Amentum Holdings, Inc. 10-Q Summary
Business Context and Reporting Period
This filing is a Quarterly Report on Form 10-Q for Amentum Holdings, Inc. (AMTM) for the period ended April 3, 2026. Amentum is a global advanced engineering and technology solutions provider serving U.S. and allied government agencies, as well as commercial markets. The company operates through two reportable segments: Digital Solutions (DS) and Global Engineering Solutions (GES).
Key Financial Metrics
| Metric | Three Months Ended April 3, 2026 |
Six Months Ended April 3, 2026 |
|---|---|---|
| Revenues | $3,478 million | $6,715 million |
| Net Income (Common Shareholders) | $54 million | $98 million |
| Diluted EPS | $0.22 | $0.40 |
| Operating Income | $151 million | $289 million |
| Adjusted EBITDA | $275 million | $538 million |
| Cash and Equivalents | $428 million (as of April 3, 2026) | |
| Total Debt (Gross) | $3,988 million (as of April 3, 2026) | |
| Backlog | $47.8 billion (Total); $6.9 billion (Funded) |
Material Changes vs. Prior Period
- Revenue: Revenues decreased slightly by 0.4% ($13 million) for the quarter and 2.8% ($192 million) for the six months compared to the prior year periods. This was primarily due to the transition of contracts to unconsolidated joint ventures, prior-year divestitures, and impacts from government shutdowns in early 2026.
- Profitability: Net income attributable to common shareholders increased significantly, rising from $4 million to $54 million for the quarter and from $16 million to $98 million for the six months. This improvement was driven by higher operating income, reduced interest expense, and a lower effective tax rate (30.8% vs. 91.7% in the prior quarter).
- Segment Performance:
- Digital Solutions: Revenues increased 10% ($128 million) for the quarter, driven by new contract awards.
- Global Engineering Solutions: Revenues decreased 7% ($141 million) for the quarter due to contract transitions and program ramp-downs, though Adjusted EBITDA increased 6%.
- Cost Structure: Selling, general, and administrative (SG&A) expenses decreased by 14.5% for the quarter, attributed to synergies from the merger of Jacobs Critical Mission Solutions.
Outlook, Risks, and Subsequent Events
- Subsequent Event (Debt Restructuring): On April 24, 2026, the company amended its Credit Facility. This established a new $1.4 billion Term Loan A, restructured the existing Term Loan into a $1.591 billion Term Loan B, and increased the Revolver capacity by $150 million.
- Government Shutdowns: The company experienced operational impacts from a government shutdown in October-November 2025 and a partial shutdown in January-February 2026. Funding for FY2026 was finalized in April 2026.
- Backlog: Total backlog increased to $47.8 billion, up $3.0 billion from the prior year, indicating strong future revenue visibility despite current revenue headwinds.
- Risks: Key risks include reliance on U.S. government funding, potential delays in appropriations, and the impact of government shutdowns on contract awards and performance.
Investor Verification Checklist
- Debt Covenant Compliance: Verify continued compliance with financial covenants following the April 24, 2026 credit facility amendment.
- Joint Venture Transitions: Monitor the financial impact of contracts transitioning from consolidated to unconsolidated joint ventures on future revenue recognition.
- Government Funding: Track the status of FY2027 budget requests and potential impacts of defense spending increases on the company's backlog.
- Effective Tax Rate: Review the sustainability of the improved effective tax rate compared to the anomalous 91.7% rate in the prior year quarter.