Amentum Holdings Q1 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy AMTM?
Source: seekingalpha
- Earnings Performance: Amentum Holdings reported a Q1 Non-GAAP EPS of $0.54, missing expectations by $0.04, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company posted revenues of $3.24 billion, a 5.3% year-over-year decline, falling short of market expectations by $230 million, reflecting weak market demand that may pressure future performance.
- Strong Backlog: Despite the revenue drop, Amentum's backlog stands at $47.2 billion with a Book-to-Bill ratio of 1.0, indicating a stable revenue source for the future, potentially laying the groundwork for long-term growth.
- Fiscal Year 2026 Guidance Reaffirmed: Amentum reaffirmed its FY 2026 guidance, projecting revenues between $13.95 billion and $14.3 billion, slightly below consensus, reflecting a cautious outlook on future growth.
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Analyst Views on AMTM
Wall Street analysts forecast AMTM stock price to rise
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 30.070
Low
30.00
Averages
34.56
High
40.00
Current: 30.070
Low
30.00
Averages
34.56
High
40.00
About AMTM
Amentum Holdings, Inc. is a global advanced engineering and technology solutions provider to a broad base of the United States and allied government agencies, supporting programs of critical national importance across energy and environmental, intelligence, space, defense, civilian and commercial end-markets. It offers a range of capabilities, including intelligence and counter-threat solutions, data fusion and analytics, engineering and integration, environmental solutions, advanced test, training and readiness, and citizen solutions. Its segments include Digital Solutions (DS) and Global Engineering Solutions (GES). The DS segment offers advanced digital and data-driven solutions including intelligence analytics, space system development, cybersecurity, and next-generation information technology for the federal government and commercial clients. The GES segment offers large-scale environmental remediation, clean energy, platform engineering, sustainment and supply chain management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amentum Reports Q1 Fiscal 2026 Results Amid Investor Concerns
- Earnings Beat: Amentum reported adjusted diluted EPS of $0.54 for Q1 2026, surpassing analyst expectations of $0.52, indicating resilience in profitability despite broader concerns.
- Revenue Miss: However, the company’s revenue of $3.24 billion fell short of the anticipated $3.32 billion, representing a 5% year-over-year decline, which may raise investor concerns about future growth prospects.
- Negative Cash Flow Warning: Amentum reported negative free cash flow of $142 million in Q1, a stark contrast to the positive $102 million reported in Q1 2025, highlighting challenges in cash management that could affect operational flexibility.
- Cautious Outlook: While management forecasts revenue growth to $13.95 billion to $14.3 billion for fiscal 2026 and adjusted EBITDA of $1.1 billion to $1.14 billion, the current P/E ratio of 75.2 suggests that investors should carefully evaluate the stock's investment value amidst these projections.
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- Negative Free Cash Flow: The company reported negative free cash flow of $142 million in Q1 2026, a stark contrast to the positive $102 million in Q1 2025, indicating a deterioration in financial health that may undermine investor confidence.
- Fiscal 2026 Guidance: Amentum forecasts fiscal 2026 revenue between $13.95 billion and $14.3 billion, reflecting approximately 3% year-over-year growth, with adjusted EBITDA projected at $1.1 billion to $1.14 billion, suggesting cautious optimism from management about future performance.
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- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
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- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
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- Strong Revenue Growth: Amentum Holdings reported revenue of $3.24 billion for Q1 2026, reflecting a 3% year-over-year increase, with adjusted EBITDA of $263 million and an EBITDA margin of 8.1%, showcasing robust performance in high-demand sectors like nuclear energy and digital infrastructure.
- Backlog Expansion: The company noted a 4% increase in backlog, reaching over $47 billion, which includes nearly $1 billion in nuclear energy contracts and a $730 million, 10-year contract from EDF Nuclear Power in the U.K., indicating sustained competitiveness in key markets.
- Cash Flow Usage: Free cash flow usage of $142 million in Q1 was primarily attributed to timing effects related to pay cycles and government holidays, with expectations for normalization in Q2, reflecting management's confidence in future cash flow recovery.
- Outlook Reaffirmation: Management reaffirmed fiscal 2026 guidance, projecting revenue between $13.95 billion and $14.3 billion and adjusted EBITDA between $1.1 billion and $1.14 billion, demonstrating confidence in future growth, particularly amid strong demand in nuclear and space markets.
See More
Amentum Reports Q1 Fiscal 2026 Results Amid Investor Concerns
- Earnings Beat: Amentum reported adjusted diluted EPS of $0.54 for Q1 2026, surpassing analyst expectations of $0.52, indicating resilience in profitability despite broader concerns.
- Revenue Miss: However, the company’s revenue of $3.24 billion fell short of the anticipated $3.32 billion, representing a 5% year-over-year decline, which may raise investor concerns about future growth prospects.
- Negative Cash Flow Warning: Amentum reported negative free cash flow of $142 million in Q1, a stark contrast to the positive $102 million reported in Q1 2025, highlighting challenges in cash management that could affect operational flexibility.
- Cautious Outlook: While management forecasts revenue growth to $13.95 billion to $14.3 billion for fiscal 2026 and adjusted EBITDA of $1.1 billion to $1.14 billion, the current P/E ratio of 75.2 suggests that investors should carefully evaluate the stock's investment value amidst these projections.
See More
Amentum Q1 Financial Results Lead to Stock Decline
- Mixed Financial Results: Amentum reported Q1 2026 adjusted diluted EPS of $0.54, surpassing the $0.52 consensus, yet revenue fell short at $3.24 billion compared to the expected $3.32 billion, resulting in a 19.9% stock decline.
- Negative Free Cash Flow: The company reported negative free cash flow of $142 million in Q1 2026, a stark contrast to the positive $102 million in Q1 2025, indicating a deterioration in financial health that may undermine investor confidence.
- Fiscal 2026 Guidance: Amentum forecasts fiscal 2026 revenue between $13.95 billion and $14.3 billion, reflecting approximately 3% year-over-year growth, with adjusted EBITDA projected at $1.1 billion to $1.14 billion, suggesting cautious optimism from management about future performance.
- High Market Valuation: Despite anticipated revenue and EBITDA growth, Amentum's current P/E ratio stands at 75.2, prompting investors to consider whether to buy during the dip, especially when more attractive nuclear energy stocks are available in the market.
See More
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- Strong Earnings Performance: Teradata reported earnings of 74 cents per share, surpassing the analyst consensus estimate of 56 cents, indicating robust profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $421 million, exceeding the analyst consensus estimate of $400.817 million, suggesting sustained strong market demand that could drive future business expansion.
- Stock Price Surge: Teradata shares jumped 16.5% to $34.07 in pre-market trading, reflecting a positive market reaction to the earnings report, which may attract more investor interest.
- Significant Market Impact: This earnings beat not only lifted the company's stock price but could also positively influence investor sentiment across the industry, further solidifying Teradata's market position in the data analytics sector.
See More
Mixed Close for US Stocks as Retail Sales Stagnate
- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Amentum Holdings Reports Strong Q1 2026 Earnings with Robust Backlog Growth
- Strong Revenue Growth: Amentum Holdings reported revenue of $3.24 billion for Q1 2026, reflecting a 3% year-over-year increase, with adjusted EBITDA of $263 million and an EBITDA margin of 8.1%, showcasing robust performance in high-demand sectors like nuclear energy and digital infrastructure.
- Backlog Expansion: The company noted a 4% increase in backlog, reaching over $47 billion, which includes nearly $1 billion in nuclear energy contracts and a $730 million, 10-year contract from EDF Nuclear Power in the U.K., indicating sustained competitiveness in key markets.
- Cash Flow Usage: Free cash flow usage of $142 million in Q1 was primarily attributed to timing effects related to pay cycles and government holidays, with expectations for normalization in Q2, reflecting management's confidence in future cash flow recovery.
- Outlook Reaffirmation: Management reaffirmed fiscal 2026 guidance, projecting revenue between $13.95 billion and $14.3 billion and adjusted EBITDA between $1.1 billion and $1.14 billion, demonstrating confidence in future growth, particularly amid strong demand in nuclear and space markets.
See More
