Amentum Holdings, Inc. (AMTM) AI Stock Analysis

• Market Cap: $7.36B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 73.3
• Beta (1Y): 1.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.54
• Shares Outstanding: 243,935,180
• 10 Day Avg. Volume: 2,556,703
• 30 Day Avg. Volume: 2,177,022
• PEG Ratio: -0.73
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 12.22
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 11.22
• 1Y Price Target: $36.71
• Price Target Upside: 24.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.4
• Revenue Forecast (FY): $14.16B

• Rating: 67 Neutral
• Price Target: $40.00 ▲(35.46% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 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

Strong free cash flow

Sustained, near-parity operating cash flow and free cash flow (TTM ~$806M) and large FCF growth improve the firm's ability to deleverage, fund capex or bids, and absorb timing shocks. Durable cash conversion (~0.99x) supports multi-quarter financial flexibility and execution of strategic initiatives.

Robust bookings and backlog

A large backlog ($47B) and active pipeline ($23B proposals) provide multi-quarter revenue visibility, smoothing near-term top-line risk. Strong quarterly bookings and a funded backlog uptick (23% QoQ) underpin organic revenue recovery potential and support sustained utilization and margin stability.

Strategic wins in growth markets

Multi-year nuclear and international awards, plus positioning in space and critical digital infrastructure, align the company with secular defense and energy demand. These structural contracts tend to be higher margin and multi-year, improving long-term revenue mix and providing runway for margin expansion.

Negative Factors

Negative reported revenue trend

Sharp TTM revenue decline undermines the durability of recent margin improvements: without sustainable top-line growth, margins can be vulnerable to mix shifts or cost pressures. Management must reaccelerate organic revenue to convert improved margins into lasting returns over the next several quarters.

Sizable debt / moderate leverage

Material outstanding debt and only modest equity returns (ROE ~1.5%) constrain capital allocation and increase sensitivity to rate moves. While leverage has improved, ongoing debt servicing and the path to sub-3x net leverage will limit flexibility for investments, buybacks or large M&A in the near term.

Timing and contract-protest risks

Frequent timing effects—shutdowns, large JV capital contributions, protests and divestiture impacts—create persistent near-term volatility in cash flow and revenue recognition. Additionally, large nuclear awards typically ramp over 2–5 years, delaying meaningful P&L contribution and extending execution risk.

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 segment provides test, training, and operations services for missile defense systems, IT and engineering services to defense clients and the space sector, technological solutions, including installations, decommissioning, and environmental remediation to energy clients, and other highly technical consulting solutions. The Cyber & Intelligence segment provides advanced cyber training and data analytics for government professionals, advanced communication systems and aerial mapping technologies to national security clients, and other technical services for United States defense and intelligence clients. The company was founded on November 26, 2019 and is headquartered in Chantilly, VA.

How the Company Makes Money

Amentum generates revenue primarily through government contracts, which account for a significant portion of its earnings. The company engages in long-term contracts with various federal agencies, providing services such as logistics, maintenance, and technical support. Additionally, Amentum earns revenue from commercial contracts in energy and environmental sectors. Key revenue streams include contract awards, task orders, and performance-based incentives tied to project outcomes. Partnerships with government entities and private sector firms enhance its service offerings and create opportunities for further revenue generation, particularly in addressing complex engineering challenges and compliance requirements.

Amentum Holdings, Inc. Financial Statement Overview

Summary

Financials are improving: profitability has turned positive with higher TTM margins, and free cash flow is a clear strength (TTM OCF/FCF both strong with sharp FCF growth). Offsetting this, TTM revenue growth is sharply negative (as reported) and ROE remains low, which raises durability concerns despite better balance-sheet stability and more manageable leverage.

Income Statement

AMTM shows meaningful profitability improvement versus earlier annual periods: net margins moved from losses in 2022–2024 (as low as about -4.0%) to positive profitability in 2025 annual (~0.5%) and TTM (Trailing-Twelve-Months) (~1.3%). Operating profitability also strengthened, with TTM gross margin (~10.9%) and EBITDA margin (~7.2%) above the prior annual range (~6–7% gross; ~4.9–6.9% EBITDA). The key offset is growth quality: TTM revenue growth is sharply negative (as reported), and even in the annual series the business has modest-to-mixed top-line momentum, which raises questions about sustainability of the margin lift.

Balance Sheet

Leverage appears more manageable recently, with TTM debt-to-equity around ~0.75 and equity base expanding versus 2023 (when leverage was extremely high due to a very small equity base). Total debt is still sizable (~$2.6B TTM), and returns on equity remain low (~1.5% in both 2025 annual and TTM), indicating limited earnings power relative to capital. Overall, the balance sheet looks improved and more stable than the earlier period, but still carries moderate leverage and modest shareholder returns.

Cash Flow

Cash generation is the clearest strength. TTM operating cash flow is strong (~$814M) with free cash flow roughly matching it (~$806M), and free cash flow is up sharply (TTM growth as reported ~48%). Cash conversion also looks healthy, with free cash flow running at roughly the level of net income in TTM (~0.99x). The main caution is that the provided coverage measure remains low across periods (~0.23 TTM and 2025 annual; much lower in 2024), suggesting cash flow strength should be monitored against the company’s broader obligations despite the current step-up in cash production.

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

• Technical Analysis Sentiment: Negative
• Last Price: 29.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 29.53 is below the 20-day moving average (MA) of 33.22, below the 50-day MA of 32.39, and above the 200-day MA of 25.98, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMTM.

Amentum Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	74 Outperform	$11.07B	43.24	13.33%	0.46%	7.11%	13.43%
LOAR	71 Outperform	$6.11B	103.22	6.56%	―	25.38%	237.96%
AMTM	67 Neutral	$7.36B	73.35	2.17%	―	―	―
HXL	64 Neutral	$7.01B	67.59	7.87%	0.89%	-0.37%	-34.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	55 Neutral	$5.33B	-172.79	-2.08%	―	8.63%	72.72%

Amentum Holdings, Inc. Corporate Events

Amentum Stockholders Reaffirm Board, Auditor and Executive Pay

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 executives such as John Heller and Steven J. Demetriou and several independent members, received strong support, reinforcing continuity in the company’s governance and signaling investor confidence in existing leadership.

Stockholders also approved the management proposal to ratify Ernst & Young LLP as the company’s independent registered public accounting firm for fiscal 2026, affirming trust in Amentum’s audit and reporting framework. In addition, investors backed, on an advisory basis, the compensation program for named executive officers for fiscal 2025, indicating broad shareholder alignment with the firm’s pay practices and overall strategic direction.

The most recent analyst rating on (AMTM) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Amentum Holdings, Inc. stock, see the AMTM Stock Forecast page.