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Amentum Holdings, Inc.
(NYSE:AMTM)
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Rating:72Outperform
Price Target:
$22.50
▼(-0.22% Downside)
Action:Reiterated
Date:08/11/26
AMTM scores positively on improving fundamentals (return to profitability, strong free cash flow, and a much stronger balance-sheet profile) and a constructive earnings call with raised profit guidance and strong backlog/bookings. Offsetting these positives are a richer valuation (P/E ~29), limited recent revenue growth, and near-term revenue timing/headwinds (protests and the FY'27 NASA in-sourcing impact), while technicals are supportive but somewhat stretched.
Positive Factors
Profitability and Cash Generation
The return to profitability and strong free cash flow improve earnings quality and internal funding capacity. Cash generation closely tracks net income, while improved operating performance provides a more durable base for investment and debt reduction.
Negative Factors
Thin Margins and Limited Top-Line Growth
Despite the profitability rebound, thin margins leave limited protection against execution, labor or contract-cost pressure. Slightly declining TTM revenue also indicates that recent earnings improvement relies more on efficiency and mix than broad-based organic expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Cash Generation
The return to profitability and strong free cash flow improve earnings quality and internal funding capacity. Cash generation closely tracks net income, while improved operating performance provides a more durable base for investment and debt reduction.
Read all positive factors
Amentum Holdings, Inc. (AMTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.25B
Dividend YieldN/A
Average Volume (3M)1.89M
Price to Earnings (P/E)24.2
Beta (1Y)1.24
Revenue Growth11.44%
EPS Growth291.35%
CountryUS
Employees50,000
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.83
Shares Outstanding244,506,410
10 Day Avg. Volume1,732,117
30 Day Avg. Volume1,891,312
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)1.40
Price to Sales (P/S)0.44
P/FCF Ratio12.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.00Price Target Upside24.17% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.45
Revenue Forecast (FY)$13.93B
Amentum Holdings, Inc. Business Overview & Revenue Model
Company Description
Amentum Holdings, Inc. is a provider of critical, technology-driven services, serving both governmental and commercial sectors. Its operations are structured around two distinct segments: Critical Mission Solutions and Cyber & Intelligence. The Cr...
How the Company Makes Money
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Amentum Holdings, Inc. Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 21, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and financial picture—strong margin expansion, EPS growth, robust bookings/backlog, capital structure improvement and meaningful strategic wins (notably in nuclear and digital infrastructure). These positives are tempered by near‑term revenue timing headwinds from protests, materials timing, and a newly quantified ~3% revenue impact from NASA in‑sourcing, plus a deliberate ~1% revenue reduction from exiting low‑margin work. Given the scale and quality of the wins, improved margins and cash generation, management raised profit guidance despite slightly weaker revenue, indicating confidence in execution and long‑term growth trajectory.Positive Updates
Revenue and Growth
Q3 revenue of $3.5B, normalized year-over-year growth ~1%; FY'26 revenue guidance updated to $13.8B–$13.95B (midpoint implies modest growth vs prior year).
Negative Updates
Revenue Shortfall Versus Expectations
Q3 revenue came in slightly below company expectations attributed to extended protest delays and lower-margin material volume; management revised FY'26 revenue guidance downward to reflect reduced contributions from awards under protest and materials/nonlabor timing.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue and Growth
Q3 revenue of $3.5B, normalized year-over-year growth ~1%; FY'26 revenue guidance updated to $13.8B–$13.95B (midpoint implies modest growth vs prior year).
Read all positive updates
Company Guidance
Amentum updated its FY‑26 guidance to revenue of $13.8–$13.95 billion (midpoint implying ~2% normalized Q4 growth), raised adjusted EBITDA to $1.115–$1.14 billion (midpoint margin ~8.1%, +20 bps vs prior guide and +40 bps vs FY‑25), increased adjusted diluted EPS to $2.40–$2.50, and maintained free cash flow at $525–$575 million. Q3 results included $3.5 billion revenue (normalized +1%), $290 million adjusted EBITDA (8.3% margin), $0.67 adjusted EPS (+20% YoY), and $135 million Q3 free cash flow ($213M YTD). Business development: net bookings $3.9B (book‑to‑bill 1.1x; LTM 1.3x), backlog $48B (funded backlog $6.2B, +10% YoY), $32B pending awards (including $2B won under protest). Capital/financials: nearly $700M debt repaid over 12 months ($125M in Q3), net leverage 3x (target <3x in Q4). Preliminary FY‑27 assumptions: a 3% NASA revenue headwind, ~1% revenue exit of low/no‑margin work, mid‑single‑digit growth on the remainder, and ~20 bps margin improvement.Amentum Holdings, Inc. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.13B | 14.39B | 8.39B | 7.87B | 7.68B |
| Gross Profit | 1.23B | 1.03B | 798.00M | 782.00M | 771.00M |
| EBITDA | 955.00M | 987.00M | 566.00M | 382.00M | 381.00M |
| Net Income | 204.00M | 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 | 459.00M | 437.00M | 452.00M | 305.00M | 207.00M |
| Total Debt | 3.83B | 4.17B | 4.94B | 4.33B | 276.18M |
| Total Liabilities | 6.41B | 6.84B | 7.42B | 6.00B | 919.00M |
| Stockholders Equity | 4.70B | 4.50B | 4.46B | 375.00M | 3.26B |
Cash Flow | |||||
| Free Cash Flow | 485.00M | 516.00M | 36.00M | 55.00M | 108.00M |
| Operating Cash Flow | 505.00M | 543.00M | 47.00M | 67.00M | 126.00M |
| Investing Cash Flow | -56.00M | 228.00M | 475.00M | -17.00M | -1.79B |
| Financing Cash Flow | -724.00M | -790.00M | -382.00M | -112.00M | 1.72B |
Amentum Holdings, Inc. Technical Analysis
Negative
22.55
Price Trends
21.64
Negative
23.27
Negative
26.47
Negative
Market Momentum
-0.37
Positive
39.72
Neutral
17.72
Positive
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 22.55 is above the 20-day moving average (MA) of 22.28, above the 50-day MA of 21.64, and below the 200-day MA of 26.47, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 17.72 is Positive, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.35B | 31.89 | 18.00% | 0.29% | 15.65% | 78.52% | |
73 Outperform | $7.10B | 46.29 | 11.41% | 0.63% | 4.63% | 84.70% | |
72 Outperform | $5.25B | 24.17 | 4.44% | ― | 11.44% | 291.35% | |
72 Outperform | $7.03B | 101.00 | 5.77% | ― | 29.76% | 51.88% | |
59 Neutral | $5.49B | -177.48 | -2.01% | ― | 7.85% | 22.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
AMTM
Amentum Holdings, Inc.
20.06
-5.08
-20.21%
HXL
Hexcel
92.57
29.53
46.84%
MRCY
Mercury Systems
89.59
21.95
32.45%
MOG.A
Moog
379.80
181.45
91.48%
LOAR
Loar Holdings Inc.
72.72
0.27
0.37%
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.