Amentum Reports 2% Revenue Decline in Q3 2026, Operating Income Up 67%

Amentum Holdings, Inc. reported a decrease in revenue for the third quarter of fiscal year 2026, with total revenues of $3.49 billion, down 2% from $3.56 billion in the same period last year. For the nine months ending July 3, 2026, revenues also fell by 2.5% to $10.21 billion compared to $10.47 billion in the prior year. The decline in revenue was attributed to the transition of certain contracts from consolidated to unconsolidated joint ventures and the impact of fiscal year 2025 divestitures, although this was partially offset by new contract awards and growth in existing programs.

The company's operating income for the third quarter increased significantly to $172 million, up 67% from $103 million a year earlier. Net income attributable to common shareholders was $66 million, a substantial increase from $10 million in the same quarter last year, resulting in earnings per share of $0.27, compared to $0.04 previously. For the nine-month period, net income rose to $164 million from $26 million, reflecting a strong operational performance despite the revenue decline.

Amentum's strategic developments included a focus on synergies from the merger with Jacobs Solutions Inc., which contributed to a 26% reduction in selling, general, and administrative expenses to $122 million for the quarter. The company also reported an increase in equity earnings from non-consolidated subsidiaries, which rose to $28 million from $18 million year-over-year. The company’s total backlog increased to $48.2 billion as of July 3, 2026, up from $44.6 billion a year earlier, driven by new contract wins.

Operationally, Amentum's Digital Solutions segment saw a 3% increase in revenues to $1.46 billion for the quarter, while the Global Engineering Solutions segment experienced a 5% decline to $2.03 billion. The company reported a remaining performance obligations balance of $8.9 billion, with expectations to recognize approximately 79% of this amount as revenue over the next 12 months. The company’s employee headcount remained stable, supporting its operational capabilities across various segments.

Looking ahead, Amentum remains optimistic about its growth prospects, citing a favorable budgetary environment for defense spending and ongoing demand for its services. The company anticipates continued growth driven by increasing government spending on modernization and security initiatives, although it acknowledges potential risks related to government budget approvals and contract awards.