Companies Set to Win as States Vie to Host Nuclear Campuses Why These Campuses Matter The DOE envisions regional NLICs that bring together every stage of the nuclear fuel cycle under one roof. This co-location reduces logistics friction, speeds permitting, and makes it far easier to recycle used fuel, fabricate new fuel, and deploy reactors that power data centers or local/national grids. Private capital flows naturally when states offer ready infrastructure, skilled workforces, and aligned policy support. ...

Amentum Holdings Inc. (NYSE:AMTM) is among the 10 best non-tech stocks to buy and hold for 5 years. On March 10, Amentum Holdings Inc. (NYSE:AMTM) announced that a joint venture it leads has been awarded a $112 million contract to provide decommissioning and waste management services at nuclear research sites across four European countries. The European Commission Joint Research Centre awarded the contract, valued at €95.7 million, for work at sites in Ispra, Italy; Karlsruhe, Germany; Geel, Belgium; and P ...

Core Insights - The article discusses four specialty companies in the defense, energy, and aviation sectors that are well-positioned for the upcoming market upcycle driven by rising WTI crude oil prices, increasing global defense budgets, and strong demand in the aviation aftermarket [1] Group 1: Company Summaries - **Beta Technologies (NYSE:BETA)**: Focuses on electric aviation, with Q4 2025 revenue of $11.13 million, more than doubling year-over-year. The company has a commercial backlog of 891 aircraft valued at approximately $3.5 billion. Key catalyst includes FAA certification for the H500A electric engine expected in H1 2026 [1] - **Civitas Resources (NYSE:CIVI)**: Operates in the DJ Basin and Permian Basin, achieving oil production of 158 MBbl/d, a 6% increase sequentially. The company has a cash operating expense of $9.67 per BOE and completed a $250 million share repurchase. It is involved in a $12.8 billion merger with SM Energy, which complicates its outlook [1] - **Amentum Holdings (NYSE:AMTM)**: A pure-play advanced engineering and technology firm with a backlog of $47.2 billion. Q1 FY2026 revenue was $3.237 billion, slightly missing estimates. Recent contract wins include a $730 million EDF nuclear services contract and a $995 million U.S. Air Force contract [1] - **AAR Corp (NYSE:AIR)**: Reported Q2 FY2026 adjusted EPS of $1.18, beating estimates by nearly 14%. Revenue reached $795.3 million, growing 15.9% year-over-year. The company has a strong parts supply segment and is expanding capacity with new hangars [1] Group 2: Market Context - WTI crude oil prices increased from $55.44 in December 2025 to $94.65 as of March 9, 2026, creating a favorable macro backdrop for energy and oil producers [1] - Global defense budgets are expanding, providing a supportive environment for defense contractors like Amentum and AAR Corp [1] - The aviation aftermarket demand is outpacing supply, benefiting companies involved in aviation services and parts supply [1]

Core Insights - Amentum-led joint venture has been awarded a $112 million contract for decommissioning and waste management at four European nuclear research sites [1] - The contract aims to accelerate cleanup efforts at sites in Ispra (Italy), Karlsruhe (Germany), Geel (Belgium), and Petten (The Netherlands) [1] - Amentum's experience and strong ties with regulatory authorities in the EU were key factors in securing the contract [1] Contract Details - The contract is valued at €95.7 million and is awarded by the European Commission Joint Research Centre (JRC) [1] - The scope includes decommissioning solutions for research reactors, hot cells, accelerators, laboratories, and other infrastructure handling radioactive substances [1] - The contract has a duration of two years with three potential two-year extensions [1] Company Background - Amentum is a global leader in advanced engineering and technology solutions, with approximately 50,000 employees across more than 70 countries [1] - The company has a significant presence in Europe, with over 6,500 employees involved in nuclear projects in the UK, France, Poland, Slovakia, and the Netherlands [1] - Amentum's key nuclear energy programs include Hinkley Point C, Sizewell C, and Rolls-Royce SMR in the UK, as well as ITER in France [1]

PresentationBrian GesualeRaymond James & Associates, Inc., Research Division Good morning, everybody, Wednesday, the long durable folks are still here. We're really excited that you're here. We have Amentum here to take us through their story. This is one of the few buy-rated government service stocks that I have in my coverage. We think there's a lot of opportunity to grow free cash flow and that there's some underappreciated growth markets in the name. So I think your time is well spent this morning. We'r ...

Amentum Conference Call Summary Company Overview - Amentum is a $14 billion company with 50,000 employees globally, primarily serving the U.S. government (80% of work) and commercial industries (20%) including foreign governments, particularly in the U.K. and Australia [4][5] Core Business and Growth Markets - Amentum's core growth markets include defense and intelligence, with long-term contracts averaging 7-8 years [4] - The company has $4 billion in accelerating growth markets: critical digital infrastructure, space systems, and global nuclear energy, expecting high single-digit growth and double-digit margins in these areas [5][6] Nuclear Energy Market - Amentum views the nuclear energy market as a generational demand, with significant growth potential in the U.S. as the country seeks to expand its nuclear capacity [9][10] - The U.S. government is supportive of developing small modular reactors (SMRs) and new gigawatt plants, with a goal of constructing 10 additional gigawatt-sized plants by 2030 [11] - Approximately 100 out of 200 existing U.S. nuclear plants have the potential for life extension, representing significant project opportunities for Amentum [12] Space Market - Amentum is a leading engineer for NASA, focusing on next-generation space capabilities, including satellite launches and missile defense systems [14][15] - The company has secured a $4 billion contract with the Space Force for launch support, anticipating an increase in launch cadence from 100 to 300-500 launches per year [15][18] - Amentum is involved in developing missile defense capabilities to counter hypersonic threats, with a significant budget allocated for the Golden Dome program [17][20] Financial Performance - Amentum generates approximately $550 million in free cash flow annually, with a target to grow free cash flow by 10% or more by FY28 [21][24] - The company has reduced its leverage from 4.1 times to 3.2 times and aims to be below 3 times by the end of the fiscal year [23][24] - The EBITDA margin has improved from 7.7% at merger to a projected 8.5%-9% by FY28, driven by growth in high-margin markets and cost synergies from the merger [30] Market Position and Competitive Advantage - Amentum's global footprint in 70 countries allows it to leverage expertise and capabilities across different markets, particularly in nuclear energy [36][37] - The company is well-positioned to support Australia’s nuclear infrastructure expansion, including the development of nuclear-powered submarines [37] Government Spending Outlook - There is a consensus on the need for increased defense spending, with discussions around a potential $1.5 trillion budget by 2027, reflecting the necessity for advanced military capabilities [38][39] Conclusion - Amentum is strategically positioned in high-growth markets such as nuclear energy and space, with a strong financial profile and a commitment to increasing free cash flow and margins. The company is leveraging its global presence to capitalize on emerging opportunities in defense and infrastructure development.

Core Insights - Amentum Holdings Inc. reported a steady start to FY2026 with $3.24 billion in revenue and a normalized growth rate of 3% in FQ1 2026, maintaining an adjusted EBITDA of $263 million and margins of 8.1% despite a government shutdown [1][2][3] Financial Performance - The company generated $3.24 billion in revenue in FQ1 2026, achieving a normalized growth rate of 3% [1] - Adjusted EBITDA stood at $263 million with margins of 8.1% [1] - For the full fiscal year 2026, Amentum projected revenue between $13.95 billion and $14.3 billion, with adjusted diluted EPS between $2.25 and $2.45 [3] Market Expansion - Amentum is expanding into high-growth sectors, particularly the nuclear energy market, securing approximately $1 billion in awards during FQ1 2026 [2] - The company is involved in supporting the Missile Defense Agency and Space Force, with expectations for increased activity under the Golden Dome Shield contract [2] Strategic Direction - Leadership is shifting the bid pipeline toward higher-margin, fixed-price contracts to drive future profitability [3] - Currently, Amentum has $23 billion in proposals awaiting award, while managing challenges related to $2 billion in new business under protest or awaiting corrective action [3] Company Overview - Amentum Holdings Inc. provides engineering and technology solutions both in the US and internationally, operating through two segments: Digital Solutions and Global Engineering Solutions [5]

Group 1 - Amentum Holdings Inc. (NYSE:AMTM) is recognized as a high-growth industrial stock, with analysts at Citizens maintaining a Market Outperform rating and a price target of $40 [1] - The company is experiencing robust earnings growth due to a transformative merger with Jacobs Solutions, positioning it as a global leader in advanced engineering and innovative technology solutions [1][2] - The merger has expanded Amentum's market potential, allowing it to align with federal priorities beyond the Department of Defense and capitalize on AI data center investments [2] Group 2 - Amentum Holdings reported solid first-quarter fiscal 2026 results, with adjusted earnings per share of $0.54, significantly exceeding consensus estimates of $0.25 [3] - The company's revenue for the quarter was $3.24 billion, reflecting a 5% decrease year over year, attributed to contract transitions from consolidated to unconsolidated joint ventures [3] - Amentum is a leading global provider of advanced engineering, technology, and mission-critical solutions for the U.S. government, its allies, and commercial clients [3]

Core Viewpoint - Amentum has been awarded a contract to enhance the UK's hypersonic strike capabilities through missile design engineering and program management expertise [1] Group 1: Contract Details - The contract, known as the Industry Mission Partner (IMP) contract, was awarded by Team Hypersonics UK, which is part of the Ministry of Defence [1] - The objective of the contract is to accelerate weapon development and enhance sovereign capabilities [1] Group 2: Collaboration and Strategic Importance - The contract aims to strengthen collaboration with Australia and the United States under the AUKUS agreement [1] - Amentum will establish a Joint Venture (JV) as part of this initiative [1]

Core Viewpoint - Amentum's first quarter fiscal 2026 financial results showed mixed performance, leading to a significant decline in stock price despite earlier gains in the year [2][5]. Financial Performance - Amentum reported adjusted diluted earnings per share (EPS) of $0.54, surpassing analyst expectations of $0.52 [5]. - The company's revenue for Q1 2026 was $3.24 billion, falling short of the anticipated $3.32 billion, marking a 5% year-over-year decrease [5]. - Amentum experienced negative free cash flow of $142 million in Q1 2026, a notable decline from the positive $102 million reported in Q1 2025 [7]. Market Reaction - Following the financial results announcement, Amentum's stock price dropped 19.9% from the end of trading last Friday to the close of Thursday's market session [3]. - Despite a 27.2% increase in stock price since the beginning of 2026, investor sentiment turned negative, leading to a sell-off [2]. Future Guidance - For fiscal 2026, Amentum provided a revenue forecast of $13.95 billion to $14.3 billion, indicating a year-over-year growth of about 3% [8]. - The company also projected adjusted EBITDA of $1.1 billion to $1.14 billion, reflecting a year-over-year growth of approximately 5% [8]. Valuation Considerations - Amentum's stock is currently trading at 75.2 times trailing earnings, suggesting that it may not be a bargain for investors at this time [9].