Amentum Holdings, Inc. 2026 Q3 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Amentum reported third quarter fiscal year 2026 revenue of $3.5 billion, reflecting normalized growth of approximately 1%.
- Adjusted EBITDA was $290 million with margins of 8.3%, a 60 basis point year-over-year increase.
- Adjusted diluted earnings per share increased 20% year over year to $0.67.
- Free cash flow was $135 million for the quarter and $213 million year to date.
- Net bookings were $3.9 billion with a book-to-bill ratio of 1.1 times for the quarter and 1.3 times trailing 12 months, ending backlog was $48 billion, and funded backlog increased 10% year over year to $6.2 billion.
- Key awards included over $400 million in nuclear contracts, $250 million in critical digital infrastructure, over $1 billion in defense contracts, and two long-term NASA IDIQ awards.
- Digital Solutions segment revenue grew 3% to $1.5 billion with adjusted EBITDA margins of 8%.
- Global Engineering Solutions segment revenue was $2 billion with adjusted EBITDA margins of 8.6%.
- Debt repayments totaled $125 million in the quarter, reducing net leverage to three times, ahead of schedule.
- Fiscal year 2026 guidance was updated to revenue between $13.8 billion and $13.95 billion, adjusted EBITDA between $1.115 billion and $1.14 billion, adjusted diluted EPS between $2.40 and $2.50, and free cash flow between $525 million and $575 million.
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Transcript
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Ladies and gentlemen, thank you for standing by. Good morning, and welcome to Amentum's third quarter fiscal year 2026 earnings conference call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session, and instructions will be provided at that time. I would like to turn the call over to Joseph DeNardi, Senior Vice President of Investor Relations.
Please go ahead. Thank you, and good morning, everyone.
We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our investor relations website. We have also provided presentation slides to facilitate today's call, so let's move to slide 2. Please note that this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our SEC filings for a discussion of these factors, including the Risk Factors section of our annual report on Form 10-K. The statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do so, except as required by applicable law.
In addition, we will discuss non-GAAP financial measures which we believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures. We do not provide reconciliations of forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant items. These non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Our Safe Harbor statement included on this slide should be incorporated as part of any transcript of this call. With me today to discuss our business and financial results are John Heller, Chief Executive Officer, and Travis Johnson, Chief Financial Officer. We are also joined by other members of management, including Steve Arnette, Chief Operating Officer.
With that, moving to slide 3, it's my pleasure to turn the call over to our CEO, John Heller.
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