Revenues of $3.24 billion
Net Income of $44 million; Adjusted EBITDA of $263 million
Diluted Earnings Per Share of $0.18; Adjusted Diluted Earnings Per Share of $0.54
Backlog of $47.2 billion; Book-to-Bill of 1.0x, Last Twelve Months 1.1x
Moody's Upgraded Credit Rating to Ba3, from Ba1
CHANTILLY, Va.--(BUSINESS WIRE)--February 09, 2026--
Amentum Holdings, Inc. ("Amentum" or the "Company") (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the first quarter ended January 2, 2026, and reaffirmed its outlook for fiscal year 2026.
"Amentum's first-quarter results reflect solid operational performance and continued progress on our strategic objectives," said Amentum Chief Executive Officer John Heller. "Robust bookings across our accelerating growth markets reinforce the strength of our strategy that focuses on the high-demand mission areas of global nuclear energy, space systems and technologies, and critical digital infrastructure. As a result, we remain well positioned to deliver on our fiscal year 2026 targets."
Summary Operating
Results
------------------
Three Months Ended
------------------------------------------------------
(in millions,
except per share
data) January 2, 2026 December 27, 2024 % Change
------------------- --------------------- ----------
GAAP Measures:
Revenues $ 3,237 $ 3,416 (5%)
Operating income $ 138 $ 132 5%
Net income $ 44 $ 12 267%
Diluted earnings
per share $ 0.18 $ 0.05 260%
Non-GAAP
Measures(1) :
Adjusted EBITDA(1) $ 263 $ 262 --%
Adjusted EBITDA
Margin(1) 8.1% 7.7% +40 bps
Adjusted Diluted
Earnings Per
Share (EPS)(1) $ 0.54 $ 0.51 6%
Free Cash Flow(1) ($ 142) $ 102 NM
1 -- Non-GAAP financial measures should be considered in addition to, but not
as a substitute for, the information provided in accordance with GAAP.
Management believes that these non-GAAP measures provide another measure of
Amentum's results of operations and financial condition, including its ability
to comply with financial covenants. See Unaudited Non-GAAP Financial Measures
at the end of this press release for more information and a reconciliation of
our selected reported results to these non-GAAP measures.
GAAP Results
Revenues of $3.24 billion declined 5% year-over-year, reflecting an approximately 8% impact due to contract transitions from consolidated to unconsolidated joint ventures, divestitures, and the government shutdown. This was partially offset by the ramp-up of new contract awards in high demand areas including critical digital infrastructure and space systems and technologies. Operating income increased as a result of strong operational performance and decreased intangible amortization expense. Net income and diluted earnings per share improved year-over-year, supported by higher operating income and lower interest expense due to debt repayments.
Non-GAAP Results
Adjusted EBITDA of $263 million reflects Adjusted EBITDA Margins of 8.1%, up from 7.7% in the prior year quarter, due to strong operational performance. Adjusted Net Income and Adjusted Diluted Earnings Per Share increased primarily as a result of lower interest expense.
Non-GAAP Segment Results
Three Months Ended
--------------------------------------------------
(in millions) January 2, 2026 December 27, 2024 % Change
----------------- ------------------- ----------
Revenues
Digital Solutions $ 1,337 $ 1,286 4%
Global Engineering
Solutions 1,900 2,130 (11%)
--- ------------ --- --------------
Total Revenues $ 3,237 $ 3,416 (5%)
=== ============ === ==============
Adjusted EBITDA(1)
Digital Solutions $ 103 $ 100 3%
Global Engineering
Solutions 160 162 (1%)
--- ------------ --- --------------
Total Adjusted
EBITDA $ 263 $ 262 --%
=== ============ === ==============
1 -- Non-GAAP financial measures should be considered in addition to, but not
as a substitute for, the information provided in accordance with GAAP.
Management believes that these non-GAAP measures provide another measure of
Amentum's results of operations and financial condition, including its ability
to comply with financial covenants. See Unaudited Non-GAAP Financial Measures
at the end of this press release for more information and a reconciliation of
our selected reported results to these non-GAAP measures.
Digital Solutions revenues increased 4% year-over-year driven by the ramp-up of new contract awards in our critical digital infrastructure and space systems and technologies accelerating growth markets, partially offset by the fiscal year 2025 divestiture of Rapid Solutions. Adjusted EBITDA increased 3% year-over-year due to the higher revenue volume.
Global Engineering Solutions revenues decreased 11% year-over-year due to contract transitions from consolidated to unconsolidated joint ventures, a fiscal year 2025 divestiture, and impacts from the government shutdown; partially offset by growth on existing programs and the ramp up of new contract awards. Adjusted EBITDA decreased 1% year-over-year as a result of the lower revenue volume, partially offset by strong operational performance.
Cash Flow Summary
In the first quarter, Amentum used $136 million of net cash from operating activities which included an additional pay cycle compared to the prior year quarter and was impacted by short-term collections timing as a result of the government shutdown and holiday closures. Net cash used in investing activities of $33 million included $27 million in net contributions to equity method investments and $6 million in capital expenditures. Net cash used in financing activities of $20 million consisted primarily of $9 million in principal payments on our Term Loan and $9 million of distributions to non-controlling interests. As of January 2, 2026, Amentum had $247 million in cash and cash equivalents and $4.0 billion of gross debt.
Backlog and Contract Awards
As of January 2, 2026, the Company had total backlog of $47.2 billion, compared with $45.2 billion as of December 27, 2024, an annual increase of 4% driven by $16.3 billion in net bookings and a 1.1x book-to-bill. Funded backlog as of January 2, 2026 was $6.9 billion.
Notable Q1 Fiscal Year 2026 Highlights
-- Rolls-Royce Small Modular Reactors $(SMR)$ -- Rolls-Royce selected Amentum as its global program delivery partner for SMRs including the first deployments in the UK and Czech Republic. Under this collaborative agreement, Amentum will be responsible for engineering and design support, end-to-end integration, oversight and governance, construction management, and execution of SMR deployment. -- Électricité de France $(EDF)$ Nuclear Power Contracts -- EDF awarded Amentum a ten-year $730 million professional services contract to support development and life extension of the UK's new and existing power stations. Under this framework, Amentum will deliver licensing, design and construction, and modeling and analysis capabilities. -- Dutch Ministry of Climate Policy and Green Growth (KGG) -- KGG awarded an Amentum-led consortium an up to five-year contract for $207 million to provide program management and technical solutions for a nuclear build program in the Netherlands. Amentum will bring expertise in leading large nuclear programs, including project management, technology selection, design and engineering, and commercial procurement strategies. -- U.S. Air Force Remotely Piloted Aircraft (RPA) -- The U.S. Air Force Combat Command awarded Amentum an unmanned sustainment, modernization, and training contract, a six-year single-award IDIQ with a ceiling value of up to $995 million, to deliver specialized solutions in the U.S. and globally to reinforce readiness and training capabilities. -- Department of Information Systems (DISA) Compute As-a-Service Contract -- DISA awarded Amentum a five-year $120 million contract to deliver scalable, on-demand, computing power. Under this unique outcome-based contract, Amentum will provision and maintain all hardware, software, licensing, and operational services. -- Foreign Military Customer Air and Surface Surveillance and Control -- A foreign military customer awarded Amentum a $270 million, three-year contract to provide advanced air and surface surveillance solutions. -- Missile Defense Agency $(MDA)$ SHIELD Contract -- The MDA awarded Amentum a position on the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) multiple award IDIQ contract with a ceiling value of $151 billion. The contract spans a wide range of mission areas and will accelerate the delivery of advanced capabilities, enhancing speed, agility and resilience while providing continuous layered protection across multiple threat environments.
Fiscal Year 2026 Guidance
Amentum reaffirms its fiscal year 2026 guidance as follows:
(in millions, Implied except per Underlying share data) Fiscal Year 2026 Guidance Growth(2) -------------- ------------------------------ ----------- Revenues $ 13,950 -$ 14,300 3% Adjusted EBITDA(1) $ 1,100 -$ 1,140 5% Adjusted Diluted EPS(1) $ 2.25 -$ 2.45 12% Free Cash Flow(1) $ 525 -$ 575 12% 1 -- Represents a Non-GAAP financial measure - see the related explanations included elsewhere in this release. Amentum does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results for the relevant period. 2 -- Represents implied growth at the guidance mid-point after adjusting fiscal year 2025 for the impact of additional working days, the divested Rapid Solutions and New Zealand facilities maintenance businesses, and the transition of certain contracts from consolidated to unconsolidated joint ventures, which totaled approximately: Revenues of $650 million, Adjusted EBITDA of $32 million, Adjusted Diluted EPS of $0.12 and Free Cash Flow of $25 million.
Webcast Information
Amentum will host a conference call beginning at 8:30 a.m. Eastern time on Tuesday, February 10, 2026 to discuss the results for the first quarter ended January 2, 2026. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the Amentum website at amentum.com. After the call concludes, a replay of the webcast can be accessed on the Investor Relations website.
About Amentum
Amentum is a global leader in advanced engineering and innovative technology solutions, trusted by the United States and its allies to address their most significant and complex challenges in science, security and sustainability. Our people apply undaunted curiosity, relentless ambition and boundless imagination to challenge convention and drive progress. Our commitments are underpinned by the belief that safety, collaboration and well-being are integral to success. Headquartered in Chantilly, Virginia, we have approximately 50,000 employees in over 70 countries across all 7 continents.
Visit us at amentum.com to learn how we advance the future together.
Cautionary Note Regarding Forward Looking Statements
This release contains or incorporates by reference statements that relate to future events and expectations and, as such, could be interpreted to be "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements may be characterized by terminology such as "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "target," "endeavor," "seek," "predict," "intend," "strategy," "plan," "may," "could," "should," "will, " "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including projections of financial performance; statements of plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to products or services; any statements regarding future economic conditions or performance; any statements of assumptions underlying any of the foregoing; any statements regarding industry and market trends; and any other statements that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future.
Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others: changes in U.S. or global economic, financial, business and political conditions, including changes to governmental budgetary priorities and tariffs; our ability to comply with the various procurement and other laws and regulations; risks associated with contracts with governmental entities; reviews and audits by the U.S. government and others; changes to our professional reputation and relationship with government agencies; the occurrence of an accident or safety incident; the ability of the Company to control costs, meet performance requirements or contractual schedules, compete effectively or implement its business strategy; the ability of the Company to retain and hire key personnel, and retain and engage key customers and suppliers; the failure to realize the anticipated benefits of the 2024 transaction with Jacobs Solutions Inc.; potential liabilities associated with shareholder litigation or other settlements or investigations; evolving legal, regulatory and tax regimes; and other factors set forth under Item 1A, Risk Factors in the annual report on Form 10-K (the "Annual Report"), and from time to time in documents that we file with the SEC. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussions under the section entitled "Risk Factors" in the Annual Report. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures
This release includes the presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Free Cash Flow, and Net Leverage, which are not measures of financial performance under Generally Accepted Accounting Principles in the United States ("GAAP"). These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as substitutes for, financial information prepared in accordance with GAAP. Management of the Company believes these non-GAAP measures, when read in conjunction with the Company's financial statements prepared in accordance with GAAP and, where applicable, the reconciliations herein to the most directly comparable GAAP measures, provide useful information to management, investors and other users of the Company's financial information in evaluating operating results and understanding operating trends by adjusting for the effects of items we do not consider to be indicative of the Company's ongoing performance, the inclusion of which can obscure underlying trends. Additionally, management of the Company uses such measures in its evaluation of business performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of financial results from period to period. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.
Definitions of applicable non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided elsewhere in this release.
In addition to the above non-GAAP financial measures, the Company has included backlog, net bookings, and book-to-bill in this release. Backlog is an operational measure representing the estimated amount of future revenues to be recognized under negotiated contracts, and net bookings represent the change in backlog between reporting periods plus reported revenues for the period. Book-to-bill represents net bookings divided by reported revenues for the same period. We believe these metrics are useful for investors because they are an important measure of business development performance and are used by management to conduct and evaluate its business during its regular review of operating results.
AMENTUM HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended
----------------------------------------
January 2, 2026 December 27, 2024
----------------- ---------------------
Revenues $ 3,237 $ 3,416
Cost of revenues (2,911) (3,055)
Selling, general, and
administrative expenses (115) (130)
Amortization of intangibles (94) (120)
Equity earnings of
non-consolidated
subsidiaries 21 21
------------ --- ------------
Operating income 138 132
Interest expense and other,
net (74) (87)
------------ --- ------------
Income before income taxes 64 45
Provision for income taxes (20) (24)
------------ --- ------------
Net income including
non-controlling interests 44 21
Less: net income
attributable to
non-controlling interests -- (9)
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