CHANTILLY, Va. - Amentum (NYSE:AMTM), a leader in engineering and technology solutions with a market capitalization of $5.9 billion and annual revenue of $5.6 billion, has been selected by the Department of Energy (DOE) to lead the cleanup of the West Valley Demonstration Project (WVDP) in New York state. The contract, awarded to West Valley Cleanup Alliance, LLC—a joint venture with BWXT Technical Services Group, Jacobs Technology (an Amentum company), and Geosyntec Consultants, Inc.—is valued at up to $3 billion over a 10-year period.
The WVDP, located 35 miles south of Buffalo, New York, encompasses an approximate 150-acre area and houses the United States' only commercial spent nuclear fuel reprocessing facility. The scope of the contract includes the deactivation and demolition of the facility, disposal of various types of waste, soil remediation, and the transportation of solidified waste for permanent disposal.
Amentum's Chief Operating Officer, Steve Arnette, stated that the company is equipped with advanced environmental capabilities, including UAVs, robotics, and digital tools, to safely decommission nuclear facilities. Amentum, along with its partners, aims to address the challenges of deactivation and decommissioning while collaborating with the DOE, regulators, and local stakeholders.
The DOE contract is a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Task orders issued may extend performance up to five years beyond the contract's ordering period. Amentum and its legacy companies have been involved with the DOE's WVDP cleanup program since 1982, providing a foundation of experience for the new project. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 2.09 and minimal debt relative to equity.
This news is based on a press release statement, which also includes forward-looking statements regarding the anticipated work and revenue under the awarded contract. These statements are subject to various factors that could cause actual results to differ materially, as outlined in the associated risk factors section of the information statement filed with the SEC.
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 analysis suggests the stock is currently undervalued, with analysts projecting sales growth in the current year. For deeper insights into Amentum's financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Amentum has seen significant developments. The company, a global engineering and technology solutions provider, has appointed Darren Burton as its new Chief People Officer. Burton brings over 20 years of experience in human resources, previously serving in significant HR roles at Eightfold AI, KPMG, and Raytheon Company (NYSE:RTN). Alongside this, Amentum has implemented a new Severance Plan for Key Employees and finalized employment contracts for top executives.
Amentum has also secured significant contracts recently. The company was awarded a $490 million contract by the U.S. Navy for the T-54A Multi Engine Training System and secured a contract with NASA valued at up to $256 million. Both contracts emphasize Amentum's commitment to providing advanced engineering and technology solutions.
Additionally, Truist Securities initiated coverage on Amentum's shares with a Buy rating, citing potential value creation following Amentum's merger with Jacobs CMS/C&I businesses. The firm believes that Amentum's current enterprise value to EBITDA discount could narrow in the next two years.
These are recent developments that may influence investment decisions. As always, investors are advised to rely on factual information when making their investment decisions.
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