Amentum Holdings, Inc. (AMTM)
NYSE:AMTM
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Amentum Holdings, Inc.
(NYSE:AMTM)
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Rating:64Neutral
Price Target:
$25.00
▼(-9.35% Downside)
Action:Reiterated
Date:05/14/26
AMTM scores as moderately attractive: improving profitability and strong free cash flow are the primary positives, reinforced by reaffirmed FY2026 guidance and strong backlog/bookings. The score is held back mainly by weak technical momentum and the combination of thin margins with a relatively high P/E and TTM revenue decline.
Positive Factors
Free cash flow generation
Sustained TTM free cash flow near $450M, roughly matching net income, indicates healthy cash conversion and earnings quality. This durable cash generation supports working capital, bid funding, deleveraging and reinvestment into higher-growth segments over the next few years.
Negative Factors
Thin net margins
Very thin net margins (~1%) leave limited cushion against cost inflation, contract mix shifts or bid underperformance. Coupled with TTM revenue weakness, margin sensitivity constrains free-cash-flow upside and limits the company's ability to invest or absorb program execution shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained TTM free cash flow near $450M, roughly matching net income, indicates healthy cash conversion and earnings quality. This durable cash generation supports working capital, bid funding, deleveraging and reinvestment into higher-growth segments over the next few years.
Read all positive factors
Amentum Holdings, Inc. (AMTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.65B
Dividend YieldN/A
Average Volume (3M)2.05M
Price to Earnings (P/E)39.3
Beta (1Y)1.23
Revenue Growth26.11%
EPS Growth801.19%
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.60
Shares Outstanding244,316,310
10 Day Avg. Volume2,508,005
30 Day Avg. Volume2,045,244
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.40
Price to Sales (P/S)0.44
P/FCF Ratio12.22
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit8.30
Enterprise Value/Ebitda9.39
Forecast
1Y Price Target
$30.00Price Target Upside8.77% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)2.42
Revenue Forecast (FY)$14.14B
Amentum Holdings, Inc. Business Overview & Revenue Model
Company Description
Amentum Holdings, Inc. provides mission-critical, technology-driven services in government and commercial markets. It operates through two operating segments: Critical Mission Solutions and Cyber & Intelligence. The Critical Mission Solutions segm...
How the Company Makes Money
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Amentum Holdings, Inc. Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: modest organic revenue growth, margin expansion (notably a 100-basis-point improvement in Global Engineering Solutions), a meaningful bookings cadence (book-to-bill ~1.2x) and a rebound in quarterly free cash flow. Management reinforced FY26 guidance, completed capital structure improvements that lowered borrowing costs (~50 bps) and reiterated strategic positioning in accelerating markets (CDI, nuclear, space). Near-term headwinds are limited and identifiable — Digital Solutions margin pressure during program ramps, impacts from JV transitions/divestitures, seasonality of cash flow, and a modest potential FY27 revenue effect from a NASA directive — but these do not materially outweigh the positive execution and growth catalysts discussed.Positive Updates
Revenue Growth and Profitability
Second quarter revenue of $3.5 billion, reflecting normalized year-over-year growth of ~3%. Adjusted EBITDA of $275 million with margins of 7.9% (up ~20 basis points year-over-year). Adjusted diluted EPS of $0.60, up 13% year-over-year.
Negative Updates
Digital Solutions Margin Pressure from Ramps and Prior-Year Comparables
Digital Solutions adjusted EBITDA was slightly lower year-over-year due to the FY2025 divestiture, timing of new program starts (including space and CDI ramps) and higher net write-ups in the prior-year quarter; margins started modestly on new program ramp-ups and may remain subdued near-term.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Profitability
Second quarter revenue of $3.5 billion, reflecting normalized year-over-year growth of ~3%. Adjusted EBITDA of $275 million with margins of 7.9% (up ~20 basis points year-over-year). Adjusted diluted EPS of $0.60, up 13% year-over-year.
Read all positive updates
Company Guidance
Amentum reaffirmed its fiscal 2026 guidance, calling for revenue of $13.95–$14.30 billion, adjusted EBITDA of $1.10–$1.14 billion, adjusted diluted EPS of $2.25–$2.45 and free cash flow of $525–$575 million; management said ~97% of revenues are expected from existing/recompete business, roughly 48% of remaining revenue and profit is expected in Q3 with a sequential increase in Q4 (the bulk of cash generation), and they remain on track to meet full‑year FCF guidance after H1 FCF of $78 million and Q2 FCF of $220 million. Post‑quarter capital actions (a $1.4 billion Term Loan A, $1.0 billion revolver and a ~50 bps reduction in weighted‑average cost of debt) support a net‑leverage target below 3x (projected in the high‑2s) and a goal of 10%+ FCF growth to FY‑28; the outlook is underpinned by backlog of nearly $48 billion, funded backlog of $6.9 billion (up 20% YoY) and LTM book‑to‑bill of ~1.2x.Amentum Holdings, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
76
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.20B | 14.39B | 8.39B | 7.87B | 7.68B |
| Gross Profit | 1.12B | 1.03B | 798.00M | 782.00M | 771.00M |
| EBITDA | 992.00M | 1.02B | 566.00M | 382.00M | 381.00M |
| Net Income | 148.00M | 66.00M | -82.00M | -314.00M | -84.00M |
Balance Sheet | |||||
| Total Assets | 11.17B | 11.46B | 11.97B | 6.41B | 4.22B |
| Cash, Cash Equivalents and Short-Term Investments | 428.00M | 437.00M | 452.00M | 305.00M | 207.00M |
| Total Debt | 3.93B | 4.17B | 4.94B | 4.33B | 276.18M |
| Total Liabilities | 6.47B | 6.84B | 7.42B | 6.00B | 919.00M |
| Stockholders Equity | 4.61B | 4.50B | 4.46B | 375.00M | 3.26B |
Cash Flow | |||||
| Free Cash Flow | 450.00M | 516.00M | 36.00M | 55.00M | 108.00M |
| Operating Cash Flow | 465.00M | 543.00M | 47.00M | 67.00M | 126.00M |
| Investing Cash Flow | 216.00M | 228.00M | 475.00M | -17.00M | -1.79B |
| Financing Cash Flow | -806.00M | -790.00M | -382.00M | -112.00M | 1.72B |
Amentum Holdings, Inc. Technical Analysis
Negative
27.58
Price Trends
25.62
Negative
29.00
Negative
27.04
Negative
Market Momentum
-0.85
Negative
45.19
Neutral
59.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTM, the sentiment is Negative. The current price of 27.58 is above the 20-day moving average (MA) of 23.91, above the 50-day MA of 25.62, and above the 200-day MA of 27.04, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMTM.
Amentum Holdings, Inc. Risk Analysis
Amentum Holdings, Inc. disclosed 57 risk factors in its most recent earnings report. Amentum Holdings, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amentum Holdings, Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.88B | 39.72 | 14.06% | 0.46% | 13.79% | 37.64% | |
70 Outperform | $5.82B | 89.79 | 5.86% | ― | 26.33% | 88.70% | |
64 Neutral | $5.65B | 39.30 | 3.27% | ― | 26.11% | 801.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $5.83B | -455.30 | -0.96% | ― | 8.95% | 78.82% | |
60 Neutral | $6.65B | 58.73 | 8.35% | 0.89% | 1.46% | -0.14% |
* Industrials Sector Average
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Amentum Holdings, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Amentum Refinances and Expands Senior Secured Credit Facilities
Positive
Apr 28, 2026
On April 24, 2026, Amentum Holdings, Inc. and key subsidiaries amended their existing credit agreement, establishing a new $1.4 billion five-year senior secured term loan A, a $1.591 billion senior secured term loan B, and a $1.0 billion five-year...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.