Amentum Reports $3.237 Billion Revenue, Net Income Rises to $44 Million Amid Revenue Decline

Amentum Holdings, Inc. reported a revenue of $3.237 billion for the three months ended January 2, 2026, a decrease of 5.2% compared to $3.416 billion in the same period the previous year. The company's net income attributable to common shareholders rose significantly to $44 million, or $0.18 per share, from $12 million, or $0.05 per share, in the prior year. This increase in profitability was attributed to a reduction in selling, general, and administrative expenses, as well as a decrease in interest expenses, which fell to $74 million from $87 million year-over-year.

The decline in revenue was primarily driven by the impacts of government shutdowns, which accounted for approximately $150 million, and the transition of certain contracts from consolidated to unconsolidated joint ventures, resulting in a further $110 million reduction. Despite these challenges, Amentum experienced growth in existing programs and the ramp-up of new contract awards, which partially offset the revenue decline. The company's cost of revenues also decreased to $2.911 billion, reflecting the overall drop in revenue, with cost of revenues as a percentage of total revenue slightly increasing to 89.9% from 89.4%.

In terms of operational developments, Amentum's backlog increased to $47.2 billion as of January 2, 2026, up from $45.2 billion a year earlier. This growth was primarily due to new contract wins, although it was partially offset by revenue recognized on current contracts. The funded backlog stood at $6.9 billion, indicating a solid pipeline of future work. The company continues to focus on its two reportable segments: Digital Solutions and Global Engineering Solutions, with the former generating $1.337 billion in revenue, a 4% increase from the previous year, while the latter saw a decline to $1.900 billion, down 11%.

Looking ahead, Amentum remains optimistic about its growth prospects, citing a favorable budgetary environment for defense spending and increasing demand for its services. The company anticipates that approximately 76% of its remaining performance obligations, valued at $10.8 billion, will be recognized as revenue over the next 12 months. Amentum's management believes that its diverse portfolio and strategic alignment with government priorities position it well to capture new business opportunities in the evolving market landscape.