Key Stats for AMTM Stock
- Price Change for AMTM stock: 12.38%
- AMTM Share Price as of Feb. 10: $32.11
- 52-Week High: $38.11
- AMTM Stock Price Target: $36.18
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What Happened?
Amentum Holdings (AMTM) stock dropped over 12% yesterday after the company announced Q1 fiscal 2026 results that missed revenue expectations but beat on adjusted earnings.
The report showed revenue of $3.24 billion, down 5% year over year due to joint venture transitions, divestitures, and government shutdown impacts.
Normalized for these factors, revenue grew 3%. Adjusted EBITDA held steady at $263 million with margins improving to 8.1%. Adjusted EPS rose 6% to $0.54.
The company reaffirmed full-year guidance, projecting revenue of $13.95 billion to $14.3 billion and adjusted EBITDA of $1.1 billion to $1.14 billion.
Amentum is a global leader in advanced engineering and innovative technology solutions, trusted by the United States and its allies to address their most significant and complex challenges in science, security, and sustainability.
The company recently won major nuclear contracts, including $730 million from EDF in the UK and $207 million from the Dutch government.
AMTM aims to leverage its $47 billion backlog for growth in nuclear energy, space systems, and critical digital infrastructure.
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What the Market Is Telling Us About AMTM Stock
The sharp drop in AMTM stock signals that investors are concerned about the revenue decline and near-term headwinds like government funding risks. But the EPS beat and reaffirmed guidance add credibility and shows resilience in core operations.
AMTM reported Q1 results showing $3.24 billion in revenue and adjusted EBITDA of $263 million. The company outperformed on margins during the quarter. Management remains confident about growing adjusted EBITDA to over $1.1 billion while pursuing strategic wins.
The engineering and technology solutions industry is highly fragmented, which creates opportunities for consolidation. Companies with scale advantages can negotiate better pricing with suppliers and operate more efficiently. AMTM’s tech-enabled platform could drive margin improvements across its segments.
However, AMTM faces execution risk as it integrates acquisitions and manages divestitures. Rising interest rates and economic uncertainty could also impact both contract valuations and end-market demand for government services.
Investors should monitor AMTM’s contract pipeline closely. The company needs to deploy its resources into deals that create value rather than simply chasing revenue growth. The high leverage means that deleveraging is a priority before potential shareholder returns like buybacks.
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How Much Upside Does AMTM Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
