Amentum Holdings, Inc.(AMTM) - 2026 Q1 - Quarterly Results

Financial Performance - Revenues for the first quarter of fiscal year 2026 were $3.24 billion, a decrease of 5% year-over-year[1] - Net income increased to $44 million, representing a 267% increase compared to the prior year[3] - Adjusted EBITDA was $263 million with an adjusted EBITDA margin of 8.1%, up from 7.7% in the previous year[5] - Revenues for the three months ended January 2, 2026, were $3,237 million, a decrease of 5.3% from $3,416 million for the same period in 2024[27] - Net income attributable to common shareholders increased to $44 million, compared to $12 million in the prior year, representing a 266.7% increase[27] - Basic and diluted earnings per share attributable to common shareholders rose to $0.18, up from $0.05, marking a 260% increase[27] - Operating income for the period was $138 million, compared to $132 million in the prior year, reflecting a 4.5% increase[27] - Adjusted EBITDA for the three months ended January 2, 2026, was $244 million, with an Adjusted EBITDA Margin of 7.5%[40] - Adjusted EBITDA for the period was $262 million, with an EBITDA margin of 7.7%[43] Backlog and Contracts - Total backlog reached $47.2 billion, a 4% increase from $45.2 billion a year ago, with a book-to-bill ratio of 1.0x[11] - Digital Solutions revenues grew by 4% year-over-year, driven by new contract awards in critical digital infrastructure[8] - Global Engineering Solutions revenues decreased by 11% year-over-year due to contract transitions and divestitures[9] - Notable contracts awarded include a $730 million contract from Électricité de France and a $995 million contract from the U.S. Air Force[12][13] Cash Flow and Leverage - Cash flow from operating activities showed a net cash usage of $136 million, impacted by timing of collections and an additional pay cycle[10] - Free Cash Flow for the first quarter of fiscal year 2026 was an outflow of $142 million, consisting of $136 million cash used in operating activities and $6 million for property and equipment purchases[36] - Net Leverage for the first quarter of fiscal year 2026 was 3.4x, calculated from total debt of $3,998 million less cash and cash equivalents of $247 million[37] Assets and Liabilities - Total assets decreased to $11,198 million from $11,460 million, reflecting a decline of 2.3%[30] - Total liabilities decreased to $6,536 million from $6,840 million, a reduction of 4.5%[30] - Cash and cash equivalents at the end of the period were $247 million, down from $522 million at the end of the previous year[31] Credit Rating - Moody's upgraded Amentum's credit rating to Ba3 from Ba1, reflecting improved financial performance[1]