Amentum Q3 revenue misses estimates, FY26 outlook cut

Amentum cuts FY26 revenue guidance to $13.8 bln-$13.95 bln from $13.95 bln-$14.3 bln.

The company raises FY26 adjusted EBITDA outlook to $1.115 bln-$1.14 bln from $1.1 bln-$1.14 bln, and lifts FY26 adjusted diluted EPS forecast to $2.40-$2.50 from $2.25-$2.45.

• Contract transitions and divestitures: Revenue fell 2% due to transition of certain contracts to unconsolidated joint ventures and prior-year divestitures.
• New contract awards: Ramp-up of new contract awards in critical digital infrastructure and space systems partially offset the revenue decline.
• Margin expansion initiatives: Adjusted EBITDA margin rose due to continued progress on margin expansion initiatives and favorable contract mix.

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell".

The average consensus recommendation for the construction & engineering peer group is "buy."

Wall Street's median 12-month price target for Amentum Holdings, Inc. is $30.00, about 21.1% above its August 7 closing price of $24.77.

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago.

Amentum said third-quarter revenue fell 2% and missed analyst expectations, while adjusted EPS beat estimates, driven by strong operations and lower interest expense.