Amentum (AMTM) investor relations material

Executive summary

• Third quarter revenues were $3.49 billion, down 2% year-over-year due to contract transitions and divestitures, partially offset by new contract awards and growth in digital infrastructure and space systems.

• Adjusted EBITDA increased 6% to $290 million, with margin expansion to 8.3% from 7.7% year-over-year.

• Net income attributable to common shareholders rose to $66 million, up from $10 million in the prior year, driven by lower SG&A, reduced amortization, and improved equity earnings.

• Free cash flow reached $135 million, up 35% year-over-year.

• Backlog reached $48.2 billion, up 8% year-over-year, with a book-to-bill ratio of 1.1x for the quarter and 1.3x for the trailing 12 months.

Financial highlights

• Adjusted diluted EPS rose 20% year-over-year to $0.67, and operating income increased 67% to $172 million.

• Digital Solutions revenue grew 3% to $1.46 billion, with 8% EBITDA margins; Global Engineering Solutions revenue was $2.03 billion, with 8.6% EBITDA margins, up 110 basis points year-over-year.

• Free cash flow for the quarter and year-to-date totaled $135 million and $213 million, respectively.

• Net leverage reduced to 3.0x, with $3.88 billion in total debt and $459 million in cash.

• SG&A expenses decreased to 3.5% of revenues, reflecting merger synergies.

Outlook and guidance

• Fiscal 2026 revenue guidance updated to $13.8–$13.95 billion, reflecting protest-related delays and material volume adjustments.

• Adjusted EBITDA guidance raised to $1.115–$1.14 billion, with margins of 8.1% at midpoint.

• Adjusted diluted EPS guidance increased to $2.40–$2.50.

• Free cash flow guidance maintained at $525–$575 million.

• Fiscal 2027 outlook anticipates a 3% revenue impact from NASA insourcing and a 1% impact from exiting low-margin domestic programs, offset by mid-single digit growth in the remaining portfolio.