release. Backlog is an operational measure representing the estimated amount of future revenues to be recognized under negotiated contracts, and net bookings represent the change in backlog between reporting periods plus reported revenues for the period. Book-to-bill represents net bookings divided by reported revenues for the same period. We believe these metrics are useful for investors because they are an important measure of business development performance and are used by management to conduct and evaluate its business during its regular review of operating results. Article content June 27, 2025 September 27, 2024 ASSETS Current assets: Cash and cash equivalents $ 738 $ 452 Accounts receivable, net 2,475 2,401 Prepaid expenses and other current assets 214 231 Total current assets 3,427 3,084 Property and equipment, net 115 144 Equity method investments 198 123 Goodwill 5,616 5,556 Intangible assets, net 2,075 2,623 Other long-term assets 377 444 Total assets $ 11,808 $ 11,974 LIABILITIES Current liabilities: Current portion of long-term debt $ 43 $ 36 Accounts payable 821 764 Accrued compensation and benefits 692 696 Contract liabilities 147 113 Other current liabilities 469 356 Total current liabilities 2,172 1,965 Long-term debt, net of current portion 4,441 4,643 Deferred tax liabilities 249 370 Other long-term liabilities 357 444 Total liabilities 7,219 7,422 SHAREHOLDERS' EQUITY Common stock, $0.01 par value, 1,000,000,000 shares authorized; 243,322,468 shares issued and outstanding at June 27, 2025 and 243,302,173 shares issued and outstanding at September 27, 2024. 2 2 Additional paid-in capital 4,914 4,962 Retained deficit (501 ) (527 ) Accumulated other comprehensive income 43 23 Total Amentum shareholders' equity 4,458 4,460 Non-controlling interests 131 92 Total shareholders' equity 4,589 4,552 Total liabilities and shareholders' equity $ 11,808 $ 11,974 Article content AMENTUM HOLDINGS, INC. Article content UNAUDITED NON-GAAP FINANCIAL MEASURES Article content The presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow are not measures of financial performance under Generally Accepted Accounting Principles in the United States ('GAAP'). These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as a substitute for, financial information prepared in accordance with GAAP. Management believes these non-GAAP measures, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP and the reconciliations herein to the most directly comparable GAAP measures, provide useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability. Article content Adjusted EBITDA Article content is defined as GAAP net income attributable to common shareholders adjusted for interest expense and other, net, provision for income taxes, depreciation and amortization, and excludes the following discrete items: Article content Acquisition, transaction, and integration costs – Represents acquisition, transaction and integration costs, including severance, retention, and other adjustments related to acquisition and integration activities. Amortization of intangibles – Represents the amortization of intangible assets. Non-cash GAAP expense (gain) – Represents a non-cash goodwill impairment charge and a non-cash gain on acquisition of controlling interest. Divestitures – Represents divestiture gains and losses. Loss on extinguishment of debt – Represents the write-off of debt discount and debt issuance costs as a result of debt modifications. Utilization of certain fair market value adjustments assigned in purchase accounting – Represents the periodic utilization of the fair market value adjustments assigned to certain equity method investments and non-controlling interests based on the remaining period of performance for the related contract. Share-based compensation – Represents non-cash compensation expenses recognized for share based arrangements. Article content Adjusted EBITDA Margin Article content is defined as Adjusted EBITDA divided by revenues. Article content Adjusted Net Income Article content is defined as GAAP net income attributable to common shareholders excluding the discrete items listed under Adjusted EBITDA and the related tax impacts. Article content Adjusted Diluted EPS Article content is defined as Adjusted Net Income divided by diluted weighted average number of common shares outstanding. Article content Free Cash Flow Article content is defined as GAAP cash flow provided by operating activities less purchases of property and equipment. Article content AMENTUM HOLDINGS, INC. Article content For the Three Months Ended June 27, 2025 As reported Acquisition, transaction and integration costs Amortization of intangibles Divestitures Loss on extinguishment of debt Utilization of fair market value adjustments Share-based compensation Non- GAAP results Revenues $ 3,561 $ — $ — $ — $ — $ — $ — $ 3,561 Operating income $ 103 $ 32 $ 118 $ — $ — $ 5 $ 7 $ 265 Non-operating expenses, net (91 ) — — 3 3 — — (85 ) Income before income taxes 12 32 118 3 3 5 7 180 Provision for income taxes 1 (13 ) (8 ) (11 ) (8 ) — (1 ) (2 ) (43 ) Net income including non-controlling interests (1 ) 24 107 (5 ) 3 4 5 137 Less: net income (loss) attributable to non-controlling interests 11 — — — — (13 ) — (2 ) Net income (loss) attributable to common shareholders $ 10 $ 24 $ 107 $ (5 ) $ 3 $ (9 ) $ 5 $ 135 Basic and diluted income per share attributable to common shareholders $ 0.04 $ 0.10 $ 0.44 $ (0.02 ) $ 0.01 $ (0.03 ) $ 0.02 $ 0.56 Basic and diluted weighted average shares outstanding 243 243 243 243 243 243 243 243 Net income (loss) attributable to common shareholders $ 10 $ 24 $ 107 $ (5 ) $ 3 $ (9 ) $ 5 $ 135 Net income margin 2 0.3 % 3.8 % Depreciation expense 11 — — — — — — 11 Amortization of intangibles 118 — (118 ) — — — — — Interest expense and other, net 88 — — (3 ) — — — 85 Provision for income taxes 13 8 11 8 — 1 2 43 EBITDA (non-GAAP) $ 240 $ 32 $ — $ — $ 3 $ (8 ) $ 7 $ 274 EBITDA margin 6.7 % 7.7 % 1 – Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts. 2 – Calculated as net income (loss) attributable to common shareholders divided by revenues. Article content AMENTUM HOLDINGS, INC. Article content The following table presents the reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted EPS to the most directly comparable GAAP measures for the nine months ended June 27, 2025: Article content For the Nine Months Ended June 27, 2025 As reported Acquisition, transaction and integration costs Amortization of intangibles Divestitures Loss on extinguishment of debt Utilization of fair market value adjustments Share-based compensation Non- GAAP results Revenues $ 10,468 $ — $ — $ — $ — $ — $ — $ 10,468 Operating income $ 345 $ 62 $ 358 $ — $ — $ 16 $ 15 $ 796 Non-operating expenses, net (264 ) — — 3 3 — — (258 ) Income before income taxes 81 62 358 3 3 16 15 538 Provision for income taxes 1 (59 ) (15 ) (41 ) (8 ) — (3 ) (3 ) (129 ) Net income (loss) including non-controlling interests 22 47 317 (5 ) 3 13 12 409 Less: net income (loss) attributable to non-controlling interests 4 — — — — (25 ) — (21 ) Net income (loss) attributable to common shareholders $ 26 $ 47 $ 317 $ (5 ) $ 3 $ (12 ) $ 12 $ 388 Basic and diluted income (loss) per share attributable to common shareholders $ 0.11 $ 0.19 $ 1.30 $ (0.02 ) $ 0.01 $ (0.04 ) $ 0.05 $ 1.60 Basic and diluted weighted average shares outstanding 243 243 243 243 243 243 243 243 Net income (loss) attributable to common shareholders $ 26 $ 47 $ 317 $ (5 ) $ 3 $ (12 ) $ 12 $ 388 Net income margin 2 0.2 % 3.7 % Depreciation expense 29 — — — — — — 29 Amortization of intangibles 358 — (358 ) — — — — — Interest expense and other, net 261 — — (3 ) — — — 258 Provision for income taxes 59 15 41 8 — 3 3 129 EBITDA (non-GAAP) $ 733 $ 62 $ — $ — $ 3 $ (9 ) $ 15 $ 804 EBITDA margin 7.0 % 7.7 % 1 – Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts. 2 – Calculated as net income (loss) attributable to common shareholders divided by revenues. Article content AMENTUM HOLDINGS, INC. Article content The presentation and discussion of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro Forma Adjusted Net Income, Pro Forma Adjusted Diluted EPS, and Net Leverage are not measures of financial performance under Generally Accepted Accounting Principles in the United States ('GAAP'). These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as a substitute for, financial information prepared in accordance with GAAP. Management believes these non-GAAP measures, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP and the reconciliations herein to the most directly comparable GAAP measures, provide useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability. Article content Pro Forma Adjusted EBITDA Article content is defined as pro forma net income attributable to common shareholders, which incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, adjusted for pro forma interest expense and other, net, pro forma provision for income taxes, pro forma depreciation and amortization, and excludes the following discrete pro forma items: Article content Acquisition, transaction, and integration costs – Represents acquisition, transaction and integration costs, including severance, retention, and other adjustments related to acquisition and integration activities. Amortization of intangibles – Represents the amortization of intangible assets. Non-cash GAAP expense (gain) – Represents a non-cash goodwill impairment charge and a non-cash gain on acquisition of controlling interest. Loss on extinguishment of debt – Represents the write-off of debt discount and debt issuance costs as a result of debt modifications. Utilization of certain fair market value adjustments assigned in purchase accounting – Represents the periodic utilization of the fair market value adjustments assigned to certain equity method investments and non-controlling interests based on the remaining period of performance for the related contract. Share-based compensation – Represents non-cash compensation expenses recognized for share based arrangements. Article content Pro Forma Adjusted EBITDA Margin Article content is defined as Pro Forma Adjusted EBITDA divided by Pro Forma Revenues. Article content Pro Forma Adjusted Net Income Article content is defined as pro forma net income attributable to common shareholders, which incorporates the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, excluding the discrete pro forma items listed under Pro Forma Adjusted EBITDA and the related pro forma tax impacts. Article content Pro Forma Adjusted Diluted EPS Article content is defined as Pro Forma Adjusted Net Income divided by pro forma diluted weighted average number of common shares outstanding. Article content Net Leverage Article content is defined as GAAP total debt (excluding unamortized original issue discount and deferred financing costs) less cash and cash equivalents, divided by last twelve months Pro Forma Adjusted EBITDA, which is a non- GAAP measure. For FY25 Q3, Net Leverage was 3.5x, consisting of $4,560 million of total debt less $738 million of cash and cash equivalents, divided by the last twelve months Pro Forma Adjusted EBITDA of $1,081 million. Article content The following table presents the unaudited pro forma combined reconciliation of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro Forma Adjusted Net Income and Pro Forma Adjusted Diluted EPS to the most directly comparable pro forma measures for the Company, including CMS, for the three months ended June 28, 2024: Article content For the Three Months Ended June 28, 2024 Pro Forma results Acquisition, transaction and integration costs Amortization of intangibles Loss on extinguishment of debt Utilization of fair market value adjustments Share-based compensation Pro Forma Non-GAAP results Revenues $ 3,490 $ — $ — $ — $ — $ — $ 3,490 Operating income $ 112 $ 9 $ 132 $ — $ — $ 2 $ 255 Non-operating expenses, net (83 ) — — 3 — — (80 ) Income before income taxes 29 9 132 3 — 2 175 Provision for income taxes 1 (9 ) (2 ) (31 ) (1 ) — — (43 ) Net income including non-controlling interests 20 7 101 2 — 2 132 Less: net income attributable to non-controlling interests (3 ) — — — (4 ) — (7 ) Net income (loss) attributable to common shareholders $ 17 $ 7 $ 101 $ 2 $ (4 ) $ 2 $ 125 Basic and diluted income (loss) per share attributable to common shareholders $ 0.07 $ 0.03 $ 0.41 $ 0.01 $ (0.02 ) $ 0.01 $ 0.51 Basic and diluted weighted average shares outstanding 243 243 243 243 243 243 243 Net income (loss) attributable to common shareholders $ 17 $ 7 $ 101 $ 2 $ (4 ) $ 2 $ 125 Net income margin 2 0.5 % 3.6 % Depreciation expense 9 — — — — — 9 Amortization of intangibles 132 — (132 ) — — — — Interest expense and other, net 80 — — — — — 80 Provision for income taxes 9 2 31 1 — — 43 EBITDA (non-GAAP) $ 247 $ 9 $ — $ 3 $ (4 ) $ 2 $ 257 EBITDA margin 7.1 % 7.4 % 1 – Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts. 2 – Calculated as net income attributable to common shareholders divided by revenues. Article content AMENTUM HOLDINGS, INC. Article content The following table presents the unaudited pro forma combined reconciliation of Pro Forma Adjusted EBITDA, Pro Forma Adjusted EBITDA Margin, Pro Forma Adjusted Net Income and Pro Forma Adjusted Diluted EPS to the most directly comparable pro forma measures for the Company, including CMS, for the nine months ended June 28, 2024: Article content For the Nine Months Ended June 28, 2024 Pro Forma results Acquisition, transaction and integration costs Amortization of intangibles Loss on extinguishment of debt Utilization of fair market value adjustments Share-based compensation Pro Forma Non-GAAP results Revenues $ 10,293 $ — $ — $ — $ — $ — $ 10,293 Operating income $ 345 $ 20 $ 389 $ — $ — $ 7 $ 761 Non-operating expenses, net (250 ) — — 3 — — (247 ) Income before income taxes 95 20 389 3 — 7 514 Provision for income taxes 1 (4 ) (9 ) (110 ) (1 ) — — (124 ) Net income including non-controlling interests 91 11 279 2 — 7 390 Less: net income attributable to non-controlling interests (4 ) — — — (14 ) — (18 ) Net income (loss) attributable to common shareholders $ 87 $ 11 $ 279 $ 2 $ (14 ) $ 7 $ 372 Basic and diluted weighted average shares outstanding 243 243 243 243 243 243 243 Net income (loss) attributable to common shareholders $ 87 $ 11 $ 279 $ 2 $ (14 ) $ 7 $ 372 Net income margin 2 0.8 % 3.6 % Depreciation expense 29 — — — — — 29 Amortization of intangibles 389 — (389 ) — — — — Interest expense and other, net 247 — — — — — 247 Provision for income taxes 4 9 110 1 — — 124 EBITDA (non-GAAP) $ 756 $ 20 $ — $ 3 $ (14 ) $ 7 $ 772 EBITDA margin 7.3 % 7.5 % 1 – Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts. 2 – Calculated as net income attributable to common shareholders divided by revenues. Article content Article content Article content Article content Article content Contacts Article content Investor Relations Contact Article content Nathan Rutledge Article content Article content IR@ Article content Media Contact Article content Article content Article content Article content
The Australian
5 days ago
- Business
- The Australian
AFCA complaints handling hurry leaves thousands exposed
Thousands of decisions by the Australian Financial Complaints Authority could be called into question because it has resorted to checking its own homework to process a backlog of claims. AFCA insiders are concerned that the organisation is drifting from its promise to apply a high standard of scrutiny to complaints. Instead, it has resorted to allegedly misrepresenting that a fresh set of eyes had ruled on matters when they had not, sources told The Australian. Where an AFCA ombudsman would rule on complaints at the final stage, these were routinely overseen by more junior case managers. The involvement of the ombudsman was allegedly limited to signing off on their recommendations. This is despite AFCA's assurance that decisions would be subject to review where either party to a complaint disagreed with the preliminary ruling. AFCA, assembled in the wake of the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry, is designed to keep disputes from clogging up the court system and free-up regulators to pursue more egregious misconduct. In its first six months, AFCA received 34,263 complaints. Between July 1, 2023 and June 30, 2024, the latest period for which data is available, it was handed 98,622 matters. Of these, 41,583 were related to bank behaviour. AFCA insiders told The Australian it has resorted to 'quick and dirty' decision making in a bid to shift its backlog of claims, warning it put the outcomes of thousands of matters at risk. It's process boils down to a two-tiered arrangement. Matters are initially allocated to a case manager, who attempts to resolve the complaint by mutual agreement. If this fails, the complaint progresses to a second stage where a case manager assesses the merits of the case. The matter proceeds to an ombudsman if a party refuses to accept the case manager's finding. But poor resourcing meant ombudsman matters were often being sent back to the initial staffers, leaving the ombudsman to sign-off on their thinking. This may be as little as a 'quick glance'. 'There were often times where instructions were given to not send out decisions by ombudsman because it looked like it was too quick,' a former AFCA staffer, who spoke on the condition of anonymity, recalled. AFCA was pinged for weak processes in the 2022 NSW Supreme Court Notesco case, which saw a third party broker sue the body alleging it had acted without impartiality when awarding a decision to Jean Pasquier, a retired 83-year old living in France who lost €306,900 ($545,724) after making thousands of trades on Nextrade. AFCA staffer May Chng had sought the view of her manager, who in turn consulted ombudsman Nicolas Crowhurst, before issuing a decision in Mr Pasquier's favour. When Notesco contested the decision, it was sent to Mr Crowhurst to rule on, again in Mr Pasquier's favour. Following this, AFCA engaged former Federal Court judge Julie Dodds-Streeton and barrister Ahmed Terzic to review 30 decisions. AFCA deputy chief ombudsman Dr June Smith said the dispute's body had reviewed the Notesco decision. 'Steps were then taken to ensure that a final decision maker is not involved in the early investigation stage of a complaint they will determine,' she said. Dr Smith said AFCA had commissioned regular independent audits and its next review is slated for 2026 or 2027. 'These reviews have all found that AFCA is engaging in procedural and substantive fairness, and is meeting its obligations of independence and impartiality,' she said. 'These consistent results should give consumers and industry full confidence that AFCA interprets and applies its fairness jurisdiction appropriately and in accordance with its remit.' Resolving cases at AFCA has proven costly as it hires more staff in a bid to catch up to a spiralling case load. Parties before AFCA are slugged for each case, starting at $105.81 for a matter to be registered and up to $10,234 for a final decision. As revealed in The Australian, AFCA has been warning many complainants it would take up to six months to assign them case managers. AFCA chief executive and lead ombudsman David Locke told The Australian in February he was 'mortified' over the delays. AFCA has also been hampered by financial institutions poaching from its ranks, with ANZ recruiting its former banking lead Evelyn Hall as 'customer fairness advisor' in March 2022. David Ross is a Sydney-based journalist at The Australian. He previously worked at the European Parliament and as a freelance journalist, writing for many publications including Myanmar Business Today where he was an Australian correspondent. He has a Masters in Journalism from The University of Melbourne. Markets With the ASX trading near record highs despite subdued earnings forecasts, this reporting season will show whether investors are paying too much for a recovery that may not materialise. DataRoom Executives from Canada's largest mining company have been spotted at Bellevue Gold's flagship Western Australian project, fuelling takeover bid speculation.
Yahoo
6 days ago
- Business
- Yahoo
NFI Group Inc (NFYEF) Q2 2025 Earnings Call Highlights: Strong Demand and Financial Performance ...
New Orders: 822 equivalent units (EUs) with 95% firm orders. Total Backlog: 16,198 EUs worth USD 13.5 billion. Book-to-Bill Ratio: 119.9% on a last twelve months (LTM) basis. Option Backlog Conversion Rate: 74.9% on an LTM basis. Adjusted EBITDA: 19% year-over-year increase. Adjusted Net Earnings: $7.6 million improvement. Return on Invested Capital: 7.9% increase. Total Liquidity: $326.7 million. Net Loss: $160.8 million with a loss per share of $1.35. Adjusted Net Earnings: $10.7 million or $0.09 per share. Transit Deliveries: Down due to lower UK deliveries and seat supply disruption. Coach Deliveries: Down due to timing, with expectations of a strong second half. Average Selling Price (ASP) for Transit Buses: 27% year-over-year increase. Average Selling Price (ASP) for Coaches: 20% year-over-year increase. Low-Floor Cutaway Bus Deliveries: 197 EUs, up 30% year-over-year. Aftermarket Gross Margin: 26.4%, down year-over-year. Manufacturing Gross Margin: Increased from 8% to 10.6% year-over-year. Free Cash Flow: Positive with a strong increase. Revenue Guidance for 2025: $3.8 billion to $4.2 billion. Adjusted EBITDA Guidance for 2025: $320 million to $360 million. Warning! GuruFocus has detected 10 Warning Signs with NFYEF. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points NFI Group Inc (NFYEF) reported a 19% year-over-year increase in quarterly adjusted EBITDA, indicating strong financial performance. The company successfully completed the refinancing of its first and second lien debt, enhancing its financial stability. NFI Group Inc (NFYEF) recorded new orders of 822 equivalent units (EUs), with 95% being firm orders, showcasing strong demand. The total backlog now stands at 16,198 equivalent units worth USD 13.5 billion, providing significant future revenue visibility. The company has improved its supply chain health, reducing high-risk suppliers from 50 in 2022 to just one currently, enhancing operational efficiency. Negative Points NFI Group Inc (NFYEF) reported a quarterly net loss of $160.8 million, highlighting ongoing financial challenges. The company faced non-recurring and unusual expenses, including a $10.2 million restructuring provision and a $10 million non-cash goodwill impairment related to its UK operations. The UK market remains challenging due to competitive pressures from non-UK-based bus OEMs, impacting Alexander Dennis' performance. The company is still dealing with seat supply disruptions, which have affected production and delivery schedules. NFI Group Inc (NFYEF) faces potential cash flow timing impacts due to tariffs, as there may be delays in customer reimbursements for tariffs paid. Q & A Highlights Q: Can you provide more details on the supply chain, particularly regarding the seat supplier issues and overall supply chain health? A: Paul Soubry, President and CEO, explained that the seat supplier, which previously provided 60% of seats, now accounts for 30-35% due to diversification efforts. Overall supply chain health has improved significantly, with parts availability back to pre-COVID levels at 99.5-99.6%. The company has strengthened its sourcing and procurement teams to maintain this stability. Q: What are the expectations for leverage by year-end? A: Brian Dewsnup, CFO, stated that the current leverage is at 4.9%, including convertible debt. The company aims to reduce leverage to a target range of 1.5% to 2.5%, but this is expected to be achieved by 2026 rather than by the end of the current year. Q: How is the company addressing the tariff impacts, and what is the potential financial impact? A: Paul Soubry noted that tariffs, particularly indirect ones, are being managed by invoicing customers separately for tariff costs. The company is working with an accounting firm to ensure accurate calculations. The annualized tariff exposure is estimated at $40-60 million, with a potential short-term impact of $10-15 million, which is manageable given the company's liquidity. Q: What is the long-term vision for the UK market given the competitive landscape? A: Paul Soubry emphasized the importance of the UK market despite challenges. The company is undergoing a consultation process to rationalize facilities and improve competitiveness. The Scottish government is supportive, and future procurements may focus more on local job creation and economic benefits. Q: Can you elaborate on the guidance range for 2025 and what factors could influence the high and low ends of this range? A: Brian Dewsnup explained that the guidance range of $320 million to $360 million in adjusted EBITDA reflects uncertainties, particularly around the pace of seat supplier recovery and delivery schedules. The range accounts for potential variability in deliveries, especially in the fourth quarter, which is typically strong for private market orders. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-07-2025
- Business
- Yahoo
Booz Allen Hamilton Holding Corp (BAH) Q1 2026 Earnings Call Highlights: Strong Net Income ...
Gross Revenue: $2.9 billion, down roughly 1% year-over-year. Revenue Excluding Billable Expenses: Grew 2% year-over-year. Defense Revenue: Up 7% compared to the prior year period. Intel Revenue: Up 6% compared to the prior year period. Civil Business Revenue: Down 13% year-over-year. Book-to-Bill Ratio: 1.42 times for the quarter. Total Backlog: $38 billion, up 11% year-over-year. Adjusted EBITDA: $311 million, up 3% from the prior year period. Adjusted EBITDA Margin: 10.6%, up 30 basis points year-over-year. Net Income: $271 million, a 64% increase year-over-year. Adjusted Net Income: $184 million, up 2% versus the prior year. Diluted Earnings Per Share: $2.16, up 70% year-over-year. Adjusted Diluted Earnings Per Share: $1.48, up 7% year-over-year. Cash on Hand: $711 million. Net Debt: $3.3 billion. Net Leverage Ratio: 2.5 times adjusted EBITDA for the trailing 12 months. Free Cash Flow: $96 million. Share Repurchases: $154 million at an average price of $109.42 per share. Quarterly Dividend: $0.55 per share. Fiscal Year Free Cash Flow Outlook: Between $900 million and $1 billion. Warning! GuruFocus has detected 6 Warning Sign with FRA:0PN. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Booz Allen Hamilton Holding Corp (NYSE:BAH) achieved a strong quarterly book-to-bill ratio of 1.42 times, with a record backlog of $38 billion, indicating robust demand for their services. The company is focusing on strategic growth areas such as AI, cyber, and quantum technologies, which align with national priorities and offer significant long-term opportunities. Booz Allen Hamilton Holding Corp (NYSE:BAH) is actively restructuring and optimizing its civil business to align with current demand, positioning itself for future growth. The company has successfully deployed advanced technologies like the modular detachment kit and tactical assault kit, enhancing its defense capabilities and supporting warfighters. Booz Allen Hamilton Holding Corp (NYSE:BAH) is leveraging AI and automation to improve internal efficiencies and accelerate its transformation, which is expected to enhance shareholder value. Negative Points The company is experiencing a slowdown in funding, which is affecting the conversion of bookings to revenue and creating uncertainty in the short term. Revenue in the civil business declined by 13% year-over-year, reflecting challenges in this segment despite efforts to restructure and optimize. There is a noted decrease in funded backlog, indicating potential delays in contract execution and funding allocation. Headcount reductions were necessary in the civil business, highlighting the need to adapt to changing demand and optimize workforce alignment. The procurement environment remains slower than historical norms, impacting the speed at which new contracts are being finalized and executed. Q & A Highlights Q: Is there now a greater appreciation for Booz Allen's tech capabilities, and has the procurement environment improved? A: Horacio Rozanski, CEO, noted that the business has stabilized in a dynamic environment, with contracts being reviewed and tech holding out well. The procurement environment has improved but is still below historical speeds. Booz Allen is recognized for making tech work under extreme conditions, and there is optimism for future opportunities. Q: What is the interest from Silicon Valley tech providers in partnering with Booz Allen, and what are the implications of outcome-based contracts? A: Rozanski highlighted that Booz Allen has long partnered with commercial tech companies, including NVIDIA and AWS. These companies see Booz Allen as a key partner for making tech work in mission-critical environments. Outcome-based contracts are seen as positive trends for Booz Allen. Q: Can you comment on the funded backlog trend and its implications? A: Matthew Calderone, CFO, explained that while there is a decline in funded backlog due to slow funding, there is confidence in medium-term opportunities. The backlog is expected to increase as funding normalizes, driven by significant technology investments. Q: How is Booz Allen addressing headcount challenges and hiring for technical roles? A: Kristine Anderson, COO, stated that Booz Allen is comfortable with hiring, matching it to demand. The company is using advanced technology and AI to drive productivity and is confident in its ability to meet hiring needs, especially for technical roles. Q: What role could Booz Allen play in the Golden Dome initiative, and how quickly could this play out? A: Rozanski mentioned that Booz Allen is closely involved with Golden Dome, funded by the reconciliation package. The company can play various roles, including cyber and intel, and is participating in the procurement process as it ramps up. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
