10-Q · May 12, 2026
Amentum reported Q2 fiscal 2026 revenue of $3.478 billion, slightly down 0.4% year-over-year. Adjusted EPS rose to $0.60, outperforming analyst expectations, reflecting strong operational performance despite a decline…
Earnings analysis · 10-Q
AMTM earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Amentum posted mixed Q3 results: revenue declined 2.0% year over year to $3.490 billion, but operating income rose 67.0% to $172 million and operating margin expanded to approximately 4.9%. Digital Solutions grew…
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Amentum posted mixed Q3 results: revenue declined 2.0% year over year to $3.490 billion, but operating income rose 67.0% to $172 million and operating margin expanded to approximately 4.9%. Digital Solutions grew revenue 3%, while Global Engineering Solutions revenue declined 5% but delivered 9% Adjusted EBITDA growth. Backlog increased to $48.237 billion and debt reduction lowered interest expense, although nine-month operating cash flow declined to $235 million and the company remains highly exposed to federal government funding and variable-rate debt.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Operating income and margin expanded
Q3 operating income increased to $172 million from $103 million, a $69 million or 67.0% year-over-year increase. Operating margin expanded to approximately 4.9% from 2.9% in the prior-year quarter.
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Net income improved sharply
Net income attributable to common shareholders rose to $66 million from $10 million, an increase of $56 million or 560.0% year over year. The effective tax rate also declined to 29.8% from 108.3%.
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Digital Solutions delivered growth
Digital Solutions revenue increased 3% year over year to $1,457 million, while Adjusted EBITDA increased 2% to $116 million. Growth was driven by new contract awards and expansion of existing programs.
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GES expanded EBITDA despite lower sales
Global Engineering Solutions Adjusted EBITDA increased 9% to $174 million despite a 5% revenue decline to $2,033 million, reflecting strong operational performance.
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Backlog reached $48.2 billion
Total backlog increased to $48.237 billion from $44.642 billion, a $3.6 billion increase, primarily due to new contract wins. Funded backlog was $6.240 billion.
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Debt reduction lowered interest expense
The company made a $125 million voluntary principal payment on Term Loan B on June 30, 2026. Interest expense and other, net declined to $62 million from $88 million in the prior-year quarter.
What to watch
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Revenue remains under pressure
Q3 revenue declined 2.0% to $3,490 million from $3,561 million, primarily due to contracts transitioning from consolidated operations to unconsolidated joint ventures and fiscal 2025 divestitures. GES revenue fell 5% year over year to $2,033 million.
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Working-capital use reduced cash flow
The company reported $235 million of operating cash flow for the first nine months, down $38 million from $273 million a year earlier. Management attributed the decline to a $167 million change in operating assets and liabilities, despite a $129 million increase in cash earnings.
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High exposure to federal budgets
Approximately 81% of fiscal 2025 revenue came from U.S. federal government contracts. Management also noted government shutdowns from October 2 to November 12, 2025 and January 31 to February 3, 2026, with the DHS shutdown continuing until April 30, 2026; future continuing resolutions or delayed appropriations could delay awards and program starts.
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Floating-rate debt remains sensitive
Variable-rate Term Loan A, Term Loan B, and Revolver debt remains exposed to interest-rate movements. A 1% change in applicable rates would have changed nine-month interest expense by approximately $23 million, while the company had $1.3 billion of interest-rate swaps outstanding.
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Refinancing generated debt charges
The company recognized a $16 million loss on extinguishment of debt in the nine months ended July 3, 2026, related to the Credit Facility amendment and the $125 million Term Loan B prepayment.
Management's outlook
The 10-Q does not provide explicit quantitative revenue or EPS guidance. The filing discusses constructive federal budget trends and expects internally generated funds, available borrowings, and cash on hand to provide liquidity for at least the next twelve months.
Earlier filings 3
10-Q · May 7, 2025
Amentum reported Q2 revenue of $3,491 million and diluted EPS of $0.02, beating consensus while reflecting acquisition-related amortization and restructuring of reporting segments. Digital Solutions revenue was $1,340…
10-K · December 17, 2024
Amentum became a public company through a merger/spin on September 27, 2024 and presents a large, diversified government services platform with a $45.0 billion backlog as of September 27, 2024 and a ~53,000-employee…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.