Amentum Holdings, Inc. (AMTM)
NYSE:AMTM
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Amentum Holdings, Inc.
(NYSE:AMTM)
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Rating:64Neutral
Price Target:
$28.00
▲(1.52% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by improving financial quality (especially strong free cash flow) and a constructive earnings-call outlook with reaffirmed FY2026 guidance and solid bookings/backlog. These positives are moderated by weak technicals (downtrend/negative momentum) and a relatively high P/E with no dividend yield provided.
Positive Factors
Free Cash Flow Generation
Sustained +$800M TTM operating and free cash flow with near‑par conversion to net income indicates durable internal funding for operations, debt paydown and capex. Reliable FCF supports deleveraging plans and strategic investments over the next 2–6 months.
Negative Factors
Weak Revenue Growth
Reported top‑line decline undermines the sustainability of improved margins and cash flow. Without consistent revenue growth, margin gains can be cyclical or mix‑driven, constraining scalable earnings power and making recovery dependent on contract wins converting to revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained +$800M TTM operating and free cash flow with near‑par conversion to net income indicates durable internal funding for operations, debt paydown and capex. Reliable FCF supports deleveraging plans and strategic investments over the next 2–6 months.
Read all positive factors
Amentum Holdings, Inc. (AMTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.28B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)42.3
Beta (1Y)1.26
Revenue Growth44.73%
EPS GrowthN/A
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.40
Shares Outstanding243,935,180
10 Day Avg. Volume1,594,516
30 Day Avg. Volume1,715,587
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 Cap1.59
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit6.74
Enterprise Value/Ebitda10.28
Forecast
1Y Price Target
$36.25Price Target Upside31.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.41
Revenue Forecast (FY)$14.12B
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
27.58
Price Trends
28.96
Negative
30.19
Negative
27.05
Positive
Market Momentum
-0.35
Negative
50.04
Neutral
72.70
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 27.58 is above the 20-day moving average (MA) of 26.76, below the 50-day MA of 28.96, and above the 200-day MA of 27.05, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.72B | 27.92 | 14.06% | 0.46% | 13.79% | 37.64% | |
70 Outperform | $5.20B | 127.21 | 6.31% | ― | 23.20% | 213.21% | |
65 Neutral | $6.84B | 41.28 | 8.35% | 0.89% | 1.46% | -0.14% | |
64 Neutral | $6.28B | 42.26 | 2.18% | ― | 44.73% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $4.71B | -73.03 | -2.08% | ― | 6.58% | 67.04% |
* 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...
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.