Investment Thesis
Amentum demonstrates strong revenue growth of 71.6% YoY, but profitability is severely constrained with a net margin of only 1.4% and operating margin of 4.3%. Most critically, the company is burning cash with negative operating cash flow of -$136M and negative free cash flow of -$142M, indicating the growth is not translating into sustainable business economics.
AMTM Strengths
- Strong revenue growth of 71.6% YoY ($3.2B) demonstrates significant market demand and business expansion
- Solid liquidity position with current ratio of 1.42x and $247M in cash equivalents
- Reasonable leverage at 0.86x debt-to-equity ratio provides financial flexibility
AMTM Risks
- Severe cash flow deterioration with negative operating cash flow of -$136M and negative free cash flow of -$142M, suggesting growth is unprofitable
- Extremely low profitability with net margin of 1.4% and operating margin of 4.3%, indicating operational inefficiency or low-margin business model
- Very poor returns on equity (1.0%) and assets (0.4%) suggest capital is not being deployed efficiently to generate returns
- High long-term debt of $3.9B combined with cash burn raises sustainability concerns about servicing debt
Key Metrics to Watch
- Operating cash flow trend - must turn positive to validate business model sustainability
- Operating margin expansion - needs significant improvement from current 4.3% levels
- Debt servicing capacity relative to operating cash generation as interest coverage is unavailable
AMTM Financial Metrics
AMTM Profitability Ratios
AMTM Balance Sheet & Liquidity
AMTM 5-Year Financial Trend
5-Year Trend Summary: Amentum Holdings, Inc.'s revenue has grown significantly by 72% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.49 indicates the company is currently unprofitable.
AMTM Growth Metrics (YoY)
AMTM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $12.0M | $0.05 |
| Q3 2025 | $2.1B | $10.0M | $0.04 |
| Q2 2025 | $2.1B | $4.0M | $0.02 |
| Q1 2025 | $2.0B | $12.0M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMTM Capital Allocation
AMTM SEC Filings
Access official SEC EDGAR filings for Amentum Holdings, Inc. (CIK: 0002011286)