Amentum Holdings Stock Earnings Reports

Amentum reported a solid Q2 FY2026 with revenue of $3.5 billion (normalized growth ~3%), adjusted EBITDA of $275 million (7.9% margin), adjusted diluted EPS of $0.60 (up 13% YoY) and free cash flow of $220 million. Business development momentum was strong: net bookings of $4.0 billion, LTM book-to-bill ~1.2x, ending backlog near $48 billion (all‑time high) and $26 billion of proposals pending (≈65% new-to-Amentum). Notable awards included a 14‑year $406M SMR commission contract in the U.K., a $425M 5‑year CALFIRE aviation contract, >$300M in intelligence awards, and >$600M in critical digital infrastructure (CDI) work for telecom, hyperscalers and national security customers. Management highlighted CDI, global nuclear energy and space systems/technology as accelerating growth markets and argued CDI (data centers, networks, edge and cyber) is underappreciated by the market. Segment performance: Digital Solutions revenue up ~10% (margins pressured by ramping new starts), Global Engineering Solutions margins expanded ~100 bps to 8.5% driven by higher‑margin mix and synergy capture. Capital actions post‑quarter: new $1.4B Term Loan A, Term Loan B paydown/reprice, revolver increased to $1B; weighted average cost of debt down ~50 bps. Guidance was reaffirmed for FY2026: revenue $13.95B–$14.3B, adjusted EBITDA $1.10B–$1.14B, adj. diluted EPS $2.25–$2.45, FCF $525M–$575M. Management expects net leverage <3.0x by year‑end and continued disciplined capital deployment (organic investment, opportunistic M&A, debt paydown or share repurchases when appropriate).