Amentum Q3 revenue misses estimates, FY26 outlook cut

Amentum Holdings

10/08/2026 21:41

Overview
US engineering and technology firm's Q3 revenue fell 2% and missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations, driven by strong operations and lower interest expense
Company raised full-year guidance for Adjusted EBITDA and Adjusted Diluted EPS

Outlook
Amentum cuts FY26 revenue guidance to $13.8 bln-$13.95 bln from $13.95 bln-$14.3 bln
Company raises FY26 adjusted EBITDA outlook to $1.115 bln-$1.14 bln from $1.1 bln-$1.14 bln
Amentum lifts FY26 adjusted diluted EPS forecast to $2.40-$2.50 from $2.25-$2.45

Result Drivers
CONTRACT TRANSITIONS AND DIVESTITURES - Co said revenue fell 2% due to transition of certain contracts to unconsolidated joint ventures and prior-year divestitures
NEW CONTRACT AWARDS - Ramp-up of new contract awards in critical digital infrastructure and space systems partially offset revenue decline
MARGIN EXPANSION INITIATIVES - Adjusted EBITDA margin rose due to continued progress on margin expansion initiatives and favorable contract mix

Company press release: ID:nBw3CvKwsa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$3.49 bln
$3.57 bln (9 Analysts)
Q3 Adjusted EPS
Beat
$0.67
$0.61 (9 Analysts)
Q3 EPS
 
$0.27
 
Q3 Net Income
 
$66 mln
 
Q3 Operating Income
 
$172 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for Amentum Holdings, Inc. is $30.00, about 21.1% above its August 7 closing price of $24.77
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)