Amentum Q3: Revenue Miss, But Profitability and Guidance Raise Surprise
AMTM is trading near its 52-week low of $19.802 (8.6% above the low).
Summary
Amentum reported mixed Q3 FY2026 results: revenue missed estimates but adjusted EPS beat, and the company raised full-year profit guidance while lowering revenue expectations. Backlog grew to $48.2B with strong bookings.
Key Events · Earnings and Guidance · AMTM
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Q3 Revenue Miss, EPS Beat
Revenue of $3.49B fell 2% YoY and missed the $3.57B consensus, while adjusted EPS of $0.67 beat by $0.06. GAAP net income was $66M vs. $10M a year ago.
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Profitability Guidance Raised
FY2026 adjusted EBITDA guidance raised to $1.115B-$1.14B (from $1.1B-$1.14B) and adjusted EPS to $2.40-$2.50 (from $2.25-$2.45), even as revenue guidance was lowered to $13.8B-$13.95B.
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Backlog and Bookings Strength
Total backlog reached $48.2B, up 8% YoY, with a book-to-bill of 1.1x for the quarter and 1.3x over the last twelve months. Funded backlog rose 10% to $6.2B.
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Major Contract Wins
Notable awards include >$400M in global nuclear energy, ~$250M in critical digital infrastructure, >$1B in classified defense, ~$500M NASA COSMOS, and a $974M NASA CMOE II IDIQ.
Analysis · AMTM · Trade & Services
Amentum's Q3 revenue of $3.49B missed consensus by 2%, but adjusted EPS of $0.67 beat by $0.06. More importantly, the company raised full-year adjusted EBITDA and EPS guidance despite lowering the revenue outlook — a signal that margin expansion initiatives are working. Backlog grew 8% to $48.2B, and the book-to-bill ratio of 1.3x over the last twelve months indicates strong demand. The voluntary $125M debt paydown and free cash flow of $135M further strengthen the balance sheet. This mixed quarter shows near-term revenue headwinds but improving profitability and a robust pipeline, which could support the stock.
At the time of this filing, AMTM was trading at $21.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6B. The 52-week trading range was $19.80 to $38.11. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.