Amentum Reports Q1 FY2026 Results: Strong Profitability & Backlog Growth; Reaffirms FY2026 Guidance
AMTM has more than doubled off its 52-week low of $16.01.
Summary
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.
Key Events · Earnings and Guidance · AMTM
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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.
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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.
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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.
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Credit Rating Upgrade
Moody's upgraded Amentum's credit rating to Ba3 from Ba1, reflecting an improved credit profile and financial stability.
Analysis · AMTM · Trade & Services
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.
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In the 30 days to Oct 1, 2026, 30.2% of the 1605 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.53%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, AMTM was trading at $33.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.9B. The 52-week trading range was $16.01 to $38.11. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.