AMTM · Amentum Holdings, Inc.

Amentum delivered stable Q2 FY2026 revenues of $3.478 billion, flat year-over-year, as ramp-ups in high-demand areas like critical digital infrastructure and space offset impacts from contract transitions to unconsolidated joint ventures and divestitures. Operating income rose 37% to $151 million due to strong execution and reduced intangible amortization, driving net income to $54 million from just $4 million prior year. Non-GAAP metrics showed progress with Adjusted EBITDA up 3% to $275 million and margins expanding 20 basis points to 7.9%, reflecting margin expansion initiatives. Adjusted EPS increased 13% to $0.60. Segmentally, Digital Solutions revenues grew 10% to $1.468 billion on new awards, though EBITDA dipped 2% due to divestitures; Global Engineering Solutions revenues fell 7% to $2.010 billion from transitions but EBITDA rose 6% on operational improvements. Cash generation was robust, with $225 million operating cash flow and $220 million free cash flow, aided by working capital discipline and one fewer pay cycle. Balance sheet as of April 3 showed $428 million cash against $4 billion debt. Post-quarter, Amentum issued $1.4 billion Term Loan A on April 24 to refinance Term Loan B, expand revolver to $1 billion, and lower interest costs, bolstering liquidity toward target leverage. Backlog expanded 7% to $47.8 billion with $17.2 billion net bookings and 1.2x book-to-bill, funded backlog $6.9 billion. Key wins included $406 million UK SMR engineering, $112 million EU nuclear decommissioning, $425 million CALFIRE analytics, over $300 million intelligence, and $600 million CDI awards. CEO John Heller highlighted alignment with national security and infrastructure cycles. Guidance reaffirmed for FY2026 revenues ~3% underlying growth to $13.95-14.3 billion, Adjusted EBITDA ~5% to $1.1-1.14 billion, signaling confidence in execution.