What Happened?
Shares of government engineering solutions provider Amentum Holdings (NYSE:AMTM) fell 10.5% in the morning session after the company reported mixed fourth-quarter 2025 results, with a revenue miss and guidance that failed to impress investors. While the company's adjusted earnings of $0.54 per share beat analyst estimates by 4.4%, investors focused on several negative points. Revenue for the quarter declined 5.2% year-on-year to $3.24 billion, falling short of the $3.32 billion Wall Street had expected. Additionally, free cash flow was negative $142 million, a sharp downturn from a positive $102 million in the prior year's quarter. The company's full-year earnings per share guidance also came in below consensus estimates, fueling concerns about its future growth prospects.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Amentum? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Amentum’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Amentum and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 3.4% on the news that the company announced multiple significant contract wins related to nuclear energy and received positive analyst commentary. Amentum secured a $207 million contract from the Dutch government to lead a consortium focused on nuclear power development. Additionally, the engineering company was awarded new contracts by EDF in the UK, worth up to $743 million, to provide solutions for the nation's reactor fleet and the new Hinkley Point C nuclear power plant. Following the news, Citizens reiterated its Market Outperform rating for the company, while BofA Securities raised its price target to $30.00 from $27.00.
Amentum is up 5.9% since the beginning of the year, but at $32.28 per share, it is still trading 14% below its 52-week high of $37.53 from February 2026. Investors who bought $1,000 worth of Amentum’s shares at the IPO in September 2024 would now be looking at an investment worth $1,094.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.