Amentum Reports Q1 FY2026 Results: Strong Profitability & Backlog Growth; Reaffirms FY2026 Guidance

summarizeSummary

Amentum reported Q1 FY2026 results with a 5% revenue decline but substantial GAAP profit growth, strong backlog, and reaffirmed full-year guidance, despite negative quarterly free cash flow.

check_boxKey Events

• Q1 FY2026 Financial Performance

  Revenues declined 5% year-over-year to $3.24 billion. Despite this, GAAP operating income increased 5%, net income surged 267% to $44 million, and diluted EPS rose 260% to $0.18. Adjusted EBITDA was flat at $263 million, while Adjusted Diluted EPS grew 6% to $0.54.

• Reaffirmed Full-Year Guidance

  Amentum reaffirmed its fiscal year 2026 guidance for revenues ($13.95B-$14.3B), Adjusted EBITDA ($1.1B-$1.14B), Adjusted Diluted EPS ($2.25-$2.45), and Free Cash Flow ($525M-$575M), signaling confidence in its outlook despite Q1's mixed results.

• Strong Backlog and New Contract Awards

  Total backlog increased 4% year-over-year to $47.2 billion, with a book-to-bill ratio of 1.0x (1.1x LTM). Notable new awards include significant nuclear energy contracts with EDF and the Dutch Ministry, a $995 million U.S. Air Force IDIQ, and a position on the $151 billion MDA SHIELD multiple award IDIQ.

• Credit Rating Upgrade

  Moody's upgraded Amentum's credit rating to Ba3 from Ba1, reflecting an improved credit profile and financial stability.

auto_awesomeAnalysis

Amentum Holdings, Inc. reported mixed first-quarter fiscal year 2026 results, with revenues declining 5% year-over-year to $3.24 billion, primarily due to contract transitions and divestitures. However, the company demonstrated strong operational performance, with GAAP operating income increasing 5% and net income and diluted EPS significantly improving by 267% and 260% respectively. Adjusted EBITDA remained flat, while Adjusted Diluted EPS grew 6%. The company experienced negative free cash flow of $142 million for the quarter, attributed to an additional pay cycle and short-term collection timing, but reaffirmed its full-year fiscal 2026 guidance, indicating confidence in future performance. Amentum also highlighted robust bookings, increasing its total backlog by 4% to $47.2 billion, and secured several significant new contracts, including major nuclear energy projects and a position on the $151 billion MDA SHIELD IDIQ. Additionally, Moody's upgraded the company's credit rating, reflecting an improved financial profile.