Aug 11, 2026 earnings call — Updated guidance and nuclear progress
Raised fiscal 2026 adjusted EBITDA outlook to $1.115 billion to $1.14 billion; revenue guidance set at $13.8 billion to $13.95 billion.
Revenue $3.5B (est $3.6B) · EPS $0.67 (est $0.61)
Key quotes
"As previously discussed, total nuclear revenue across Amentum is $2 billion, of which approximately $0.5 billion is in our global nuclear energy accelerating growth market, where we provide solutions to design, develop and program manage new build nuclear capacity across the globe."
"As a result of our strong year-to-date performance, we are raising our outlook for adjusted EBITDA to between $1.115 billion and $1.14 billion, reflecting adjusted EBITDA margins of 8.1% at the midpoint, a 20 basis point improvement from our prior guidance and a 40 basis point increase from fiscal year '25 actuals."
"Based on conversations with our customers at NASA in recent weeks and months, we now anticipate a 3% impact to revenue in fiscal year '27."
Analyst Q&A 9
How you will use cash after deleveraging
Q (Tobey Sommer · Truist): Analyst asked how the company plans to deploy capital once deleveraging completes and whether they expect organic top-line growth in the following fiscal year.
A: Management said they have reached net leverage of 3x earlier than expected and are preparing to deploy capital across strategic options including M&A, buybacks, and debt reduction. They will choose actions that maximize free cash flow per share and long-term shareholder value, and they described continued business development momentum driving mid-single-digit portfolio growth next year aside from NASA impacts.
"So in terms of how we deploy the capital, as stated in our prepared remarks, it should and will be determined based on what presents the best long-term return for Amentum and our shareholders." — Travis Johnson (CFO)
Segment growth and international nuclear work
Q (Christopher Barbero · JPMorgan): Analyst asked whether Digital Solutions or GES will drive next year's growth and whether Amentum can participate in allied nuclear power programs like Saudi Arabia.
A: Management said it's early for segment guidance but warned that NASA (in Digital Solutions) will pressure that segment, while both segments have organic growth and margin expansion opportunities. They also said Amentum has a strong global pipeline, is active in Europe with Rolls-Royce partnerships, and sees opportunities in countries like Saudi Arabia.
"NASA, which is in our Digital Solutions segment will put some pressure on the growth in that segment." — Stephen Arnette (COO)
How much of 2027 revenue is secured
Q (Colin Canfield · Cantor Fitzgerald): Analyst asked how much of the preliminary 2027 revenue outlook is covered by current backlog and expected awards, and what on-contract growth is assumed.
A: Management said about 92% of FY '27 revenue is expected to come from existing or follow-on work, giving good early visibility. They noted pending awards and protests could still affect 2027 and that some award timing will be adjudicated over the coming months.
"we expect approximately 92% of the revenue in FY '27 to come from existing or follow-on work." — Stephen Arnette (COO)
NASA in-sourcing impact and confidence
Q (Gavin Parsons · UBS): Analyst asked what changed at NASA to raise the in-sourcing impact and how confident management is that the hit is limited to the 3% cited.
A: Management said NASA has solidified its plan center by center and shared details with Amentum, so they now have a detailed view and confidence that the in-sourcing impact is about 3% of revenue. They added that the affected contracts are margin-dilutive so the EBITDA impact will be less than the revenue impact, and some remaining work may transition to firm fixed price, lessening EBITDA impact further.
"But now that we understand and kind of summing up the impacts, we have good visibility on the 3% impact, and we're confident in that estimate." — Stephen Arnette (COO)
Drivers of 2026 revenue shortfall
Q (Gregory Parrish · Morgan Stanley): Analyst asked for more detail on the items driving the 2026 revenue guide shortfall, such as protests, procurement delays and executive order effects, and whether these are concentrated in any markets.
A: Management said about $175 million of FY '26 headwind is from new business delays, notably awards under protest spread across the portfolio, plus materials and nonlabor timing volatility. They said these items drive the FY '26 dynamics, expect Q4 growth near year-to-date levels, and have factored award and protest timing into their preliminary 2027 view.
"It's not kind of concentrated in one particular area or another." — Travis Johnson (CFO)
Scaling digital infrastructure and resource focus
Q (Trevor Walsh · Citizens): Analyst asked whether the company can scale more in digital infrastructure and whether they will shift resources there.
A: Management said they are at the point of scaling with data center clients and have found entree with multiple hyperscalers, and the market is receptive because many projects run concurrently. They said they are incrementally biasing resources to critical digital infrastructure and making strategic hires for business development and project leadership.
"And to your point about resource allocation, we are incrementally biasing resources there." — Stephen Arnette (COO)
Role of national security business
Q (Matthew Akers · RBC): Analyst asked whether the national security business will naturally shrink as other areas grow or whether there are revenue or margin unlocks in that business.
A: Management said national security is about half the portfolio and includes geographic diversification (U.S., U.K., Australia). They said it is not an anchor; rather much of that work is transforming toward technology-enabled, higher-margin solutions and shifting from cost-plus to solution-based contracts in places due to policy changes.
"I think there are large parts of the portfolio that are really going through some pretty exciting transformation." — John Heller (CEO)
Defense growth and global presence
Q (Kenneth Herbert): Analyst asked if broader defense spending could drive mid-single-digit growth in that portfolio and how global presence factors in.
A: Management said their base case assumes stable defense budgets and that higher defense spending would be a tailwind. They emphasized Amentum's global footprint—strong positions in the U.K., Australia and Europe—so they think of defense growth opportunities globally, not just in the U.S.
"And we feel really good about the growth prospects there as well as being one of the leaders in the U.S., which has the largest budget." — John Heller (CEO)
Budget assumptions and exiting low-margin work
Q (Andre Madrid · U.S. Bancorp BTIG): Analyst asked which budget scenarios were assumed in the '27 outlook and whether exiting low/no-margin work was driven by the threat environment or margins.
A: Management said their base case is a stable budget environment and they have contemplated likely continuing resolutions early in the year. They clarified exiting low- to no-margin base ops is not related to the global threat environment but is an intentional, domestic decision to prioritize higher-growth, higher-margin opportunities (about 1% of revenue).
"It is not related at all to the global threat environment." — Stephen Arnette (COO)