Amentum lands key nuclear project in Norway – here’s why it matters to you
Picture this: you’re driving past Halden or Kjeller in Norway. Not tourist hotspots, but home to old nuclear reactors. Now, things are changing. Amentum, a U.S.-based company listed on the NYSE (ticker: AMTM), has been selected to safely dismantle these sites.
Together with its Norwegian partner Multiconsult, Amentum will oversee the shutdown and safety of these nuclear facilities and manage the radioactive waste.
For investors, this is much more than just a job in the far north.
Why this contract matters
Andy White, senior executive at Amentum, called it “a strong vote of confidence from the client.” And rightly so. Norway is exploring the use of small, safe nuclear reactors for its energy future. If you’re cleaning up the past, you’re likely to help build the future too.
Amentum will provide not just training, but also a new system for assessing nuclear safety risks. This includes:
- shut-down reactors
- nuclear waste storage
- future small modular reactors
In short: Amentum is now part of Norway’s nuclear energy roadmap.
What does this mean for Amentum as an investment?
Investors look beyond single contracts. Here’s what matters:
- Strong position in government contracts: Think defence, energy, and security.
- Massive order backlog: $47 billion worth of contracts.
- Revenue growth: Up 6.65% in 2024, reaching $8.39 billion.
- Global footprint: 53,000 employees across 80 countries.
Yes, profit margins are still slim (net at 0.19%), but that’s due to recent mergers and integration costs. These are expected to improve in 2025.
What are the risks?
- Ongoing mergers could lead to short-term cost pressure.
- Government services remain a competitive market.
- Policy changes might impact demand for Amentum’s services.
Still, the outlook is positive. Analysts see around 21% upside from current stock levels.
Is now a good entry point?
With a forward P/E of 9.61 and a growing contract pipeline, the stock appears undervalued. Especially with the focus on margin improvement and successful integration.
Note: There’s no dividend for now — profits are reinvested for growth.
Bottom line
Amentum is proving itself in Norway as a key partner for the future of nuclear energy. That sends a strong signal. For long-term investors focused on government-backed tech and infrastructure, this could be a solid pick.
What do you think: is Amentum ready to earn a spot in your portfolio?
