Amentum Reports First Quarter Fiscal Year 2026 Results and Reaffirms Full Year Guidance

CHANTILLY, Va.--( BUSINESS WIRE)--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.”

“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

Operating income

138

132

Net income

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

Free Cash Flow 1

142

)

102

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

Global Engineering Solutions

1,900

2,130

(11

Total Revenues

3,237

3,416

Adjusted EBITDA 1

Digital Solutions

103

100

Global Engineering Solutions

160

162

Total Adjusted EBITDA

263

262

—

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

Fiscal Year 2026 Guidance

Amentum reaffirms its fiscal year 2026 guidance as follows:

(in millions, except per share data)

Fiscal Year 2026 Guidance

Implied Underlying 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

Operating income

138

132

Interest expense and other, net

(74

)

(87

)

Income before income taxes

Provision for income taxes

(20

)

(24

)

Net income including non-controlling interests

Less: net income attributable to non-controlling interests

—

)

Net income attributable to common shareholders

Basic and diluted earnings per share attributable to common shareholders

0.18

0.05

Basic and diluted weighted average shares outstanding

244

243

AMENTUM HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

January 2, 2026

October 3, 2025

ASSETS

Current assets:

Cash and cash equivalents

247

437

Accounts receivable, net

2,526

2,479

Prepaid expenses and other current assets

187

197

Total current assets

2,960

3,113

Property and equipment, net

108

114

Equity method investments

218

196

Goodwill

5,703

Intangible assets, net

1,861

1,955

Other long-term assets

348

379

Total assets

11,198

11,460

LIABILITIES

Current liabilities:

Current portion of long-term debt

Accounts payable

871

892

Accrued compensation and benefits

526

705

Contract liabilities

203

227

Other current liabilities

447

488

Total current liabilities

2,088

2,354

Long-term debt, net of current portion

3,894

3,901

Deferred tax liabilities

257

260

Other long-term liabilities

297

325

Total liabilities

6,536

6,840

SHAREHOLDERS' EQUITY

Common stock, $0.01 par value, 1,000,000,000 shares authorized; 243,770,575 shares issued and outstanding at January 2, 2026 and 243,464,776 shares issued and outstanding at October 3, 2025.

Additional paid-in capital

4,931

4,924

Retained deficit

(417

)

(461

)

Accumulated other comprehensive income

Total Amentum shareholders' equity

4,556

4,505

Non-controlling interests

106

115

Total shareholders' equity

4,662

4,620

Total liabilities and shareholders' equity

11,198

11,460

AMENTUM HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Three Months Ended

January 2, 2026

December 27, 2024

Cash flows from operating activities

Net income including non-controlling interests

Adjustments to reconcile net income including non-controlling interests to net cash (used in) provided by operating activities:

Depreciation

Amortization of intangibles

120

Equity earnings of non-consolidated subsidiaries

(21

)

(21

)

Distributions from equity method investments

Deferred income taxes

)

(15

)

Stock-based compensation

Other

Changes in assets and liabilities, net of effects of business acquisition:

Accounts receivable, net

(48

)

(27

)

Prepaid expenses and other assets

Accounts payable, contract liabilities, and other current liabilities

(99

)

(31

)

Accrued compensation and benefits

(178

)

Other long-term liabilities

(12

)

Net cash (used in) provided by operating activities

(136

)

110

Cash flows from investing activities

Payments for property and equipment

)

Contributions to equity method investments

(42

)

Return of capital from equity method investments

—

Other

—

Net cash used in investing activities

(33

)

Cash flows from financing activities

Borrowings on revolving credit facilities

1,120

210

Payments on revolving credit facilities

(1,120

)

(210

)

Repayments of borrowings under the credit agreement

)

—

Distributions to non-controlling interests

)

(13

)

Other

)

Net cash used in financing activities

(20

)

(16

)

Effect of exchange rate changes on cash

)

(16

)

Net change in cash and cash equivalents

(190

)

Cash and cash equivalents, beginning of period

437

452

Cash and cash equivalents, end of period

247

522

AMENTUM HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

The presentation and discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Net Leverage 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 a substitute for, financial information prepared in accordance with GAAP. Management believes these non-GAAP measures, when read in conjunction with our consolidated financial statements prepared in accordance with GAAP and the reconciliations herein to the most directly comparable GAAP measures, provide useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Adjusted EBITDA is defined as GAAP net income attributable to common shareholders adjusted for interest expense and other, net, provision for income taxes, depreciation and amortization, and excludes the following discrete items:

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues.

Adjusted Net Income is defined as GAAP net income attributable to common shareholders excluding the discrete items listed under Adjusted EBITDA and the related tax impacts.

Adjusted Diluted EPS is defined as Adjusted Net Income divided by diluted weighted average number of common shares outstanding.

Free Cash Flow is defined as GAAP cash flow provided by operating activities less purchases of property and equipment. For the first quarter of fiscal year 2026, Free Cash Flow was an outflow of $142 million, consisting of $136 million of GAAP cash flow used in operating activities and $6 million of purchases of property and equipment.

Net Leverage is defined as GAAP total debt (excluding unamortized original issue discount and deferred financing costs) less cash and cash equivalents, divided by last twelve months Adjusted EBITDA, which is a non-GAAP measure. For the first quarter of fiscal year 2026, Net Leverage was 3.4x, consisting of $3,998 million of total debt less $247 million of cash and cash equivalents, divided by the last twelve months Adjusted EBITDA of $1,105 million.

AMENTUM HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

(in millions, except per share data and margin percentages)

The following table presents the reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted EPS to the most directly comparable GAAP measures for the three months ended January 2, 2026:

For the Three Months Ended January 2, 2026

As reported

Acquisition, transaction and integration costs

Amortization of intangibles

Divestitures

Utilization of fair market value adjustments

Stock-based compensation

Non-GAAP results

Revenues

3,237

—

3,237

Operating income

138

—

256

Non-operating expenses, net

(74

)

—

)

—

(77

)

Income (loss) before income taxes

)

179

(Provision) benefit for income taxes 1

(20

)

(19

)

(43

)

Net income (loss) including non-controlling interests

)

136

Less: net income (loss) attributable to non-controlling interests

—

)

—

)

Net income (loss) attributable to common shareholders

)

—

131

Basic and diluted income per share attributable to common shareholders

0.18

0.03

0.31

—

0.02

0.54

Basic and diluted weighted average shares outstanding

244

Net income (loss) attributable to common shareholders

)

—

131

Net income margin 2

1.4

4.0

Depreciation

—

Amortization of intangibles

—

(94

)

—

Interest expense and other, net

—

Provision (benefit) for income taxes

)

EBITDA (non-GAAP)

244

—

263

EBITDA margin

7.5

8.1

1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts.

2 - Calculated as net income attributable to common shareholders divided by revenues.

AMENTUM HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

(in millions, except per share data and margin percentages)

For the Three Months Ended December 27, 2024

As reported

Acquisition, transaction and integration costs

Amortization of intangibles

Utilization of fair market value adjustments

Stock-based compensation

Non-GAAP results

Revenues

3,416

—

3,416

Operating income

132

120

—

264

Non-operating expenses, net

(87

)

—

(87

)

Income before income taxes

120

—

177

Provision for income taxes 1

(24

)

(17

)

—

(43

)

Net income including non-controlling interests

103

—

134

Less: net income attributable to non-controlling interests

)

—

)

—

(11

)

Net income (loss) attributable to common shareholders

103

)

123

Basic and diluted income (loss) per share attributable to common shareholders

0.05

0.03

0.43

(0.01

)

0.01

0.51

Basic and diluted weighted average shares outstanding

243

Net income (loss) attributable to common shareholders

103

)

123

Net income margin 2

0.4

3.6

Depreciation

—

Amortization of intangibles

120

—

(120

)

—

Interest expense and other, net

—

Provision for income taxes

—

EBITDA (non-GAAP)

252

—

)

262

EBITDA margin

7.4

7.7

1 - Calculation uses a full year estimated statutory rate on each non-GAAP tax deductible adjustment, unless the nature of the item requires application of specific tax treatment for related impacts.

2 - Calculated as net income attributable to common shareholders divided by revenues.