AMTM NYSE Russell 1000 Earnings call

Amentum Holdings, Inc. (AMTM) · Q2 2026 results and valuation

Share price: $22.73 · 2026-11-11

Amentum Holdings, Inc. provides engineering and technology solutions for government agencies and commercial customers in international markets. The company operates in sectors including energy, environment, intelligence, space, and defense. It serves clients in the United States and various international regions, including Europe and the Indo-Pacific. Source: 10-K annual report (2025-11-25)

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 11 Aug 2026 and 12 May 2026

Net income up 22.2% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.

1 · Numbers

+22.2%

Net income vs Q1 2026

Outlook given

Net income 66.0M vs 54.0M

Revenue +0.3%

Against the same quarter last year (Q2 2025) it is +560.0%, so it is not just seasonal.

Why Against the same quarter last year (+560.0%), net income increased primarily due to a 20% year-over-year increase in adjusted diluted earnings per share, which was driven by strong operational performance, lower interest expense from debt repayments, and a lower cost of debt from refinancing.

2 · How management spoke

Upbeat

More upbeat than 70% of company calls

Answers to analysts: upbeat, in line with the script.

Similar to last call.

3 · What stood out

Amentum Holdings, Inc. repaid $125 million in debt during the quarter to reduce net leverage to 3x, reaching a milestone one quarter earlier than expected.

Valuation

Is Amentum Holdings, Inc. undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-10-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $90.21 a share — the stock trades 75% below it. Today's price assumes 5.7% growth a year.

Current price

$22.73

close of 2026-11-11

Market implies growth of i

+5.7% for 10 yrs

Fair value / share

$90.21

Buy below

$67.66

Price vs fair value

Undervalued 75%

Price vs buy-below price

Undervalued 66%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Read between the lines

Guidance

AMTM raised its adjusted EBITDA outlook to between $1.115 billion and $1.14 billion, reflecting a 20 basis point improvement from prior guidance and a 40 basis point increase from fiscal year '25 actuals.
Guidance

AMTM revised revenue guidance to between $13.8 billion and $13.95 billion due to reduced contributions from new business awards under protests and updated expectations on materials and nonlabor volume.
Figure

Adjusted diluted earnings per share rose 20% year-over-year to $0.67, while revenue reached $3.5 billion and free cash flow reached $135 million.

Source quote
“Notable highlights include revenue of $3.5 billion, reflecting normalized growth of approximately 1%, adjusted EBITDA of $290 million with strong margins of 8.3%, adjusted diluted earnings per share of $0.67, up 20% year-over-year and free cash flow of $135 million.”
Figure

AMTM anticipates a 3% impact to fiscal year '27 revenue based on recent conversations with customers at NASA.

Source quote
“Based on conversations with our customers at NASA in recent weeks and months, we now anticipate a 3% impact to revenue in fiscal year '27.”
Key theme

AMTM repaid $125 million in debt during the quarter to reduce net leverage to 3x, reaching a milestone one quarter earlier than expected.

Source quote
“This performance enabled debt repayments of $125 million during the quarter and reduced our net leverage to 3x at quarter end, reaching an important milestone we set at Capital Markets Day 1 quarter earlier than expected.”

4 more

Figure

AMTM received $250 million in awards across several contracts in the digital infrastructure market to support hyperscaler data center build-outs and commercial network infrastructure.

Source quote
“Second, we received $250 million in awards across several contracts within our critical digital infrastructure market, including key wins supporting hyperscaler data center build-outs and additional tasking in commercial network infrastructure.”
Key theme

The expected economics for Amentum involve a 2-gigawatt nuclear project with revenue in excess of $1 billion over the life of the project.

Source quote
“While the financial framework is still being negotiated between the consortium and the Department of Energy, we would expect the economics to Amentum to be generally consistent with a 2-gigawatt nuclear project with revenue in excess of $1 billion over the life of the project.”
Key theme

Amentum reported that developments and its pipeline provide evidence the company will play a key role in enabling nuclear energy capacity deployment in the U.S. and globally.

Source quote
“We believe the developments announced in the quarter and those in our pipeline are clear evidence that Amentum will play a key role enabling the deployment of nuclear energy capacity in the U.S. and globally.”
Figure

The company reported 92% revenue visibility for next year from firm or follow-on work, providing clarity on future revenue streams.

Source quote
“And as I mentioned earlier, we've got 92% of our revenue visibility next year and firm or follow-on work.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was typical)

Answers to analysts Upbeat (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Finally, we expect continued strong earnings per share and free cash flow growth as a result of the increased profitability and reductions to both integration and interest expense.”

“I'll now discuss Amentum's third quarter financial results, which demonstrate continued strong operational performance, improving profitability and solid cash generation.”

“Adjusted EBITDA increased to $290 million, up 6% from the prior year quarter and reflects record quarterly adjusted EBITDA margins of 8.3%, a 60 basis point year-over-year increase.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-03)

Metric	Q2 2026period end 2026-07-03	Q1 2026period end 2026-04-03	Change	Q2 2025	YoY
Revenue	3.49B	3.48B	+0.3%	3.56B	−2.0%
Gross profit	360.0M	345.0M	+4.3%	368.0M	−2.2%
Operating income	172.0M	151.0M	+13.9%	103.0M	+67.0%
Net income	66.0M	54.0M	+22.2%	10.0M	+560.0%
EPS	0.27	0.22	+22.7%	0.04	+575.0%
P/E today 25.6	25.6	45.1	−19.5	57.2	−31.6

Topics

Most discussed now

Adjusted EBITDA increased to $290 million, up 6% from the prior year quarter and reflects record quarterly adjusted EBITDA margins...
Hyperscalers fully understand that if they're
Just the timing that it's taking to get those through the process, including some that are in corrective action, just...
Amentum is very much engaged in enduring no fail missions, but the continuous integration of digital AI approaches to be able...
As Amentum thinks about it, even its national security work as it executes in that manner, it has opportunities now...

Faded since Q1 2026

Dropped In these environments, Amentum's employees are working side-by-side with its customers to deliver reliable outcomes and high consequence…
Fading Amentum delivered another period of solid results across all key metrics and continued momentum in business development with strong net...
Fading The continued margin improvement represents tangible progress on Amentum's strategic focus to prioritize higher-margin work and realize…
Fading The equity income is a little bit higher this quarter than it was in the second quarter of last year.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-02 Director or officer change · SEC 8-K
The Board approved an amended employment agreement for Executive Chair Steven J. Demetriou, establishing a $625,000 base salary and a $1,250,000 long-term incentive target starting September 28, 2026.
2026-08-10 Results of operations · SEC 8-K
Amentum Holdings, Inc. released its financial results for the third quarter ended July 3, 2026, on August 10, 2026.
2026-05-11 Results of operations · SEC 8-K
Amentum Holdings, Inc. released its financial results for the second quarter ended April 3, 2026, on May 11, 2026.
2026-04-28 Material agreement · SEC 8-K
Amentum Holdings, Inc. entered into a Credit Agreement featuring a $1.400 billion term loan A, a $1.591 billion term loan B, and a $1.000 billion revolving facility.
2026-02-10 Shareholder vote results · SEC 8-K · routine
2026-02-09 Results of operations · SEC 8-K
Amentum Holdings, Inc. released its financial results for the first quarter ended January 2, 2026, on February 9, 2026.
2025-11-24 Results of operations · SEC 8-K
Amentum reported annual pro forma revenues of $14.4 billion, up 4% year over year, with a net income of $66 million and an annual adjusted EBITDA of $1,104 million.
2025-08-05 Results of operations · SEC 8-K
Amentum Holdings, Inc. released its financial results for the third quarter ended June 27, 2025, on August 5, 2025.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-12.

Cash & runway

Cash & equivalents

$459.0M

2026-07-03

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: +0.4% YoY, +0.0% QoQ.

Quarter	Shares
Q4 2024	243.0M
Q1 2025	243.0M
Q2 2025	243.0M
Q1 2026	244.0M
Q2 2026	244.0M
Q3 2026	244.0M

Shares outstanding: 244.5M (2026-08-07)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 34 filings parsed.

No open-market insider buys or sells in the window.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

fiscal year '27

anticipated 3% impact to revenue due to NASA workforce directive

Source quote
“Based on conversations with our customers at NASA in recent weeks and months, we now anticipate a 3% impact to revenue in fiscal year '27.”
the first few years

project scope focus on planning, design and engineering

Source quote
“It also reflects the revenue profile typical in this market where project scope focus in the first few years is on planning, design and engineering, which yields low tens of millions of dollars in annual revenue before transitioning into construction with annual revenue several multiples higher.”
fourth quarter

achieve net leverage less than 3x

Source quote
“We remain on track to achieve net leverage less than 3x in the fourth quarter, which positions us well to be more flexible and opportunistic with capital deployment and our approach will remain focused on allocating capital towards the highest long-term returns.”
fiscal year '26

revenue between $13.8 billion and $13.95 billion

Source quote
“We now expect revenue between $13.8 billion and $13.95 billion, with reduced contributions from new business awards under protests and our latest expectations on materials and nonlabor volume.”
fourth quarter

normalized revenue growth of approximately 2%

Source quote
“The midpoint reflects normalized revenue growth of approximately 2% in the fourth quarter, which is consistent with our performance year-to-date after adjusting for the impact of the government shutdown in Q1.”