Amentum (AMTM) investor relations material

Executive summary

• Q1 FY2026 revenues were $3.24 billion, down 5% year-over-year due to government shutdowns and contract transitions, but supported by new contract ramp-ups in digital infrastructure and space systems.

• Net income rose to $44 million, up 267% year-over-year, with adjusted diluted EPS at $0.54, driven by lower SG&A, reduced amortization, and a lower effective tax rate.

• Backlog reached $47.2 billion, up 4% from the prior year, with a book-to-bill ratio of 1.1x over the last twelve months and major wins in nuclear, space, and digital infrastructure.

• Moody’s upgraded the company’s credit rating to Ba3, highlighting a strong financial profile and progress toward net leverage below 3x by year-end.

• Management reaffirmed FY2026 guidance and expressed confidence in achieving long-term growth objectives.

Financial highlights

• Adjusted EBITDA was $263 million (8.1% margin), up 40 bps year-over-year, and adjusted diluted EPS rose to $0.54.

• Free cash flow was an outflow of $142 million, impacted by government shutdown-related collections timing and an additional pay cycle.

• Operating income increased to $138 million, up from $132 million year-over-year.

• Cash on hand was $247 million, with $850 million undrawn revolver and gross debt at $4.0 billion.

• Backlog reached $47.2 billion, with $6.9 billion funded, and LTM book-to-bill of 1.1x.

Outlook and guidance

• Reaffirmed FY2026 guidance: revenue $13.95–$14.3 billion (~3% growth), adjusted EBITDA $1.1–$1.14 billion (~5% growth), adjusted EPS $2.25–$2.45 (~12% growth), and free cash flow $525–$575 million (~12% growth).

• Expect sequential quarterly increases in revenue, EBITDA, and EPS as shutdown impacts subside.

• 76% of the $10.8 billion remaining performance obligations are expected to be recognized as revenue over the next 12 months.

• On track to achieve net leverage below 3x by year-end.