Amentum secures role in CAD$1.2 billion annual Canadian nuclear contract

Published 12/06/2025, 15:10
Amentum secures role in CAD$1.2 billion annual Canadian nuclear contract

CHANTILLY, Va. - Amentum (NYSE: AMTM), a $5.45 billion market cap company with strong revenue growth of 38.56% in the last twelve months, will participate in a contract to provide operations and management solutions for Canadian Nuclear Laboratories (CNL), according to a company press release.

The contract, awarded to Nuclear Laboratory Partners of Canada, Inc. (NLPC), a joint venture led by BWXT that includes Amentum, Kinectrics, and Battelle, is valued at approximately CAD$1.2 billion annually on average. The agreement consists of a six-year base period with potential extensions based on performance, up to a total of twenty years. According to InvestingPro analysis, Amentum maintains a healthy financial position with a current ratio of 1.56, indicating strong ability to fulfill short-term obligations.

Under the contract, awarded by Atomic Energy of Canada Limited (AECL), Amentum will contribute nuclear operational solutions, research and development, and technical expertise to CNL’s facilities. The formal transition is expected to begin this summer.

"This contract award reflects our deep expertise in nuclear operations and environmental remediation," said Mark Whitney, Amentum’s Energy and Environment president, in the press release.

The joint venture will work to enhance Canada’s nuclear capabilities while promoting safety and environmental stewardship at CNL’s facilities. The contract is structured under AECL’s Government-owned, Contractor-operated (GoCo) model.

Amentum, headquartered in Chantilly, Virginia, employs more than 53,000 people across approximately 80 countries. The company specializes in engineering and technology solutions for science, security, and sustainability sectors.

The information in this article is based on a press release statement from Amentum.

In other recent news, Amentum Holdings Inc. reported its second-quarter 2025 earnings, revealing an impressive earnings per share (EPS) of $0.53, which significantly surpassed the forecasted $0.26. The company’s revenue for the quarter reached $3.5 billion, marking a 1% growth year-over-year. Despite these strong financial results, Amentum’s stock experienced a decline of 5.06% in after-hours trading. Additionally, RBC Capital Markets adjusted its financial outlook for Amentum, increasing the price target from $22.00 to $24.00 while maintaining a Sector Perform rating, following discussions on the company’s free cash flow and organic growth projections.

BTIG analysts reaffirmed their Buy rating for Amentum, maintaining a $30 price target, following a recent share distribution by Jacobs Solutions. This distribution involved 7.3 million shares of Amentum stock, which were distributed as a special dividend to Jacobs’ shareholders. Furthermore, Citizens JMP initiated coverage on Amentum with a Market Outperform rating and set a price target of $30.00, reflecting confidence in the company’s market position and future prospects. These developments underscore a period of significant activity and strategic adjustments for Amentum, as observed by various analyst firms.

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