Amentum (AMTM) Q1 2026 earnings summary

Executive summary

• Entered FY2026 with strong bookings and robust demand in nuclear energy, space, and digital infrastructure, supporting progress toward long-term growth objectives.

• Q1 FY2026 revenues were $3.24 billion, a 5% decrease year-over-year due to contract transitions, divestitures, and government shutdowns, partially offset by new contract ramp-ups.

• Net income attributable to common shareholders rose to $44 million, up 267% year-over-year, driven by lower SG&A, reduced amortization, and a lower effective tax rate.

• Backlog reached $47.2 billion, up 4% from the prior year, with a book-to-bill ratio of 1.1x over the last twelve months.

• Moody’s upgraded the company’s credit rating to Ba3, highlighting a strong financial profile and progress toward net leverage below 3x by year-end.

Financial highlights

• Q1 revenue was $3.24 billion, reflecting normalized growth of 3% year-over-year after adjusting for JV transitions, divestitures, and shutdown impacts.

• Adjusted EBITDA was $263 million, with a margin of 8.1%, up 40 bps from the prior year.

• Adjusted diluted EPS was $0.54, up 6% from prior year, aided by lower interest expense from debt reduction.

• Free cash flow was an outflow of $142 million, impacted by an extra pay cycle and government shutdown-related collections timing, with strong collections rebound expected in Q2.

• Q1 ending cash was $247 million, with $850 million undrawn revolver and no near-term maturities.

Outlook and guidance

• Reaffirmed full-year FY2026 guidance: revenues of $13.95–$14.3 billion (~3% growth), adjusted EBITDA of $1.1–$1.14 billion (~5% growth), adjusted diluted EPS of $2.25–$2.45 (~12% growth), and free cash flow of $525–$575 million (~12% growth).

• Expect sequential quarterly increases in revenue, EBITDA, and EPS as shutdown impacts subside and working days increase.

• 76% of the $10.8 billion remaining performance obligations are expected to be recognized as revenue over the next 12 months.

• Targeting net leverage below 3x by year-end, with improved financial flexibility following the Moody’s credit rating upgrade.

• 95% of revenue expected from existing or recompete business; only 5% from new business.