Financial Performance - Revenues for the three months ended January 2, 2026, were $3,237 million, a decrease of 5.2% compared to $3,416 million for the same period in 2024, primarily due to government shutdown impacts and contract transitions [81]. - The Digital Solutions segment reported revenues of $1,337 million, an increase of 4% from $1,286 million in the prior year, driven by new contract awards [90]. - The Global Engineering Solutions segment experienced a revenue decline of 11% to $1,900 million from $2,130 million, attributed to contract transitions and government shutdown impacts [92]. - Net income attributable to common shareholders increased significantly to $44 million, up 266.7% from $12 million in the previous year [81]. - Cost of revenues as a percentage of revenues was 89.9% for the three months ended January 2, 2026, compared to 89.4% for the same period in 2024 [82]. - Selling, general, and administrative expenses decreased to 3.6% of revenues, down from 3.8% in the prior year, reflecting operational efficiencies [83]. Tax and Backlog - The effective tax rate for the three months ended January 2, 2026, was 31.3%, a decrease from 53.3% in the prior year, primarily due to a valuation allowance against a disallowed interest expense deferred tax asset [87]. - The company's backlog includes both funded and unfunded contracts, representing future revenue potential, with funded backlog being the contract value for which funding is appropriated [95]. - As of January 2, 2026, the total backlog was $47.2 billion, an increase of $2.0 billion from $45.2 billion on December 27, 2024, with a funded backlog of $6.9 billion [96]. Revenue Sources and Contracts - Approximately 81% of revenues were generated from contracts with the U.S. federal government, indicating a strong reliance on government contracts [75]. - The company is strategically aligned with long-term federal government priorities, including increased spending on modernization and defense initiatives [80]. - For the three months ended January 2, 2026, 57% of revenues were generated under cost-plus-fee contracts, which have limited inflation risk [97]. Cash Flow and Liquidity - Net cash used in operating activities decreased by $246 million to $(136) million for the three months ended January 2, 2026, compared to $110 million for the same period in 2024 [106]. - The Company reported a net cash used in investing activities of $(33) million for the three months ended January 2, 2026, an increase of $25 million compared to $(8) million in the prior year [107]. - The Company believes that its combination of internally generated funds and available bank borrowings will provide necessary liquidity for at least the next twelve months [102]. - The Company had a net change in cash and cash equivalents of $(190) million for the three months ended January 2, 2026, compared to an increase of $70 million in the same period in 2024 [106]. Debt and Interest Rates - The Term Loan requires quarterly principal amortization payments of $9 million, which commenced on March 31, 2025 [99]. - The Company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $1.6 billion related to a portion of its variable rate debt [111]. - The remaining balance under the Term Loan is subject to interest rate fluctuations, with a $1 million fluctuation in interest rates affecting interest expense by approximately $8 million [111]. - The Company was in compliance with all covenants as of January 2, 2026 [101].

Earnings Conference Call First Quarter Fiscal Year 2026 February 10, 2026 Advancing the future together A M E N T U M P R O P R I E T A R Y The appearance of U.S. Department of Defense (DOD) visual information does not imply or constitute DOD endorsement. Forward Looking Statements and Disclaimers Cautionary Note Regarding Forward Looking Statements This presentation contains or incorporates by reference statements that relate to future events and expectations and, as such, could be interpreted to be "forwa ...

Core Insights - Amentum Holdings reported a revenue of $3.24 billion for the quarter ended December 2025, reflecting a 5.2% decline year-over-year and a revenue surprise of -2.98% compared to the Zacks Consensus Estimate of $3.34 billion. The EPS was $0.54, slightly up from $0.51 in the previous year, with an EPS surprise of +1.89% against the consensus estimate of $0.53 [1]. Financial Performance - Revenue from Global Engineering Solutions (GES) was $1.9 billion, falling short of the average estimate of $2.04 billion from three analysts [4]. - Revenue from Digital Solutions (DS) reached $1.34 billion, exceeding the average estimate of $1.27 billion from three analysts [4]. - Adjusted EBITDA for GES was reported at $160 million, slightly above the average estimate of $157.08 million from two analysts [4]. - Adjusted EBITDA for DS was $103 million, surpassing the average estimate of $99.45 million from two analysts [4]. Stock Performance - Amentum's shares have returned +11.6% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

分组1 - Amentum Holdings reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and showing an increase from $0.51 per share a year ago, resulting in an earnings surprise of +1.89% [1] - The company posted revenues of $3.24 billion for the quarter ended December 2025, which was 2.98% below the Zacks Consensus Estimate and a decrease from $3.42 billion year-over-year [2] - Amentum has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - Amentum shares have increased approximately 29.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the next quarter is $0.58 on revenues of $3.48 billion, and for the current fiscal year, it is $2.43 on revenues of $14.15 billion [7] 分组3 - The Engineering - R and D Services industry, to which Amentum belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Amentum was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Performance - Revenues for the first quarter of fiscal year 2026 were $3.24 billion, a decrease of 5% year-over-year[1] - Net income increased to $44 million, representing a 267% increase compared to the prior year[3] - Adjusted EBITDA was $263 million with an adjusted EBITDA margin of 8.1%, up from 7.7% in the previous year[5] - Revenues for the three months ended January 2, 2026, were $3,237 million, a decrease of 5.3% from $3,416 million for the same period in 2024[27] - Net income attributable to common shareholders increased to $44 million, compared to $12 million in the prior year, representing a 266.7% increase[27] - Basic and diluted earnings per share attributable to common shareholders rose to $0.18, up from $0.05, marking a 260% increase[27] - Operating income for the period was $138 million, compared to $132 million in the prior year, reflecting a 4.5% increase[27] - Adjusted EBITDA for the three months ended January 2, 2026, was $244 million, with an Adjusted EBITDA Margin of 7.5%[40] - Adjusted EBITDA for the period was $262 million, with an EBITDA margin of 7.7%[43] Backlog and Contracts - Total backlog reached $47.2 billion, a 4% increase from $45.2 billion a year ago, with a book-to-bill ratio of 1.0x[11] - Digital Solutions revenues grew by 4% year-over-year, driven by new contract awards in critical digital infrastructure[8] - Global Engineering Solutions revenues decreased by 11% year-over-year due to contract transitions and divestitures[9] - Notable contracts awarded include a $730 million contract from Électricité de France and a $995 million contract from the U.S. Air Force[12][13] Cash Flow and Leverage - Cash flow from operating activities showed a net cash usage of $136 million, impacted by timing of collections and an additional pay cycle[10] - Free Cash Flow for the first quarter of fiscal year 2026 was an outflow of $142 million, consisting of $136 million cash used in operating activities and $6 million for property and equipment purchases[36] - Net Leverage for the first quarter of fiscal year 2026 was 3.4x, calculated from total debt of $3,998 million less cash and cash equivalents of $247 million[37] Assets and Liabilities - Total assets decreased to $11,198 million from $11,460 million, reflecting a decline of 2.3%[30] - Total liabilities decreased to $6,536 million from $6,840 million, a reduction of 4.5%[30] - Cash and cash equivalents at the end of the period were $247 million, down from $522 million at the end of the previous year[31] Credit Rating - Moody's upgraded Amentum's credit rating to Ba3 from Ba1, reflecting improved financial performance[1]

Core Insights - Amentum Holdings, Inc. reported solid operational performance in Q1 2026, with a focus on high-demand areas such as global nuclear energy, space systems, and critical digital infrastructure [1][4]. Financial Performance - Revenues for the first quarter were $3.24 billion, a decrease of 5% year-over-year, primarily due to contract transitions and divestitures [2][4]. - Operating income increased by 5% to $138 million, while net income surged by 267% to $44 million, reflecting improved operational performance and lower interest expenses [2][4]. - Diluted earnings per share rose to $0.18, up from $0.05 in the previous year, marking a 260% increase [2][4]. Non-GAAP Measures - Adjusted EBITDA was reported at $263 million, with an adjusted EBITDA margin of 8.1%, an increase from 7.7% in the prior year [5][6]. - Adjusted net income and adjusted diluted earnings per share also increased, primarily due to lower interest expenses [5][6]. Segment Performance - Digital Solutions revenues increased by 4% year-over-year to $1.34 billion, driven by new contract awards in critical digital infrastructure [8]. - Global Engineering Solutions revenues decreased by 11% to $1.90 billion, impacted by contract transitions and a government shutdown, although partially offset by growth in existing programs [9]. Cash Flow and Financial Position - Amentum reported a net cash outflow of $136 million from operating activities, influenced by an additional pay cycle and timing of collections [10]. - As of January 2, 2026, the company had $247 million in cash and cash equivalents and $4.0 billion in gross debt [10]. Backlog and Contract Awards - Total backlog increased by 4% to $47.2 billion, supported by $16.3 billion in net bookings and a book-to-bill ratio of 1.1x [11]. - Notable contract awards include a $730 million contract from Électricité de France and a $995 million contract from the U.S. Air Force [12]. Fiscal Year 2026 Guidance - Amentum reaffirmed its fiscal year 2026 guidance, projecting revenues between $13.95 billion and $14.30 billion, with an implied underlying growth of approximately 3% [13][14].

Group 1 - Amentum Holdings Inc. (NYSE:AMTM) is currently viewed as a cheap stock with investment potential, with UBS raising its price target to $37 from $33 while maintaining a Neutral rating [1][7] - Truist has also increased its price target for Amentum to $42 from $34, assigning a Buy rating, and noted that the upcoming government services sector outlook could enhance growth expectations for 2026 and 2027 [3] - The company operates in two segments: Digital Solutions and Global Engineering Solutions, providing engineering and technology solutions both domestically and internationally [4] Group 2 - The Defense and Government IT sectors are influenced more by geopolitical narratives and budget cycles than by immediate earnings catalysts, despite improvements in commercial original equipment build rates [2] - UBS highlighted strong growth in the aftermarket segment but warned of potential deceleration risks in the second half of the year [2] - Truist cautioned that increased defense spending could lead to further reductions in civil budgets, impacting overall growth [3]

Core Insights - Jacobs Solutions Inc. reported strong financial results for Q1 2026, with gross revenue of $3.3 billion, reflecting a year-over-year growth of 12.3%, and adjusted net revenue of $2.3 billion, up 8.2% year-over-year [1][8] - The company achieved a backlog growth of 21% year-over-year, with a trailing twelve months (TTM) book-to-bill ratio of 1.4x, indicating robust demand for its services [1][8] - Jacobs announced a strategic repurchase of $252 million in shares and a 12.5% increase in its quarterly dividend, demonstrating a commitment to returning capital to shareholders [1][3] Financial Performance - Jacobs' Q1 2026 GAAP net earnings were $125 million, a significant turnaround from a net loss of $17.1 million in Q1 2025 [8][9] - Adjusted EBITDA for the quarter was $302.6 million, representing a 7.3% increase year-over-year [8] - The company reported an adjusted EPS of $1.53, up 15.0% from $1.33 in Q1 2025 [8][9] Financial Outlook - Jacobs raised its fiscal 2026 guidance, projecting adjusted net revenue growth of 6.5% to 10.0%, up from a previous forecast of 6.0% to 10.0% [4] - The adjusted EBITDA margin is expected to remain between 14.4% and 14.7%, while adjusted EPS guidance was increased to a range of $6.95 to $7.30 [4] Strategic Initiatives - The company is advancing its asset lifecycle strategy through the acquisition of the remaining stake in PA Consulting, which is expected to enhance its service offerings [1][3] - Jacobs continues to capitalize on strong demand in sectors such as Life Sciences, Data Centers, and Transportation, contributing to its revenue growth [3]

CHANTILLY, Va.--(BUSINESS WIRE)-- #AmentumWin--Amentum (NYSE: AMTM) has won a suite of new contracts from Électricité de France (EDF) worth up to $730 million (£540 million), expanding the critical solutions it provides for the UK's existing nuclear reactors as well as the construction of a new gigawatt power station at Hinkley Point. Loren Jones, senior vice president and head of Amentum's Energy & Environment-International business, said: "Amentum's expertise in gigawatt reactor operational support and. ...

Core Viewpoint - A consortium led by Amentum has secured a contract for program management and technical solutions related to nuclear new build projects in the Netherlands [1] Group 1: Contract Details - The NEXUS-NL consortium includes Amentum, Arcadis, Tractebel, and NRG PALLAS [1] - The consortium will focus on the development of up to two gigawatt-scale power plants [1] Group 2: Strategic Importance - The project aims to support the Netherlands' strategies for decarbonization and energy security [1] - The initiative will also provide support to the Nuclear Energy Organisation [1]