Amentum to Guide Flat 2026 Revenue as Deleveraging Remains Key, RBC Says

MT Newswires Live
Nov 06

Amentum (AMTM) is likely to guide to roughly flat fiscal 2026 revenue as about 5% of organic growth is offset by divestitures, JV accounting changes, RBC said Tuesday in a preview note.

RBC said investors will be focused on the initial fiscal 2026 outlook and the company's path to deleveraging after net leverage fell to about 3.5 times in fiscal Q3; RBC models net leverage below 3 times exiting fiscal 2026.

RBC said it expects strong fiscal Q4 bookings, led by the formal adjudication of Amentum's $4 billion Strategic Forces Readiness Contract, which will now be added to the company's backlog and is expected to contribute about $250 million to fiscal 2026 revenue.

RBC maintained its sector perform rating and $26 price target, warning that a roughly 37% private-equity ownership stake remains an overhang that could limit near-term sentiment.

Shares of the company were up 1.8% in recent Wednesday trading.

Price: 22.34, Change: +0.39, Percent Change: +1.78

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