Amentum Holdings Inc.

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.

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 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.

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 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.

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.