Amentum Holdings, Inc. provides engineering and technology solutions in the United States and internationally. It operates through two segments: Digital Solutions and Global Engineering Solutions. The company offers digital and data-driven services such as intelligence analytics, space system development, cybersecurity, and IT to federal government and commercial clients. It also provides large-scale environmental remediation, nuclear power solutions, platform engineering, sustainment, and supply chain management for the U.S. government and allied nations. Amentum was incorporated in 2023 and is headquartered in Chantilly, Virginia.
Amentum's profit beat and new contract wins offset revenue miss and NASA headwind
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NASA COSMOS contract win Amentum won NASA's COSMOS contract to run mission operations and astronaut training for Artemis, the Space Station and more. This adds long-term work and supports future revenue, helping lift the stock.
New contract award directly boosts AMTM's demand outlook.
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Q2 revenue miss but raised profit guidance Q2 revenue fell short and the stock dropped 15%, but the company raised its full-year profit and earnings guidance, with net income jumping. The market first focused on the miss, then on the improved profitability.
This is the main earnings event that moved the stock sharply both ways.
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UK defence framework with Babcock Amentum joined a five-year Babcock framework to support UK defence programmes, including nuclear and submarine work. This secures steady, long-term engineering revenue and strengthens its international defence business.
New contract expands AMTM's addressable market and revenue visibility.
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NASA workforce directive cuts 2027 revenue Amentum said NASA's workforce directive will cut about 3% from fiscal 2027 revenue, though the rest of the business should grow mid-single digits. This is a real headwind that partly offsets the new contract wins.
It is a new, specific negative factor that tempers the positive outlook.
Q3 2026
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Amentum's profit beat and new contract wins offset revenue miss and NASA headwind
▲
NASA COSMOS contract win Amentum won NASA's COSMOS contract to run mission operations and astronaut training for Artemis, the Space Station and more. This adds long-term work and supports future revenue, helping lift the stock.
New contract award directly boosts AMTM's demand outlook.
◆
Q2 revenue miss but raised profit guidance Q2 revenue fell short and the stock dropped 15%, but the company raised its full-year profit and earnings guidance, with net income jumping. The market first focused on the miss, then on the improved profitability.
This is the main earnings event that moved the stock sharply both ways.
▲
UK defence framework with Babcock Amentum joined a five-year Babcock framework to support UK defence programmes, including nuclear and submarine work. This secures steady, long-term engineering revenue and strengthens its international defence business.
New contract expands AMTM's addressable market and revenue visibility.
▼
NASA workforce directive cuts 2027 revenue Amentum said NASA's workforce directive will cut about 3% from fiscal 2027 revenue, though the rest of the business should grow mid-single digits. This is a real headwind that partly offsets the new contract wins.
It is a new, specific negative factor that tempers the positive outlook.
News & notes movingAMTM
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Amentum-Led OneAxIoM Named Preferred Supplier on $2.8 Billion Sellafield Deal
Sellafield Ltd. has selected an Amentum-led joint venture, OneAxIoM, as preferred supplier for its Projects and Asset Care Execution framework, a US$2.78 billion (£2.1 billion) program covering full lifecycle services for spent fuel management and related facilities. The framework carries an initial nine-year term with an optional six-year extension. Once contract terms are finalized, the preferred supplier status would deepen Amentum's presence in complex nuclear asset care, potentially broadening its long-cycle revenue base and reinforcing its capabilities in high-specification engineering and project delivery. The selection follows Amentum's up to US$406 million GBE N owner's engineer role for the UK small modular reactor program, underlining how much of the company's story now rests on long-duration nuclear and infrastructure work. Amentum's narrative projects $15.1 billion in revenue and $532.2 million in earnings by 2029, requiring 2.2% yearly revenue growth and about a $328 million earnings increase from $204.0 million today.
ICF International Posts Flat Q2 Revenue of $474.5 Million, Guides Above Consensus
ICF International reported second quarter revenues of $474.5 million, flat year over year and 0.7% below analysts' expectations, while narrowly beating full-year EPS guidance estimates. Chief executive John Wasson said commercial client revenues rose 5.9% year on year, federal government revenues improved sequentially on technology modernization, and international government revenues climbed 35%, putting total revenue in line with prior-year levels ahead of a return to year-on-year growth beginning in this year's third quarter. Among the seven government and technical consulting stocks tracked in the group, SAIC posted the strongest quarter with revenues of $1.88 billion, up 6.3% year on year and 7.1% above expectations, while Amentum was the weakest, with revenues of $3.49 billion, down 2% year on year and 2.2% short of estimates. Maximus reported revenues of $1.28 billion, down 5.1% year on year and 3.7% below expectations, and UL Solutions reported revenues of $816 million, up 5.2% year on year and in line with estimates. As a group, the seven stocks' revenues were in line with consensus, and their share prices have fallen an average of 8.8% since the latest earnings results.
Deep Isolation Wins Texas Drilling Permit for Nuclear Waste Pilot
Deep Isolation Nuclear, Inc. announced that the Texas Railroad Commission has issued a drilling permit for its full-scale, non-radioactive Commercialization Pilot near Cameron, Texas, allowing the project to advance from engineering and design toward construction and field activities. The pilot is designed as a full-scale, end-to-end demonstration of the company's deep borehole disposal technology using non-radioactive materials, and aims to generate field data and operational experience to support future commercial deployment. The Texas project brings together Deep Isolation with the Deep Borehole Demonstration Center, Halliburton, Amentum, NAC International, and Occlusion Nuclear Solutions. Jesse Sloane, Executive Vice President of Engineering at Deep Isolation, called the permit a major milestone, while Steve Haden, Senior Vice President of Project Management at Halliburton, said his company will apply its subsurface, drilling, and well construction experience to support deployment of the technology. With the permit issued, the project team plans to advance site and construction activities in preparation for subsequent drilling and subsurface testing.
HAL · Demand · Positive Halliburton will apply its subsurface, drilling, and well construction experience to support deployment of Deep Isolation's pilot technology.
AMTM · Demand · Positive Amentum is part of the Texas pilot project team advancing deep borehole disposal, gaining project participation as the permit allows construction and field activities.
NAC International · Demand · Positive NAC International is named as part of the project team for the Deep Isolation nuclear waste pilot now permitted to advance.
Occlusion Nuclear Solutions · Demand · Positive Occlusion Nuclear Solutions is named as part of the project team for the Deep Isolation nuclear waste pilot now permitted to advance.
Jacobs Solutions Leads Government Consulting Peers With 8.3% Q2 Revenue Growth
Jacobs Solutions reported Q2 revenues of $2.42 billion, up 8.3% year on year, the fastest growth among the seven government and technical consulting stocks tracked, though full-year EPS guidance came in merely in line with analysts' estimates. SAIC posted the group's biggest estimate beat, with revenues of $1.88 billion up 6.3% year on year and 7.1% above consensus, alongside beats on EPS and full-year EPS guidance. Amentum was the weakest performer, reporting revenues of $3.49 billion, down 2% year on year and 2.2% short of expectations, with a significant EPS miss. Booz Allen Hamilton recorded revenues of $2.8 billion, down 4.2% year on year and 0.5% below expectations, but still beat on EPS, while UL Solutions reported revenues of $816 million, up 5.2% and in line with expectations, also beating on EPS. As a group, the seven stocks' revenues matched consensus and share prices have fallen 3% on average since the latest results.
Amentum Reports Third Quarter Fiscal 2026 Results and Updates Guidance
Amentum held its Third Quarter Fiscal Year 2026 Earnings Conference Call on Tuesday, August 11, 2026, reporting revenue of $3.5 billion, adjusted EBITDA of $290 million with margins of 8.3%, adjusted diluted earnings per share of $0.67, and free cash flow of $135 million. The company revised its fiscal year 2026 guidance to revenue between $13.8 billion and $13.95 billion, raised adjusted EBITDA guidance to between $1.115 billion and $1.14 billion, and increased adjusted diluted earnings per share guidance to a range of $2.40 to $2.50. Amentum also provided preliminary fiscal year 2027 expectations, including a 3% revenue impact from NASA's workforce directive and mid-single-digit growth in the remaining portfolio. The company highlighted net bookings of $3.9 billion, a book-to-bill of 1.1x, and ending backlog of $48 billion, along with strategic developments in nuclear energy including a partnership with Westinghouse and selection by the Department of Energy for a project at the Savannah River Site.
Defense & Geopolitical Fragmentation › Defense Software & C4ISR Capital
Energy Transition & Power Demand › Nuclear Generation & Utilities Competition
AMTM · Capital · Positive Reports Q3 FY2026 results with revenue, EBITDA, EPS, and FCF, raises FY2026 guidance, and provides FY2027 expectations.
Westinghouse Electric Company · Demand · Positive Partnership with Amentum for nuclear energy projects, including selection by DOE for Savannah River Site.
Amentum has joined a five-year Babcock International Group Engineering Services Framework to support nuclear, marine, land, aviation and mission systems for the UK Armed Forces at home and abroad. The agreement forms part of a wider strategy to build closer, long-term partnerships with key suppliers, creating a simpler and more consistent way to bring specialist engineering expertise into critical defence programmes. The award builds on decades of infrastructure support to Babcock's Devonport Royal Dockyard, His Majesty's Naval Base Clyde, and the Rosyth Royal dockyard, and enables on-going and future support to critical UK defence and submarine programmes, as well as broader support for platforms and infrastructure across the nuclear, marine, land, and air domains. Amentum provides complex programme, project and engineering solutions, including requirements management, architectural design and building services, multi-disciplinary design engineering, and specialist technical support such as safety case authoring, Human Factors, 3D Building Information Modelling, geotechnical studies, seismic and blast assessment and Independent Technical Assessment.
Amentum, Upwork, Aramark, HighPeak Energy, MercadoLibre move on earnings
Several stocks made big moves yesterday on earnings news. Amentum fell 6% after third-quarter results missed Wall Street expectations for revenue and profit. Upwork dropped 10.2% after second-quarter results came with weak forward guidance, prompting multiple analysts to lower price targets. Aramark rose 9.8% after reporting better-than-expected third-quarter 2026 results. HighPeak Energy gained 5.4% after second-quarter 2026 results comfortably surpassed expectations, driven by surging crude oil prices and disciplined capital expenditures.
Amentum raises full-year profit outlook after record Q3 margins
Amentum raised its full-year adjusted EBITDA and adjusted EPS guidance after third-quarter adjusted EBITDA rose 6% to $290 million and the margin reached a record 8.3%. Adjusted EPS increased 20% to $0.67, while revenue of $3.5 billion was slightly below expectations due to protest delays and procurement issues. Full-year adjusted EBITDA guidance was lifted to $1.115 billion to $1.14 billion, and adjusted EPS guidance rose to $2.40 to $2.50, though revenue guidance was lowered to $13.8 billion to $13.95 billion. The company reported $3.9 billion in quarterly bookings, a $48 billion backlog, and net leverage falling to 3.0 times after $125 million in debt repayments. Management expects fiscal 2027 revenue to be reduced by about 3% from NASA's workforce initiative and another 1% from exiting low-margin programs, but sees mid-single-digit growth in the remaining portfolio.
Amentum Holdings shares climbed 5.4% after the company lowered its full-year fiscal 2026 revenue guidance to a range of US$13.80 billion to US$13.95 billion while reporting sharply higher net income and earnings per share. Third-quarter sales came in at US$3,490 million, slightly below the prior-year period, and nine-month revenues reached US$10,205 million. The improved profitability, driven by margin discipline and execution quality, shifted the investment narrative away from pure growth. With the share price selling off after the revenue miss, the risk remains that high expectations and a rich earnings multiple could collide with any further guidance pressure. Amentum Holdings' shares have been on the rise but are still seen as potentially undervalued by some investors.
AMTM · Capital · Positive Sharply higher net income and EPS, with margin discipline and execution quality, shift narrative away from pure growth despite lower revenue guidance.
Amentum Holdings reported third-quarter revenue of $3.49 billion, a 2% year-over-year decline and 2.97% below the Zacks Consensus Estimate of $3.6 billion. Earnings per share came in at $0.67, surpassing the consensus estimate of $0.63 by 6.35% and up from $0.56 a year ago. Within the company's two segments, Global Engineering Solutions revenue was $2.03 billion versus an estimate of $2.06 billion, while Digital Solutions revenue was $1.46 billion versus an estimate of $1.53 billion. Adjusted EBITDA for Global Engineering Solutions reached $174 million, slightly above the $171.96 million estimate, and Digital Solutions adjusted EBITDA was $116 million, exceeding the $114.36 million estimate.
Amentum Holdings reported second-quarter fiscal 2026 revenue of $3.49 billion, missing analyst estimates of $3.57 billion and marking a 2% year-on-year decline. GAAP earnings per share came in at $0.27, below the $0.32 consensus, while adjusted EBITDA of $290 million slightly exceeded expectations. The company's backlog rose 8.1% to $48.2 billion. Shares fell 15.1% to $20.90 following the release.
Amentum Shares Drop 40.9% in Six Months Amid Weak Revenue Growth and Cash Flow
Amentum shares have fallen 40.9% over the past six months to $21.00, driven by soft quarterly results. The company's revenue grew at a compounded annual rate of just 1.1% over the last four years, and analysts forecast only 1.5% growth over the next 12 months. Its free cash flow margin averaged 2.1% over the past five years, limiting reinvestment potential. The stock now trades at 8.4 times forward earnings, but analysts remain cautious given the shaky fundamentals.
Amentum Holdings Shows Positive Earnings ESP Ahead of August 2026 Report
Amentum Holdings has a positive Earnings ESP of +3.18% and a Zacks Rank #2 (Buy), suggesting it may extend its earnings-beat streak when it reports on August 11, 2026. The government services company has topped consensus estimates in each of its last two quarters, delivering an average surprise of 2.67%. In its most recent quarter, Amentum reported earnings of $0.60 per share versus a $0.58 estimate, a 3.45% surprise, and in the prior quarter it posted $0.54 per share against a $0.53 consensus, a 1.89% beat. Zacks research indicates that stocks combining a positive Earnings ESP with a Zacks Rank of #3 or better produce a positive surprise nearly 70% of the time.
Amentum JV Awarded NASA COSMOS Contract for Mission Operations
Amentum Holdings, through its joint venture with Aerodyne Industries called ASCEND, has been awarded NASA's Consolidated Spaceflight Mission Operations and Systems, or COSMOS, contract. The contract will provide mission operations, systems engineering, and training support to the Flight Operations Directorate at NASA's Johnson Space Center in Houston. Work will support the International Space Station, the Artemis lunar exploration program, and the Orion and Space Launch System programs. Amentum will facilitate astronaut and instructor training, flight controller readiness, and the development of mockup environments for deep-space missions.
StockStory flags Alarm.com, Alamo, and Amentum as profitable stocks with questionable fundamentals
StockStory identified Alarm.com, Alamo, and Amentum Holdings as profitable companies with questionable fundamentals, urging investors to steer clear. Alarm.com posted a trailing 12-month GAAP operating margin of 13.1% but saw average billings growth of just 8.4% over the last year and estimated sales growth of only 3.5% for the next 12 months. Alamo recorded a 9.2% operating margin while sales fell 2.2% annually over two years and earnings per share declined, with Wall Street projecting tepid 4.5% growth ahead. Amentum Holdings, with a 3.7% operating margin, grew revenue just 1.1% annually over four years and faces soft demand estimates of 1.4% growth, constrained by a weak free cash flow margin of 2.1% over five years.
ALG · Demand · Negative Sales fell 2.2% annually over two years and Wall Street projects only 4.5% growth, indicating weak demand.
ALRM · Demand · Negative Average billings growth of just 8.4% over the last year and estimated sales growth of only 3.5% for the next 12 months signal slowing demand.
AMTM · Demand · Negative Revenue grew only 1.1% annually over four years and soft demand estimates of 1.4% growth, constrained by weak free cash flow margin.
StockStory flags Bath and Body Works and Amentum as sells, Valmont as a watchlist pick
StockStory identified Bath and Body Works and Amentum Holdings as stocks to sell, while naming Valmont as a cash-producing company worth watching. Bath and Body Works faces a forecasted revenue decline of 1.7% and same-store sales weakness, with earnings per share growing only 4.5% annually over three years. Amentum Holdings posted annual sales growth of just 1.1% over four years and a weak five-year free cash flow margin of 2.1%, with anticipated sales growth of 1.4% for the next year. Valmont, by contrast, delivered 57.6% annual EPS growth over two years and expanded its free cash flow margin by 10.2 percentage points over five years, supported by a 2.4-percentage-point operating margin improvement.
Government and Technical Consulting Stocks Fall 7.7% After Mixed Q1 Earnings
Government and technical consulting stocks tracked by StockStory fell an average of 7.7% since their latest earnings results, despite reporting revenues in line with analyst consensus estimates. SAIC posted revenues of $1.91 billion, up 1.5% year on year and beating expectations by 4.1%, but its stock still declined 1.7%. UL Solutions, the best performer in the group, reported revenues of $758 million, up 7.5% year on year, while Amentum, the weakest, saw flat revenues of $3.48 billion and a significant EPS miss, sending its shares down 10.2%. ICF International and Maximus also missed revenue estimates, with ICF's revenues falling 10.3% year on year and Maximus's declining 4.1%, contributing to their respective stock declines of 10.7% and 9.3%.
Amentum wins $77 million GSA contract for AI-powered supply chain logistics in Indo-Pacific
Amentum has secured a new 60-month firm-fixed price contract from the General Services Administration to provide modernized, end-to-end, AI-powered supply chain solutions for the Pentagon and other federal customers operating across Japan within the U.S. Indo-Pacific Command area of responsibility. The $77 million award will see Amentum deliver logistics operations support, integrating artificial intelligence tools to enhance demand planning, forecasting, and catalog management for improved order fulfillment and delivery. The company will implement a comprehensive approach covering demand forecasting, procurement, transportation, inventory management, and on-time delivery to ensure uninterrupted operational sustainment at U.S. military installations in the region.
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