Amentum Holdings, Inc. (AMTM)
NYSE:AMTM
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Amentum Holdings, Inc.
(NYSE:AMTM)
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Rating:67Neutral
Price Target:
$29.00
▲(5.19% Upside)
Action:ReiteratedDate:02/10/26
The score is driven by improving fundamentals (notably strong free cash flow and better profitability) and solid technical momentum. This is tempered by expensive valuation (very high P/E) and fundamental durability questions tied to sharply negative reported TTM revenue growth and low ROE, despite reaffirmed guidance and strong bookings/backlog commentary.
Positive Factors
Free Cash Flow Generation
Sustained, large free cash flow (OCF ~ $814M and FCF ~ $806M TTM with ~48% growth) is a durable advantage. It funds capex, working capital swings, debt reduction and strategic bids, improving financial flexibility and reducing refinancing risk over the next 2–6 months.
Negative Factors
Weak Reported Revenue Growth & Low ROE
Sharp negative reported TTM revenue growth and very low ROE (~1.5%) undermine the durability of margin gains. Without clear organic top-line recovery, improved margins may reflect mix or one-offs rather than sustainable demand-led expansion, limiting long-term return on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained, large free cash flow (OCF ~ $814M and FCF ~ $806M TTM with ~48% growth) is a durable advantage. It funds capex, working capital swings, debt reduction and strategic bids, improving financial flexibility and reducing refinancing risk over the next 2–6 months.
Read all positive factors
Amentum Holdings, Inc. (AMTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.41B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)42.3
Beta (1Y)1.27
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.54
Shares Outstanding243,935,180
10 Day Avg. Volume1,692,650
30 Day Avg. Volume1,796,698
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 Cap1.62
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit7.03
Enterprise Value/Ebitda10.71
Forecast
1Y Price Target
$36.17Price Target Upside31.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.41
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:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution with multiple strategic wins, solid bookings, backlog growth and margin improvement, and management reaffirmed full-year guidance while outlining a path to reduce leverage and improve liquidity. Most downside items were timing-related (government shutdown, JV contribution timing, protests) rather than structural, and management provided specific mitigants and visibility into recoveries. Given the breadth of wins, margin expansion, improved funded backlog and the reaffirmation of guidance, the positive operational and strategic developments substantially outweigh the near-term timing and cash flow challenges.Positive Updates
Revenue and Underlying Growth
Q1 revenue of $3.24 billion with underlying normalized growth of approximately 3% year-over-year after adjusting for JV transitions, divestitures and government shutdown impacts.
Negative Updates
Government Shutdown and Timing-Related Cash Impact
Q1 free cash flow used $142 million driven by an extra pay cycle and government holiday/processing delays tied to the longest U.S. government shutdown in history; management characterizes this as timing-related with collections rebounding in early Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Underlying Growth
Q1 revenue of $3.24 billion with underlying normalized growth of approximately 3% year-over-year after adjusting for JV transitions, divestitures and government shutdown impacts.
Read all positive updates
Company Guidance
Management reaffirmed its November FY‑2026 guidance: revenue $13.95–$14.30B, adjusted EBITDA $1.10–$1.14B, adjusted diluted EPS $2.25–$2.45 and free cash flow $525–$575M (midpoint $550M), while targeting net leverage below 3.0x by year‑end; Q1 served as the baseline with revenue $3.24B, adjusted EBITDA $263M (8.1% margin), adjusted diluted EPS $0.54, $3.3B of net bookings, a $47B backlog (including $7B funded backlog, +23% QoQ), $23B of proposals, LTM book‑to‑bill ~1.1x (imputed 1.3x) and expectations to submit >$35B of bids this year; management expects sequential quarterly increases in revenue/EBITDA/EPS (working days: Q1 60, Q2 & Q3 63, Q4 64), roughly 25% of the remaining free cash flow in Q2, ~95% of FY revenue from existing/recompete business (5% new), and pointed to liquidity of $247M cash on hand, a fully undrawn $850M revolver and no near‑term maturities.Amentum Holdings, Inc. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
61
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.21B | 14.39B | 8.39B | 7.87B | 7.68B |
| Gross Profit | 1.48B | 1.51B | 798.00M | 782.00M | 771.00M |
| EBITDA | 970.00M | 987.00M | 566.00M | 382.00M | 381.00M |
| Net Income | 98.00M | 66.00M | -82.00M | -314.00M | -84.00M |
Balance Sheet | |||||
| Total Assets | 11.20B | 11.46B | 11.97B | 6.41B | 4.22B |
| Cash, Cash Equivalents and Short-Term Investments | 247.00M | 437.00M | 452.00M | 305.00M | 207.00M |
| Total Debt | 3.94B | 4.17B | 4.94B | 4.33B | 276.18M |
| Total Liabilities | 6.54B | 6.84B | 7.42B | 6.00B | 919.00M |
| Stockholders Equity | 4.56B | 4.50B | 4.46B | 375.00M | 3.26B |
Cash Flow | |||||
| Free Cash Flow | 272.00M | 516.00M | 36.00M | 55.00M | 108.00M |
| Operating Cash Flow | 297.00M | 543.00M | 47.00M | 67.00M | 126.00M |
| Investing Cash Flow | 203.00M | 228.00M | 475.00M | -17.00M | -1.79B |
| Financing Cash Flow | -794.00M | -790.00M | -382.00M | -112.00M | 1.72B |
Amentum Holdings, Inc. Technical Analysis
Positive
27.57
Price Trends
29.65
Negative
30.02
Negative
26.97
Positive
Market Momentum
-0.69
Negative
49.87
Neutral
68.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTM, the sentiment is Positive. The current price of 27.57 is above the 20-day moving average (MA) of 26.72, below the 50-day MA of 29.65, and above the 200-day MA of 26.97, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.91B | 25.10 | 13.20% | 0.46% | 7.11% | 13.43% | |
70 Outperform | $6.02B | 88.22 | 6.31% | ― | 25.38% | 237.96% | |
67 Neutral | $6.41B | 42.26 | 2.18% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.34B | 53.70 | 7.41% | 0.89% | -0.37% | -34.97% | |
55 Neutral | $4.78B | -73.03 | -2.08% | ― | 8.63% | 72.72% |
* Industrials Sector Average
AMTM
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Amentum Holdings, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Amentum Stockholders Reaffirm Board, Auditor and Executive Pay
Positive
Feb 10, 2026
At its Annual Meeting of Stockholders held on February 6, 2026, Amentum Holdings, Inc. stockholders elected all nominated directors to serve until the next annual meeting and until their successors are chosen. The director slate, which includes ex...
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.