Amentum Holdings, Inc. Q1 FY2026 earnings call

• Entered the new fiscal year with strong momentum, including robust bookings aligned to high-demand mission areas. • Q1 results: Revenue $3.2 billion, adjusted EBITDA $263 million (8.1% margin), adjusted diluted EPS $0.54 (up 6% YOY). • Strategic wins: $3.3 billion net bookings, backlog $47 billion, $23 billion in pending awards. • Growth markets: Space Systems and Technologies, critical digital infrastructure, global nuclear energy with strong demand visibility, attractive margins, and long-term growth potential. • Specific contracts: Rolls-Royce SMR partnership, EDF Nuclear Power $730M contract, DISA Compute-as-a-Service $120M award, etc.

Digital Solutions delivered revenue of $1.34 billion, representing 4% growth on a reported basis and a robust 8% after normalizing for items, with adjusted EBITDA of $103 million and margins of 7.7%. Global Engineering Solutions had revenue of $1.9 billion, impacted by JV transitions, divestiture, and government shutdown, with underlying revenue consistent with prior year, adjusted EBITDA of $160 million and margins of 8.4%.

• Reaffirmed fiscal year 2026 outlook: Revenue $13.95 billion to $14.3 billion, adjusted EBITDA $1.1 billion to $1.14 billion, adjusted diluted EPS $2.25 to $2.45, free cash flow $525 million to $575 million. • Expect quarterly sequential increases in revenue, adjusted EBITDA, and adjusted diluted earnings per share post-government shutdown. • Confident in achieving full-year outlook with healthy underlying organic growth.

• Government shutdown impacted Q1 performance. • Uncertainty around protests on new awards. • Difficulty in forecasting and quantifying certain significant items for non-GAAP financial measures.

Q: Travis, do you mind focusing on the free cash flow progression through the year and maybe talk about Cogniz, how you think about this quarter's performance, second half performance and then maybe discussing how you think about potentially selling receivables in order to kind of bolster the free cash flow that...

A: Travis Johnson discussed timing related to government shutdown and collections, noting Q1 cash performance was timing related with collections rebounding in Q2.

Q: Tobey Sommer asked about nuclear's impact on P&L and nuclear bids...

A: John Heller talked about nuclear awards, progress in the nuclear market, and the timeline for nuclear projects contributing to revenue and profit.

Q: Seth Seifman asked about investing cash flows in JVs...

A: Travis Johnson explained JV capital contributions, noting initial large contributions in Q1 with expectations of normalization.

Q: Kristine Liwag asked about Amentum's core capabilities in industrial gas turbine projects...

A: John Heller responded on Amentum's focus on nuclear power and bridging to nuclear infrastructure with existing projects.

Q: Gavin Parsons asked about timing of nuclear award announcements...

A: John Heller discussed ongoing activity and progress in U.S. nuclear, expecting progress in 2026 and beyond.

Q: Andre Madrid asked about space end markets and book-to-bill...

A: Travis Johnson and John Heller discussed space market segments, book-to-bill performance, and opportunities in accelerating growth markets