Amentum Reports Revenue Decline but Increased Net Income in Q2 Fiscal 2026

Amentum Holdings, Inc. reported a slight decline in revenue for the second quarter of fiscal year 2026, with total revenues of $3.478 billion, down from $3.491 billion in the same period last year. For the six months ending April 3, 2026, revenues also decreased to $6.715 billion from $6.907 billion. The company attributed this decline primarily to the transition of certain contracts from consolidated to unconsolidated joint ventures and the impact of government shutdowns, which affected contract awards and program ramp-ups. Despite the revenue drop, Amentum's operating income increased to $151 million for the quarter, compared to $110 million a year earlier, reflecting improved operational efficiencies.

In terms of profitability, Amentum's net income attributable to common shareholders surged to $54 million, or $0.22 per share, for the three months ended April 3, 2026, compared to $4 million, or $0.02 per share, in the prior year. For the six-month period, net income rose to $98 million from $16 million. The significant increase in net income was driven by a reduction in selling, general, and administrative expenses, which fell to $124 million from $145 million, and a decrease in amortization of intangibles, which dropped to $94 million from $120 million.

Operationally, Amentum's Digital Solutions segment saw a revenue increase of 10% year-over-year, reaching $1.468 billion, while the Global Engineering Solutions segment experienced a 7% decline, generating $2.010 billion. The company reported a total backlog of $47.8 billion as of April 3, 2026, an increase from $44.8 billion a year earlier, indicating a strong pipeline of future work. The funded backlog was $6.9 billion, reflecting a solid foundation for upcoming projects.

Amentum's financial position remains stable, with total assets of $11.170 billion and total liabilities of $6.467 billion as of April 3, 2026. The company reported cash and cash equivalents of $428 million, down from $437 million at the end of the previous fiscal year. The company has also amended its credit facility, establishing a new $1.4 billion senior secured term loan and increasing its revolving credit facility by $150 million, which enhances its liquidity and financial flexibility.

Looking ahead, Amentum remains optimistic about its growth prospects, driven by increasing demand for its services in both federal and commercial markets. The company anticipates continued revenue growth from new contract awards and existing program expansions, despite the challenges posed by government budgetary processes and potential delays in contract awards. Amentum's management believes that its strategic positioning and diverse capabilities will enable it to capitalize on emerging opportunities in the defense and technology sectors.