Amentum (AMTM) investor relations material

Executive summary

• Q2 FY2026 revenue was $3.5B, flat to up 3% year-over-year, with Adjusted EBITDA of $275M at a 7.9% margin and net income rising to $54M from $4M, reflecting improved profitability and operational strength.

• Backlog reached $47.8B, up 7% year-over-year, with a book-to-bill ratio of 1.2x, driven by major contract wins in nuclear, aviation, intelligence, and digital infrastructure.

• Free cash flow rebounded to $220M in Q2, with strong working capital management and first-half free cash flow of $78M.

• Major contracts awarded include $406M UK nuclear SMR, $112M EU nuclear decommissioning, $425M CALFIRE, $300M+ intelligence, and $600M+ digital infrastructure.

• Debt refinancing included a $1.4B Term Loan A, repayment of Term Loan B, and increased revolver to $1B, reducing average cost of debt by 50 bps.

Financial highlights

• Adjusted diluted EPS rose 13% year-over-year to $0.60, with operating income up 37% to $151M and free cash flow at $220M.

• Digital Solutions revenue grew 10% to $1.47B, while Global Engineering Solutions revenue was $2.01B, down 7% year-over-year.

• Adjusted EBITDA margin improved to 7.9% from 7.7% year-over-year.

• Net leverage was 3.2x, with a target below 3.0x by year-end.

• Cash and cash equivalents stood at $428M, with gross debt at $4B as of April 3, 2026.

Outlook and guidance

• FY2026 guidance reaffirmed: revenue $13.95B–$14.3B, Adjusted EBITDA $1.1B–$1.14B, EPS $2.25–$2.45, free cash flow $525M–$575M.

• Implied underlying growth at the guidance midpoint: ~3% revenue, ~5% Adjusted EBITDA, ~12% EPS, ~12% free cash flow.

• 97% of FY26 revenue expected from existing/repeat business; majority of cash flow to be generated in Q4.

• Book-to-bill expected to remain strong, with over $26B in proposals awaiting award and $35B+ in bids targeted for the year.

• 78% of remaining performance obligations expected to be recognized as revenue over the next 12 months.