Amentum (AMTM) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue was $3.5B, up 3% or flat year-over-year depending on source, with net income rising to $54M from $4M, and Adjusted EBITDA at $275M with a 7.9% margin.

• Backlog reached $47.8B, up 7% year-over-year, with a book-to-bill ratio of 1.2x, reflecting strong demand and pipeline.

• Free cash flow rebounded to $220M in Q2, supporting deleveraging and capital structure improvements.

• Major contract wins included $406M UK SMR, $112M EU nuclear decommissioning, $425M CAL FIRE aviation, $300M+ intelligence, and $600M+ digital infrastructure.

• Achieved consistent performance with underlying growth across key metrics, supported by strategic contract wins and strong business development.

Financial highlights

• Revenue: $3.5B in Q2, up 3% year-over-year; Adjusted EBITDA: $275M, margin 7.9%; Adjusted Diluted EPS: $0.60, up 13% year-over-year.

• Operating income rose to $151M, up 37% year-over-year; free cash flow was $220M in Q2.

• Cash and cash equivalents stood at $428M, with gross debt at $4B as of April 3, 2026.

• Net leverage was 3.2x, with a target below 3x by year-end.

• Backlog increased to $47.8B from $44.8B in Q2 FY25.

Outlook and guidance

• FY26 guidance reaffirmed: revenue $13.95B–$14.3B, Adjusted EBITDA $1.1B–$1.14B, Adjusted EPS $2.25–$2.45, free cash flow $525M–$575M.

• 97% of FY26 revenue expected from existing and repeat business; majority of cash flow expected in Q4 due to seasonality.

• 78% of remaining performance obligations expected to be recognized as revenue over the next 12 months.