Why One Fund Dumped Its Entire $15 Million Stake as This Defense Stock Posted $47 Billion in Backlog

13 hours ago 2

Jonathan Ponciano, The Motley Fool

Sun, December 7, 2025 astatine 3:20 PM CST 5 min read

New York City-based Engine Capital Management sold 635,255 shares of Amentum worthy astir $15 cardinal successful the 3rd quarter.
The determination marked an exit for Engine Capital, which reported holding nary shares of Amentum arsenic of September 30.
The presumption was antecedently 3.2% of the fund's reported assets.
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On November 14, New York City-based Engine Capital Management disclosed that it sold retired its full presumption successful Amentum Holdings (NYSE:AMTM), a determination representing an estimated $15 cardinal alteration successful value.

According to its SEC filing dated November 14, Engine Capital Management, LP reported a implicit merchantability of its Amentum Holdings presumption during the 3rd quarter. The money eliminated 635,255 shares, an estimated $15 cardinal transaction based connected quarterly mean pricing.

Top holdings aft the filing:

NYSE: AVTR: $246.1 cardinal (29.2% of AUM)
NYSE: NATL: $94.7 cardinal (11.2% of AUM)
NASDAQ: LNW: $80.9 cardinal (9.6% of AUM)
NASDAQ: ACHC: $64.0 cardinal (7.6% of AUM)
NASDAQ: OFIX: $62.3 cardinal (7.4% of AUM)

As of Friday, shares of Amentum Holdings were priced astatine $28.88, up 26% implicit the past twelvemonth and outperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Friday)	$28.88
Market capitalization	$7 billion
Revenue (TTM)	$14.4 billion
Net income (TTM)	$66 million

Amentum Holdings provides mission-critical services including test, training, and operations for rocket defense, IT and engineering for defence and space, biology remediation, and precocious cyber and quality solutions.
The institution generates gross done semipermanent authorities and commercialized contracts, focusing connected technology-driven consulting, systems integration, and method services.
It serves U.S. authorities agencies, defence and quality clients, and vigor assemblage organizations arsenic superior customers.

Amentum Holdings is simply a starring supplier of method and ngo enactment services to authorities and commercialized clients, with a absorption connected aerospace, defense, and quality sectors. The institution leverages its standard and expertise successful captious ngo solutions and precocious cyber capabilities to code analyzable nationalist information and infrastructure needs. It combines its heavy method know-how with a robust declaration portfolio, positioning itself arsenic a cardinal spouse for clients requiring high-reliability, technology-driven solutions.

Amentum’s caller rally underscores wherefore knowing a afloat exit similar this matters for semipermanent investors: When a money divests pursuing a agelong of strengthening fundamentals, it tin awesome a displacement successful portfolio strategy alternatively than a judgement connected the concern itself. The institution conscionable delivered a standout 4th quarter, posting $3.9 cardinal successful revenue, $300 cardinal successful adjusted EBITDA, and $261 cardinal successful escaped currency flow, each portion expanding backlog to a monolithic $47.1 cardinal and reducing its nett leverage.

For investors, Amentum’s multi-year declaration visibility, beardown currency generation, and fiscal twelvemonth 2026 guidance calling for up to $14.3 cardinal successful gross and arsenic overmuch arsenic $575 cardinal successful escaped currency travel connection notable semipermanent appeal. The concern is tied to mission-critical spending crossed defense, space, nuclear, and integer infrastructure—areas little delicate to economical cycles. While the banal remains volatile since its public-market debut past September, the underlying maturation trajectory appears intact.