Amentum has transformed through massive consolidations, culminating in its 2024 merger with Jacobs Solutions' Critical Mission Solutions and Cyber & Intelligence businesses. With a record-breaking backlog of $47.2 billion, the company is pivoting toward high-margin digital solutions and serves as a critical architect of national security and global energy infrastructure. Approximately 80% of Amentum's revenue is derived from the U.S. Federal Government, providing a diversified revenue stream largely insulated from commercial economic cycles.
Cyborg Score Rationale
FY2025 revenue reached $14.4 billion with 4% pro-forma growth and $516 million in free cash flow directed toward deleveraging. Q1 2026 adjusted EPS of $0.54 beat analyst estimates. Wall Street raised price targets to $42 and highlights the company's unmatched scale and favorable deleveraging trajectory.
Top Insights
AMTM has outperformed mid-cap defense peers with a massive $47 billion backlog providing rare revenue visibility in uncertain macro environment.
Stock rallied sustainably in late 2025 as Jacobs merger synergies hit bottom line, reaching 52-week high of $37.94 by January 2026.
Potential margin expansion expected as Digital Solutions becomes larger revenue percentage; target of 10%+ EBITDA margins could trigger significant stock rerating.
Geopolitical environment (tensions in Eastern Europe and Indo-Pacific) is primary driver, creating surge in Defense Threat Reduction Agency contract demand.
Named Competitors
Leidos — Leading government services and defense contractor
Booz Allen Hamilton — Strategic consulting and engineering solutions
Jacobs Solutions — Engineering and technology solutions (post-merger integration)
DynCorp — Mission support and logistics
Recent Developments
(February 2026) Q1 FY2026 earnings beat with adjusted EPS of $0.54 and strong cash flow generation.
(February 2026) Truist Securities raised price target to $42.00 citing unmatched scale and favorable deleveraging trajectory.
(January 2026) Stock hit 52-week high of $37.94 as Jacobs merger synergies continue materializing.
(March 2024) Completed merger with Jacobs Solutions' Critical Mission Solutions and Cyber & Intelligence businesses.
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