Amentum secures $279 million Air Force contract

Published 19/12/2024, 14:22
Amentum secures $279 million Air Force contract

CHANTILLY, Va. - Amentum, a $4.95 billion market cap company specializing in global engineering and technology solutions, has been awarded a substantial contract by the U.S. Air Force. The contract, valued at $279 million, tasks Amentum with providing aviation operations support across the Ninth Air Force (Air Forces Central). According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, with 13 additional ProTips available to subscribers.

The company will be responsible for a range of services, including airfield management, air traffic control, and critical maintenance services. These services will be provided at key military installations in Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates. Amentum will also operate domestically at Shaw Air Force Base in South Carolina and Joint Base Langley-Eustis in Virginia. With annual revenue of $5.62 billion and a strong current ratio of 2.09, Amentum demonstrates robust operational capacity for such extensive commitments.

According to Dr. Karl Spinnenweber, President of Amentum's Mission Solutions Business Group, the company's expertise in complex operations makes it a fitting partner for the Air Force's mission. Joe Kelly, SVP of Amentum's Sustainment and Analytics Business Line, emphasized the company's ability to integrate advanced technologies into the Air Force's maintenance and operations systems.

The contract includes a one-year base period with six one-year option periods, potentially extending Amentum's involvement through October 2031. This long-term agreement highlights Amentum's ongoing role in supporting U.S. defense initiatives and its position in delivering mission-focused solutions.

Amentum, headquartered in Chantilly, Virginia, employs over 53,000 people across approximately 80 countries. The company is recognized for addressing significant challenges in science, security, and sustainability for the United States and its allies. InvestingPro data reveals the company maintains a strong financial position with more cash than debt on its balance sheet and generates $433 million in EBITDA. Discover more detailed financial insights and analysis with an InvestingPro subscription.

This news is based on a press release statement and has not been independently verified. The forward-looking statements included in the press release are the company's expectations for the future and are subject to risks and uncertainties. The actual results may differ materially from those projected.

In other recent news, Amentum, a global engineering and technology solutions provider, has secured several significant contracts. The company has been awarded a $105 million contract by the U.S. Navy to enhance Airborne Electronic Attack Systems and Intelligence, Surveillance, and Reconnaissance capabilities. Additionally, Amentum has obtained a $3 billion contract from the Department of Energy for the cleanup of the West Valley Demonstration Project in New York state. Another notable contract is a $490 million agreement with the U.S. Navy for the T-54A Multi Engine Training System.

Amentum has also seen changes in its leadership team with the appointment of Darren Burton as its new Chief People Officer and Stephen A. Arnette as the new Chief Operating Officer. The company has implemented a new Severance Plan for Key Employees and finalized employment contracts for top executives.

Truist Securities has initiated coverage on Amentum's shares with a Buy rating, citing potential value creation following Amentum's merger with Jacobs CMS/C&I businesses. These are recent developments that may influence investment decisions. As always, investors are advised to rely on factual information and analyst prognostications when making their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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