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what it is
Amentum helps governments run hard stuff: nuclear sites, space missions, cyber work, and giant cleanup projects.
how it gets paid
Last year Amentum made $14.4B in revenue.
why it's growing
Revenue grew 71.6% last year. The 5% revenue drop matters most because this stock is priced for smooth execution.
what just happened
Latest quarter revenue was $3.2B, down 5%, while EPS improved to $0.18.
At a glance
B+ balance sheet — decent shape, but not bulletproof
132.9x trailing p/e — you're paying up for this one
11.0% return on capital — nothing to write home about
$2.75 fy2027 eps est
$15B fy2027 rev est
xvary composite: 55/100 — below average
What they do
Amentum helps governments run hard stuff: nuclear sites, space missions, cyber work, and giant cleanup projects.
If your nuclear site, weapons program, or space mission already runs on Amentum, you do not swap contractors casually. The company has 50,000 employees and works on nuclear security, NASA missions, and environmental cleanup, where failure is expensive and public. Switching costs → changing contractors is messy and risky → so what: once Amentum is inside your mission, replacing it can create more danger than savings.
How they make money
$14.4B
annual revenue · their business grew +71.6% last year
total revenue
$14.4B
+71.6%
The products that matter
core revenue engine
contracted mission work
$14.4B revenue base
Amentum is not selling gadgets. It is selling labor, know-how, and contract performance into government programs. The revenue base is big. The catch is that big does not automatically mean high-margin.
scale first
what keeps the door closed to newcomers
clearances and procurement history
hard to replicate
Some businesses win because customers love the product. This one wins because governments trust the contractor, the paperwork clears, and the work gets done. That creates stickiness, just not software-style economics.
access matters
swing factor
margin discipline
7.5% operating margin
Here’s the thing: on a business this size, even modest margin improvement changes the earnings story fast. The reverse is also true. A thin-margin contractor does not get many bad quarters for free.
earnings hinge
Key numbers
132.9x
trailing p/e
You are paying a luxury multiple for a contractor with a 9.0% operating margin. That is the whole debate.
$14.4B
annual revenue
Scale matters in government contracting because large programs reward incumbents that can staff globally.
9.0%
operating margin
Operating margin → profit after running the business → so what: this is a solid services business, not a software money printer.
$3.9B
long-term debt
Debt limits your room for error if contract timing slips or integration costs run longer than planned.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- long-term debt $3.9B (31% of capital)
- net profit margin 7.1% — keeps 7 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for AMTM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue was $3.2B, down 5%, while EPS improved to $0.18.
That is the weird setup. Profit improved while sales slipped. The quiet part out loud: margin work is helping, but top-line momentum still needs proof.
$3.2B
revenue
$0.18
eps
10.1%
gross margin
the number that mattered
The 5% revenue drop matters most because this stock is priced for smooth execution, not quarterly shrinkage.
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we welcome amentum to our survey.
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the company is a premier global contractor providing advanced engineering, technology, and mission support solutions to government and private sector clients.
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it specializes in nuclear security, aerospace, defense, and intelligence markets.
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key services include managing critical nuclear assets, supporting nasa’s space missions, and executing environmental cleanups.we believe that the company kicked off fiscal 2026 in fine fashion. (the company was set to announce fiscal first-quarter results as we rolled the presses on this issue.)
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amentum’s fiscal year ends on the first friday in october.also, beginning in 2026, we will present the company’s results on a non-gaap basis as we believe it better reflects the company’s underlying fundamentals.
source: company earnings report, 2026
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What could go wrong
Amentum's risk is not abstract. It gets paid by government customers, operates with thin margins, and now needs forward earnings improvement to justify the stock.
high
contract renewal and award timing
Amentum lives on awarded work. If agencies delay, re-bid, protest, or cancel programs, revenue can wobble quickly even when the mission itself still exists.
hits the entire $14.4B revenue base because contracts are the business, not a side segment
high
low-margin execution risk
Operating margin is 7.5%. One recent quarter printed 0.5% margin. That gap tells you the business does not have much room for overruns, poor contract mix, or integration friction.
every 1-point margin hit on $14.4B revenue is about $144M less operating profit
med
adjusted reporting may look cleaner than the economics
Management shifting to non-gaap reporting in 2026 may make the business easier to explain. It can also make weak underlying performance look more flattering if adjusted numbers run ahead of margin and cash earnings.
watch whether EPS, margins, and cash conversion improve together — not just the presentation layer
med
the valuation already assumes better earnings from here
The stock looks very different at 15x forward EPS than at 132.9x trailing EPS. If the $2.40 estimate slips, investors stop debating upside and start debating whether the recovery story was early.
this is the multiple risk hiding inside an earnings-recovery thesis
on a $14.4B revenue base with a 4.6% net margin, contract continuity and execution discipline do most of the valuation work.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
margin recovery in fiscal q1 2026
This is the headline watch item. If margin stays near the recent 0.5% quarter, the forward-earnings story gets shaky fast.
trend
institutional selling trend
Two straight quarters of net selling is caution, not panic. A third straight quarter would start to look more deliberate.
risk
new contract awards and renewals
This business does not need a viral launch. It needs a healthy cadence of awards, renewals, and program continuity across defense, nuclear, aerospace, and intelligence work.
calendar
the first full non-gaap reporting cycle
Watch the bridge between old and new presentation. If adjusted numbers improve but core margin does not, you learned something important.
Analyst rankings
risk profile
average
stability score 3. in human-speak, analysts see a middle-of-the-pack risk name — not a bunker stock, not a chaos stock.
earnings setup
prove it
the forward setup looks far better than the trailing numbers. that usually means the next quarter matters more than the average quarter.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 176 buyers vs. 241 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$12
$50
$36
current price
$31
target midpoint · 14% from current · 3-5yr high: $70 (+95% · 18% ann'l return)
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